[House Report 116-700]
[From the U.S. Government Publishing Office]
116th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 116-700
_______________________________________________________________________
COLLEGE AFFORDABILITY ACT
----------
R E P O R T
of the
COMMITTEE ON EDUCATION AND LABOR
to accompany
H.R. 4674
together with
MINORITY VIEWS
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
December 28, 2020.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
COLLEGE AFFORDABILITY ACT
116th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 116-700
_______________________________________________________________________
COLLEGE AFFORDABILITY ACT
__________
R E P O R T
of the
COMMITTEE ON EDUCATION AND LABOR
to accompany
H.R. 4674
together with
MINORITY VIEWS
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
December 28, 2020.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
__________
U.S. GOVERNMENT PUBLISHING OFFICE
42-797 WASHINGTON : 2020
116th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 116-700
======================================================================
COLLEGE AFFORDABILITY ACT
_______
December 28, 2019.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Scott of Virginia, from the Committee on Education and Labor,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 4674]
[Including cost estimate of the Congressional Budget Office]
The Committee on Education and Labor, to whom was referred
the bill (H.R. 4674) to amend and strengthen the Higher
Education Act of 1965 to lower the cost of college for students
and families, to hold colleges accountable for students'
success, and to give a new generation of students the
opportunity to graduate on-time and transition to a successful
career, having considered the same, reports favorably thereon
with an amendment and recommends that the bill as amended do
pass.
CONTENTS
Page
Purpose and Summary.............................................. 303
Committee Action................................................. 304
Committee Views.................................................. 323
Section-by-Section Analysis...................................... 368
Explanation of Amendments........................................ 451
Application of Law to the Legislative Branch..................... 451
Unfunded Mandate Statement....................................... 451
Earmark Statement................................................ 451
Roll Call Votes.................................................. 451
Statement of Performance Goals and Objectives.................... 494
Duplication of Federal Programs.................................. 494
Hearings......................................................... 494
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 494
New Budget Authority and CBO Cost Estimate....................... 494
Committee Cost Estimate.......................................... 506
Changes in Existing Law Made by the Bill, as Reported............ 507
Minority Views................................................... 1417
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``College
Affordability 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. 1001. Definition of institution of higher education for purposes
of title IV programs.
Sec. 1002. Additional definitions.
Sec. 1003. Gainful employment programs.
Part B--Additional General Provisions
Sec. 1011. Antidiscrimination.
Sec. 1012. National Advisory Committee on Institutional Quality and
Integrity.
Sec. 1013. Disclosures of foreign gifts.
Sec. 1014. Alcohol and substance misuse prevention.
Sec. 1015. Exception to required registration with selective service
system.
Sec. 1016. Integrity of nonprofit institutions of higher education.
Sec. 1017. Support and guidance for homeless individuals and foster
care youth.
Sec. 1018. Calculation of percentage of enrolled students receiving or
eligible for Federal Pell Grants.
Sec. 1019. Certification regarding the use of certain Federal funds.
Sec. 1020. Freedom of association.
Part C--Cost of Higher Education
Sec. 1021. Consumer information.
Sec. 1022. Postsecondary student data system.
Sec. 1023. Avoiding duplicative reporting.
Sec. 1024. Disclosure of non-instructional spending increases.
Sec. 1025. Textbook information.
Sec. 1026. Repeals.
Sec. 1027. In-state tuition rates for homeless youth and foster care
youth.
Part D--Administrative Provisions for Delivery of Student Financial
Assistance
Sec. 1031. Improvements to the Federal Student Aid Office.
TITLE II--TEACHER QUALITY ENHANCEMENT
Part A--Teacher and School Leader Quality Partnership Grants
Sec. 2001. Definitions.
Sec. 2002. Purposes.
Sec. 2003. Partnership grants.
Sec. 2004. Administrative provisions.
Sec. 2005. Accountability and evaluation.
Sec. 2006. Accountability for programs that prepare teachers,
principals, or other school leaders.
Sec. 2007. Teacher development.
Sec. 2008. State functions.
Sec. 2009. General provisions.
Sec. 2010. Elevation of the education profession study.
Sec. 2011. Authorization of appropriations.
Part B--Enhancing Teacher and School Leader Education
Sec. 2101. Enhancing teacher and school leader education.
TITLE III--INSTITUTIONAL AID
Sec. 3001. Strengthening institutions.
Sec. 3002. Strengthening institutions.
Sec. 3003. Strengthening Historically Black Colleges and Universities.
Sec. 3004. Historically Black College and University Capital Financing.
Sec. 3005. Strengthening Historically Black Colleges and Universities
and other minority-serving institutions.
Sec. 3006. General provisions.
TITLE IV--STUDENT ASSISTANCE
Sec. 4001. Effective date.
Part A--Grants to Students in Attendance at Institutions of Higher
Education
subpart 1--federal pell grants
Sec. 4011. Amount of grants.
Sec. 4012. Grant eligibility.
Sec. 4013. Extending Federal Pell Grant eligibility of certain short-
term programs.
Sec. 4014. Providing Federal Pell Grants for Iraq and Afghanistan
veteran's dependents.
Sec. 4015. Federal Pell Grant fraud prevention.
Sec. 4016. Federal Pell Grants on behalf of incarcerated individuals.
subpart 2--federal early outreach and student services programs
Chapter 1--Federal Trio Programs
Sec. 4021. Program authority; authorization of appropriations.
Sec. 4022. Talent search.
Sec. 4023. Upward bound.
Sec. 4024. Student support services.
Sec. 4025. Postbaccalaureate achievement program authority.
Sec. 4026. Educational opportunity centers.
Sec. 4027. Staff developmental activities.
Sec. 4028. Reports and evaluations.
Chapter 2--Gaining Early Awareness and Readiness for Undergraduate
Programs
Sec. 4031. Gaining early awareness and readiness for undergraduate
programs.
subpart 3--federal supplemental educational opportunity grants
Sec. 4041. Purpose; appropriations authorized.
Sec. 4042. Institutional eligibility.
Sec. 4043. Allocation of funds.
Sec. 4044. Emergency financial aid grant program.
subpart 4--special programs for students whose families are engaged in
migrant and seasonal farmwork
Sec. 4051. Special programs for students whose families are engaged in
migrant and seasonal farmwork.
subpart 5--child care access means parents in school
Sec. 4061. CCAMPIS Reauthorization.
subpart 6--jumpstart to college grant programs
Sec. 4071. Jumpstart to college grant programs.
subpart 7--teach grants
Sec. 4081. Revised definitions of teach grants.
Sec. 4082. Revisions to establishing teach grant program.
Sec. 4083. Revisions to teach grant agreements to serve and
eligibility.
Sec. 4084. Revisions to teach grant data collection and reporting.
subpart 8--northern mariana islands and american samoa college access
Sec. 4091. Northern Mariana Islands and American Samoa College access.
subpart 9--student success
Sec. 4092. Community College Student Success Grant program authorized.
Sec. 4093. Federal Pell Bonus Program.
Part B--Federal Family Education Loan Program
Sec. 4101. Termination of certain repayment plan options and
opportunity to change repayment plans.
Sec. 4102. Termination of interest capitalization for subsidized loans
after certain periods.
Sec. 4103. Termination of interest capitalization for PLUS loans after
certain periods.
Sec. 4104. Consolidation loans.
Sec. 4105. Default reduction program.
Sec. 4106. Termination of interest capitalization for unsubsidized
loans after certain periods.
Sec. 4107. Disbursement of student loans.
Sec. 4108. Student loan contract and loan disclosures.
Sec. 4109. Borrower advocate conforming amendments.
Sec. 4110. Cohort default rates.
Sec. 4111. Automatic income monitoring procedures after a total and
permanent disability discharge.
Sec. 4112. Automatic closed school discharge.
Sec. 4113. Repayment of parent loans due to student disability.
Part C--Federal Work-Study Programs
Sec. 4201. Purpose; authorization of appropriations.
Sec. 4202. Allocation formula.
Sec. 4203. Grants for Federal work-study programs.
Sec. 4204. Flexible use of funds.
Sec. 4205. Job location and development programs.
Sec. 4206. Community service.
Sec. 4207. Amendments to work colleges.
Sec. 4208. Pilot grant program.
Sec. 4209. Department activities.
Sec. 4210. Study and report.
Part D--Federal Direct Loan Program
Sec. 4301. Program authority.
Sec. 4302. Amendments to terms and conditions of loans and repayment
plans.
Sec. 4303. Amendments to terms and conditions of public service loan
forgiveness.
Sec. 4304. Federal Direct Perkins Loans terms and conditions.
Sec. 4305. Common manual for loan servicers.
Sec. 4306. Refinancing FFEL and Federal Direct Loans.
Sec. 4307. Refinancing private student loans.
Part E--Federal Perkins Loans
Sec. 4401. Authorization of appropriations for Perkins loan.
Sec. 4402. Allocation of funds for Perkins loan.
Sec. 4403. Federal Direct Perkins loan allocation.
Sec. 4404. Agreements with institutions of higher education for
purposes of the Perkins loan program.
Sec. 4405. Student loan information by eligible institutions for
purposes of the Perkins loan program.
Sec. 4406. Terms of loans for purposes of the Perkins loan program.
Sec. 4407. Reimbursement for cancellation of Perkins loans for certain
public service.
Sec. 4408. Distribution of assets from student loan funds for purposes
of the Perkins loan program.
Part F--Need Analysis
Sec. 4501. Amendments to family contribution.
Sec. 4502. Amendments to data elements when determining the expected
family contribution.
Sec. 4503. Amendments to family contribution for dependent students.
Sec. 4504. Amendments to family contribution for independent students
without dependents other than a spouse.
Sec. 4505. Amendments to family contribution for independent students
with dependents other than a spouse.
Sec. 4506. Institutional calculations for off-campus room and board.
Sec. 4507. Updated tables and amounts to need analysis.
Sec. 4508. Zero expected family contribution.
Sec. 4509. Amendments to definitions in need analysis.
Part G--General Provisions Relating to Student Assistance Programs
Sec. 4601. Definition of eligible program.
Sec. 4602. Definition of third party servicer.
Sec. 4603. FAFSA simplification.
Sec. 4604. Student eligibility.
Sec. 4605. Reasonable collection costs on defaulted loans.
Sec. 4606. Student eligibility information for nutrition assistance
programs.
Sec. 4607. Exit counseling.
Sec. 4608. Clery Act amendments.
Sec. 4609. Online survey tool for campus safety.
Sec. 4610. Transfer of credit policies.
Sec. 4611. Amendments to institutional and financial assistance.
Sec. 4612. Prevention of improper access.
Sec. 4613. Information with respect to crime statistics for programs of
study abroad.
Sec. 4614. Remedial education grants.
Sec. 4615. Competency-based education.
Sec. 4616. Competency-based education council.
Sec. 4617. Written arrangements to provide educational programs.
Sec. 4618. Improvements to program participation agreements.
Sec. 4619. Compliance with the Civil Rights Act of 1964.
Sec. 4620. Submission of data with respect to students with
disabilities.
Sec. 4621. Education program on hazing.
Sec. 4622. Changes to program participation agreements to strengthen
consumer protections.
Sec. 4623. Misrepresentation and substantial misrepresentation defined.
Sec. 4624. Revenue requirement.
Sec. 4625. Teach-out plans.
Sec. 4626. Experimental programs.
Sec. 4627. Administrative expenses.
Sec. 4628. Criminal penalties for misuse of access devices.
Sec. 4629. Regional meetings and negotiated rulemaking.
Sec. 4630. Income-based repayment plan.
Sec. 4631. Fixed repayment plan.
Sec. 4632. Requiring a common manual for loan servicers.
Sec. 4633. Removal of record of default.
Sec. 4634. Amendments to terms and conditions of borrower defenses.
Sec. 4635. On-time repayment rates.
Part H--Program Integrity
subpart 1--state role
Sec. 4701. State responsibilities.
subpart 2--accrediting agency recognition
Sec. 4711. Accrediting agency recognition of eligible job training
programs.
Sec. 4712. Accrediting agency recognition of institutions enrolling
incarcerated individuals.
Sec. 4713. Requirements for accrediting agency recognition.
subpart 3--program review and data
Sec. 4721. Eligibility and certification procedures.
Sec. 4722. Program review and data.
subpart 4--strengthening institutional quality
Sec. 4731. Strengthening institutional quality.
Part I--America's College Promise Federal-State Partnership
Sec. 4801. Program authorized.
Sec. 4802. Student Success Fund.
Sec. 4803. Pathways to student success for Historically Black Colleges
and Universities, Tribal Colleges and Universities, and Minority-
Serving Institutions.
Sec. 4804. Unmet need for Federal Pell Grant recipients.
Sec. 4805. Unmet need for students.
Sec. 4806. Tuition waivers.
Sec. 4807. Expansion for private institutions.
TITLE V--DEVELOPING INSTITUTIONS
Sec. 5001. Hispanic-serving institutions.
Sec. 5002. Promoting postbaccalaureate opportunities for Hispanic
Americans.
Sec. 5003. General provisions.
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
Sec. 6001. International education.
Sec. 6002. Global business and professional education programs.
Sec. 6003. Repeal of assistance program for Institute for International
Public Policy.
Sec. 6004. General provisions.
TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
Sec. 7001. Graduate assistance in areas of national need.
Sec. 7002. Graduate education programs.
Sec. 7003. Fund for the Improvement of Postsecondary Education.
Sec. 7004. Minority-serving institutions innovation fund.
Sec. 7005. Definitions.
Sec. 7006. Supporting postsecondary faculty, staff, and administrators
in providing accessible education.
Sec. 7007. Office of Accessibility.
Sec. 7008. Postsecondary programs for students with intellectual
disabilities.
Sec. 7009. National Technical Assistance Center and National
Coordinating Center for Inclusion of Students with Intellectual
Disabilities.
Sec. 7010. Formula grants to States to improve higher education
opportunities for foster youth and homeless youth.
TITLE VIII--ADDITIONAL PROGRAMS
Sec. 8001. Repeals.
Sec. 8002. Ronald V. Dellums memorial STEAM scholars program.
Sec. 8003. Teach for America.
Sec. 8004. Patsy T. Mink Fellowship Program.
Sec. 8005. Improving science, technology, engineering, and mathematics
education with a focus on American Indian, Alaska Native, and Native
Hawaiian students.
Sec. 8006. Grants for rural-serving institutions of higher education.
Sec. 8007. Training for realtime writers to provide closed captioning
and court reporting services.
Sec. 8008. Grant program to establish, maintain, and improve veteran
student centers.
Sec. 8009. University Sustainability Program amendments.
Sec. 8010. Modeling and simulation.
Sec. 8011. Path to success.
Sec. 8012. Mandatory funding for masters and postbaccalaureate
programs.
Sec. 8013. Funds for access to open educational resources.
Sec. 8014. Encouraging campus comprehensive mental health and suicide
prevention plans.
TITLE IX--DIRECTIVES TO THE SECRETARY OF EDUCATION
Sec. 9001. Providing that the Secretary of Education may not issue or
enforce certain rules that weaken the enforcement of the prohibition of
sex discrimination applicable under title IX of the Education
Amendments of 1972.
Sec. 9002. Study and report on single certification form.
Sec. 9003. Longitudinal study on the effectiveness of student loan
counseling.
Sec. 9004. Study and procedures on determining family size.
Sec. 9005. Universal unique numeric data identifier.
Sec. 9006. Questions on food and housing insecurity in national
postsecondary student aid study.
Sec. 9007. Disaggregation of data using racial groups.
Sec. 9008. Disaggregation of data by sexual orientation and gender
identity.
Sec. 9009. Accessible instructional materials and technology.
Sec. 9010. Serving and supporting students with mental health
disabilities in institutions of higher education.
Sec. 9011. Federal student loan cancellation commission.
Sec. 9012. Distribution of resources to prevent incidents of bias on
campus.
Sec. 9013. GAO study on racial and socioeconomic equity gaps at public
4-year institutions.
Sec. 9014. GAO study on license revocations related to student loan
defaults.
TITLE X--AMENDMENTS TO OTHER LAWS
Part A--Education of the Deaf Act of 1986
Sec. 10001. Composition of Board of Trustees.
Sec. 10002. Administrative requirements of Laurent Clerc National Deaf
Education Center.
Sec. 10003. Federal endowment programs for Gallaudet University and the
National Technical Institute for the Deaf.
Part B--Tribally Controlled Colleges and Universities Assistance Act of
1978
Sec. 10101. Tribally Controlled Colleges and Universities Assistance
Act of 1978.
Part C--Strengthening Program Alignment for Postsecondary Perkins
Career and Technical Education Programs
Sec. 10201. Strengthening program alignment for postsecondary Perkins
Career and Technical Education Programs.
Part D--General Education Provisions Act
Sec. 10301. Release of education records to facilitate the award of a
recognized postsecondary credential.
Part E--Education Sciences Reform Act of 2002
Sec. 10401. Inclusion of racial subgroups in IPEDS data.
Part F--U.S. Institute of Peace
Sec. 10501. Reauthorization of the U.S. Institute of Peace.
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. 1001. DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR PURPOSES
OF TITLE IV PROGRAMS.
(a) Clarification.--Section 102(a)(4)(A) of Higher Education Act of
1965 (20 U.S.C. 1002(a)(4)(A)) is amended by inserting ``or
receivership'' after ``that files for bankruptcy''.
(b) Proprietary Institutions.--
(1) In general.--Section 102(b) of the Higher Education Act
of 1965 (20 U.S.C. 1002(b)) is amended--
(A) in paragraph (1)--
(i) in subparagraph (D), by striking ``and''
after the semicolon;
(ii) in subparagraph (E), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(F) meets the requirements of paragraph (3).''; and
(B) by adding at the end the following:
``(3) Revenue sources.--In order to qualify as a proprietary
institution of higher education under this subsection, an
institution shall derive not less than 15 percent of the
institution's revenues from sources other than Federal
education assistance funds, as calculated in accordance with
paragraph (4).''.
(2) Transfer of provisions.--
(A) First transfer.--Paragraph (1) of section 487(d)
of the Higher Education Act of 1965 (as amended by
section 4624) is--
(i) transferred to section 102(b) of such
Act;
(ii) inserted so as to appear after paragraph
(3) of such section 102(b) (as added by
paragraph (1)(B));
(iii) redesignated as paragraph (4) of such
section 102(b); and
(iv) further amended by striking ``subsection
(a)(24)'' and inserting ``paragraph (3)''.
(B) Second transfer.--Paragraph (3) of section 487(d)
of the Higher Education Act of 1965 (as amended by
4624) is--
(i) transferred to section 102(b) of such
Act;
(ii) inserted so as to appear after paragraph
(4) of such section 102(b) (as added by
subparagraph (A));
(iii) redesignated as paragraph (5) of such
section 102(b); and
(iv) further amended by striking ``subsection
(a)(24)'' and inserting ``paragraph (3)''.
(C) Third transfer.--Paragraph (4) of section 487(d)
of the Higher Education Act of 1965 (as amended by
section 4624) is--
(i) transferred to section 102(b) of such
Act;
(ii) inserted so as to appear after paragraph
(5) of such section 102(b) (as added by
subparagraph (B));
(iii) redesignated as paragraph (6) of such
section 102(b); and
(iv) further amended by striking ``subsection
(a)(24)'' and inserting ``paragraph (3)''.
(3) Effective date.--The amendments made by this subsection
shall take effect on July 1, 2023.
SEC. 1002. ADDITIONAL DEFINITIONS.
Section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003) is
amended--
(1) in paragraph (6), by striking ``section 3(2)'' and
inserting ``section 3'';
(2) in paragraph (13), by inserting ``controlled,'' before
``owned''; and
(3) by adding at the end the following:
``(25) Public institution of higher education.--The term
`public institution of higher education' means an institution
of higher education--
``(A) for which all obligations of the institution
are valid and binding obligations of a State (or of an
equivalent governmental entity); and
``(B) for which the full faith and credit of such
State (or equivalent governmental entity) is pledged
for the timely payment of such obligations.
``(26) Foster care youth.--The term `foster care youth' means
an individual whose care and placement is the responsibility of
the State or tribal agency that administers a State or tribal
plan under part B or E of title IV of the Social Security Act
(42 U.S.C. 621 et seq.; 670 et seq.), without regard to whether
foster care maintenance payments are made under section 472 of
such Act (42 U.S.C. 672) on behalf of the individual, including
any such individual who was in such care on or after attaining
13 years of age and without regard to the reason the individual
left such care.
``(27) Federal education assistance funds.--The term `Federal
education assistance funds'--
``(A) except as provided in subparagraph (B), means
any Federal funds provided, under this Act or any other
Federal law, through a grant, contract, subsidy, loan,
or guarantee, or through insurance or other means
(including Federal funds disbursed or delivered to an
institution or on behalf of a student or to a student
to be used to attend the institution); and
``(B) does not include any monthly housing stipend
provided under the Post-9/11 Educational Assistance
Program under chapter 33 of title 38, United States
Code.
``(28) Progress period status.--The term `progress period
status' means the status of an institution of higher education
that is determined by the Secretary to be in danger of failing
to meet title IV eligibility criteria relating to student debt
because the institution has an adjusted cohort default rate of
not less than 10 percent and not more than 15 percent.''.
SEC. 1003. GAINFUL EMPLOYMENT PROGRAMS.
Part A of title I of the Higher Education Act of 1965 (20 U.S.C. 1001
et seq.) is amended by adding at the end the following:
``SEC. 104. PROGRAM OF TRAINING TO PREPARE STUDENTS FOR GAINFUL
EMPLOYMENT IN A RECOGNIZED OCCUPATION.
``(a) Gainful Employment Program Defined.--In this Act (including for
purposes of sections 101 and 102), the term `program of training to
prepare students for gainful employment in a recognized occupation'
means a training program that--
``(1) is in compliance with the performance metrics
(including the eligibility thresholds for each such metric)
established under subsection (b)(1);
``(2) is in compliance with the notice requirements under
subsection (b)(1)(C)(i)(II);
``(3) is otherwise eligible to receive funds under title IV;
and
``(4) is not a training program that is substantially similar
to a training program which, during a period determined by the
Secretary, did not meet one or more of the performance metrics
(such as an eligibility threshold) described in paragraph (1).
``(b) Secretarial Requirements.--
``(1) Establishment of requirements.--
``(A) In general.--Not later than 18 months after the
date of enactment of the College Affordability Act, the
Secretary shall establish requirements that training
programs shall meet to be programs of training to
prepare students for gainful employment in a recognized
occupation, which shall include--
``(i) establishing performance metrics
(including eligibility thresholds for each such
metric) described in subparagraph (B); and
``(ii) developing a disclosure template and a
verification process for disclosures described
in subparagraph (C).
``(B) Performance metrics.--
``(i) In general.--In establishing the
performance metrics under subparagraph (A)(i),
the Secretary shall, at a minimum, establish
the requirements for a debt-to-earnings rate
that serves the best interests of students and
taxpayers, which shall include--
``(I) a methodology for calculating
such debt-to-earnings rate for a
training program, including--
``(aa) a definition of the
cohort of individuals on whom
such rate shall be based, who
shall be selected from the
individuals who were enrolled
in such training program
(without regard to whether the
individuals received a loan for
such enrollment);
``(bb) a determination of the
debt amount for such rate based
on the median annual loan
payment for the loans made
under title IV and the private
education loans received for
such enrollment by such cohort;
``(cc) a determination of the
earnings amount for such rate
based on the mean or median of
the actual, student-level
annual earnings for such
cohort; and
``(dd) establishing a process
(such as an appeals process) to
authorize training programs to
use alternate earnings in lieu
of the mean or median of the
actual, student-level annual
earnings of a cohort; and
``(II) establishing a threshold rate
that--
``(aa) each training program
shall meet to be eligible to
receive funds under title IV;
and
``(bb) is comparable to the
eligibility thresholds for the
debt-to-earning ratio
established in the final rule
on ``Program Integrity: Gainful
Employment'' published by the
Department of Education in the
Federal Register on October 31,
2014 (Fed. Reg. 64890 et seq.).
``(ii) Earnings data.--In determining the
mean or median of the actual, student-level
annual earnings for purposes of this
subparagraph, the Secretary shall obtain and
use the most appropriate available Federal data
on such earnings.
``(C) Disclosure template.--The Secretary shall
develop--
``(i) a disclosure template that--
``(I) is consumer tested; and
``(II) is used by each institution of
higher education that offers a training
program to provide enrolled and
prospective students (including through
publication on the website of such
institution of higher education for
such training program)--
``(aa) on an annual basis,
student outcome information for
such program (including the
debt-to-earnings rate and
whether the eligibility
threshold for any other
performance metric established
under subparagraph (A)(i) has
been met); and
``(bb) in a case in which the
training program receives a
notice of determination under
paragraph (2)(B) that the
program may be ineligible for
funds under title IV, or may
receive other sanctions, not
later than 30 days after
receipt of such notice, an
explanation of such notice of
determination; and
``(ii) a process to annually verify that each
institution of higher education that offers a
training program is providing the disclosures
required under clause (i)(II).
``(2) Enforcement of requirements.--Not later than 2 years
after the Secretary establishes requirements under paragraph
(1), and annually thereafter, the Secretary shall, with respect
to each training program that seeks to meet the definition in
subsection (a), including each such program that met such
definition for most recent award year for which data are
available--
``(A) calculate the debt-to-earnings rate and assess
performance with respect to any other metric
established under paragraph (1)(A)(i) for the preceding
award year, and make such information publicly
available on the website of the Department;
``(B) issue a notice of determination on whether the
program meets the definition in subsection (a),
including whether the program shall be subject to
sanctions (such as loss of eligibility under title IV);
and
``(C) enforce the applicable sanctions.''.
PART B--ADDITIONAL GENERAL PROVISIONS
SEC. 1011. ANTIDISCRIMINATION.
Section 111(a) of the Higher Education Act of 1965 (20 U.S.C.
1011(a)) is amended by inserting ``(including sexual orientation,
gender identity, pregnancy, childbirth, a medical condition related to
pregnancy or childbirth, or sex stereotype)'' after ``sex''.
SEC. 1012. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND
INTEGRITY.
Section 114 of the Higher Education Act of 1965 (20 U.S.C. 1011c) is
amended by striking subsection (f).
SEC. 1013. DISCLOSURES OF FOREIGN GIFTS.
(a) In General.--Section 117 of the Higher Education Act of 1965 (20
U.S.C. 1011f) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by adding at the end the
following: ``In this paragraph, the term `aggregate
dollar amount' includes the fair market value of staff
members, textbooks, and other in-kind gifts.''; and
(B) in paragraph (2), by inserting ``In this
paragraph, the term `aggregate dollar amount' includes
the fair market value of staff members, textbooks, and
other in-kind gifts.'' after ``each foreign
government.'';
(2) in subsection (d)--
(A) in paragraph (1) by striking ``are
substantially'' and all that follows through ``this
section,'' and inserting ``includes all information
required by this section,''; and
(B) in paragraph (2) by striking ``requirements
substantially similar to those'' and inserting ``all
the information'';
(3) in subsection (e), by adding at the end the following:
``Not later than 30 days after receiving a disclosure report
under this section, the Secretary shall make such report
electronically available to the public for downloading on
searchable database under which institutions can be
individually identified and compared.''; and
(4) by amending subsection (g) to read as follows:
``(g) Regulations.--
``(1) In general.--Not later than 2 years after the date of
the enactment of the College Affordability Act, the Secretary
shall issue regulations to carry out this section.
``(2) Procedure.--Regulations under paragraph (1) shall be--
``(A) developed through the negotiated rulemaking
process under section 492;
``(B) developed with consultation from stakeholders;
and
``(C) published in the Federal Register in accordance
with section 482.'';
(5) in subsection (h)--
(A) in paragraph (3), by striking ``or property'' and
inserting ``property, human resources, or payment of
any staff''; and
(B) in paragraph (5)(B), by inserting ``institutes,
instructional programs,'' after ``centers,''; and
(6) by adding at the end the following:
``(i) Treatment of Tuition Payment.--A tuition and related fees and
expenses payment to an institution by a foreign source made on behalf
of a student enrolled at such institution shall not be considered a
gift from or contract with a foreign source under this subsection.''.
(b) Effective Date.--The amendments made by this section shall take
effect on the date on which the regulations issued under section
117(g)(1) of the Higher Education Act of 1965 (20 U.S.C. 1011f(g)(1)),
as amended by this section, take effect.
SEC. 1014. ALCOHOL AND SUBSTANCE MISUSE PREVENTION.
(a) In General.--Section 120 of the Higher Education Act of 1965 (20
U.S.C. 1011i) is amended--
(1) in the section heading, by striking ``drug and alcohol
abuse'' and inserting ``alcohol and substance misuse'';
(2) in subsection (a)--
(A) in the matter preceding paragraph (1), by
striking ``a program to prevent the use of illicit
drugs and the abuse of alcohol by students and
employees that,'' and inserting ``an evidence-based
program to prevent alcohol and substance misuse by
students and employees that,'';
(B) by amending paragraph (1)(C) to read as follows:
``(C) a description of the health-risks associated
with the use of illicit drugs and alcohol and substance
misuse;'';
(C) by amending paragraph (1)(D) to read as follows:
``(D) a description of any alcohol or substance
misuse counseling, treatment, rehabilitation, recovery,
re-entry, or recovery support programs provided by the
institution (including in partnership with a community-
based organization) that are available to employees or
students;''; and
(D) in paragraph (1)(E), by striking ``that the
institution will impose'' and inserting ``of the
policies of the institution regarding'';
(3) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``and'' at the end of
subparagraph (A);
(ii) in subparagraph (B), by striking the
period and inserting ``; and''; and
(iii) by adding at the end the following:
``(C) compliance assistance to assist institutions in
complying with the requirements of this section.'';
(B) by redesignating paragraph (2) as paragraph (4);
and
(C) by inserting after paragraph (1) the following:
``(2) Interagency agreement.--Not later than 180 days after
the date of enactment of the College Affordability Act, the
Secretary shall enter into a interagency agreement with the
Secretary of Health and Human Services to--
``(A) determine criteria that satisfy the requirement
of subsection (a) that an institution of higher
education has adopted and has implemented an evidence-
based program described in such subsection;
``(B) establish a process for disseminating the best
practices for adopting and implementing such an
evidence-based program; and
``(C) establish a process that promotes coordination
and collaboration between institutions of higher
education and the respective State agencies that
administer the Substance Abuse Prevention and Treatment
Block Grants pursuant to subpart II of part B of title
XIX of the Public Health Service Act (42 U.S.C. 300x-
21).
``(3) Guidance.--Not later than 1 year after the date of
enactment of the College Affordability Act, the Secretary
shall, in coordination with the Secretary of Health and Human
Services, issue guidance with respect to the criteria described
in paragraph (2)(A).''; and
(4) in subsection (e)--
(A) in the subsection heading, by striking ``Drug
Abuse'' in the heading and inserting ``Substance
Misuse'';
(B) in paragraph (1)--
(i) by striking ``other organizations'' and
inserting ``community-based organizations that
partner with institutions of higher
education'';
(ii) by striking ``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'' and inserting ``evidence-based
programs of alcohol and substance misuse
prevention and education (including programs to
improve access to treatment, referral for
treatment services, or crisis intervention
services) to eliminate illegal substance use,
decrease substance misuse, and improve public
health and safety''; and
(iii) by striking ``alcohol and drug abuse''
and inserting ``substance use disorder'';
(C) by redesignating paragraphs (2) through (5) as
paragraphs (3) through (6), respectively;
(D) by inserting after paragraph (1) the following:
``(2) Additional uses.--In addition to the activities
described in paragraph (1), a grant or contract awarded under
paragraph (1) may be used to carry out 1 or more of the
following evidence-based programs or activities:
``(A) Providing programs for recovery support
services, and peer-to-peer support services and
counseling for students with a substance use disorder.
``(B) Promoting integration and collaboration in
campus-based health services between primary care,
substance use disorder services, and mental health
services.
``(C) Promoting integrated care services for students
related to screening, diagnosis, prevention, and
treatment of mental, behavioral, and substance use
disorders.
``(D) Providing re-entry assistance for students on
academic probation due to their substance use disorder.
``(E) Preventing fatal and nonfatal overdoses.
``(F) Providing education to students, faculty, or
other personnel on--
``(i) recognizing the signs and symptoms of
substance use disorder, and how to engage and
support a person in a crisis situation;
``(ii) resources available in the community,
within the institution of higher education, and
other relevant resources for individuals with a
substance use disorder; and
``(iii) safely de-escalating crisis
situations involving individuals with a
substance use disorder.''; and
(E) by amending paragraph (6), as redesignated by
subparagraph (C), to read as follows:
``(6) Authorization of appropriations.--There are authorized
to be appropriated to carry out this section $15,000,000 for
fiscal year 2021 and each of the 5 succeeding fiscal years.''.
(b) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on the date
of enactment of this Act.
(2) Delayed effective dates.--The amendments made by
subsection (a)(2) shall apply to institutions of higher
education on the date that is 2 years after the date of
enactment of this Act.
SEC. 1015. EXCEPTION TO REQUIRED REGISTRATION WITH SELECTIVE SERVICE
SYSTEM.
Part B of title I of the Higher Education Act of 1965 (20 U.S.C. 1011
et seq.) is amended by adding at the end the following:
``SEC. 124. EXCEPTION TO REQUIRED REGISTRATION WITH SELECTIVE SERVICE
SYSTEM.
``Notwithstanding section 12(f) of the Military Selective Service Act
(50 U.S.C. 3811(f)), a person shall not be ineligible for assistance or
a benefit provided under title IV if the person is required under
section 3 of such Act (50 U.S.C. 3802) to present himself for and
submit to registration under such section, and fails to do so in
accordance with any proclamation, rule, or regulation issued under such
section.''.
SEC. 1016. INTEGRITY OF NONPROFIT INSTITUTIONS OF HIGHER EDUCATION.
Part B of title I of the Higher Education Act of 1965 (20 U.S.C. 1011
et seq.), as amended by this part, is further amended by adding at the
end the following:
``SEC. 125. INTEGRITY OF NONPROFIT INSTITUTIONS OF HIGHER EDUCATION.
``(a) Determination.--The Secretary may approve the conversion of an
institution of higher education to a nonprofit institution of higher
education only if the Secretary determines that such institution of
higher education meets the requirements under subsection (b).
``(b) Application.--To be eligible to convert and participate as a
nonprofit institution of higher education under this Act, an
institution of higher education shall submit an application to the
Secretary that demonstrates each of the following:
``(1) That the institution of higher education that submits
such application is controlled, 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.
``(2) That any assets or services acquired by the institution
of higher education that submits such application from former
owners of such institution of higher education were not
acquired for more than the value of such assets or services.
``(3) That no member of the governing board of the
institution of higher education that submits such application
(other than ex officio members serving at the pleasure of the
remainder of the governing board and receiving a fixed salary),
or any person with the power to appoint or remove members of
such governing board or any immediate family member of such a
member of the board or such a person with power of appointment,
receives any substantial direct or indirect economic benefit
(including a lease, promissory note, or other contract) from
such institution of higher education.
``(4) That the institution of higher education that submits
such application is an organization described in section
501(c)(3) of the Internal Revenue Code of 1986 and is exempt
from taxation under section 501(a) of such Code.
``(5) Subject to subsection (c), that none of the core
functions of the institution of higher education that submits
such application are under the control of, or subject to
significant direction from, an entity that is not a public
institution of higher education or other nonprofit entity.
``(c) Presumption of Significant Direction.--For purposes of
paragraph (5) of subsection (b), in the case of an institution of
higher education that submits an application under such subsection,
there shall be a conclusive presumption that an entity (other than such
institution of higher education) exercises significant direction over
such institution if one or more of the employees or owners of the
entity serves as an officer, member of the board, or person holding
similar authority for such institution.
``(d) Transition Period.--
``(1) In general.--In the case of a proprietary institution
of higher education approved for conversion under subsection
(a), for a period of at least 5 years that begins on the date
such institution is approved for such conversion, the
institution shall be--
``(A) subject to any provision of this Act and any
regulation that apply to proprietary institutions of
higher education; and
``(B) considered a proprietary institution of higher
education for purposes of this Act.
``(2) Definition.--The term `proprietary institution of
higher education' has the meaning given the term in section
102(b).
``(e) Value.--The term `value', with respect to an acquisition under
subsection (b)(2)--
``(1) includes the value of any ongoing relationship
(including any contract, agreement, lease or other
arrangement);
``(2) subject to paragraph (3), may be demonstrated through--
``(A) a third-party appraisal based on comparable
assets acquired by, or goods or services procured by,
nonprofit corporations in similar market conditions;
``(B) an independent financing of the acquisition
based upon the assets acquired; or
``(C) a full and open competition in the acquisition
of services or assets, as such term is defined in
section 2.101(b) of title 48, Code of Federal
Regulations, as in effect on the date of the enactment
of this section; and
``(3) shall be subject to such other demonstration process
determined appropriate by the Secretary in a case in which the
Secretary does not accept a demonstration process described in
paragraph (2).
``(f) Publication.--
``(1) Application.--Before the Secretary may approve the
conversion of an institution of higher education under
subsection (a), the application of such institution submitted
to the Secretary under subsection (b) shall be published in the
Federal Register with an appropriate notice and comment period.
``(2) Determination.--The Secretary shall publish each
determination under this section, and the reasons for such
determination, under the Federal Register.
``(g) Public Representation and Marketing of Nonprofit Status.--An
institution of higher education shall not promote or market itself, in
any manner, as a nonprofit institution of higher education unless--
``(1) in the case of an institution of higher education that
seeks to convert to a nonprofit institution of higher education
under this section--
``(A) the Secretary has given final approval of the
conversion of the institution to a nonprofit
institution of higher education under this section;
``(B) an accrediting agency or association recognized
by the Secretary pursuant to section 496 has approved
the nonprofit status of the institution; and
``(C) the State has given final approval to the
institution as a nonprofit institution of higher
education, as applicable; and
``(2) the Commissioner of Internal Revenue has approved the
institution as tax exempt for purposes of the Internal Revenue
Code of 1986.
``(h) Office to Monitor Nonprofit Integrity.--Not later than 1 year
after the date of enactment of the College Affordability Act, the
Secretary shall establish an office within the Department with the
expertise necessary to carry out this section.
``SEC. 126. REVIEW OF GOVERNANCE.
``The Secretary shall review the governance of an institution of
higher education when such institution has engaged in transactions or
arrangements determined by the Secretary as potential indicators of
private inurement, in order to promote the highest standards of
nonprofit integrity.''.
SEC. 1017. SUPPORT AND GUIDANCE FOR HOMELESS INDIVIDUALS AND FOSTER
CARE YOUTH.
Part B of title I of the Higher Education Act of 1965 (20 U.S.C.
1011 et seq.), as amended by this part, is further amended by adding at
the end the following:
``SEC. 127. SUPPORT AND GUIDANCE FOR HOMELESS INDIVIDUALS AND FOSTER
CARE YOUTH.
``(a) Guidance.--Not later than 120 days after the date of enactment
of the College Affordability Act, the Secretary shall issue revised
guidance for institutions of higher education and financial aid
administrators regarding serving homeless individuals and foster care
youth, including the requirements of the determination process for
financial aid administrators as specified in section 480(d).
``(b) Professional Development.--Beginning not later than 1 year
after the date of enactment of the College Affordability Act, the
Secretary shall conduct an annual professional development or training
program, such as a webinar, for liaisons described under section 485(k)
and interested faculty or staff regarding postsecondary education
services for such homeless individuals and foster care youth.
``(c) Report.--Not later than 1 year after the date of enactment of
the College Affordability Act, and not less than once every 5 years
thereafter, the Secretary shall prepare and submit to Congress a report
containing strategies used by institutions, financial aid
administrators, and liaisons described under section 485(k) that were
effective in meeting the needs of such homeless individuals and foster
care youth, including strategies relating to streamlining financial aid
policies and procedures and postsecondary education recruitment,
retention, and completion.
``(d) Homeless Individual Defined.--In this section, the term
`homeless individual' has the meaning given the term in section
402A.''.
SEC. 1018. CALCULATION OF PERCENTAGE OF ENROLLED STUDENTS RECEIVING OR
ELIGIBLE FOR FEDERAL PELL GRANTS.
Part B of title I of the Higher Education Act of 1965 (20 U.S.C. 1011
et seq.), as amended by this part, is further amended by adding at the
end the following:
``SEC. 128. CALCULATION OF PERCENTAGE OF ENROLLED STUDENTS RECEIVING OR
ELIGIBLE FOR FEDERAL PELL GRANTS.
``Beginning on the date of enactment of the College Affordability
Act, for purposes of calculating under this Act the percentage of
students enrolled at an institution of higher education or in a program
who are receiving Federal Pell Grants under section 401 or who are
eligible to receive such grants, the total number of students who are
counted as enrolled in such institution or program shall not include
students who are dually or concurrently enrolled in the institution or
program and a secondary school.''.
SEC. 1019. CERTIFICATION REGARDING THE USE OF CERTAIN FEDERAL FUNDS.
(a) In General.--Part B of title I of the Higher Education Act of
1965 (20 U.S.C. 1011 et seq.), as amended by this part, is further
amended by adding at the end the following:
``SEC. 129. CERTIFICATION REGARDING THE USE OF CERTAIN FEDERAL FUNDS.
``(a) Prohibition.--No Federal funds received under this Act by an
institution of higher education or other postsecondary educational
institution may be used to pay any person for influencing or attempting
to influence an officer or employee of any agency, a Member of
Congress, an officer or employee of Congress, or an employee of a
Member of Congress in connection with any Federal action described in
subsection (b).
``(b) Applicability.--The prohibition in subsection (a) applies with
respect to the following Federal actions:
``(1) The awarding of any Federal contract.
``(2) The making of any Federal grant.
``(3) The making of any Federal loan.
``(4) The entering into of any Federal cooperative agreement.
``(5) The extension, continuation, renewal, amendment, or
modification of any Federal contract, grant, loan, or
cooperative agreement.
``(c) Lobbying and Earmarks.--No Federal student aid funding under
this Act may be used to hire a registered lobbyist or pay any person or
entity for securing an earmark.
``(d) Certification.--Each institution of higher education or other
postsecondary educational institution receiving Federal funding under
this Act, as a condition for receiving such funding, shall annually
certify to the Secretary that the requirements of subsections (a)
through (c) have been met.
``(e) Actions To Implement and Enforce.--The Secretary shall take
such actions as are necessary to ensure that the provisions of this
section are implemented and enforced.''.
(b) Conforming Amendment.--
(1) In general.--Section 119 of the Higher Education
Opportunity Act (20 U.S.C. 1011m) is repealed.
(2) Conforming amendment.--The table of sections in section
1(b) of the Higher Education Opportunity Act is amended by
striking the item relating to section 119.
SEC. 1020. FREEDOM OF ASSOCIATION.
Part B of title I of the Higher Education Act of 1965 (20 U.S.C. 1011
et seq.), as amended by this part, is further amended by adding at the
end the following:
``SEC. 130. FREEDOM OF ASSOCIATION.
``(a) Non-retaliation Against Students of Single-sex Social
Organizations.--An institution of higher education that receives funds
under this Act shall not--
``(1) take any action to require or coerce a student or
prospective student who is a member or prospective member of a
single-sex social organization to waive the requirements of
paragraph (2), including as a condition of enrolling in the
institution; or
``(2) take any adverse action against a student who is a
member or a prospective member of a single-sex social
organization based solely on the membership practice of such
organization limiting membership to only individuals of one
sex.
``(b) Rules of Construction.--Nothing in this section shall--
``(1) require an institution of higher education to
officially recognize a single-sex organization;
``(2) prohibit an institution of higher education from taking
an adverse action against a student who joins a single-sex
social organization for a reason including academic misconduct
or nonacademic misconduct, or because the organization's
purpose poses a clear harm to the students or employees, so
long as that adverse action is not based solely on the
membership practice of the organization of limiting membership
to only individuals of one sex; or
``(3) inhibit the ability of the faculty, staff, or
administrators of an institution of higher education to express
an opinion (either individually or collectively) about
membership in a single-sex social organization, or otherwise
inhibit the academic freedom of such faculty, staff, or
administrators to research, write, or publish material about
membership in such an organization.
``(c) Definitions.--In this section:
``(1) Adverse action.--The term `adverse action' means any of
the following actions taken by an institution of higher
education with respect to a member or prospective member of a
single-sex social organization:
``(A) Expulsion, suspension, probation, censure,
condemnation, formal reprimand, or any other
disciplinary action, coercive action, or sanction taken
by an institution of higher education or administrative
unit of such institution.
``(B) An oral or written warning with respect to an
action described in subparagraph (A).
``(C) An action to deny participation in any
education program or activity.
``(D) An action to withhold, 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, a graduate
fellowship, or on-campus employment.
``(E) An action to deny or restrict access to on-
campus housing.
``(F) An act to deny any certification, endorsement,
or letter of recommendation that may be required by a
student's current or future employer, a government
agency, a licensing board, an institution of higher
education, a scholarship program, or a graduate
fellowship to which the student seeks to apply.
``(G) An action to deny participation in any sports
team, club, or other student organization, including a
denial of any leadership position in any sports team,
club, or other student organization.
``(H) An action to require any student to certify
that such student is not a member of a single-sex
social organization or to disclose the student's
membership in a single-sex social organization.
``(2) Single-sex social organization.--The term `single-sex
social organization' means--
``(A) a social fraternity or sorority described in
section 501(c) of the Internal Revenue Code of 1986
which is exempt from taxation under section 501(a) of
such Code; or
``(B) an organization that has been historically
single-sex, the active membership of which consists
primarily of students or alumni of an institution of
higher education or multiple institutions of higher
education.''.
PART C--COST OF HIGHER EDUCATION
SEC. 1021. CONSUMER INFORMATION.
(a) Net Price Calculators.--
(1) Minimum standards.--Section 132(h) of the Higher
Education Act of 1965 (20 U.S.C. 1015a(h)) is amended--
(A) by redesignating paragraph (4) as paragraph (6);
(B) in paragraph (2), by inserting before the period
``, and, not later than 1 year after the date of
enactment of the College Affordability Act, shall meet
the requirements of paragraph (4)(C)'';
(C) in paragraph (3), by inserting after the first
sentence the following: ``Not later than 1 year after
the date of enactment of the College Affordability Act,
such calculator shall meet the requirements of
paragraph (4).''; and
(D) by inserting after paragraph (3) the following:
``(4) Minimum requirements for net price calculators.--Not
later than 1 year after the date of enactment of the College
Affordability Act, a net price calculator for an institution of
higher education shall, at a minimum, meet the following
requirements:
``(A) The link for the calculator--
``(i) is clearly labeled as a `net price
calculator' and prominently, clearly, and
conspicuously (in such size and contrast (such
as shade) that it is readily noticeable and
readable) posted in locations on the
institution's website where information on
costs and aid is provided (such as financial
aid, prospective students, or tuition and fees
web pages);
``(ii) matches in size and font to the other
prominent links on the primary menu; and
``(iii) may also be included on the
institution's compliance web page, which
contains information relating to compliance
with Federal, State, and local laws.
``(B) The input screen for the net price calculator
displays a chart of the net prices for students
receiving Federal student financial aid under title IV
(as required by subsection (i)(5)) for the most recent
academic year for which data are available,
disaggregated by income categories.
``(C) The results screen for the calculator specifies
the following information:
``(i) The individual net price (as calculated
under paragraph (2)) for the individual
student, which is the most visually prominent
figure on the results screen, including a
statement of--
``(I) the year for which the net
price applies; and
``(II) the year from which the data
was used to determine that net price.
``(ii) Cost of attendance, including--
``(I) the total estimated cost for a
student to complete the program of
study, based on normal time for
completion of, or graduation from, the
student's particular program of study;
``(II) the total annual cost of
attendance;
``(III) annual tuition and fees;
``(IV) average annual cost of room
and board for the institution for a
first-time, full-time undergraduate
student enrolled in the institution;
``(V) average annual cost of books
and supplies for a first-time, full-
time undergraduate student enrolled in
the institution;
``(VI) estimated annual cost of other
expenses (including personal expenses
and transportation) for a first-time,
full-time undergraduate student
enrolled in the institution; and
``(VII) a statement of--
``(aa) the year for which
each cost described in this
clause applies; and
``(bb) the year from which
the data was used to determine
each cost described in this
clause.
``(iii) Estimated total need-based grant aid
and merit-based grant aid, from Federal, State,
and institutional sources, that may be
available to the individual student, showing
the subtotal for each category and the total of
all sources of grant aid, and disaggregated by
academic year for normal time for completion
of, or graduation from, the student's
particular program of study.
``(iv) Percentage of the first-time, full-
time undergraduate students enrolled in the
institution that received any type of grant aid
described in clause (iii), disaggregated by
their first year and subsequent years of
enrollment up to the number of years for normal
completion of, or graduation from, their
particular program of study.
``(v) The disclaimer described in paragraph
(6).
``(vi) In the case of a calculator that--
``(I) includes questions to estimate
a student's (or prospective student's)
eligibility 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 them
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--
``(aa) that certain students
(or prospective students) may
qualify for such benefits;
``(bb) states why the
institution is not including
questions to estimate a
student's eligibility for such
benefits; and
``(cc) includes a link to an
appropriate Federal website
that provides information about
such benefits.
``(D) The institution populates the calculator with
data from not earlier 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';
``(C) prohibit any personally identifiable
information provided by users from being sold or made
available to third parties; and
``(D) clearly state `Any information that you provide
on this site is confidential. The Net Price Calculator
does not store your responses or require personal
identifying information of any kind.'.''.
(2) Universal net price calculator.--Section 132(h) of the
Higher Education Act of 1965 (20 U.S.C. 1015a(h)), as amended
by paragraph (1), is further amended by adding at the end the
following:
``(7) Universal net price calculator.--
``(A) In general.--The Secretary may develop a
universal net price calculator that is housed within
the Department of Education, with Department branding,
and that may be based on or utilize an existing
platform developed by a public or private entity,
that--
``(i) enables users to answer one set of
questions and receive net prices for any
institution that is required to have a net
price calculator under this subsection;
``(ii) provides the information required
under subparagraphs (C) and (D) of paragraph
(4) for each institution for which a net price
is being sought;
``(iii) is developed in consultation with the
heads of relevant Federal agencies; and
``(iv) before being finalized and publicly
released, is tested in accordance with
subparagraph (B).
``(B) Consumer testing.--
``(i) In general.--If the Secretary develops
a universal net price calculator under
subparagraph (A), the Secretary, in
consultation with the heads of relevant Federal
agencies, shall establish a process to submit
the universal net price calculator developed
under this paragraph for consumer testing among
representatives of students (including low-
income students, first generation college
students, adult students, and prospective
students), students' families (including low-
income families, families with first generation
college students, and families with prospective
students), institutions of higher education,
secondary school and postsecondary counselors,
and nonprofit consumer groups.
``(ii) Length of consumer testing.--The
Secretary shall ensure that the consumer
testing lasts no longer than 6 months after the
process for consumer testing is developed under
clause (i).
``(iii) Use of results.--The results of
consumer testing under clause (i) shall be used
in the final development of the universal net
price calculator.
``(iv) Reporting requirement.--Not later than
3 months after the date the consumer testing
under clause (i) concludes, the Secretary shall
submit to Congress the final universal net
price calculator and a report detailing the
results of such testing, including whether the
Secretary added any additional items to the
calculator as a result of such testing.
``(v) Authority to modify.--The Secretary may
modify the definitions, terms, formatting, and
design of the universal net price calculator
based on the results of consumer testing
required under this paragraph and before
finalizing the calculator.
``(8) Report from secretary.--Not later than 1 year after the
date of enactment of the College Affordability Act, the
Secretary shall submit a report to Congress on steps taken to
raise awareness of net price calculators among prospective
students and families, particularly among students in middle
school and high school and students from low-income
families.''.
(b) Institutional Expenditures.--Section 132(i)(1) of the Higher
Education Act of 1965 (20 U.S.C. 1015a(i)(1)) is amended--
(1) in subparagraph (T), by striking ``rate,'' and inserting
``rate and adjusted cohort default rate,''; and
(2) by adding at the end the following:
``(AA) The institution's expenditures on each of the
following:
``(i) Instruction.
``(ii) Student services.
``(iii) Marketing.
``(iv) Recruitment.
``(v) Advertising.
``(vi) Lobbying.''.
SEC. 1022. POSTSECONDARY STUDENT DATA SYSTEM.
(a) Postsecondary Student Data System.--Section 132 of the Higher
Education Act of 1965 (20 U.S.C. 1015a) is amended--
(1) by redesignating subsection (l) as subsection (m); and
(2) by inserting after subsection (k) the following:
``(l) Postsecondary Student Data System.--
``(1) In general.--
``(A) Establishment of system.--The Commissioner of
the National Center for Education Statistics (referred
to in this subsection as the `Commissioner') shall
develop and maintain a secure, privacy-protected
postsecondary student-level data system in order to--
``(i) accurately evaluate student enrollment
patterns, progression, completion, and
postcollegiate outcomes, and higher education
costs and financial aid;
``(ii) assist with transparency,
institutional improvement, and analysis of
Federal aid programs;
``(iii) provide accurate, complete, and
customizable information for students and
families making decisions about postsecondary
education; and
``(iv) reduce the reporting burden on
institutions of higher education, in accordance
with section 1022(b)(2) of the College
Affordability Act.
``(B) Avoiding duplicated reporting.--Notwithstanding
any other provision of this section, to the extent that
another provision of this section requires the same
reporting or collection of data that is required under
this subsection, an institution of higher education, or
the Secretary or Commissioner, may use the reporting or
data required for the postsecondary student data system
under this subsection to satisfy both requirements.
``(C) Development process.--In developing the
postsecondary student data system described in this
subsection, the Commissioner shall--
``(i) focus on the needs of--
``(I) users of the data system; and
``(II) entities, including
institutions of higher education,
reporting to the data system;
``(ii) take into consideration, to the extent
practicable--
``(I) the guidelines outlined in the
U.S. Web Design Standards maintained by
the General Services Administration and
the Digital Services Playbook and
TechFAR Handbook for Procuring Digital
Services Using Agile Processes of the
U.S. Digital Service; and
``(II) the relevant successor
documents or recommendations of such
guidelines;
``(iii) use modern, relevant privacy- and
security-enhancing technology, and enhance and
update the data system as necessary to carry
out the purpose of this subsection;
``(iv) ensure data privacy and security is
consistent with any Federal law relating to
privacy or data security, including--
``(I) the requirements of subchapter
II of chapter 35 of title 44, United
States Code, specifying security
categorization under the Federal
Information Processing Standards or any
relevant successor of such standards;
``(II) security requirements that are
consistent with the Federal agency
responsibilities in section 3554 of
title 44, United States Code, or any
relevant successor of such
responsibilities; and
``(III) security requirements,
guidelines, and controls consistent
with cybersecurity standards and best
practices developed by the National
Institute of Standards and Technology,
including frameworks, consistent with
section 2(c) of the National Institute
of Standards and Technology Act (15
U.S.C. 272(c)), or any relevant
successor of such frameworks;
``(v) follow Federal data minimization
practices to ensure only the minimum amount of
data is collected to meet the system's goals,
in accordance with Federal data minimization
standards and guidelines developed by the
National Institute of Standards and Technology;
and
``(vi) provide notice to students outlining
the data included in the system and how the
data are used.
``(2) Data elements.--
``(A) In general.--The Commissioner, in consultation
with the Postsecondary Student Data System Advisory
Committee established under subparagraph (B), shall
determine--
``(i) the data elements to be included in the
postsecondary student data system, in
accordance with subparagraphs (C) and (D); and
``(ii) how to include the data elements
required under subparagraph (C), and any
additional data elements selected under
subparagraph (D), in the postsecondary student
data system.
``(B) Postsecondary student data system advisory
committee.--
``(i) Establishment.--The Commissioner shall
establish a Postsecondary Student Data System
Advisory Committee (referred to in this
subsection as the `Advisory Committee'), whose
members shall include--
``(I) the Chief Privacy Officer of
the Department or an official of the
Department delegated the duties of
overseeing data privacy at the
Department;
``(II) the Chief Security Officer of
the Department or an official of the
Department delegated the duties of
overseeing data security at the
Department;
``(III) representatives of diverse
institutions of higher education, which
shall include equal representation
between 2-year and 4-year institutions
of higher education, and from public,
nonprofit, and proprietary institutions
of higher education, including
minority-serving institutions;
``(IV) representatives from State
higher education agencies, entities,
bodies, or boards;
``(V) representatives of
postsecondary students;
``(VI) representatives from relevant
Federal agencies; and
``(VII) other stakeholders (including
individuals with expertise in data
privacy and security, consumer
protection, and postsecondary education
research).
``(ii) Requirements.--The Commissioner shall
ensure that the Advisory Committee--
``(I) adheres to all requirements
under the Federal Advisory Committee
Act (5 U.S.C. App.);
``(II) establishes operating and
meeting procedures and guidelines
necessary to execute its advisory
duties; and
``(III) is provided with appropriate
staffing and resources to execute its
advisory duties.
``(C) Required data elements.--The data elements in
the postsecondary student data system shall include, at
a minimum, the following:
``(i) Student-level data elements necessary
to calculate the information within the surveys
designated by the Commissioner as `student-
related surveys' in the Integrated
Postsecondary Education Data System (IPEDS), as
such surveys are in effect on the day before
the date of enactment of the College
Affordability Act, except that in the case that
collection of such elements would conflict with
subparagraph (F), such elements in conflict
with subparagraph (F) shall be included in the
aggregate instead of at the student level.
``(ii) Student-level data elements necessary
to allow for reporting student enrollment,
persistence, retention, transfer, and
completion measures for all credential levels
separately (including certificate, associate,
baccalaureate, and advanced degree levels),
within and across institutions of higher
education (including across all categories of
institution level, control, and predominant
degree awarded). The data elements shall allow
for reporting about all such data disaggregated
by the following categories:
``(I) Enrollment status as a first-
time student, recent transfer student,
or other non-first-time student.
``(II) Attendance intensity, whether
full-time or part-time.
``(III) Credential-seeking status, by
credential level.
``(IV) Race or ethnicity (in
accordance with section 153(a)(3)(B) of
the Education Sciences Reform Act (20
U.S.C. 9543(a)(3)(B))).
``(V) Age intervals.
``(VI) Gender.
``(VII) Program of study (as
applicable).
``(VIII) Military or veteran benefit
status (as determined based on receipt
of veteran's education benefits, as
defined in section 480(c)).
``(IX) Status as a distance education
student, whether exclusively or
partially enrolled in distance
education.
``(X) Federal Pell Grant and Federal
loan recipient status, provided that
the collection of such information
complies with paragraph (1)(B).
``(D) Other data elements.--
``(i) In general.--The Commissioner may,
after consultation with the Advisory Committee
and provision of a public comment period,
include additional data elements in the
postsecondary student data system, such as
those described in clause (ii), if those data
elements--
``(I) are necessary to ensure that
the postsecondary data system fulfills
the purposes described in paragraph
(1)(A); and
``(II) are consistent with data
minimization principles, including the
collection of only those additional
elements that are necessary to ensure
such purposes.
``(ii) Data elements.--The data elements
described in clause (i) may include--
``(I) status as a first generation
college student (as defined in section
402A(h));
``(II) economic status;
``(III) participation in
postsecondary remedial coursework or
gateway course completion; or
``(IV) other data elements that are
necessary in accordance with clause
(i).
``(E) Reevaluation.--Not less than once every 3 years
after the implementation of the postsecondary student
data system described in this subsection, the
Commissioner, in consultation with the Advisory
Committee described in subparagraph (B), shall review
the data elements included in the postsecondary student
data system and may revise the data elements to be
included in such system.
``(F) Prohibitions.--The Commissioner shall not
include individual health data (including data relating
to physical health or mental health), student
discipline records or data, elementary and secondary
education data, an exact address, citizenship status,
migrant status, or national origin status for students
or their families, course grades, postsecondary
entrance examination results, political affiliation, or
religion in the postsecondary student data system under
this subsection.
``(3) Periodic matching with other federal data systems.--
``(A) Data sharing agreements.--
``(i) The Commissioner shall ensure secure,
periodic data matches by entering into data
sharing agreements with each of the following
Federal agencies and offices:
``(I) The Secretary of the Treasury
and the Commissioner of the Internal
Revenue Service, in order to calculate
aggregate program- and institution-
level earnings of postsecondary
students.
``(II) The Secretary of Defense, in
order to assess the use of
postsecondary educational benefits and
the outcomes of servicemembers.
``(III) The Secretary of Veterans
Affairs, in order to assess the use of
postsecondary educational benefits and
outcomes of veterans.
``(IV) The Director of the Bureau of
the Census, in order to assess the
occupational and earnings outcomes of
former postsecondary education
students.
``(V) The Chief Operating Officer of
the Office of Federal Student Aid, in
order to analyze the use of
postsecondary educational benefits
provided under this Act.
``(ii) The heads of Federal agencies and
offices described under clause (i) shall enter
into data sharing agreements with the
Commissioner to ensure secure, periodic data
matches as described in this paragraph.
``(B) Categories of data.--The Commissioner shall, at
a minimum, seek to ensure that the secure periodic data
system matches described in subparagraph (A) permit
consistent reporting of the following categories of
data for all postsecondary students:
``(i) Enrollment, retention, transfer, and
completion outcomes for all postsecondary
students.
``(ii) Financial indicators for postsecondary
students receiving Federal grants and loans,
including grant and loan aid by source,
cumulative student debt, loan repayment status,
and repayment plan.
``(iii) Post-completion outcomes for all
postsecondary students, including earnings,
employment, and further education, by program
of study and credential level and as measured--
``(I) immediately after leaving
postsecondary education; and
``(II) at time intervals appropriate
to the credential sought and earned.
``(C) Periodic data match streamlining and
confidentiality.--
``(i) Streamlining.--In carrying out the
secure periodic data system matches under this
paragraph, the Commissioner shall--
``(I) ensure that such matches are
not continuous, but occur at
appropriate intervals, as determined by
the Commissioner; and
``(II) seek to--
``(aa) streamline the data
collection and reporting
requirements for institutions
of higher education;
``(bb) minimize duplicative
reporting across or within
Federal agencies or
departments, including
reporting requirements
applicable to institutions of
higher education under the
Workforce Innovation and
Opportunity Act (29 U.S.C. 3101
et seq.) and the Carl D.
Perkins Career and Technical
Education Act of 2006;
``(cc) protect student
privacy; and
``(dd) streamline the
application process for student
loan benefit programs available
to borrowers based on data
available from different
Federal data systems.
``(ii) Review.--Not less often than once
every 3 years after the establishment of the
postsecondary student data system under this
subsection, the Commissioner, in consultation
with the Advisory Committee, shall review
methods for streamlining data collection from
institutions of higher education and minimizing
duplicative reporting within the Department and
across Federal agencies that provide data for
the postsecondary student data system.
``(iii) Confidentiality.--The Commissioner
shall ensure that any periodic matching or
sharing of data through periodic data system
matches established in accordance with this
paragraph--
``(I) complies with the security and
privacy protections described in
paragraph (1)(C)(iv) and other Federal
data protection protocols;
``(II) follows industry best
practices commensurate with the
sensitivity of specific data elements
or metrics;
``(III) does not result in the
creation of a single standing, linked
Federal database at the Department that
maintains the information reported
across other Federal agencies; and
``(IV) discloses to postsecondary
students what data are included in the
data system and periodically matched
and how the data are used.
``(iv) Correction.--The Commissioner, in
consultation with the Advisory Committee, shall
establish a process for students to request
access to only their personal information for
inspection and request corrections to
inaccuracies in a manner that protects the
student's personally identifiable information.
The Commissioner shall respond in writing to
every request for a correction from a student.
``(4) Publicly available information.--
``(A) In general.--The Commissioner shall make the
summary aggregate information described in subparagraph
(C), at a minimum, publicly available through a user-
friendly consumer information website and analytic tool
that--
``(i) provides appropriate mechanisms for
users to customize and filter information by
institutional and student characteristics;
``(ii) allows users to build summary
aggregate reports of information, including
reports that allow comparisons across multiple
institutions and programs, subject to
subparagraph (B);
``(iii) uses appropriate statistical
disclosure limitation techniques necessary to
ensure that the data released to the public
cannot be used to identify specific
individuals; and
``(iv) provides users with appropriate
contextual factors to make comparisons, which
may include national median figures of the
summary aggregate information described in
subparagraph (C).
``(B) No personally identifiable information
available.--The summary aggregate information described
in this paragraph shall not include personally
identifiable information.
``(C) Summary aggregate information available.--The
summary aggregate information described in this
paragraph shall, at a minimum, include each of the
following for each institution of higher education:
``(i) Measures of student access, including--
``(I) admissions selectivity and
yield; and
``(II) enrollment, disaggregated by
each category described in paragraph
(2)(C)(ii).
``(ii) Measures of student progression,
including retention rates and persistence
rates, disaggregated by each category described
in paragraph (2)(C)(ii).
``(iii) Measures of student completion,
including--
``(I) transfer rates and completion
rates, disaggregated by each category
described in paragraph (2)(C)(ii); and
``(II) number of completions,
disaggregated by each category
described in paragraph (2)(C)(ii).
``(iv) Measures of student costs, including--
``(I) tuition, required fees, total
cost of attendance, and net price after
total grant aid, disaggregated by in-
State tuition or in-district tuition
status (if applicable), program of
study (if applicable), and credential
level; and
``(II) typical grant amounts and loan
amounts received by students reported
separately from Federal, State, local,
and institutional sources, and
cumulative debt, disaggregated by each
category described in paragraph
(2)(C)(ii) and completion status.
``(v) Measures of postcollegiate student
outcomes, including employment rates, mean and
median earnings, loan repayment and default
rates, and further education rates. These
measures shall--
``(I) be disaggregated by each
category described in paragraph
(2)(C)(ii) and completion status; and
``(II) be measured immediately after
leaving postsecondary education and at
time intervals appropriate to the
credential sought or earned.
``(D) Development criteria.--In developing the method
and format of making the information described in this
paragraph publicly available, the Commissioner shall--
``(i) focus on the needs of the users of the
information, which will include students,
families of students, potential students,
researchers, and other consumers of education
data;
``(ii) take into consideration, to the extent
practicable, the guidelines described in
paragraph (1)(C)(ii)(I), and relevant successor
documents or recommendations of such
guidelines;
``(iii) use modern, relevant technology and
enhance and update the postsecondary student
data system with information, as necessary to
carry out the purpose of this paragraph;
``(iv) ensure data privacy and security in
accordance with standards and guidelines
developed by the National Institute of
Standards and Technology, and in accordance
with any other Federal law relating to privacy
or security, including complying with the
requirements of subchapter II of chapter 35 of
title 44, United States Code, specifying
security categorization under the Federal
Information Processing Standards, and security
requirements, and setting of National Institute
of Standards and Technology security baseline
controls at the appropriate level; and
``(v) conduct consumer testing to determine
how to make the information as meaningful to
users as possible.
``(5) Permissible disclosures of data.--
``(A) Data reports and queries.--
``(i) In general.--The Commissioner shall
develop and implement a secure process for
making student-level, non-personally
identifiable information, with direct
identifiers removed, from the postsecondary
student data system available for vetted
research and evaluation purposes approved by
the Commissioner in a manner compatible with
practices for disclosing National Center for
Education Statistics restricted-use survey data
as in effect on the day before the date of
enactment of the College Affordability Act, or
by applying other research and disclosure
restrictions to ensure data privacy and
security. Such process shall be approved by the
National Center for Education Statistics'
Disclosure Review Board (or successor body).
``(ii) Providing data reports and queries to
institutions and states.--
``(I) In general.--The Commissioner
shall provide feedback reports, at
least annually, to each institution of
higher education, each postsecondary
education system that fully
participates in the postsecondary
student data system, and each State
higher education body as designated by
the governor.
``(II) Feedback reports.--The
feedback reports provided under this
clause shall include program-level and
institution-level information from the
postsecondary student data system
regarding students who are associated
with the institution or, for State
representatives, the institutions
within that State, on or before the
date of the report, on measures
including student mobility and
workforce outcomes, provided that the
feedback aggregate summary reports
protect the privacy of individuals.
``(III) Determination of content.--
The content of the feedback reports
shall be determined by the
Commissioner, in consultation with the
Advisory Committee.
``(iii) Permitting state data queries.--The
Commissioner shall, in consultation with the
Advisory Committee and as soon as practicable,
create a process through which States may
submit lists of secondary school graduates
within the State to receive summary aggregate
outcomes for those students who enrolled at an
institution of higher education, including
postsecondary enrollment and college
completion, provided that those data protect
the privacy of individuals and that the State
data submitted to the Commissioner are not
stored in the postsecondary education system.
``(iv) Regulations.--The Commissioner shall
promulgate regulations to ensure fair, secure,
and equitable access to data reports and
queries under this paragraph.
``(B) Disclosure limitations.--In carrying out the
public reporting and disclosure requirements of this
subsection, the Commissioner shall use appropriate
statistical disclosure limitation techniques necessary
to ensure that the data released to the public cannot
include personally identifiable information or be used
to identify specific individuals.
``(C) Sale of data prohibited.--Data collected under
this subsection, including the public-use data set and
data comprising the summary aggregate information
available under paragraph (4), shall not be sold to any
third party by the Commissioner, including any
institution of higher education or any other entity.
``(D) Limitation on use by other federal agencies.--
``(i) In general.--The Commissioner shall not
allow any other Federal agency to use data
collected under this subsection for any purpose
except--
``(I) for vetted research and
evaluation conducted by the other
Federal agency, as described in
subparagraph (A)(i); or
``(II) for a purpose explicitly
authorized by this subsection.
``(ii) Prohibition on limitation of
services.--The Secretary, or the head of any
other Federal agency, shall not use data
collected under this subsection to limit
services to students.
``(E) Law enforcement.--Personally identifiable
information collected under this subsection shall not
be used for any Federal, State, or local law
enforcement activity or any other activity that would
result in adverse action against any student or a
student's family, including debt collection activity or
enforcement of immigration laws.
``(F) Limitation of use for federal rankings or
summative rating system.--The comprehensive data
collection and analysis necessary for the postsecondary
student data system under this subsection shall not be
used by the Secretary or any Federal entity to
establish any Federal ranking system of institutions of
higher education or a system that results in a
summative Federal rating of institutions of higher
education.
``(G) Rule of construction.--Nothing in this
paragraph shall be construed to prevent the use of
individual categories of aggregate information to be
used for accountability purposes.
``(H) Rule of construction regarding commercial use
of data.--Nothing in this paragraph shall be construed
to prohibit third-party entities from using publicly-
available information in this data system for
commercial use.
``(6) Submission of data.--
``(A) Required submission.--Each institution of
higher education participating in a program under title
IV, or the assigned agent of such institution, shall,
in accordance with section 487(a)(17), collect, and
submit to the Commissioner, the data requested by the
Commissioner to carry out this subsection.
``(B) Voluntary submission.--Any postsecondary
institution not participating in a program under title
IV may voluntarily participate in the postsecondary
student data system under this subsection by collecting
and submitting data to the Commissioner, as the
Commissioner may request to carry out this subsection.
``(C) Personally identifiable information.--In
accordance with paragraph (2)(C)(i), if the submission
of an element of student-level data is prohibited under
paragraph (2)(F) (or otherwise prohibited by law), the
institution of higher education shall submit that data
to the Commissioner in the aggregate.
``(7) Unlawful willful disclosure.--
``(A) In general.--It shall be unlawful for any
person who obtains or has access to personally
identifiable information in connection with the
postsecondary student data system described in this
subsection to willfully disclose to any person (except
as authorized by Federal law) such personally
identifiable information.
``(B) Penalty.--Any person who violates subparagraph
(A) shall be subject to a penalty described under
section 3572(f) of title 44, United States Code and
section 183(d)(6) of the Education Sciences Reform Act
of 2002 (20 U.S.C. 9573(d)(6)).
``(C) Employee of officer of the united states.--If a
violation of subparagraph (A) is committed by any
officer or employee of the United States, the officer
or employee shall be dismissed from office or
discharged from employment upon conviction for the
violation.
``(8) Data security.--The Commissioner shall produce and
update as needed guidance and regulations relating to privacy,
security, and access which shall govern the use and disclosure
of data collected in connection with the activities authorized
in this subsection. The guidance and regulations developed and
reviewed shall protect data from unauthorized access, use, and
disclosure, and shall include--
``(A) an audit capability, including mandatory and
regularly conducted audits;
``(B) access controls;
``(C) requirements to ensure sufficient data
security, quality, validity, and reliability;
``(D) student confidentiality protection in
accordance with the Confidential Information Protection
and Statistical Efficiency Act;
``(E) appropriate and applicable privacy and security
protection, including data retention and destruction
protocols and data minimization, in accordance with the
most recent Federal standards developed by the National
Institute of Standards and Technology; and
``(F) protocols for managing a breach, including
breach notifications, in accordance with the standards
of National Center for Education Statistics.
``(9) Data collection.--The Commissioner shall ensure that
data collection, maintenance, and use under this subsection
complies with section 552a of title 5, United States Code.
``(10) Definitions.--In this subsection:
``(A) Institution of higher education.--The term
`institution of higher education' has the meaning given
the term in section 102.
``(B) Personally identifiable information.--The term
`personally identifiable information' has the meaning
given the term in section 444 of the General Education
Provisions Act (20 U.S.C. 1232g).''.
(b) Effective Date; Transition Provisions.--
(1) Effective date.--This section, and the amendments made by
this section, shall take effect on the date that is 4 years
after the date of enactment of this section.
(2) In general.--The Secretary of Education and the
Commissioner for Education Statistics shall take such steps as
are necessary to ensure that the transition to, and
implementation of, the postsecondary student data system
required under section 132(l) of the Higher Education Act of
1965, as added by this section, is carried out in a manner that
reduces the reporting burden for entities that reported into
the Integrated Postsecondary Education Data System (IPEDS).
SEC. 1023. AVOIDING DUPLICATIVE REPORTING.
Section 132 of the Higher Education Act of 1965 (20 U.S.C. 1015a), as
amended by section 1022, is further amended by adding at the end the
following:
``(n) Avoiding Duplicative Reporting.--If the Secretary determines
that the same reporting or collection of data that is required under
subsection (l) is required by another reporting or collection of data
requirement under this Act (other than under subsection (l)), the
Secretary may--
``(1) use the data reported or collected under subsection
(l); and
``(2) waive the other reporting or collection of data
requirement.''.
SEC. 1024. DISCLOSURE OF NON-INSTRUCTIONAL SPENDING INCREASES.
Section 132 of the Higher Education Act of 1965 (20 9 U.S.C. 1015a),
as amended by sections 1022 and 1023, is further amended by adding at
the end the following:
``(o) Non-instructional Spending Increases.--The Secretary shall
ensure, as part of the data collection and reporting under this
section, that institutions of higher education with respect to which
the amount expended by the institution for non-instructional spending
increases by more than 5 percent (using year-over-year data) disclose
such increase to students and prospective students, along with an
analysis of the expected impact on tuition.''.
SEC. 1025. TEXTBOOK INFORMATION.
Section 133 of the Higher Education Act of 1965 (20 U.S.C. 1015b) is
amended--
(1) in subsection (a), by inserting ``, including through the
adoption of innovative tools,'' after ``supplemental
materials'';
(2) in subsection (b)(9)--
(A) by striking ``to accompany a'' and inserting ``to
accompany or support a'' in the matter preceding
subparagraph (A); and
(B) in subparagraph (A), by striking ``materials,
computer disks, website access'' and inserting
``materials, online and digital learning platforms and
materials, website access'';
(3) in subsection (c)(1)(D)(i), by striking ``paperback and
unbound'' and inserting ``paperback, digital, and unbound'';
and
(4) in subsection (f)--
(A) in paragraph (1), by inserting ``accessing lower-
cost digital course materials and digital textbooks,''
after ``programs for''; and
(B) in paragraph (3), by inserting ``, such as
inclusive access programs, subscription models, or
digital content distribution platforms'' after
``delivery programs''.
SEC. 1026. REPEALS.
Sections 134 and 136 of the Higher Education Act of 1965 (20 U.S.C.
1015c) are repealed.
SEC. 1027. IN-STATE TUITION RATES FOR HOMELESS YOUTH AND FOSTER CARE
YOUTH.
Section 135 of the Higher Education Act of 1965 (20 U.S.C. 1015d) is
amended--
(1) in the section heading, by inserting ``, homeless youth,
and foster care youth'' after ``children'';
(2) in subsection (a)--
(A) by striking ``(a) Requirement.--In the case'' and
inserting the following:
``(a) Requirement.--
``(1) Armed forces.--In the case''; and
(B) by adding at the end the following:
``(2) Homeless youth and foster care youth.--In the case of a
homeless youth or a foster care youth, such State shall not
charge such individual tuition for attendance at a public
institution of higher education in the State at a rate that is
greater than the rate charged for residents of the State.'';
and
(3) by striking subsections (c) and (d) and inserting the
following:
``(c) Effective Date.--
``(1) Armed forces.--With respect to an individual described
in subsection (a)(1), this section shall remain in effect as it
was in effect on the day before the date of enactment of the
College Affordability Act.
``(2) Homeless youth and foster care youth.--With respect to
an individual described in subsection (a)(2), this section
shall take effect at each public institution of higher
education in a State that receives assistance under this Act
for the first period of enrollment at such institution that
begins during the first full award year following the date of
enactment of the College Affordability Act.
``(d) Definitions.--In this section:
``(1) Armed forces.--The terms `armed forces' and `active
duty for a period of more than 30 days' have the meanings given
those terms in section 101 of title 10, United States Code.
``(2) Homeless youth.--The term `homeless youth' has the
meaning given the term `homeless children and youths' in
section 725 of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11434a).''.
PART D--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL
ASSISTANCE
SEC. 1031. IMPROVEMENTS TO THE FEDERAL STUDENT AID OFFICE.
Section 141 of the Higher Education Act of 1965 (20 U.S.C. 1018) is
amended--
(1) in subsection (a), by amending paragraph (2) to read as
follows:
``(2) Purposes.--The purposes of the PBO are as follows:
``(A) To prioritize students and borrowers in the
decision-making processes related to all aspects of the
management and administration of the Federal student
financial assistance programs authorized under title
IV.
``(B) To improve service to students and other
participants in the Federal student financial
assistance programs authorized under title IV.
``(C) To make such programs more understandable to
students and their families.
``(D) To increase the efficiency and effectiveness of
such programs for students and their families.
``(E) To manage the costs of administering such
programs.
``(F) To increase the accountability of the officials
responsible for administering the operational aspects
of such programs.
``(G) To oversee institutions, contractors, and third
party servicers that participate in the Federal student
financial assistance programs authorized under title
IV.
``(H) To provide greater flexibility in the
management and administration of such programs.
``(I) To implement open, common, integrated systems
for the delivery of Federal student financial
assistance programs authorized under title IV.
``(J) To develop and maintain a student financial
assistance system that contains complete, accurate, and
timely data to ensure program integrity.
``(K) To increase transparency in the operations and
outcomes of Federal student financial assistance
programs authorized under title IV.'';
(2) in subsection (b)--
(A) in paragraph (1)--
(i) by redesignating subparagraphs (B) and
(C) as subparagraphs (C) and (D), respectively;
and
(ii) by inserting after subparagraph (A) the
following:
``(B) implement oversight and accountability measures
to ensure that the PBO carries out its duties under
this section efficiently, effectively, and in a manner
that accomplishes the purposes specified in subsection
(a)(2);'';
(B) in paragraph (2)--
(i) in subparagraph (A)--
(I) by redesignating clauses (ii)
through (vi) as clauses (iii) through
(vii);
(II) by inserting after clause (i)
the following:
``(ii) in accordance with paragraph (3), the
collection, publication, and sharing of
aggregate and longitudinal data that may be
used to evaluate Federal student financial
assistance programs authorized under title IV,
including the outcomes such programs
achieve;''; and
(III) in clause (vii), as so
redesignated, by inserting ``,
including oversight of institutions,
contractors, and third party servicers
that participate in such programs''
after ``title IV''; and
(ii) by adding at the end the following:
``(C) Taking action to prevent and address the
improper use of access devices, as described in section
485B(d)(7), including by--
``(i) detecting common patterns of improper
use of any system that processes payments on
Federal Direct Loans or other Department
information technology systems;
``(ii) maintaining a reporting system for
contractors involved in the processing of
payments on Federal Direct Loans in order to
allow those contractors to alert the Secretary
of potentially improper use of Department
information technology systems;
``(iii) proactively contacting Federal
student loan borrowers whose Federal student
loan accounts demonstrate a likelihood of
improper use in order to warn those borrowers
of suspicious activity or potential fraud
regarding their Federal student loan accounts;
and
``(iv) providing clear and simple disclosures
in communications with borrowers who are
applying for or requesting assistance with
Federal Direct Loan programs (including
assistance or applications regarding income-
driven repayment, forbearance, deferment,
consolidation, rehabilitation, cancellation,
and forgiveness) to ensure that borrowers are
aware that the Department will never require
borrowers to pay for such assistance or
applications.'';
(C) by redesignating paragraphs (3) through (6) as
paragraphs (4) through (7), respectively; and
(D) by inserting after paragraph (2) the following:
``(3) Collection, sharing, and publication of data.--
``(A) Collection.--The PBO shall collect student-
level data that shall be used to evaluate Federal
student financial assistance programs authorized under
title IV.
``(B) Sharing with nces.--The PBO shall make the data
collected under subparagraph (A) available to the
Commissioner of the National Center for Education
Statistics for purposes of research and policy
analysis.
``(C) Research.--The Commissioner of the National
Center for Education Statistics shall ensure the data
shared under subparagraph (B) is made available, with
direct identifiers removed and with appropriate
restrictions to ensure data privacy and security, for
vetted research and evaluation purposes in a manner
consistent with the process under section
132(l)(5)(A)(i).
``(D) Publication.--Not less frequently than once
annually, the PBO shall--
``(i) aggregate the data collected under
subparagraph (A) in a manner that excludes--
``(I) student-level data; or
``(II) any data that would reveal
personally identifiable information
about an individual student; and
``(ii) make available such aggregated data on
a publicly accessible website of the Department
in a format that enables members of the public
to easily retrieve, sort, and analyze the
data.''.
(3) by amending subsection (c) to read as follows:
``(c) Performance Plan, Report, and Briefing.--
``(1) Performance plan.--
``(A) In general.--Not later than one year after the
date of the enactment of the College Affordability Act,
and not less than once every five years thereafter, the
Secretary and Chief Operating Officer shall agree on a
performance plan for the PBO for the succeeding 5 years
that--
``(i) establishes measurable quantitative and
qualitative goals and objectives for the
organization; and
``(ii) aligns such goals and objectives with
the purposes specified in subsection (a)(2).
``(B) Consultation.--In developing the five-year
performance plan and any revision to the plan, the
Secretary and the Chief Operating Officer shall consult
with students, institutions, Congress, contractors, the
Borrower Advocate, student aid experts, including
consumer advocacy and research groups, the Director of
the Bureau of Consumer Financial Protection, State
attorneys general, and other relevant parties.
``(C) Revisions.--The Secretary and Chief Operating
Officer may annually update the plan under paragraph
(1) to incorporate the recommendations made pursuant to
the consultation required under subparagraph (B) that
are accepted by the Secretary and the Chief Operating
Officer.
``(D) Areas.--The plan developed under subparagraph
(A) shall address the responsibilities of the PBO in
the following areas:
``(i) Improving service to students and other
participants in the Federal student financial
assistance programs authorized under title IV,
including making those programs more
understandable and accessible to students and
their families.
``(ii) Managing the costs and increasing the
efficiency of such programs.
``(iii) Improving, integrating, and investing
in the systems that support such programs.
``(iv) Developing open, common, and
integrated systems for such programs.
``(v) The collection, publication, and
sharing of data on such programs as described
in subsection (b)(3).
``(vi) Improving performance standards and
outcomes with respect to institutions,
contractors, and third party servicers that act
as agents of the Department or as agents of
institutions that participate in such programs.
``(vii) Any other areas identified by the
Secretary.
``(E) Public availability.--Each plan developed under
subparagraph (A) shall be made available on a publicly
accessible website of the Department of Education.
``(2) Annual report.--
``(A) Report required.--Not later than one year after
the date of the enactment of the College Affordability
Act and annually thereafter, the Secretary, acting
through the Chief Operating Officer, shall submit to
Congress an annual report on the performance of the
PBO.
``(B) Contents.--The annual report shall include the
following:
``(i) An evaluation of the extent to which
the PBO met the goals and objectives contained
in the five-year performance plan described in
paragraph (1) for the preceding year.
``(ii) A summary of the consultation process
under paragraph (1)(B) for the preceding year,
including the recommendations that were
accepted or denied by the Chief Operating
Officer during such year, and the rationale for
accepting or denying such recommendations.
``(iii) An independent financial audit of the
expenditures of both the PBO and the programs
administered by the PBO.
``(iv) A summary of the actions taken by the
PBO to address--
``(I) the findings of the audit
described in clause (iii); and
``(II) consumer feedback.
``(v) Financial and performance requirements
applicable to the PBO under--
``(I) the Chief Financial Officers
Act of 1990 (Public Law 101-576); or
``(II) the Government Performance and
Results Act of 1993 (Public Law 103-
62).
``(vi) The results achieved by the PBO during
the preceding year and whether such results met
the goals specified in the performance plan
under paragraph (1).
``(vii) With respect to the preceding year,
the evaluation rating of the performance of the
Chief Operating Officer and senior managers
under subsections (d)(5) and (e)(2), including
the amounts of bonus compensation awarded to
the Chief Operating Officer and senior
managers.
``(viii) Recommendations for legislative and
regulatory changes to improve service to
students and their families, and to improve the
efficiency and integrity of Federal student
financial assistance programs authorized under
title IV.
``(ix) Financial statements that provide a
rationale for appropriately funding the
activities of the PBO.
``(x) A summary of the management and
compliance of contractors managed by the PBO in
the preceding year, including corrective
actions taken by the PBO with respect to such
contractors.
``(xi) A description of how the PBO used the
authority under paragraph (5) of subsection (b)
for making personnel and procurement decisions
in the preceding year, including the number of
individuals hired through such authority and
the bonuses provided to staff during such year.
``(xii) A summary of the oversight activities
of institutions, contractors, and third party
servicers that participate in the Federal
student financial assistance programs
authorized under title IV including--
``(I) fines levied on such
institutions, contractors, and third
party servicers, disaggregated by
entity;
``(II) instances of fraud or
misrepresentation by such institutions,
contractors, or third party servicers;
and
``(III) violations of provisions in
this Act by such institutions,
contractors, or third party servicers
disaggregated by entity and type of
violation.
``(xiii) A summary of any improvements made
with respect to transparency and any new types
of data made available in the preceding year.
``(xiv) A description of the progress made in
the preceding year towards the specific
measurable organization and individual goals
specified in subsection (d)(5)(A).
``(xv) The report submitted to the Secretary
under subsection (f)(7).
``(xvi) 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 annual report described in paragraph
(2), shall establish appropriate means to consult with
students, borrowers, institutions, student aid experts,
including consumer advocacy and research groups, the Director
of the Bureau of Consumer Financial Protection, and others
involved in the delivery and evaluation of student aid under
title IV--
``(A) regarding the degree of satisfaction with the
delivery system; and
``(B) to seek suggestions on means to improve the
performance of the delivery system.
``(4) Briefing on enforcement of program integrity.--The
Secretary shall, at the request of the authorizing committees,
provide to the authorizing committees a briefing on the steps
the Department of Education has taken to ensure--
``(A) the experiences of students and borrowers are
accounted for in decision making; and
``(B) that contractors, lenders, and guaranty
agencies and third party servicers are adhering to the
requirements of title IV, the terms of any contract
with the Secretary, consumer protection laws, Federal
regulations and guidelines, and directives of the PBO.
``(5) Coordination with the director of the bureau of
consumer financial protection.--Not later than 180 days after
the date of the enactment of the College Affordability Act, the
Secretary shall enter into a memorandum of understanding with
the Private Education Loan Ombudsman in accordance with section
1035(c)(2) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5535(c)(2)).''.
(4) in subsection (d)--
(A) in paragraph (1), by striking ``management
ability'' and all that follows through the period at
the end and inserting ``management ability, including
contractor management, expertise in the Federal student
financial assistance programs authorized under title
IV, experience with financial systems, and knowledge of
consumer financial protection laws, and without regard
to political affiliation or activity.'';
(B) by redesignating paragraphs (2) through (5) as
paragraphs (3) through (6);
(C) by inserting after paragraph (1) the following:
``(2) Restrictions.--
``(A) Preservice and in-service restrictions.--An
individual may not serve as the Chief Operating Officer
if such individual--
``(i) is employed by, or has a financial
interest in, an entity that contracts with the
PBO; or
``(ii) was employed by, or had a financial
interest in, any such entity in any of the five
years preceding the date of the individual's
appointment as the Chief Operating Officer.
``(B) Postservice restrictions.--An individual who
served as the Chief Operating Officer may not accept
employment with an entity that contracts with the PBO
until a period of five years has elapsed following the
date on which such individual's service as the Chief
Operating Officer terminated.'';
(D) in paragraph (5), as so redesignated--
(i) in subparagraph (A)--
(I) by inserting ``specific'' before
``measurable''; and
(II) by inserting ``and metrics used
to measure progress toward such goals''
before the period; and
(ii) in subparagraph (B), by inserting ``on
the website of the Department'' before the
period;
(E) in paragraph (6), as so redesignated, by amending
subparagraph (B) to read as follows:
``(B) Bonus authorized.--The Secretary may pay to the
Chief Operating Officer a bonus in an amount that does
not exceed 50 percent of such annual rate of basic pay.
The decision to pay such a bonus, and the amount of the
bonus, shall be based solely on the Secretary's
evaluation of the performance of the Chief Operating
Officer with respect to the goals set forth in the
performance agreement as described in paragraph
(5)(A).'';
(5) in subsection (e)(2), by striking ``measurable
organization and individual goals'' and inserting ``specific,
measurable organization and individual goals and the metrics
used to measure progress toward such goals. Performance
agreements for senior management responsible for procurement
shall include metrics that measure ability to oversee
contractors'';
(6) by amending subsection (f) to read as follows:
``(f) Borrower Advocate.--
``(1) In general.--There is established in the PBO an `Office
of the Borrower Advocate' (referred to in this subsection as
the `Office'). The function of the Office shall be to provide
timely assistance to borrowers of loans made, insured, or
guaranteed under title IV by performing the duties described in
paragraph (6).
``(2) Head of office.--There shall be an official known as
the `Borrower Advocate' who shall serve as the head of the
Office. The Borrower Advocate shall be appointed by the
Secretary from among individuals who have worked closely with
the Federal student loan programs authorized under title IV.
``(3) Removal.--The Borrower Advocate may be removed only by
the Secretary who shall communicate the reasons for any such
removal to the authorizing committees.
``(4) Restrictions.--
``(A) Preservice and in-service restrictions.--An
individual may not serve as the Borrower Advocate if
such individual--
``(i) is employed by, or has a financial
interest in, an entity that contracts with the
PBO; or
``(ii) was employed by, or had a financial
interest in, any such entity in any of the five
years preceding the date of the individual's
appointment as the Borrower Advocate.
``(B) Postservice restrictions.--An individual who
served as the Borrower Advocate may not accept
employment with an entity that contracts with the PBO
until a period of five years has elapsed following the
date on which such individual's service as the Borrower
Advocate terminated.
``(5) Staff.--The Office shall be staffed sufficiently to
carry out the responsibilities of the Office under this
subsection.
``(6) Duties of the borrower advocate.--The Office of the
Borrower Advocate shall--
``(A) assist borrowers of loans made, insured, or
guaranteed under title IV in resolving problems with
the PBO and its contractors or other agents, including
by--
``(i) receiving and reviewing complaints of
such problems from borrowers;
``(ii) working to resolve such complaints in
a manner that is in the best interests of
borrowers; and
``(iii) transmitting such complaints to
States and recognized accrediting agencies or
associations, as appropriate.
``(B) attempt to resolve complaints within the
Department of Education and with institutions of higher
education, lenders, guaranty agencies, loan servicers,
and other participants in the Federal student loan
programs authorized under title IV in a manner that
will improve the experience of the borrower;
``(C) conduct impartial reviews regarding a student's
independence under subparagraph (B) or (H) of section
480(d)(1), in consultation with knowledgeable parties,
including institutions of higher education, child
welfare agencies, local educational agency liaisons for
homeless individuals designated under section
722(g)(1)(J)(ii) of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11432(g)(1)(J)(ii)), or State
Coordinators for Education of Homeless Children and
Youth established in accordance with section 722 of
such Act (42 U.S.C. 11432);
``(D) compile and analyze data on borrower complaints
and share such data with the Director of the Bureau of
Consumer Financial Protection;
``(E) publish, with any personally identifiable
information redacted, such complaints and responses of
the Secretary to such complaints on the website of the
Department; and
``(F) make appropriate recommendations to Congress,
the Chief Operating Officer, and Secretary with respect
to Federal student loan programs authorized under title
IV and the experiences of borrowers in repayment of
loans under such programs.
``(7) Public information.--The Chief Operating Officer shall
establish and maintain a public page on the website of the
Department of Education exclusively to provide members of the
public with information about the role of the PBO with respect
to the oversight of institutions of higher education, lenders,
guaranty agencies, contractors that contract with the PBO,
subcontractors of such contractors, and third party servicers.
``(8) Report.--On an annual basis, the Borrower Advocate
shall submit to the Chief Operating Officer a report on the
activities of the Office during the preceding year that--
``(A) identifies the activities carried out by the
Borrower Advocate;
``(B) summarizes the complaints received from
borrowers, including the number of such complaints, and
explains the activities undertaken by the PBO to
address such complaints;
``(C) proposes changes in the administrative
practices of the PBO to mitigate problems experienced
by borrowers; and
``(D) identifies potential legislative changes which
may be appropriate to mitigate such problems.'';
(7) by redesignating subsection (i) as subsection (j); and
(8) by inserting after subsection (h) the following:
``(i) Enforcement Unit.--
``(1) In general.--Not later than 180 days after the date of
enactment of the College Affordability Act, the Secretary shall
establish within the PBO an enforcement unit (referred to in
this section as the `Unit') to review and investigate
violations of this Act and recommend enforcement actions in
accordance with paragraph (3).
``(2) Chief enforcement officer.--
``(A) Appointment.--The Secretary shall appoint an
official to be known as the `Chief Enforcement Officer'
who shall serve as the head of the Unit. The Secretary
shall appoint an individual to serve as the Chief
Enforcement Officer solely on the basis of such
individual's integrity and expertise in law and
investigations and without regard to such individual's
political affiliation.
``(B) Authority.--The Chief Enforcement Officer shall
report directly to the Secretary without being required
to report through any other official of the Department
of Education.
``(C) Term.--The Chief Enforcement Officer shall be
appointed for a term of 6 years and may be reappointed
for additional terms of 6 years at the discretion of
the Secretary.
``(D) Removal.--
``(i) In general.--The Chief Enforcement
Officer may not be removed during the Officer's
term except for cause.
``(ii) Notice to congress.--If the Secretary
removes the Chief Enforcement Officer before
the expiration of the Officer's term, the
Secretary shall submit to the authorizing
committees a report that explains the reasons
for such removal. The report shall be submitted
to the authorizing committees not later than 30
days after the date on which the removal takes
effect.
``(3) Duties.--The Chief Enforcement Officer shall have the
following duties:
``(A) Receive, process, and analyze allegations that
a covered entity has violated Federal law or has
engaged in unfair, deceptive, or abusive practices.
``(B) Review and investigate such allegations or
refer such allegations to an entity described in
subparagraphs (A) through (E) of paragraph (6).
``(C) After reviewing and investigating an allegation
under subparagraph (B), in consultation with the Chief
Operating Officer--
``(i) if the covered entity subject to such
allegation is an entity described in clause (i)
or (iii) of paragraph (8)(A), make
recommendations with respect to such covered
entity, including--
``(I) whether such covered entity
should be limited, suspended, or
terminated from participation in one or
more programs under title IV;
``(II) whether such covered entity
should be subject to an emergency
action under section 487(c)(1)(G);
``(III) whether such covered entity
should be subject to a civil penalty
described in section 487(c)(3)(B);
``(IV) whether such covered entity
should be subject to a criminal penalty
described in section 490; or
``(V) whether such covered entity
should be subject to a combination of
any of the actions described in
subclauses (I) though (IV);
``(ii) if the covered entity subject to such
allegation is an entity described in clause
(ii) of paragraph (8)(A), make recommendations
with respect to such covered entity, including
whether such covered entity should be limited,
suspended, or terminated from administering or
providing services with respect to one or more
programs under title IV; and
``(iii) provide the Secretary with such
recommendations.
``(4) Secretarial review and action.--After receiving notice
of a determination of the Chief Enforcement Officer under
paragraph (3)(C), the Secretary shall decide whether or not to
pursue enforcement action against the entity concerned, in
accordance with the procedures established under section
487(c)(3). In a case in which the Chief Enforcement Officer
recommends enforcement action against an entity, but the
Secretary decides not to pursue such enforcement action, the
Secretary shall notify the Chief Enforcement Officer, in
writing, of the rationale for such decision.
``(5) Coordination and staffing.--The Chief Enforcement
Officer shall--
``(A) coordinate with relevant Federal and State
agencies and oversight bodies; and
``(B) hire staff with the expertise necessary to
conduct investigations, respond to allegations against
covered entities, and enforce compliance with laws
governing Federal student financial assistance programs
under title IV.
``(6) Information sharing.--The Chief Enforcement Officer
shall develop and implement a process for sharing relevant
information about allegations against covered entities with--
``(A) the Borrower Advocate appointed under
subsection (f);
``(B) personnel of the Department on responsible for
processing borrower defense claims submitted under
section 493H;
``(C) other relevant Federal agencies;
``(D) States, including State law enforcement and
regulatory agencies; and
``(E) recognized accrediting agencies or
associations.
``(7) Report to congress.--On an annual basis, the Chief
Enforcement Officer shall submit to the authorizing committees
a report that includes--
``(A) the number of allegations about covered
entities received by Unit in the year covered by the
report;
``(B) the number of such allegations investigated by
the Unit;
``(C) the number of such allegations that were
referred to the Secretary under paragraph (3)(C) and a
summary of any action taken by the Secretary with
respect to such allegations;
``(D) the number of such allegations that were
referred to other Federal agencies and the names of the
agencies to which the allegations were referred; and
``(E) the number of such allegations that remain
under review or investigation as of the date of the
report.
``(8) Definitions.--In this subsection:
``(A) Covered entity.--In this subsection, the term
`covered entity' means--
``(i) an institution of higher education (as
defined in section 102) that participates in
the Federal student financial assistance
programs authorized under title IV;
``(ii) a contractor that contracts with the
PBO to provide services relating to such
programs, or a subcontractor of such
contractor; or
``(iii) a third party servicer.
``(B) Third party servicer.--the term `third party
servicer' has the meaning given that term in section
481(c).''.
TITLE II--TEACHER QUALITY ENHANCEMENT
PART A--TEACHER AND SCHOOL LEADER QUALITY PARTNERSHIP GRANTS
SEC. 2001. DEFINITIONS.
Section 200 of the Higher Education Act of 1965 (20 U.S.C. 1021) is
amended to read as follows:
``SEC. 200. DEFINITIONS.
``Except as otherwise provided, 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) Blended learning.--The term `blended learning' has the
meaning given the term in section 4102 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7112).
``(3) 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 (20 U.S.C. 6333(c)(1)(A)).
``(4) Comprehensive literacy instruction.--The term
`comprehensive literacy instruction' has the meaning given the
term in section 2221(b)(1) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6641(b)(1)).
``(5) Digital learning.--The term `digital learning' has the
meaning given the term in section 4102 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7112).
``(6) Diverse teacher candidates.--The term `diverse teacher
candidates' means teacher candidates who are--
``(A) members of racial and ethnic groups
underrepresented in the teaching profession; or
``(B) linguistically and culturally prepared to
educate students in high-need schools.
``(7) 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.
``(8) Educational service agency.--The term `educational
service agency' has the meaning given the term in section 8101
of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801).
``(9) Educator.--The term `educator' means a teacher,
principal or other school leader, specialized instructional
support personnel, or other staff member who provides or
directly supports instruction, such as a school librarian,
counselor, or paraprofessional.
``(10) Eligible partnership.--The term `eligible partnership'
means an entity--
``(A) that--
``(i) shall include--
``(I) a high-need local educational
agency;
``(II)(aa) a high-need school or a
consortium of high-need schools served
by such high-need local educational
agency; or
``(bb) 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; or
``(ii) shall include--
``(I)(aa) a partner education
institution;
``(bb) 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; or
``(cc) a school or department of arts
and sciences within such partner
institution; and
``(II) a State educational agency
that will serve to place graduates of
partnership programs into high-need
local educational agencies, schools, or
early childhood programs, or schools
that have been identified for
comprehensive support and improvement
under section 1111(d)(2) of the
Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6311(d)(2)); and
``(B) that 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 public or private nonprofit
educational organization.
``(vi) An educational service agency.
``(vii) A public school teacher, principal,
or school leader organization.
``(viii) A high-performing local educational
agency, or a consortium of such local
educational agencies, that can serve as a
resource to the partnership.
``(ix) A charter school (as defined in
section 4310 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7221i)).
``(x) A school or department within the
partner institution that focuses on psychology
and human development.
``(xi) A school or department within the
partner institution for teacher or school
leader preparation with comparable expertise in
the disciplines of teaching, learning, and
child and adolescent development.
``(xii) An entity operating a program that
provides alternative routes to State
certification of teachers or principals.
``(11) English learner.--The term `English learner' has the
meaning given the term in section 8101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801).
``(12) Evidence-based.--The term `evidence-based' has the
meaning given the term in subclauses (I) and (II) of section
8101(21)(A)(i) of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7801(21)(A)).
``(13) Evidence of student learning.--The term `evidence of
student learning' means multiple measures of student learning
that include the following:
``(A) Valid and reliable student assessment data,
which may include data--
``(i) on student learning gains on statewide
academic assessments under section 1111(b)(2)
of the Elementary and Secondary Education Act
of 1965;
``(ii) from student academic achievement
assessments used at the national, State, or
local levels, where available and appropriate
for the curriculum and students taught;
``(iii) from classroom-based summative
assessments; and
``(iv) from high quality validated
performance-based assessments that are aligned
with challenging State academic standards
adopted under section 1111(b)(1) of the
Elementary and Secondary Education Act of 1965
(20 U.S.C. 6311(b)(1)).
``(B) Not less than one of the following additional
measures:
``(i) Student work, including measures of
performance criteria and evidence of student
growth.
``(ii) Teacher-generated information about
student goals and growth.
``(iii) Parental feedback about student goals
and growth.
``(iv) Student feedback about learning and
teaching supports.
``(v) Assessments of affective engagement and
self-efficacy.
``(vi) Other appropriate measures, as
determined by the State.
``(14) Foster care.--
``(A) In general.--The term `foster care' means 24-
hour substitute care for a child placed away from the
child's parents or guardians and for whom the State
agency has placement and care responsibility. The term
includes care through a placement in a foster family
home, a foster home of a relative, a group home, an
emergency shelter, a residential facility, a child care
institution, or a pre-adoptive home.
``(B) Rule.--A child shall be considered to be in
foster care under subparagraph (A) without regard to
whether--
``(i) the foster care facility is licensed
and payments are made by the State or local
agency for the care of the child;
``(ii) adoption subsidy payments are being
made prior to the finalization of an adoption;
or
``(iii) Federal matching funds for any
payments described in clause (i) or (ii) are
being made.
``(15) 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.
``(16) High-need local educational agency.--The term `high-
need local educational agency' means a local educational
agency--
``(A)(i) that serves not fewer than 10,000 low-income
children;
``(ii) for which not less than 40 percent of the
children served by the agency are low-income children;
``(iii) that meets the eligibility requirements for
funding under the Small, Rural School Achievement
Program under section 5211(b) of the Elementary and
Secondary Education Act of 1965 or the Rural and Low-
Income School Program under section 6221(b) of such
Act; or
``(iv) that has a percentage of low-income children
that is in the highest quartile among such agencies in
the State; and
``(B)(i) for which a significant number of schools
served by the agency is identified by the State for
comprehensive supports and interventions under section
1111(c)(4)(D)(i) of the Elementary and Secondary
Education Act of 1965; or
``(ii) for which a significant number of schools
served by the agency has a high teacher turnover rate
or is experiencing a teacher shortage in a high-needs
field, as determined by the State.
``(17) High-need school.--
``(A) In general.--The term `high-need school' means
a school that, based on the most recent data available,
is--
``(i) an elementary school, in which not less
than 60 percent of students are eligible for a
free or reduced price school lunch under the
Richard B. Russell National School Lunch Act;
``(ii) any other school that is not an
elementary school, in which not less than 45
percent of students 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
``(iii) identified for comprehensive support
and improvement under section 1111(c)(4)(D) of
the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6311(c)(4)(D)), targeted
support and improvement under section
1111(d)(2) of such Act (20 U.S.C. 6311(d)(2)),
or additional targeted support under section
1111(d)(2)(C) of such Act (20 U.S.C.
6311(d)(2)(C)).
``(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
four-year adjusted cohort graduation
rate for such school.
``(18) Highly competent.--The term `highly competent', when
used with respect to an early childhood educator, means an
early childhood educator--
``(A) with specialized education and training in
development and education of young children from birth
until entry into kindergarten or a specialization in
infants and toddlers or pre-school children;
``(B) with a baccalaureate degree in an academic
major in an early childhood or related field; 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.
``(19) Homeless child.--The term `homeless child' means an
individual who is a homeless child or youth under section 725
of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11434a).
``(20) Induction program.--The term `induction program' means
a formalized program for new teachers, principals, or school
leaders, during not less than the teachers', principals, or
school leaders' first 2 years of, respectively, teaching or
leading, that is designed to provide support for, and improve
the professional performance and increase the retention in the
education field of, beginning teachers, principals, or school
leaders. Such program shall promote effective teaching or
leadership skills and shall include the following components:
``(A) High-quality and structured teacher or school
leader mentoring led by a trained and expert mentor who
has demonstrated high skill and effectiveness and who
teaches or leads, or has taught or led, in the same or
similar field, grade, or subject as the mentee.
``(B) Periodic, structured time for collaboration,
including with mentors, as well as time for
information-sharing among teachers, principals, other
school leaders and administrators, other appropriate
instructional staff, and participating faculty or
program staff in the partner institution.
``(C) The application of evidence-based instructional
practices.
``(D) Opportunities for new teachers, principals, or
school leaders to draw directly on the expertise of
mentors, faculty or program staff, and researchers,
including through mentor observation and feedback, to
support the integration of evidence-based research and
practice.
``(E) The development of skills in evidence-based
instructional and behavioral supports and
interventions.
``(F) Programs to support the health and well-being
of teachers, particularly in high-need schools or high-
need local educational agencies. These may include
programs that focus on social emotional learning,
organizational interventions, workplace wellness, and
stress management.
``(G) Faculty or program staff who--
``(i) model the integration of research and
practice in the classroom and school; and
``(ii) assist new teachers or school leaders
with the effective use and integration of
educational and accessible technology and
universal design for learning into the
classroom or school.
``(H) Interdisciplinary collaboration among teacher
leaders or school leaders, faculty or program staff,
researchers, and other staff who prepare new teachers
or school leaders with respect to, as applicable, the
learning process, the assessment of learning, or the
leadership of a school.
``(I) As applicable to the role, assistance with
understanding of the effective use of data,
particularly student achievement data, and the
applicability of such data to inform and improve
classroom instruction and school leadership.
``(J) Regular and structured observation and
evaluation of new teachers, principals, or other school
leaders that are based in part on evidence of student
learning, shall include multiple measures of educator
performance, and shall provide clear, timely, and
useful feedback to teachers, principals, or other
school leaders to be used to improve instruction, as
applicable.
``(K) With respect to a principal induction program,
the development of local-educational-agency-wide
systems such as rigorous leader standards, continuous
ongoing identification of goals for improvement, and
support for achieving those goals.
``(L) The development of skills in improving the
school culture and climate related to school leadership
and the role of the principal, including to--
``(i) nurture teacher and staff development
to strengthen classroom practice;
``(ii) support teacher health and well-being,
including through programs that focus on social
emotional learning, organizational
interventions, workplace wellness, and stress
management;
``(iii) build and sustain an inclusive
culture of learning among adults and children;
``(iv) strengthen communications and
relationships with teachers, parents,
caregivers, paraprofessionals, and community
stakeholders;
``(v) facilitate the sharing of knowledge,
insight, and best practices in the community
served by the school, preschool program, or
early childhood education program, including
with youth serving programs (such as before-
and after-school and summer programs); and
``(vi) build relationships and communicate
effectively with State and local educational
agency officials.
``(21) Infant or toddler with a disability.--The term `infant
or toddler with a disability' has the meaning given the term in
section 632 of the Individuals with Disabilities Education Act
(20 U.S.C. 1432).
``(22) Mentoring.--The term `mentoring' means the mentoring
or coaching of new or prospective teachers, principals, or
school leaders through a program that--
``(A) includes clear criteria for the selection of
teacher, principal, or school leader mentors who may be
program staff and who will provide role model
relationships for mentees, which criteria shall be
developed by the eligible partnership and based on
measures of teacher or school leader effectiveness;
``(B) provides high-quality training for such
mentors, including instructional strategies for
culturally relevant teaching practices, literacy
instruction and classroom management (including
approaches that improve the schoolwide climate for
learning, create inclusive classroom environments, and
address the social and emotional needs of students,
which may include positive behavioral interventions and
supports);
``(C) provides regular and ongoing opportunities for
mentors and mentees to observe each other's teaching or
leading methods in classroom or school 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;
``(E) for teachers, provides mentoring to each mentee
by a colleague who teaches in the same field, grade, or
subject as the mentee;
``(F) for teachers, promotes empirically-based
practice of, and evidence-based 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, including trauma-informed
practices; 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) as applicable, joint professional
development opportunities.
``(23) Parent.--The term `parent' has the meaning given the
term in section 8101 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7801).
``(24) Partner institution.--The term `partner institution'
means an institution of higher education, which may include a
2-year institution of higher education offering a dual program
with a 4-year institution of higher education, participating in
an eligible partnership that has a teacher or school leader
preparation program that is accredited by the State--
``(A) in the case of a teacher preparation program--
``(i) 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) that is not designated as a
low-performing teacher preparation
program in the State as determined by
the State--
``(aa) using criteria
consistent with the
requirements for the State
assessment under section 207(a)
before the first publication of
such report card; and
``(bb) using the State
assessment required under
section 207(a), after the first
publication of such report card
and for every year thereafter;
and
``(ii) 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 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 (20 U.S.C.
1412(a)(14)(C)); and
``(III) each student in the program
preparing to become an early childhood
educator to become highly competent;
and
``(B) in the case of a school leader preparation
program--
``(i) whose graduates exhibit a strong record
of successful school leadership as demonstrated
by--
``(I) a high percentage of such
graduates taking positions as assistant
principals and principals within 3
years of completing the program; and
``(II) a high percentage of such
graduates rated effective or above in
State school leader evaluation and
support systems (as described in
section 2101(c)(4)(B)(ii) of the
Elementary and Secondary Education Act
of 1965) or, if no such ratings are
available, other, comparable indicators
of performance; and
``(ii) that requires each student in the
program to participate in an intensive, high-
quality clinical experience in an authentic
setting (including by assuming substantial
leadership responsibilities) for at least one
full academic semester (or the equivalent) in
which the student can be evaluated on
leadership skills and the student's effect on
student learning as part of program completion.
``(25) 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 U.S.C.
7801).
``(26) Profession-ready.--The term `profession-ready'--
``(A) when used with respect to a principal or other
school leader, means a principal or other school leader
who--
``(i) has an advanced degree, or other
appropriate credential;
``(ii) has completed a principal or other
school leader preparation process and is fully
certified and licensed by the State in which
the principal or other school leader is
employed;
``(iii) has demonstrated instructional
leadership, including the ability to collect,
analyze, and utilize data on evidence of
student learning and evidence of classroom
practice;
``(iv) has demonstrated proficiency in
professionally recognized leadership standards,
such as through--
``(I) a performance assessment;
``(II) completion of a residency
program; or
``(III) other measures of leadership
effectiveness, as determined by the
State; and
``(v) has demonstrated the ability to work
with students with disabilities and students
who are culturally and linguistically diverse;
``(B) when used with respect to a teacher, means a
teacher who--
``(i) has completed a teacher preparation
program and is fully certified and licensed to
teach by the State in which the teacher is
employed;
``(ii) has a baccalaureate degree or higher;
``(iii) has demonstrated content knowledge in
the subject or subjects the teacher teaches;
``(iv) has demonstrated the ability to work
with students with disabilities and students
who are culturally and linguistically diverse;
``(v) has demonstrated teaching skills, such
as through--
``(I) a teacher performance
assessment; or
``(II) other measures of teaching
skills, as determined by the State; and
``(vi) has demonstrated proficiency with the
use of educational and accessible technology;
and
``(C) when used with respect to any other educator
not described in subparagraph (A) or (B), means an
educator who has completed an appropriate preparation
program and is fully certified or licensed by the State
in which the educator is employed.
``(27) Residency program.--The term `residency program' means
a school-based educator preparation program, based on models of
effective teaching and leadership residencies, in which a
prospective teacher, principal, or other school leader--
``(A) for 1 academic year, works alongside a mentor
teacher, principal, or other school leader who is--
``(i) the educator of record; and
``(ii) is rated as effective or above in the
State's school leader evaluation and support
system (as described in section
2101(c)(4)(B)(ii) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
6611(c)(4)(B)(ii))) or, if no such ratings are
available, other, on comparable indicators of
performance;
``(B) receives concurrent, aligned instruction during
the year described in subparagraph (A) from the partner
institution, which may be courses taught by local
educational agency personnel or residency program
faculty, in, as applicable--
``(i) the teaching of the content area in
which the teacher will become certified or
licensed;
``(ii) pedagogical practices, including the
teaching skills defined in paragraph (33); and
``(iii) leadership, management,
organizational, and instructional skills
necessary to serve as a principal or other
school leader;
``(C) acquires effective teaching or leadership
skills through the integration of pedagogy, classroom
or school practice, and teacher or leadership
mentoring; and
``(D) prior to completion of the program--
``(i) demonstrates the prerequisite skills to
advance student learning, which may be measured
by a teacher or school leader performance
assessment;
``(ii) attains full State teacher, principal,
or school leader certification or licensure;
``(iii) with respect to special education
teachers, meets the qualifications described in
section 612(a)(14)(C) of the Individuals with
Disabilities Education Act (20 U.S.C.
1412(a)(14)(C)); and
``(iv) becomes profession-ready.
``(28) School leader.--The term `school leader' has the
meaning given the term in section 8101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801).
``(29) School leader preparation entity.--The term `school
leader preparation entity' means an institution of higher
education or a nonprofit organization, including those
institutions or organizations that provide alternative routes
to certification, that is approved by the State to prepare
school leaders to be effective.
``(30) School leader preparation program.--The term `school
leader preparation program' means a program offered by a school
leader preparation entity, whether a traditional or alternative
route, that is approved by the State to prepare school leaders
to be effective and that leads to a specific State
certification to be a school leader.
``(31) School leader skills.--The term `school leader skills'
refers to evidenced-based competencies for principals and other
school leaders such as--
``(A) shaping a vision of academic success for all
students;
``(B) creating a safe and inclusive learning
environment;
``(C) cultivating leadership in others;
``(D) improving instruction; and
``(E) managing people, data, and processes to foster
school improvement.
``(32) Teacher leader.--The term `teacher leader' means an
effective educator who carries out formalized leadership
responsibilities based on the demonstrated needs of the
elementary school or secondary school in which the teacher is
employed, while maintaining a role as a classroom instructor
who--
``(A) is trained in and practices teacher leadership;
and
``(B) fosters a collaborative culture to--
``(i) support educator development,
effectiveness, and student learning;
``(ii) support access and use research to
improve practice and student learning;
``(iii) promote professional learning for
continuous improvement;
``(iv) facilitate improvements in instruction
and student learning; promote the appropriate
use of assessments and data for school and
district improvement;
``(v) improve outreach and collaboration with
families and community;
``(vi) advance the profession by shaping and
implementing policy;
``(vii) advocate for increased access to
great teaching and learning for all students;
and
``(viii) demonstrate cultural competencies
and provide instruction and support as such.
``(33) 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, explain, and provide
opportunities for students to develop the skills
aligned with the full depth and breadth of the State
challenging academic standards, including the
application of academic subject matter;
``(C) effectively teach higher-order analytical,
evaluation, problem-solving, critical thinking, social
and emotional, collaboration, and communication skills;
``(D) employ strategies grounded in the disciplines
of teaching and learning that--
``(i) are based on empirically-based practice
and evidence-based 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
English learners, students who are gifted and
talented, and students with low literacy
levels, and the tailoring of academic
instruction to such needs;
``(E) design and conduct ongoing assessments 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) and
use this information to inform and personalize
instruction;
``(F) support the social, emotional, and academic
achievement of all students including effectively
manage a classroom creating a positive and inclusive
classroom environment, including the ability to
implement positive behavioral interventions, trauma-
informed care, and other support strategies;
``(G) support an inclusive learning environment
through culturally responsive teaching;
``(H) support accessible technology-rich instruction,
assessment, and learning management in content areas,
accessible technology literacy, and the use of
universal design;
``(I) demonstrate proficiency with the use of
educational and accessible technology;
``(J) communicate and work with families, and involve
families in their children's education; and
``(K) use, in the case of an early childhood educator
or an educator at the elementary school or secondary
school level, age-appropriate and developmentally
appropriate strategies and practices for children and
youth in early childhood education and elementary
school or secondary school programs, respectively.
``(34) Teacher performance assessment.--The term `teacher
performance assessment' means a pre-service assessment used to
measure teacher performance that is approved by the State and
is--
``(A) based on professional teaching standards;
``(B) used to measure the effectiveness of a
teacher's--
``(i) curriculum planning informed by an
understanding of students' prior knowledge,
experiences, and racial, linguistic, cultural,
and community assets;
``(ii) instruction of students, including the
skills necessary to advance student learning,
and including appropriate plans,
differentiation, and modifications to support
student learning needs, including English
learners and students with disabilities;
``(iii) assessment of students, including
analysis of evidence of student learning;
``(iv) ability to analyze, reflect on, and
improve teaching practice in response to
student learning; and
``(v) demonstrate cultural competencies
through curriculum planning and instruction.
``(C) validated based on professional assessment
standards;
``(D) reliably scored by trained evaluators, with
appropriate oversight of the process to ensure
consistency; and
``(E) used to support continuous improvement of
educator practice.
``(35) Teacher preparation entity.--The term `teacher
preparation entity' means an institution of higher education, a
nonprofit organization, or other organization that is approved
by a State to prepare teachers to be effective in the
classroom.
``(36) Teacher preparation program.--The term `teacher
preparation program' means a program offered by a teacher
preparation entity that leads to a specific State teacher
certification.
``(37) Trauma-informed care.--The term `trauma-informed care'
is defined as the evidence-based practices outlined in section
4108(B)(II)(aa) of the Elementary and Secondary Education Act
of 1965.''.
SEC. 2002. PURPOSES.
Section 201 of the Higher Education Act of 1965 (20 U.S.C. 1022) is
amended--
(1) in paragraph (2), by striking ``by improving the
preparation of prospective teachers and enhancing professional
development activities for new teachers'' and inserting ``,
school leaders, including teacher leaders, and other educators
by improving the preparation of prospective teachers, school
leaders, and other educators and enhancing professional
development activities for new teachers, school leaders, and
other educators'';
(2) in paragraph (3), by striking ``; and'' and inserting a
semicolon;
(3) by striking paragraph (4) and inserting the following new
paragraphs:
``(4) hold teacher, principal and school leader, and other
educator preparation programs accountable for preparing
effective teachers, principals and school leaders, and other
educators;
``(5) recruit individuals, including members of racial and
ethnic groups underrepresented in the teaching profession and
individuals from other occupations (including informal
education and youth development fields), as profession-ready
teachers and other educators, ensuring such individuals receive
appropriate training in pedagogy and classroom management, with
an emphasis on areas of State-identified teacher shortage; and
``(6) meet the staffing needs of high-need local educational
agencies and high-need schools through close partnerships with
educator preparation programs within institutions of higher
education.''.
SEC. 2003. PARTNERSHIP GRANTS.
Section 202 of the Higher Education Act of 1965 (20 U.S.C. 1022a) is
amended--
(1) in subsection (b)--
(A) in paragraph (1), by inserting ``equitable
distribution,'' after ``professional development,'';
(B) by amending paragraph (2) to read as follows:
``(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 teachers, school leaders, and new
educators with strong teaching, school leadership, and other
professional skills necessary to increase learning and academic
achievement;'';
(C) in paragraph (3), by inserting ``, school
leaders, and other educators,'' after ``new teachers'';
(D) in paragraph (4)--
(i) in subparagraph (A), by inserting ``,
school leader, and other educator'' after
``other teacher''; and
(ii) in subparagraph (B), by inserting ``,
school leader, and other educator'' after
``promote teacher'';
(E) in paragraph (6)--
(i) by redesignating subparagraphs (I), (J),
and (K) as subparagraphs (J), (K), and (M),
respectively;
(ii) by striking subparagraphs (F), (G), and
(H) and inserting the following:
``(F) how the partnership will prepare educators to
teach and work with students with disabilities,
including training related to early identification of
students with disabilities and participation as a
member of individualized education program teams, as
defined in section 614(d)(1)(B) of the Individuals with
Disabilities Education Act to ensure that students with
disabilities receive effective services, consistent
with the requirements of the Individuals with
Disabilities Education Act, that are needed for such
students to achieve to challenging State academic
standards;
``(G) how the partnership will prepare educators to
teach and work with students who are English learners
to ensure that students who are English learners
receive the services that are needed for such students
to achieve to challenging State academic standards;
``(H) in the case of activities related to principal
and school leader preparation programs, how the
partnership will prepare principals and other school
leaders to foster instruction that supports the success
of all students, including students with disabilities,
students who are English learners, and students in
early childhood education in alignment with State early
learning standards for early childhood education
programs;
``(I) how faculty at the partner institution will
work, during the term of the grant, with mentor
educators in the classrooms and administrators 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 other educators, including multi-tiered
systems of support and universal design for
learning;
``(ii) train other classroom teachers,
principals or other school leaders, school
librarians, and other educators to implement
literacy programs that incorporate the
components of comprehensive literacy
instruction; and
``(iii) provide evidence-based, high-quality
professional development activities to
strengthen the instructional and leadership
skills of elementary school and secondary
school principals or other school leaders and
district superintendents, if the partner
institution has a principal or school leader
preparation program;'';
(iii) in subparagraph (J) (as so
redesignated), by inserting ``as applicable''
before ``how the partnership'';
(iv) in subparagraph (K) (as so
redesignated), by striking ``and'' at the end;
(v) by inserting after subparagraph (K) (as
so resdesignated) the following:
``(L) how faculty at the partner institution for
school leader preparation will work, during the term of
the grant, with their--
``(i) State to use rigorous, research-based
leader standards and align program
accreditation criteria and principal licensure
requirements with those standards; and
``(ii) high-needs local education agencies
that hire their graduates to use rigorous,
evidence-based leader standards and align
program content and local educational agencies'
evaluation systems with those standards; and'';
and
(vi) in subparagraph (M) (as so
redesignated), by inserting ``, principals or
other school leaders'' after ``teachers''; and
(F) in paragraph (7)--
(i) in the matter before subparagraph (A), by
striking ``under this section'' and inserting
``under paragraphs (1)(B)(iv) and (3) of
subsection (d)'';
(ii) in subparagraph (A), by inserting ``as
applicable,'' before ``a demonstration''; and
(iii) in subparagraph (B), by striking
``scientifically valid'' and inserting
``evidence-based'';
(2) by amending subsection (c) to read as follows:
``(c) Use of Grant Funds.--An eligible partnership that receives a
grant under this section--
``(1) shall use such grant to carry out --
``(A) a program for the pre-baccalaureate or post-
baccalaureate preparation of teachers described in
subsection (d);
``(B) a teaching residency program, or a principal or
other school leader residency program, described in
subsection (e);
``(C) a high-quality `Grow Your Own' program; or
``(D) a combination of such programs; and
``(2) may use such grant to carry out other educator
development programs under subsection (f), based upon the
results of the needs assessment in subsection (b)(1).'';
(3) in subsection (d)--
(A) in paragraph (1)--
(i) by striking ``limited English
proficient'' both places it appears and
inserting ``English learners''; and
(ii) by striking ``scientifically valid''
both places it appears and inserting
``evidence-based'';
(iii) in subparagraph (B)(ii)(VI), by
striking ``reading instruction'' both places it
appears and inserting ``comprehensive literacy
instruction'';
(B) in paragraph (5)(B), by striking ``limited
English proficient students'' and inserting ``students
who are English learners'';
(C) in paragraph (5)(C), by inserting
``paraprofessionals,'' after ``occupations,''; and
(D) in paragraph (6)(A), by striking ``reading
instruction'' and inserting ``comprehensive literacy
instruction'';
(4) by amending subsection (e) to read as follows:
``(e) Partnership Grants for the Establishment of Teaching and
Principal or Other School Leader Residency Programs.--
``(1) In general.--An eligible partnership receiving a grant
to carry out an effective teaching residency program or
principal or other school leader residency program that meets
the following requirements:
``(A) Teaching residency program.--An eligible
partnership carrying out a teaching residency program
shall--
``(i) support a teaching residency program
described in paragraph (2) for high-need
schools, as determined by the needs of high-
need local educational agency in the
partnership, and in high-need subjects and
areas, as defined by such local educational
agency; and
``(ii) place graduates of the teaching
residency program in cohorts that facilitate
professional collaboration, both among
graduates of the residency program and between
such graduates and mentor teachers in the
receiving school.
``(B) Principal or school leader residency program.--
An eligible partnership carrying out a principal or
school leader residency program shall support a program
described in paragraph (3) for high-need schools, as
determined by the needs of the high-need local
educational agency in the partnership.
``(2) Teaching residency program.--
``(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 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) The exposure to principles of child
and youth development, and understanding and
applying principles of learning, behavior, and
community and family engagement.
``(iii) The exposure to principles of
universal design for learning and multi-tiered
systems of support.
``(iv) Engagement of teaching residents in
rigorous coursework that results in a
baccalaureate or master's degree while
undertaking a guided teaching clinical
experience.
``(v) Experience and learning opportunities
alongside a trained and experienced mentor
teacher--
``(I) whose teaching shall complement
the residency program so that school-
based clinical practice is tightly
aligned and integrated 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 or may be offered a
stipend as a result of such additional
responsibilities.
``(vi) The establishment of clear criteria
for the selection of mentor teachers based on
the appropriate subject area knowledge and
measures of teacher effectiveness, which 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,
summative, and diagnostic assessments
to inform instruction and improve
student learning.
``(II) Appropriate instruction that
engages all students.
``(III) Collaboration with colleagues
to improve instruction.
``(IV) Analysis of evidence of
student learning.
``(V) Collaboration and the
cultivation of relationships with
external stakeholders (which may
include professional disciplinary
organizations and nonprofit advocacy
organizations) to foster the sharing of
evidence-based resources to promote
high-quality, effective practices.
``(vii) 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 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.
``(viii) Continued support for residents once
such residents are hired as the teachers of
record, through an induction program, evidence-
based professional development, and networking
opportunities to support the residents through
not less than the residents' first 2 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 4-
year institution of higher education or
a mid-career professional possessing
strong content knowledge or a record of
professional accomplishment;
``(II) in the case of an
undergraduate residency, enrolled as an
undergraduate student in a partner
institution as defined in this title;
and
``(III) submit an application to the
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 assessments.
``(III) Other attributes linked to
effective teaching, which may be
determined by interviews or performance
assessments, as specified by the
eligible partnership.
``(3) Partnership grants for the development of principal and
other school leader residency programs.--
``(A) Establishment and design.--A principal or other
school leader residency program under this paragraph
shall be a program based upon models of successful
principal or other school leader residencies, and may
include the development or support of principal
pipelines, that serve as a mechanism to prepare
principals and other school leaders for success in
high-need schools in the eligible partnership and shall
be designed to include the following characteristics of
successful programs:
``(i) Engagement of principal or other school
leader residents in rigorous graduate-level
coursework to earn an appropriate advanced
credential while undertaking a guided principal
or other school leader clinical experience.
``(ii) Experience and learning opportunities,
including those that provide continuous
feedback throughout the program on a
participants' progress, alongside a trained and
experienced mentor principal or other school
leader--
``(I) whose mentoring shall be based
on standards of effective mentoring
practice and shall complement the
residence program so that school-based
clinical practice is tightly aligned
with coursework; and
``(II) who may be relieved from some
portion of principal or other school
leader duties or may be offered a
stipend as a result of such additional
responsibilities.
``(iii) The establishment of clear criteria
for the selection of mentor principals or other
school leaders, which may be based on
observations of the following:
``(I) Demonstrating awareness of, and
having experience with, the knowledge,
skills, and attitudes to--
``(aa) establish and maintain
a professional learning
community that effectively
extracts information from data
to improve the school culture
and climate, and personalize
instruction for all students to
result in improved student
achievement;
``(bb) create and maintain a
learning culture within the
school that provides an
inclusive climate conducive to
the development of all members
of the school community,
including one of continuous
improvement and learning for
adults tied to student learning
and other school goals;
``(cc) develop the
professional capacity and
practice of school personnel
and foster a professional
community of teachers and other
professional staff;
``(dd) engage in continuous
professional development,
utilizing a combination of
academic study, developmental
simulation exercises, self-
reflection, mentorship, and
internship;
``(ee) understand youth
development appropriate to the
age level served by the school,
and use this knowledge to set
high expectations and standards
for the academic, social,
emotional, and physical
development of all students;
``(ff) understand the science
of adverse childhood
experiences to lead schools
that implement trauma-informed
practices; and
``(gg) actively engage with
families and the community to
create shared responsibility
for student academic
performance and successful
development.
``(II) Planning and articulating a
shared and coherent schoolwide
direction and policy for achieving high
standards of student performance, and
closing gaps in achievement among
subgroups of students.
``(III) Identifying and implementing
the activities and rigorous curriculum
necessary for achieving such standards
of student performance.
``(IV) Supporting a culture of
learning, collaboration, and
professional behavior and ensuring
quality measures of instructional
practice.
``(V) Communicating with, and
engaging, parents, families, and other
external communities.
``(VI) Cultivating relationships and
collaborating with external
stakeholders, which may include
professional disciplinary organizations
and nonprofit advocacy organizations,
to foster the sharing of evidence-based
resources to promote high-quality,
effective practices.
``(VII) Collecting, analyzing, and
utilizing data and other evidence of
student learning and evidence of
classroom practice to guide decisions
and actions for continuous improvement
and to ensure performance
accountability.
``(iv) 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 to hire qualified graduates from
the principal residency program; and
``(II) which may include
consideration of applicants who reflect
the communities in which they will
serve and consideration of individuals
from underrepresented populations in
school leadership positions.
``(v) Continued support for residents once
such residents are hired as principals or other
school leaders, through an induction program,
evidence-based professional development to
support the knowledge and skills of the
principal or other school leader in a continuum
of learning and content expertise in
developmentally appropriate or age-appropriate
educational practices, and networking
opportunities to support the residents through
not less than the residents' first 2 years of
serving as principal or other school leader of
a school.
``(B) Selection of individuals as principal or other
school leader residents.--
``(i) Eligible individual.--In order to be
eligible to be a principal or other school
leader resident in a principal or other school
leader residency program under this paragraph,
an individual shall--
``(I) have prior prekindergarten
through grade 12 teaching experience;
``(II) have experience as an
effective leader, manager, and written
and oral communicator; and
``(III) submit an application to the
residency program.
``(ii) Selection criteria.--An eligible
partnership carrying out a principal or other
school leader residency program under this
subsection shall establish criteria for the
selection of eligible individuals to
participate in the principal residency program
based on the following characteristics:
``(I) Strong instructional leadership
skills in an elementary school or
secondary school setting.
``(II) Strong verbal and written
communication skills, which may be
demonstrated by performance on
appropriate assessments.
``(III) Other attributes linked to
effective leadership, such as sound
judgment, organizational capacity,
collaboration, commitment to equity and
inclusiveness, and openness to
continuous learning, which may be
determined by interviews or performance
assessment, as specified by the
eligible partnership.
``(4) Stipends or salaries; applications; agreements; and
repayments.--
``(A) Stipends or salaries.--A teaching residency
program, or a principal or other school leader
residency program, under this subsection--
``(i) shall provide a 1-year living stipend
or salary to residents during the teaching
residency program or the principal or other
school leader residency program; and
``(ii) may provide a stipend to a mentor
teacher or mentor principal.
``(B) Applications.--
``(i) In general.--Each residency candidate
desiring a stipend or salary during the period
of residency shall submit an application to the
eligible partnership at such time, in such
manner, and containing such information and
assurances, as the eligible partnership may
require, and which shall include an agreement
to serve described in clause (ii).
``(ii) Agreements to serve.--Each application
submitted under clause (i) shall contain or be
accompanied by an agreement that the applicant
will--
``(I) upon successfully completing
the 1-year teaching residency program,
or principal or other school leader
residency program, serve as a full-time
teacher, principal, or other school
leader for a total of not less than 3
school years at--
``(aa) a high-need school
served by the high-need local
educational agency in the
eligible partnership and, in
the case of a teacher, teach a
subject or area that is
designated as high-need by the
partnership; or
``(bb) in a case in which no
appropriate position is
available in a high-need school
served by the high-need local
educational agency in the
eligible partnership, any other
high-need school;
``(II) provide to the eligible
partnership a certificate, from the
chief administrative officer of the
local educational agency in which the
teacher or principal or other school
leader is employed, of the employment
required under subclause (I) at the
beginning of, and upon completion of,
each year or partial year of service;
``(III) in the case of a teacher
resident, meet the requirements to be a
profession-ready teacher;
``(IV) in the case of a principal or
other school leader resident, meet the
requirements to be a profession-ready
principal or other school leader; and
``(V) comply with the requirements
set by the eligible partnership under
subparagraph (C) if the applicant is
unable or unwilling to complete the
service obligation required by this
subparagraph.
``(C) Repayments.--
``(i) In general.--An eligible partnership
carrying out a teaching residency program, or a
principal or other school leader residency
program, under this subsection shall require a
recipient of a stipend or salary under
subparagraph (A) who does not complete, or who
notifies the partnership that the recipient
intends not to complete, the service obligation
required by subparagraph (B) 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 prorate repayment of the stipend or salary
described in subparagraph (A) or for deferral
of a resident's service obligation required by
subparagraph (B), 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 subparagraph to carry out additional
activities that are consistent with the
purposes of this section.'';
(5) by striking subsection (f);
(6) by redesignating subsections (g) through (k) as
subsections (h) through (l), respectively; and
(7) by inserting after subsection (e) the following:
``(f) Teacher Leader Development Program.--
``(1) In general.--A teacher leader development program
carried out with a grant awarded under this section shall
provide for the professional development of teachers, as
described in paragraph (2), who maintain their roles as
classroom teachers and who also carry out formalized leadership
responsibilities to increase the academic achievement of
students and promote data-driven instructional practices that
address the demonstrated needs at the elementary schools and
secondary schools in which the teachers are employed, such as--
``(A) development of curriculum and curricular
resources;
``(B) facilitating the work of committees and teams;
``(C) family and community engagement;
``(D) school discipline and culture;
``(E) peer observations and coaching;
``(F) dual enrollment instruction; or
``(G) cultural competencies.
``(2) Professional development.--The professional development
of teachers in a teacher leader development program carried out
with a grant awarded under this section shall include--
``(A) one year of professional development, training,
and support that may--
``(i) include--
``(I) the engagement of teachers in
rigorous coursework and fieldwork
relevant to their role as a teacher
leader, including available teacher
leader standards; and
``(II) regular observations and
professional support from--
``(aa) a principal, vice
principal, or a designated
instructional leader of the
school;
``(bb) a representative from
the institution of higher
education that is a partner in
the eligible partnership;
``(cc) a representative from
another entity that is a
partner in the eligible
partnership; and
``(dd) another member of the
teacher leader cohort, if
applicable, or a peer teacher;
and
``(ii) result in the awarding of a credential
in teacher leadership; and
``(B) one or 2 additional years of support from a
principal, vice principal, or a designated
instructional leader of the school, a representative
from the institution of higher education that is a
partner in the eligible partnership, and a
representative from another entity that is a partner in
the eligible partnership.
``(3) Teacher leader development program plan.--In carrying
out a teacher leader development program under this section, an
eligible partnership shall develop a plan that shall describe--
``(A) how the work hours of teacher leaders will be
allocated between their classroom responsibilities and
responsibilities as a teacher leader, which shall
include a description of whether the teacher leader
will be relieved from teaching duties during their
participation in the teacher leader development
program;
``(B) how the partnership will support teacher
leaders after the first year of professional
development in the program; and
``(C) how teacher leader activities could be
sustained by the eligible partnership after the program
concludes, which may include a description of
opportunities for the teacher leaders to assist in the
educator preparation program at the institution of
higher education in the partnership.
``(4) Selection of teacher leaders; use of funds.--In
carrying out a teacher leader development program under this
section, an eligible partnership--
``(A) shall select a teacher for participation in the
program--
``(i) who--
``(I) is fully certified to teach in
the State of the high-need local
educational agency that is a partner in
the eligible partnership;
``(II) is employed by such high-need
local educational agency;
``(III) has not less than 3 years of
teaching experience; and
``(IV) submits an application for
participation to the eligible
partnership; and
``(ii) based on selection criteria that
includes--
``(I) demonstration of strong content
knowledge or a record of accomplishment
in the field or subject area the
teacher will support as a teacher
leader; and
``(II) demonstration of attributes
linked to effective teaching that are
determined through interviews,
observations, other exhibits, student
achievement, or performance
assessments, such as those leading to
an advanced credential;
``(B) may develop admissions goals and priorities for
the teacher leader development program that--
``(i) are aligned with the demonstrated needs
of the school or high-need local educational
agency in which the teacher is employed;
``(ii) considers cultural competencies that
would make the applicant effective in the
applicant's teacher leader role; and
``(iii) considers whether the teacher has
substantial teaching experience in the school
in which the teacher is employed or in a school
that is similar to the school in which the
teacher is employed;
``(C) shall use the grant funds to pay for costs of
training and supporting teacher leaders for not less
than 2 years and not more than 3 years;
``(D) may use the grant funds to pay for a portion of
a stipend for teacher leaders if such grant funds are
matched by additional non-Federal public or private
funds as follows:
``(i) during each of the first and second
years of the grant period, grant funds may pay
not more than 50 percent of such stipend; and
``(ii) during the third year of the grant
period, grant funds may pay not more than 33
percent of such stipend; and
``(E) may require teacher leaders to pay back the
cost of attaining the credential described in paragraph
(2)(A)(ii) if they do not complete their term of
service in the teacher leader development program.
``(g) Partnership Grants for the Establishment of Grow Your Own
Programs.--
``(1) In general.--An eligible partnership that receives a
grant under this section may use such grant to carry out a
high-quality `Grow Your Own' program to address subject or
geographic areas of teacher or school leader shortages or to
increase the diversity of the teacher or school leader
workforce.
``(2) Elements of a grow your own program.--A Grow Your Own
program carried out under this section shall--
``(A) integrate career-focused courses on education
topics with school-based learning experience;
``(B) provide opportunities for candidates to
practice and develop the skills and dispositions that
will help them become skilled educators and leaders;
``(C) support candidates as they complete their
associate, baccalaureate, or master's degree and earn
their teaching or school leadership credential; and
``(D) offer financial aid, in addition to financial
assistance that may be received under title IV, to
candidates and work in partnership with members of the
eligible partnership to provide academic, counseling,
and programmatic supports.
``(2) Establishment and design.--To create and enhance
multiple pathways to enter the educator and leadership
workforce, an eligible partnership carrying out a Grow Your Own
program under this section, in collaboration with organizations
representing educators and leaders and additional
stakeholders--
``(A) shall--
``(i) establish an advisory group to review
barriers impacting underrepresented populations
entering the teaching and school leadership
profession, identify local teacher and leader
workforce needs, develop policies on the
creation or expansion of Grow Your Own
programs, and provide guidance and oversight on
the implementation of such programs;
``(ii) track and evaluate the effectiveness
of the program, including, at a minimum, using
the data required under section 204(a)(1);
``(iii) require candidates to complete all
State requirements to become fully certified;
``(iv) provide academic and testing supports,
including advising and financial assistance, to
candidates for admission and completion of
education preparation programs as well as State
licensure assessments;
``(v) include efforts, to the extent
feasible, to recruit current paraprofessionals,
as defined under section 8101 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C.
7801), instructional assistants, district
employees not certified to teach or lead (such
as long-term substitute teachers), after school
and summer program staff, parent school
volunteers, retired military personnel, and
other career changers with experience in hard
to staff areas who are not currently certified
to teach or lead with a specific focus on
recruiting individuals who are reflective of
the race, ethnicity, and native language of the
existing community's student population; and
``(vi) provide a year-long clinical
experience or teaching or school leadership
residency in which candidates teach or lead
alongside an expert mentor teacher or school
leader; and
``(B) may include--
``(i) a stipend to cover candidate living
expenses or childcare costs; and
``(ii) compensation for mentors.''.
SEC. 2004. ADMINISTRATIVE PROVISIONS.
Section 203 of the Higher Education Act of 1965 (20 U.S.C. 1022b) is
amended--
(1) in subsection (a)(2), by striking ``five-year period.''
and inserting ``five-year period, except such partnership may
receive an additional grant during such period if such grant is
used to establish a teaching residency program, or a principal
or other school leader residency program, if such residency
program was not established with the prior grant.''; and
(2) in subsection (b)(2)--
(A) in subparagraph (A)--
(i) by striking ``teacher preparation
program'' and inserting ``teacher education,
school leader preparation, or educator
development program'';
(ii) by inserting ``and demonstrated success
in having a diverse set of candidates complete
the program, and entering and remaining in the
profession'' after ``such program''; and
(iii) by striking ``; and'' at the end and
inserting a semicolon;
(B) by redesignating subparagraph (B) as subparagraph
(C); and
(C) by inserting after subparagraph (A) the
following:
``(B) provide a 1-year preservice clinical or
residency experience that includes the integration of
coursework and clinical practice and offers cohorts of
candidates the opportunity to learn to teach or lead in
partner schools or teaching academies; and''.
SEC. 2005. ACCOUNTABILITY AND EVALUATION.
Section 204(a) of the Higher Education Act of 1965 (20 U.S.C.
1022c(a)) is amended to read as follows:
``(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
rigorous, comprehensive, and measurable performance objectives. The
plan shall include objectives and measures for--
``(1) achievement for all prospective and new educators as
measured by the eligible partnership;
``(2) after the completion of the partnership program,
educator retention at the end of year 3 and year 5;
``(3) pass rates and scaled scores for initial State
certification or licensure of teachers or pass rates and
average scores on valid and reliable teacher performance
assessments; and
``(4)(A) the percentage of profession-ready teachers,
principals or other school leaders hired by the high-need local
educational agency participating in the eligible partnership;
``(B) the percentage of profession-ready teachers,
principals, and other educators hired by the high-need local
educational agency who are members of underrepresented groups;
``(C) the percentage of profession-ready teachers hired by
the high-need local educational agency who teach high-need
academic subject areas, such as reading, science, technology,
engineering, mathematics, computer science, and foreign
language (including less commonly taught languages and critical
foreign languages), or any other well-rounded education subject
(as defined in section 8101 of the Elementary and Secondary Act
of 1965 (20 U.S.C. 7801));
``(D) the percentage of profession-ready teachers hired by
the high-need local educational agency who teach in high-need
areas, including special education, bilingual education,
language instruction educational programs for English language
learners, and early childhood education;
``(E) the percentage of profession-ready teachers, principals
or other school leaders, and other educators 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 as a result of participation in the
partnership program;
``(G) as applicable, the percentage of educators who have
completed the partnership program able to--
``(i) integrate technology effectively into curricula
and instruction, including technology 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 improving student learning outcomes; and
``(H) as applicable, the percentage of educators who have
completed the partnership program taking school leadership
positions who, after 3 years in the role, receive ratings of
effective or above in State school leader evaluation and
support systems (as described in section 2014(c)(4)(B)(ii) of
the Elementary and Secondary Education Act of 1965) or, if no
such ratings are available, other comparable indicators of
performance.''.
SEC. 2006. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE TEACHERS,
PRINCIPALS, OR OTHER SCHOOL LEADERS.
Section 205 of the Higher Education Act of 1965 (20 U.S.C. 1022d) is
amended--
(1) in subsection (a)--
(A) by striking the subsection header and inserting
the following: ``Institutional and Program Report Cards
on the Quality of Teacher and School Leader
Preparation''; and
(B) by striking paragraph (1) and inserting the
following:
``(1) Report card.--Each teacher preparation or school leader
preparation entity approved to operate teacher preparation or
school leader preparation programs in the State and that
receives or enrolls students receiving Federal assistance shall
report annually to the State and the general public, in a
uniform and comprehensive manner that conforms with the
definitions and methods established by the Secretary, the
following:
``(A) Pass rates and scaled scores.--For the most
recent year for which the information is available for
each teacher or school leader preparation program
offered by the teacher preparation or school leader
preparation entity the following:
``(i) Except as provided in clause (ii), for
those students who took the assessments used
for teacher or school leader certification or
licensure by the State in which the entity is
located and are enrolled in the teacher or
school leader preparation program, and for
those who have taken such assessments and have
completed the teacher or school preparation
program during the 2-year period preceding such
year, for each of such assessments--
``(I) the percentages of students
enrolled in the preparation program,
and those who have completed such
program, who passed such assessment;
``(II) the percentage of students who
have taken such assessment who enrolled
in and completed the teacher or school
leader preparation program; and
``(III) the average scaled score for
all students who took such assessment.
``(ii) In the case of an entity that requires
a valid and reliable teacher performance
assessment in order to complete the preparation
program, the entity may submit in lieu of the
information described in clause (i) the pass
rate and average score of students taking the
teacher performance assessment.
``(B) Entity information.--A description of the
following:
``(i) The median grade point average and
range of grade point averages for admitted
students.
``(ii) The number of students in the entity,
disaggregated by race, ethnicity, and gender,
except that such disaggregation shall not be
required in a case in which the result would
reveal personally identifiable information
about an individual student.
``(iii) The number of hours and types of
supervised clinical preparation required for
each program.
``(iv) The total number and percentage of
students who have completed programs for
certification or licensure disaggregated by
subject area and by race, ethnicity, gender,
income status, and language diversity
(graduates who have bilingual or dual language
immersion endorsements), except that such
disaggregation shall not be required in a case
in which the result would reveal personally
identifiable information about an individual
student.
``(v) The percentage and total number of
program completers who have been certified or
licensed as teachers or school leaders
(disaggregated by subject area of certification
or licensure and 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).
``(vi) The 3- and 5-year teacher or school
leader retention rates, including, at a
minimum, in the same school and local
educational agency, and within the profession
(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).
``(C) Accreditation.--Whether the program or entity
is accredited by a specialized accrediting agency
recognized by the Secretary for accreditation of
professional teacher or school leader education
programs.
``(D) Designation as low-performing.--Which programs
(if any) offered by the entity have been designated as
low-performing by the State under section 207(a).'';
(2) in subsection (b)--
(A) in paragraph (1)--
(i) in subparagraph (A)--
(I) by inserting ``and school
leader'' after ``teacher''; and
(II) by inserting ``, including
teacher performance assessments'' after
``the State'';
(ii) by amending subparagraph (D) to read as
follows:
``(D)(i) Except as provided in clause (ii), for each
of the assessments used by the State for teacher or
school leader certification or licensure, disaggregated
by subject area, race, ethnicity, and gender, except
that such disaggregation shall not be required in a
case in which the result would reveal personally
identifiable information about an individual student--
``(I) for each entity located in the State,
the percentage of students at each 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 in
all such programs and entities who have taken
the assessment who pass such assessment;
``(III) the percentage of students who have
taken the assessment and who enrolled in and
completed a teacher or school leader
preparation program; and
``(IV) the average scaled score of
individuals participating in such a program, or
who have completed such a program during the 2-
year period preceding the first year for which
the annual State report card is provided, who
took each such assessment.
``(ii) In the case of a State that has implemented a
valid and reliable teacher performance assessment, the
State may submit in lieu of the information described
in clause (i) the pass rate and average score of
students taking the teacher performance assessment,
disaggregated by subject area, race, ethnicity, and
gender, except that such disaggregation shall not be
required in a case in which the result would reveal
personally identifiable information about an individual
student.'';
(iii) by striking subparagraphs (G) through
(L) and inserting the following:
``(G) For each teacher and school leader preparation
program in the State the following:
``(i) The programs' admission rate, median
grade point average, and range of grade point
averages for admitted students.
``(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 result would
reveal personally identifiable information
about an individual student.
``(iii) The number of hours and types of
supervised clinical preparation required.
``(iv) Whether such program has been
identified as low-performing, as designated by
the State under section 207(a).
``(v) For each school leader preparation
program in the State, the total number and
percentage of program completers placed as
principals who are rated as effective or above
on the State school leader evaluation and
support systems (as described in section
2101(c)(4)(B)(2) of the Elementary and
Secondary Education Act of 1965) or, if no such
ratings are available, other comparable
indicators of performance after three years of
leading a school.
``(H) For the State as a whole, and for each teacher
preparation entity in the State, the number of teachers
prepared, in the aggregate and reported separately by
the following:
``(i) Area of certification or licensure.
``(ii) Route of certification (traditional
versus alternative).
``(iii) Academic major.
``(iv) Degree type (baccalaureate, post-
baccalaureate, and master's degrees).
``(v) Subject area for which the teacher has
been prepared to teach.
``(vi) The relationship of the subject area
and grade span of teachers graduated by the
teacher preparation entity to identified
teacher shortage areas of the State.
``(vii) The percentage of teachers graduated
teaching in high-need schools.
``(viii) Placement in a teaching or school
leadership position within 6 months of program
completion.
``(ix) Rates of 3- and 5-year teacher or
school leadership retention including, at a
minimum, in the same school and local
educational agency, and within the
profession.''; and
(B) by adding at the end the following:
``(3) No requirement for reporting on students not working in
the state.--Nothing in this section shall require a State to
report data on program completers who do not work as teachers,
principals, or school leaders in such State.''; and
(3) in subsection (d)(2), by adding at the end the following:
``(D) The relationship of the subject area and grade
span of teachers graduated by teacher preparation
entities across the States to identified teacher
shortage areas.
``(E) The number and percentages of such graduates
teaching in high-need schools.''.
SEC. 2007. TEACHER DEVELOPMENT.
Section 206 of the Higher Education Act of 1965 (20 U.S.C. 1022e) is
amended by striking ``limited English proficient'' both places it
appears and inserting ``English learner''.
SEC. 2008. STATE FUNCTIONS.
Section 207 of the Higher Education Act of 1965 (20 U.S.C. 1022f) is
amended to read as follows:
``SEC. 207. STATE FUNCTIONS.
``(a) State Assessment.--
``(1) In general.--In order to receive funds under this Act
or under title II of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6601 et seq.), a State shall conduct an
assessment to identify at-risk and low-performing teacher and
school leader preparation programs in the State and to assist
such programs through the provision of technical assistance.
``(2) Provision of low-performing list.--Each State described
in paragraph (1) shall--
``(A) provide the Secretary and the general public an
annual list of low-performing teacher and school leader
preparation programs and an identification of those
programs at risk of being placed on such list, as
applicable;
``(B) report any teacher and school leader
preparation program that has been closed and the
reasons for such closure; and
``(C) describe the assessment, described in paragraph
(1), in the report under section 205(b).
``(3) Determination of at-risk and low-performing programs.--
The levels of performance and the criteria for meeting those
levels for purposes of the assessment under paragraph (1) shall
be determined by the State in consultation with a
representative group of community stakeholders, including, at a
minimum, representatives of leaders and faculty of traditional
and alternative route teacher and school leader preparation
programs, prekindergarten through 12th grade leaders and
instructional staff, current teacher and school leader
candidates participating in traditional and alternative route
teacher or school leader preparation programs, the State's
standards board or other appropriate standards body, and other
stakeholders identified by the State. In making such
determination, the State shall consider multiple measures and
the information reported by teacher preparation entities under
section 205.
``(b) Reporting and Improvement.--In order to receive funds under
this Act or under title II of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6601 et seq.), a State shall--
``(1) report to the Secretary and the general public any
programs described in subsection (a);
``(2) establish a period of improvement and redesign (as
established by the State) for programs identified as at-risk
under subsection (a);
``(3) provide programs identified as at-risk under subsection
(a) with technical assistance for a period of not longer than 3
years;
``(4) identify at-risk programs as low-performing if there is
not sufficient improvement following the period of technical
assistance provided by the State; and
``(5) subject low-performing programs to the provisions
described in subsection (c) (as determined by the State) not
later than 1 year after the date of such identification as a
low-performing program.
``(c) Termination of Eligibility.--Any teacher or school leader
preparation program that is projected to close--
``(1) shall be ineligible for any funding for professional
development activities awarded by the Department;
``(2) may not be permitted to provide new awards under
subpart 9 of part A of title IV; and
``(3) shall provide transitional support, including remedial
services if necessary, for students enrolled in the program in
the year prior to such closure.
``(d) Negotiated Rulemaking.--If the Secretary develops any
regulations implementing subsection (c)(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.
``(e) Application of Requirements.--The requirements of this section
shall apply to both traditional teacher preparation programs and
alternative routes to State certification and licensure programs.''.
SEC. 2009. GENERAL PROVISIONS.
Section 208(a) of the Higher Education Act of 1965 (20 U.S.C.
1022g(a)) is amended by striking ``sections 205 and 206'' and inserting
``section 205''.
SEC. 2010. ELEVATION OF THE EDUCATION PROFESSION STUDY.
Part A of title II of the Higher Education Act of 1965 (20 U.S.C.
1022 et seq.) is amended by inserting after section 208 the following:
``SEC. 209. ELEVATION OF THE EDUCATION PROFESSION STUDY.
``(a) Purpose.--The purpose of this section is to authorize a
feasibility study on the elevation of the education profession by
examining State policies related to teacher and school leader education
and certification, produce a comprehensive set of expectations that
sets a high bar for entry into the profession and ensures that all
entering teachers and school leaders are profession-ready, and develop
recommendations to Congress on best practices with respect to elevating
the education profession that are evidence-based, reliable, and
verified by the field.
``(b) Establishment.--
``(1) In general.--The Secretary of Education shall establish
an Advisory Committee to carry out the elevation of the
education profession study described in subsection (c) and make
recommendations to Congress on the findings.
``(2) Membership of the advisory committee.--The Advisory
Committee shall include representatives or advocates from the
following categories:
``(A) Teacher unions.
``(B) School leader organizations.
``(C) State and local chief executives or their
representatives.
``(D) State educational agencies and local
educational agencies.
``(E) Teacher and school leader advocacy
organizations.
``(F) School administrator organizations.
``(G) Institutions of higher education, including
colleges of teacher education.
``(H) Civil rights organizations.
``(I) Organizations representing students with
disabilities.
``(J) Organizations representing English learners.
``(K) Nonprofit organizations representing subject-
fields, such as STEM Educator organizations,
comprehensive literacy Educator organizations, and arts
and humanities educator organizations.
``(L) Professional development organizations.
``(M) Educational technology organizations.
``(N) Nonprofit research organizations.
``(O) Organizations representing nontraditional
pathways into teacher and school leader education.
``(P) Organizations representing parents.
``(c) Duties of the Advisory Committee.--
``(1) Feasibility study.--The Advisory Committee shall
conduct a feasibility study to--
``(A) assess the state of policies and practices
related to teacher and school leader education and
entry into the profession including barriers to
achieving certification and licensure, best practices
in producing profession-ready teachers and school
leaders, and recruitment and retention of teachers and
school leaders in schools;
``(B) compile best practices for educating and
training profession-ready teachers and school leaders
including evidence-based practices for training
teachers and school leaders to support diverse
learners, developing teacher and school leaders, and
successful pre-service and in-service educational
activities;
``(C) review certification and credentialing
practices throughout the Nation including minimum
standards in each State, differences in types of
credentials, and impact of different certification
processes in each State for teachers and school leaders
who relocate; and
``(D) recommend a comprehensive set of rigorous
expectations for States standards to elevate the
profession of teaching and to produce profession-ready
teachers and school leaders prepared to educate diverse
learners in inclusive educational settings.
``(2) Reports.--
``(A) Not later than 1 year after the Advisory
Committee's first meeting, the Committee shall submit
an interim report to the Secretary and to the
authorizing committees detailing the methods of the
study and progress in developing the set of
comprehensive and rigorous expectations.
``(B) Not later than 3 years after the Advisory
Committee's first meeting, the Committee shall submit a
final report to the Secretary and to the authorizing
committees detailing the findings, recommendations, and
suggested set of comprehensive and rigorous
expectations.
``(3) Dissemination of information.--In carrying out the
study under paragraph (1), the Secretary shall, after the
release of the study, disseminate information found in the
study in an accessible format to all stakeholders.
``(4) Database.--Not later than 180 days after the date of
the enactment of this subsection, the Secretary shall produce
an electronically accessible clearinghouse of State
certification procedures and best State practices for producing
and retaining profession-ready teachers and school leaders.''.
SEC. 2011. AUTHORIZATION OF APPROPRIATIONS.
Part A of title II of the Higher Education Act of 1965 (20 U.S.C.
1022 et seq.) is amended--
(1) by redesignating section 209 as section 210; and
(2) in section 210, as so redesignated--
(A) by striking ``$300,000,000'' and inserting
``$500,000,000'';
(B) by striking ``2009'' and inserting ``2019''; and
(C) by striking ``two succeeding'' and inserting ``5
succeeding''.
PART B--ENHANCING TEACHER AND SCHOOL LEADER EDUCATION
SEC. 2101. ENHANCING TEACHER AND SCHOOL LEADER EDUCATION.
Part B of title II of the Higher Education Act of 1965 (20 U.S.C.
1031 et seq.) is amended to read as follows:
``PART B--ENHANCING TEACHER AND SCHOOL LEADER EDUCATION
``SEC. 230. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated to carry
out this part $100,000,000 for fiscal year 2020 and each of the 5
succeeding fiscal years.
``(b) Distribution of Funds.--Subparts 1 through 4 of this part shall
each receive a minimum of 20 percent of the amount appropriated for a
fiscal year, and the Secretary shall have discretion over the
distribution under this part of the remaining amount appropriated for
such fiscal year.
``Subpart 1--Honorable Augustus F. Hawkins Centers of Excellence
``SEC. 231. FINDINGS.
``Congress finds the following:
``(1) Our Nation's schools are experiencing a severe teacher
diversity gap that negatively impacts student achievement and
school culture--50 percent of current students are students of
color while only 18 percent of teachers are of color, according
to a 2016 study by the Brookings Institution.
``(2) A 2016 report conducted by the Department of Education
shows that teachers of color tend to provide more culturally
relevant teaching and better understand the situations that
students of color may face. These factors help in the
development of trusting teacher-student relationships.
Researchers from Vanderbilt University also found that greater
racial and ethnic diversity in the principal corps benefits
students, especially students of color.
``(3) Teachers and school leaders of color can also serve as
cultural ambassadors who help students feel more welcome at
school or as role models.
``(4) Research consistently shows that increasing diversity
in the teaching profession can have positive impacts on student
educational experiences and outcomes. Students of color
demonstrate greater academic achievement and social-emotional
development in classes with teachers of color. Studies also
suggest that all students, including white students, benefit
from having teachers of color offering their distinctive
knowledge, experiences, and role modeling to the student body
as a whole.
``SEC. 232. PURPOSE.
``The purpose of this subpart is to strengthen and expand the
recruitment, training, and retention of candidates of color into the
teaching profession.
``SEC. 233. ELIGIBLE INSTITUTION DEFINED.
``In this subpart, the term `eligible institution' means an
institution of higher education that has a teacher or school leader
preparation program that is a accredited by the State and that is--
``(1) a part B institution (as defined in section 322);
``(2) a Hispanic-serving institution (as defined in section
502);
``(3) a Tribal college or university (as defined in section
316);
``(4) an Alaska Native-serving institution (as defined in
section 317(b));
``(5) a Native Hawaiian-serving institution (as defined in
section 317(b));
``(6) a predominantly black institution (as defined in
section 318);
``(7) an Asian-American and Native American Pacific Islander-
serving institution (as defined in section 320(b));
``(8) a Native American-serving, nontribal institution (as
defined in section 319);
``(9) a consortium of any of the institutions described in
paragraphs (1) through (8); or
``(10) an institution described in paragraphs (1) through
(8), or a consortium described in paragraph (9), in partnership
with any other institution of higher education, but only if the
center of excellence established under section 234 is located
at an institution described in paragraphs (1) through (8).
``SEC. 234. AUGUSTUS F. HAWKINS CENTERS OF EXCELLENCE.
``(a) Program Authorized.--From the amounts provided to carry out
this subpart, the Secretary shall award grants, on a competitive basis,
to eligible institutions to establish centers of excellence.
``(b) Use of Funds.--An eligible institution shall use a grant
received under this subpart to ensure that programs offered at a center
of excellence established by such institution prepare current and
future teachers or school leaders to be profession-ready, and 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 (20 U.S.C. 1412(a)(14)(C)), by carrying
out one or more of the following activities:
``(1) Implementing reforms within teacher or school leader
preparation programs to ensure that such programs are preparing
teachers or school leaders who meet such applicable State
certification and licensure requirements or qualifications, and
are using evidence-based instructional practices to improve
student academic achievement, by--
``(A) retraining or recruiting faculty; and
``(B) designing (or redesigning) teacher or school
leader preparation programs that--
``(i) prepare teachers or school leaders to
serve in low-performing schools and close
student achievement gaps; and
``(ii) are based on--
``(I) rigorous academic content;
``(II) evidence-based research; and
``(III) challenging State academic
standards as described in section
1111(b)(1) of the Elementary and
Secondary Education Act of 1965 (20
U.S.C. 6311(b)(1)); and
``(iii) promote effective teaching skills.
``(2) Providing sustained and high-quality preservice
clinical experience, which may include through high-quality
teacher or leader residency programs, including the mentoring
of prospective teachers by exemplary teachers or teacher
leaders, substantially increasing interaction between faculty
at institutions of higher education and new and experienced
teachers, principals, school leaders, 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 meet such applicable State
certification and licensure requirements or qualifications, and
principals and other school leaders, including teachers,
principals, and other school leaders of color, including
programs that provide--
``(A) teacher or principal and other school leader
mentoring; and
``(B) induction and support for teachers and
principals and other school leaders during their first
three years of employment as teachers, principals, or
other school leaders, 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 or other school leader
preparation program at the Center of Excellence, not to exceed
the cost of attendance as defined in section 472.
``(5) Disseminating information on effective practices for
teacher or other school leader preparation and successful
teacher or other school leader 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 time,
in such manner, and accompanied by such information as the Secretary
may require.
``(d) Limitation on Administrative Expenses.--An eligible institution
that receives a grant under this subpart may use not more than 2
percent of the funds provided to administer the grant.
``(e) Regulations.--The Secretary shall prescribe such regulations as
may be necessary to carry out this subpart.
``Subpart 2--Preparing Well-Rounded Teachers
``SEC. 241. WELL-ROUNDED TEACHING GRANTS.
``(a) Findings.--Congress finds that--
``(1) students have diverse learning needs and teachers must
be prepared to provide a high-quality, equitable education to
every child;
``(2) improving the pedagogical competencies, behavior
management skills, and cultural competencies of teacher
candidates prepares them to effectively teach students from
diverse backgrounds and increases the likelihood they will
remain in the profession; and
``(3) teachers who hold dual certification and receive
training in social and emotional learning competencies and
nonexclusionary, positive behavior management practices are
better prepared to create a supportive school climate and meet
the needs of all students, including English learners, racially
diverse students, students with disabilities, low-income
students, and students who have experienced trauma.
``(b) Purpose.--The purpose of this subpart is to--
``(1) strengthen and expand teacher preparation programs that
embed dual certification for teacher candidates in special
education; and
``(2) strengthen and expand teacher preparation programs that
embed training on inclusive practices, culturally responsive
teaching, social and emotional learning competencies, universal
design for learning, and nonexclusionary, positive behavior
management practices to teacher candidates.
``(c) Authorization of Program.--
``(1) In general.--From the amounts provided to carry out
this subpart, the Secretary shall 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, skills, and
credentials necessary to effectively instruct students with
disabilities in general education classrooms, and an
understanding of positive behavior-management practices that
reduce the use of exclusionary and aversive disciplinary
practices and create a supportive school climate.
``(2) Duration of grants.--A grant under this subpart shall
be awarded for a period of not more than 5 years.
``(3) Non-federal share.--An eligible partnership that
receives a grant under this subpart 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.
``(d) 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 profession-ready graduates of
which 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 (20 U.S.C.
1412(a)(14)(C));
``(B) a department or program that has expertise in
special education at an institution of higher
education; and
``(C) a high-need local educational agency; and
``(2) may include--
``(A) 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; or
``(B) a non-profit, research-based organization.
``(e) 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 pedagogy into
the general education curriculum and academic content
that results in applicable dual State certification for
teacher candidates who complete the program;
``(B) develop or strengthen an undergraduate,
postbaccalaureate, or master's teacher preparation
program by embedding social and emotional learning
strategies, inclusive practices, culturally responsive
teaching, and nonexclusionary, positive behavior-
management practices into the general education
curriculum and academic content;
``(C) provide teacher candidates participating in the
program under subparagraph (A) with skills related to--
``(i) response to intervention, positive
behavioral interventions and supports
(including eliminating the use of aversive
interventions such as seclusion and
restraints), differentiated instruction, and
data-driven instruction (including the use of
data to identify and address disparities in
rates of discipline among student subgroups);
``(ii) universal design for learning;
``(iii) determining and utilizing
accommodations for instruction and assessments
for students with disabilities;
``(iv) collaborating with stakeholders such
as special educators, related services
providers, out-of-school time providers, and
parents, including participation in
individualized education program development
and implementation;
``(v) appropriately utilizing technology and
assistive technology for students with
disabilities; and
``(vi) effectively and equitably using
technology for digital and blended learning;
``(D) provide teacher candidates participating in the
program under subparagraph (B) with skills related to--
``(i) social and emotional learning
competencies;
``(ii) positive behavior interventions and
supports or multitiered systems of support;
``(iii) trauma-informed care;
``(iv) evidenced-based restorative justice
practices; and
``(v) culturally responsive teaching and
anti-bias training that is evidence-based; and
``(E) provide extensive clinical experience for
participants described in subparagraphs (A) and (B)
with mentoring and induction support throughout the
program that continues during the first 2 years of
full-time teaching.
``(f) Application.--
``(1) Application requirements.--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--
``(A) 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
``(B) an assessment of the existing personnel needs
for general education teachers who instruct students
with disabilities, performed by the high-need local
educational agency described in subsection (d)(1)(C).
``(2) Peer review.--
``(A) In general.--The Secretary shall convene a peer
review committee to review applications for grants
under this subpart and to make recommendations to the
Secretary regarding the selection of eligible
partnerships for such grants.
``(B) Membership.--Members of the peer review
committee shall be recognized experts in the fields of
special education, social and emotional learning,
teacher preparation, and general education and shall
not be in a position to benefit financially from any
grants awarded under this section.
``(g) Equitable Geographic Distribution.--In awarding grants under
this subpart, the Secretary shall, to the maximum extent possible,
provide for an equitable geographic distribution of such grants.
``(h) Evaluations.--
``(1) By the partnership.--
``(A) In general.--An eligible partnership receiving
a grant under this subpart 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 for which an evaluation was
conducted under paragraph (1), the Secretary shall make
available to the authorizing committees 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 3--Preparing Teachers for English-Learner Instruction
``SEC. 251. TEACHING ENGLISH LEARNERS GRANT.
``(a) Authorization of Program.--The Secretary shall award grants, on
a competitive basis, to eligible partnerships to improve the
preparation of teacher candidates to ensure that such teacher
candidates possess the knowledge and skills necessary to effectively
instruct English learners.
``(b) Duration of Grants.--A grant under this section shall be
awarded for a period of not more than 5 years.
``(c) 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.
``(d) Eligible Partnership.--The term `eligible partnership' means an
eligible institution of higher education in partnership with a high-
need local educational agency or a high-need early childhood education
program.
``(e) Uses of Funds.--An eligible partnership that receives a grant
under this section shall use the grant to--
``(1) develop or strengthen an undergraduate,
postbaccalaureate, or master's teacher preparation program by
integrating strategies for teaching English learners into the
education curriculum and academic content;
``(2) provide teacher candidates participating in a program
under paragraph (1) with skills related to--
``(A) helping English learners--
``(i) achieve at high levels in
prekindergarten programs, and elementary
schools and secondary schools so that such
English learners can meet the challenging State
academic standards adopted under section
1111(b)(1) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6311(b)(1)) by
the State of the school attended by the English
learners, which all children in the State are
expected to meet; and
``(ii) attain English proficiency;
``(B) appropriately identifying and meeting the
specific learning needs of children with disabilities
who are English learners;
``(C) appropriately using universal design for
learning;
``(D) recognizing and addressing the social and
emotional needs of English learners; and
``(E) promoting parental, family, and community
engagement in educational programs that serve English
learners;
``(3) provide authentic clinical learning opportunities for
teacher candidates participating in the program involving
sustained interactions with teachers and English learners at
public prekindergarten programs, or elementary schools or
secondary schools, to the extent practicable, or simulated
environments at the eligible institution of higher education
involved, that foster in-depth, first-hand engagement with
tasks required of a teacher providing instruction to English
learners; and
``(4) provide teacher candidates with the required coursework
to qualify for an English-as-a-second-language certification,
endorsement, or initial teaching credential, as recognized by
the State of the eligible partnership.
``(f) 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 the needs related to preparing teacher
candidates to instruct English learners in the manner described
in subsection (d)(2); and
``(2) a self-assessment by the eligible partnership of the
personnel needs for teachers who instruct English learners at
local, public prekindergarten programs, and elementary schools
and secondary schools.
``(g) Equitable Geographic Distribution.--In awarding grants under
this section, the Secretary shall, to the maximum extent possible,
provide for an equitable geographic distribution of such grants.
``(h) Evaluations.--
``(1) Report from eligible partnerships.--An eligible
partnership receiving a grant under this section shall submit
to the Secretary the results of an evaluation conducted by the
partnership at the end of the grant period to determine--
``(A) the effectiveness of teachers who completed a
program under subsection (d)(1) with respect to
instruction of English learners; and
``(B) the systemic impact of the activities carried
out by such grant on how such partnership prepares
teachers to provide instruction in prekindergarten
programs, and elementary schools and secondary schools.
``(2) Report from the secretary.--Not later than 180 days
after the last day of the grant period under this section, the
Secretary shall make available to the authorizing committees
and the public--
``(A) the findings of the evaluations submitted under
paragraph (1); and
``(B) information on best practices related to
effective instruction of English learners.
``Subpart 4--Graduate Fellowships To Prepare Faculty in High-Need Areas
at Colleges of Education
``SEC. 261. GRADUATE FELLOWSHIPS TO PREPARE FACULTY IN HIGH-NEED AREAS
AT COLLEGES OF EDUCATION.
``(a) Grants by Secretary.--From the amounts provided to carry out
this subpart, the Secretary shall award grants, on a competitive basis,
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 subpart 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 science, technology,
engineering, and math teachers, special education teachers, and
teachers who provide instruction for English-learners, who 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 (20 U.S.C. 1412(a)(14)(C)).
``(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, mathematics,
and computer science, and their related subfields, if
the individual has completed a master's degree in
mathematics, engineering, science, or computer science
and is pursuing a doctoral degree in mathematics,
science, engineering, or education.
``(B) Special education.
``(C) The instruction of English-learners, 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
subpart--
``(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
individual'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 subpart shall award
stipends to individuals who are provided graduate
fellowships under this subpart.
``(B) Awards based on need.--A stipend provided under
this subpart 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 subpart and
earns a doctoral degree shall teach for 1 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 subpart
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 3 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.
``Subpart 5--General Provisions
``SEC. 281. COMPETITIVE PRIORITY.
``In awarding grants under subparts 1 through 4, the Secretary shall
award competitive priority to eligible institutions, eligible
partnerships, and eligible entities that demonstrate in the application
for such a grant a plan to--
``(1) increase the diversity in the educator workforce
through--
``(A) recruiting, enrolling, and preparing diverse
teacher candidates; and
``(B) efforts that help retain diverse teacher
candidates in high-needs schools;
``(2) address the shortage of teachers in high-needs fields
including science, technology, engineering, arts, mathematics,
or computer science through--
``(A) recruiting, enrolling, and preparing teacher
candidates to achieve certification, as required by the
State, to offer instruction in high-needs fields,
including science, technology, engineering, music,
arts, mathematics, or computer science; and
``(B) efforts that help retain teachers of high-needs
fields in high-needs schools;
``(3) expand the pipeline of school leaders through preparing
teacher leaders, which may be achieved by efforts that may
include--
``(A) embedding pedagogical coursework for teacher
candidates that fosters--
``(i) leadership and advocacy skills;
``(ii) knowledge of school management and
finance;
``(iii) school operations and business
skills;
``(iv) effective use and management of
educational and accessible technology;
``(v) strategies for community and family
engagement; and
``(vi) mentorship and coaching strategies;
and
``(B) providing opportunities for teacher candidates
to receive--
``(i) exposure to and modeling from teacher
leaders and school leaders; and
``(ii) ongoing support and continuation of
professional development on teacher or other
school leadership once exiting the teacher or
other school leader preparation program; and
``(4) recruit candidates with significant cultural and
community competency related to the demographics of the student
body in which the candidate will receive a placement, as
measured by standards, specified in the plan, which may
include--
``(A) a candidate's prior record of community service
with school-aged children in the community;
``(B) nominations from members of the community; and
``(C) a candidate's involvement in relevant community
organizations.''.
TITLE III--INSTITUTIONAL AID
SEC. 3001. STRENGTHENING INSTITUTIONS.
Section 311(c) of the Higher Education Act of 1965 (20 U.S.C.
1057(c)) is amended--
(1) 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.'';
(2) 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'';
(3) 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,'';
(4) by redesignating paragraph (13) as paragraph (17); and
(5) 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 postsecondary 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, as defined in
section 3(41) of the Carl D. Perkins Career and Technical
Education Act (20 U.S.C. 2302(41)), 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.''.
SEC. 3002. STRENGTHENING INSTITUTIONS.
(a) Program Purpose.--Section 311(d) of the Higher Education Act of
1965 (20 U.S.C. 1057(d)) is amended--
(1) in paragraph (2)--
(A) by striking ``non-Federal sources'' and inserting
``non-Federal sources (which may include gifts to the
endowment fund restricted for a specific purpose)'';
and
(B) by striking ``or greater than'' and inserting
``50 percent of''; and
(2) by inserting after paragraph (3) the following:
``(4) Scholarship.--An eligible institution that uses grant
funds provided under this section to establish or increase an
endowment fund may use the interest proceeds from such
endowment to provide scholarships to students for the purposes
of attending such institution.''.
(b) Tribally Controlled Colleges and Universities.--Section 316(c) of
the Higher Education Act of 1965 (20 U.S.C. 1059c(c)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (D), by striking ``Indians'' and
all that follows through ``policy'' and inserting
``American Indians and Alaska Natives are
underrepresented, instruction in Native American
language, and instruction to support tribal governance,
tribal public policy, and tribal history and
sovereignty'' and
(B) in subparagraph (L) by striking ``outreach'' and
all that follows through ``education'' and inserting
``outreach and recruitment activities and programs that
encourage American Indian and Alaska Native elementary
school students, secondary school students, and adults
to develop the academic skills and the interest to
pursue and succeed in postsecondary education''; and
(2) in paragraph (3)--
(A) in subparagraph (B)--
(i) by striking ``matching funds'' and
inserting ``matching funds (which may include
gifts to the endowment fund restricted for a
specific purpose)''; and
(ii) by striking ``equal to the Federal
funds'' and inserting ``equal to 50 percent of
the Federal funds''; and
(B) by inserting after subparagraph (C) the
following:
``(D) Scholarships.--An eligible institution that
uses grant funds provided under this section to
establish or increase an endowment fund may use the
interest proceeds from such endowment to provide
scholarships to students for the purposes of attending
such institution.''.
(c) Elimination of Pre-approval Requirement; Use of Unexpended
Funds.--Section 316(d) of the Higher Education Act of 1965 (20 U.S.C.
1059c(d)) is amended--
(1) by striking paragraph (1);
(2) by redesignating paragraphs (2) through (4) as paragraphs
(1) through (3), respectively; and
(3) in paragraph (2), as so redesignated, by adding at the
end the following:
``(C) 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 5-year period
following the date of the initial grant award, may be
carried over and expended during the succeeding 5-year
period, if such funds were obligated for a purpose for
which the funds were paid during the 5-year period
following the date of the initial grant award.''.
(d) Promoting the Sustainability of Native American Languages.--Part
A of title III of the Higher Education Act of 1965 (20 U.S.C. 1057 et
seq.) is further amended by inserting after section 316 (20 U.S.C.
1059c) the following:
``SEC. 316A. NATIVE AMERICAN LANGUAGE VITALIZATION AND TRAINING
PROGRAM.
``(a) Establishment.--
``(1) In general.--From the amount appropriated under
subsection (d), the Secretary shall establish the Native
American Language Vitalization and Training Program under which
the Secretary shall award grants, on a competitive basis, to
eligible institutions to promote the preservation,
revitalization, relevancy, and use of Native American
languages.
``(2) Term.--The term of a grant under this section shall be
not more than 5 years.
``(3) Application.--
``(A) Streamlined process.--In carrying out the
program under this section, the Secretary shall
establish application requirements in such a manner as
to simplify and streamline the process for the grant
application under this section.
``(B) In general.--To be eligible to receive a grant
under this subsection, an eligible institution shall
submit to the Secretary an application at such time, in
such manner, and in accordance with any other
application requirements described in subparagraph (A),
that the Secretary may prescribe, and including the
following:
``(i) A description of the 5-year program of
the eligible institution for meeting the needs
of American Indians, Alaska Natives, Native
Hawaiians, or Native American Pacific
Islanders, as appropriate, in the area served
by the institution, and how such plan is
consistent with the purposes described in
paragraph (1).
``(ii)(I) An identification of the population
to be served by the eligible institution; and
``(II) an identification of the status of
Native American language understanding and use
within that population and a description of the
manner in which the program will help preserve
and revitalize the relevant Native American
language.
``(iii) A description of the services to be
provided under the program, including the
manner in which the services will be integrated
with other appropriate language programs
available in the relevant community.
``(iv) A description, to be prepared in
consultation with the Secretary, of the
performance measures to be used to assess the
performance of the eligible institution in
carrying out the program.
``(b) Use of Funds.--An eligible institution may use a grant under
this section to carry out activities consistent with the purposes
described in subsection (a)(1), including--
``(1) curriculum development and academic instruction,
including educational activities, programs, and partnerships
relating to students in early childhood education programs
through grade 12;
``(2) professional development for faculty at the eligible
institution and in-service training programs for early
childhood education programs through grade 12 instructors and
administrators; and
``(3) innovative Native American language programs for
students in early childhood education programs through grade
12, including language immersion programs.
``(c) Applicability of Other Provisions.--
``(1) Concurrent funding.--
``(A) Tribal college or university.--An eligible
institution that is a Tribal College or University may,
concurrently, receive a grant under this section and
funds under section 316.
``(B) Alaska native-serving institution or native
hawaiian-serving institution.--An eligible institution
that is an Alaska Native-serving institution or Native
Hawaiian-serving institution may, concurrently, receive
a grant under this section and funds under section 317.
``(C) Asian american and native american pacific
islander-serving institution.--An eligible institution
that is an Asian American and Native American Pacific
Islander-serving institution may, concurrently, receive
a grant under this section and funds under section 320.
``(2) Exemption.--Sections 312(b) and 313(d) shall not apply
to an eligible institution that receives a grant under this
section.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $20,000,000 (of which
$15,000,000 shall be available for Tribal Colleges or Universities and
$5,000,000 shall be available for the institutions described in
subparagraphs (B) through (D) of subsection (e)(1)) for fiscal year
2021 and each of the 5 succeeding fiscal years.
``(e) Definitions.--In this section:
``(1) Eligible institution.--The term `eligible institution'
means--
``(A) a Tribal College or University, as defined in
section 316;
``(B) an Alaska Native-serving institution, as
defined in section 317;
``(C) a Native Hawaiian-serving institution, as
defined in section 317; or
``(D) an Asian American and Native American Pacific
Islander-serving institution, as defined in section
320, which is located in American Samoa, Guam, or the
Commonwealth of the Northern Mariana Islands.
``(2) Native american.--The term `Native American' has the
meaning given the term in section 371(c)(6).''.
(e) Predominantly Black Institutions.--Section 318(d)(3) of the
Higher Education Act of 1965 (20 U.S.C. 1059e(d)(3)) is amended--
(1) in subparagraph (B)--
(A) by striking ``non-Federal sources'' and inserting
``non-Federal sources (which may include gifts to the
endowment fund restricted for a specific purpose)'';
and
(B) by striking ``equal to or greater than the
Federal funds'' and inserting ``equal to 50 percent of
the Federal funds''; and
(2) by inserting after subparagraph (C) the following:
``(D) Scholarships.--An eligible institution that
uses grant funds provided under this section to
establish or increase an endowment fund may use the
interest proceeds from such endowment to provide
scholarships to students for the purposes of attending
such institution.''.
(f) Technical Correction to Section 317.-- Section 317(d)(3)(A) of
the Higher Education Act of 1965 (20 U.S.C.1059d(d)(3)(A) is amended to
read as follows:
``(A) Eligibility.--No Alaskan Native-serving
institution of Native Hawaiian-serving institution that
receives funds under this section shall concurrently
receive funds under other provisions of this part, part
B, or part A of title V.''.
(g) Technical Correction to Section 318.--Section 318(i) of the
Higher Education Act of 1965 (20 U.S.C. 1059e) is amended--
(1) in the subsection heading, by striking ``Special Rule on
Eligibility'' and inserting ``Special Rules'' ;
(2) by striking ``No Predominantly'' and inserting the
following:
``(1) Eligibility.--No Predominantly''; and
(3) by adding at the end the following:
``(2) Exemption.--Section 313(d) shall not apply to
institutions that are eligible to receive funds under this
section.''.
(h) Technical Correction to Section 320.--Section 320(d)(3)(A) of the
Higher Education Act of 1965 (20 U.S.C. 1059g(d)(3)(A)) is amended by
inserting ``part A of'' after ``or''.
SEC. 3003. STRENGTHENING HISTORICALLY BLACK COLLEGES AND UNIVERSITIES.
(a) Allowable Uses of Funds.--Section 323(a) of the Higher Education
Act of 1965 (20 U.S.C. 1062(a)) is amended--
(1) by striking paragraphs (6) and (7) 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 students rapidly into
core courses and through program completion.
``(7) Funds and administrative management, and acquisition of
technology, services, and equipment for use in strengthening
funds and administrative management.'';
(2) in paragraph (10)--
(A) by striking ``teacher education'' and inserting
``traditional or alternative route teacher
preparation''; and
(B) by striking ``preparation for teacher
certification'' and inserting ``preparation of
graduates for teacher certification or licensure'';
(3) by redesignating paragraph (15) as paragraph (19); and
(4) by inserting after paragraph (14) the following:
``(15) Distance education programs and creating or improving
facilities for internet or other distance learning academic
instruction capabilities, including the purchase or rental of
telecommunications technology equipment or services.
``(16) Establishing or improving a program that produces
improved results in the educational outcomes of African
American males.
``(17) Scholarships, fellowships, and other financial
assistance for financially needy undergraduate students, as
determined by the institution, to permit the enrollment and
degree completion of such students in the physical or natural
sciences, engineering, mathematics or other scientific
disciplines in which African Americas are underrepresented,
except that not more than 30 percent of the grant amount may be
used for this purpose.
``(18) Establishing or improving an office of sponsored
programs to assist with identifying external funding
opportunities, applying for external funding, and administering
grant awards.''.
(b) Historically Black Colleges and Universities.--Section 323(b) of
the Higher Education Act of 1965 (20 U.S.C. 1062(b)) is amended--
(1) in paragraph (2)--
(A) by striking ``non-Federal sources'' and inserting
``non-Federal sources (which may include gifts to the
endowment fund restricted for a specific purpose)'';
and
(B) by striking ``equal to or greater than the
Federal funds'' and inserting ``equal to 50 percent of
the Federal funds''; and
(2) by inserting after paragraph (3) the following:
``(4) Scholarships.--An eligible institution that uses grant
funds provided under this section to establish or increase an
endowment fund may use the interest proceeds from such
endowment to provide scholarships to students for the purposes
of attending such institution.''.
(c) Allotments and Application Process.--
(1) Allotments.--Section 324 of the Higher Education Act of
1965 (20 U.S.C. 1063) is amended--
(A) in subsection (c), by striking ``5'' and
inserting ``6'';
(B) in subsection (d)(1), by striking subparagraphs
(A) and (B) and inserting the following:
``(A) less than $500,000 for a part B institution which has
received a grant under this part, the Secretary shall award the
part B institution an allotment in the amount of $500,000; and
``(B) less than $250,000 for a part B institution which has
not received a grant under this part for a fiscal year prior to
fiscal year 2019, the Secretary shall award the part B
institution an allotment in the amount of $250,000.''; and
(C) in subsection (h)--
(i) in paragraphs (1)(C) and (2)(C), by
striking ``within 5 years'' each time it
appears and inserting ``within 6 years''; and
(ii) by adding at the end the following:
``(3) Limitation for new institutions.--Notwithstanding any
other provision of this section, no part B institution that
would otherwise be eligible for funds under this part shall
receive an allotment under this part for a fiscal year,
unless--
``(A) such institution received an allotment under
this part for fiscal year 2019; or
``(B) the amount appropriated under section
399(a)(2)(A) for such fiscal year is not less than
$282,420,000.''.
(2) Applications.--Section 325(c) of the Higher Education Act
of 1965 (20 U.S.C. 1063a(c)) is amended by inserting ``,
including goals to enhance student retention, graduation, and
postgraduate outcomes,'' after ``management and academic
programs''.
(d) Professional or Graduate Institutions.--Section 326(c) of the
Higher Education Act of 1965 (20 U.S.C. 1063b(c)) is amended--
(1) in paragraph (7)--
(A) by striking ``equipment,'' and inserting
``equipment, technology, and services,''; and
(B) by inserting ``and administrative'' after ``in
strengthening funds'';
(2) by redesignating paragraph (12) as paragraph (13); and
(3) by striking paragraph (11) and inserting the following:
``(11) 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 students rapidly into
core courses and through program completion; and
``(12) distance education programs and creating or improving
facilities for internet or other distance learning academic
instruction capabilities, including the purchase or rental of
telecommunications technology equipment or services; and''.
(e) Eligibility.--Section 326(e)(1) of the Higher Education Act of
1965 (20 U.S.C. 1063b(e)) is amended--
(1) in subparagraph (W), by striking ``and'' at the end;
(2) in subparagraph (X), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(Y) University of the Virgin Islands School of
Medicine.''.
(f) Conforming Amendment.--Section 326(f) of the Higher Education Act
of 1965 (20 U.S.C. 1063b(f)) is amended by striking ``through (X)''
both places it appears and inserting ``through (Y)''.
(g) Interaction With Other Grant Programs.--Section 326(h) of the
Higher Education Act of 1965 (20 U.S.C. 1063b(h)) is amended by
striking ``or 724'' and inserting ``724, 727, or 729''.
SEC. 3004. HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING.
(a) Bond Insurance and Capital Finance of STEM Facilities.--Section
343 of the Higher Education Act of 1965 (20 U.S.C. 1066b) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``an escrow
account'' and inserting ``a bond insurance fund'';
(B) in paragraph (3), by inserting ``(except that
loans for the purpose of science, technology,
engineering, or mathematics related academic facilities
shall carry not more than a 1 percent rate of
interest)'' after ``charge such interest on loans'';
(C) in paragraph (8)--
(i) in the matter preceding subparagraph (A),
by striking ``an escrow account'' and inserting
``a bond insurance fund''; and
(ii) in subparagraph (A), by striking ``the
escrow account'' and inserting ``the bond
insurance fund'';
(D) in paragraph (9), by striking ``escrow account''
each place it appears and inserting ``bond insurance
fund''; and
(E) in paragraph (12), by striking ``, except as
otherwise required by the Secretary''; and
(2) in subsection (c), by striking ``escrow account'' each
place it appears and inserting ``bond insurance fund''.
(b) Increased Aggregate Bond Limit.--Section 344(a) of the Higher
Education Act of 1965 (20 U.S.C. 1066c(a)) is amended--
(1) in the matter preceding paragraph (1), by striking
``$1,100,000,000'' and inserting ``$3,600,000,000'';
(2) in paragraph (1), by striking ``$733,333,333'' and
inserting ``two-thirds''; and
(3) in paragraph (2), by striking ``$366,666,667'' and
inserting ``one-third''.
(c) Strengthening Technical Assistance.--Section 345 of the Higher
Education Act of 1965 (20 U.S.C. 1066d) is amended--
(1) 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
(2) by striking paragraph (10) and inserting the following:
``(10) may provide for the modification or deferment of a
loan made under this part based on need of the institution, as
defined by the Secretary, for a period not to exceed 6 fiscal
years, and, during the period of deferment of such a loan,
interest on the loan will not accrue or be capitalized.''.
(d) HBCU Capital Financing Advisory Board.--Paragraph (2) of Section
347(c) of the Higher Education Act of 1965 (20 U.S.C. 1066f(c)) is
amended to read as follows:
``(2) Report.--On an annual basis, the Advisory Board shall
prepare and submit to the authorizing committees a report on--
``(A) the financial status of the historically Black
colleges and universities described in paragraph
(1)(A);
``(B) an overview of all loans awarded under the
program under this part, including the most recent
loans awarded for the fiscal year in which the report
is submitted; and
``(C) administrative and legislative recommendations
for addressing the issues related to construction
financing facing historically Black colleges and
universities.''.
SEC. 3005. STRENGTHENING HISTORICALLY BLACK COLLEGES AND UNIVERSITIES
AND OTHER MINORITY-SERVING INSTITUTIONS.
Section 371(b) of the Higher Education Act of 1965 (20 U.S.C.
1067q(b)) is amended--
(1) in paragraph (1)(A)--
(A) in the first sentence, by striking
``appropriated,'' and all that follows through ``2019''
and inserting the following: ``appropriated,
$300,000,000 for fiscal year 2021 and each succeeding
fiscal year''; and
(B) by striking the second sentence; and
(2) in paragraph (2)--
(A) in subparagraph (A)--
(i) in clause (i), by striking
``$100,000,000'' and inserting
``$117,500,000'';
(ii) in clause (ii), by striking
``$100,000,000'' and inserting ``$99,875,000'';
(iii) in clause (ii), by striking ``and'' at
the end;
(iv) in clause (iii)--
(I) by striking ``$55,000,000'' and
inserting ``$65,000,000''; and
(II) by striking ``(D)'' and
inserting ``(E)'';
(v) by redesignating clause (iii) as clause
(iv); and
(vi) by inserting after clause (ii) the
following:
``(iii) $17,625,000 shall be available for
allocation under subparagraph (D); and'';
(B) by redesignating subparagraph (D) as subparagraph
(E) and--
(i) in clause (i), by striking
``$30,000,000'' each place it appears and
inserting ``$35,000,000'';
(ii) in clause (ii), by striking
``$15,000,000'' each place it appears and
inserting ``$18,000,000''; and
(iii) in clauses (iii) and (iv), by striking
``$5,000,000'' each place it appears and
inserting ``$6,000,000''; and
(C) by striking subparagraph (C) and inserting the
following:
``(C) Allocation and allotment hbcus.--The amount
made available for allocation under this subparagraph
by subparagraph (A)(ii) for any fiscal year 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.
``(D) Allocation and allotment pbis.--The amount made
available for allocation under this subparagraph by
subparagraph (A)(iii) for any fiscal year shall be
available to eligible institutions described in
subsection (a)(5) and shall be available for a
competitive grant program to award 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.''.
SEC. 3006. GENERAL PROVISIONS.
Section 399(a) of the Higher Education Act of 1965 (20 U.S.C.
1068h(a)) is amended--
(1) by striking ``2009'' each place it appears and inserting
``2021'';
(2) in paragraph (1)--
(A) in subparagraph (A), by striking ``$135,000,000''
and inserting ``$150,000,000'';
(B) in subparagraph (B), by striking ``$30,000,000''
and inserting ``$45,000,000'';
(C) in subparagraph (C), by striking ``$15,000,000''
and inserting ``$25,000,000'';
(D) in subparagraph (D), by striking ``$75,000,000''
and inserting ``$90,000,000'';
(E) in subparagraph (E), by striking ``$25,000,000''
and inserting ``$30,000,000''; and
(F) in subparagraph (F), by striking ``$30,000,000''
and inserting ``$60,000,000'';
(3) in paragraph (2)--
(A) in subparagraph (A), by striking ``$375,000,000''
and inserting ``$400,000,000''; and
(B) in subparagraph (B), by striking ``$125,000,000''
and inserting ``$135,000,000'';
(4) in paragraph (3), by striking ``$10,000,000'' and
inserting ``$220,000,000''; and
(5) in paragraph (4)(A), by striking ``$185,000'' and
inserting ``$225,000''.
TITLE IV--STUDENT ASSISTANCE
SEC. 4001. EFFECTIVE DATE.
Except as otherwise provided in this title or the amendments made by
this title, this title and the amendments made by this title shall take
effect on July 1, 2021.
PART A--GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER
EDUCATION
Subpart 1--Federal Pell Grants
SEC. 4011. AMOUNT OF GRANTS.
Section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) is
amended--
(1) in subsection (a)(1)--
(A) by striking ``through fiscal year 2017''; and
(B) by inserting ``or as a postbaccalaureate in
accordance with subsection (c)(1)(B)'' after ``as an
undergraduate'';
(2) in subsection (b)--
(A) in paragraph (2)(A)(ii), by striking ``paragraph
(7)(B)'' and inserting ``paragraph (6)(B)'';
(B) by striking paragraph (6), and redesignating
paragraph (7) as paragraph (6); and
(C) in paragraph (6)(C) (as so redesignated), by
amending clause (iii) to read as follows:
``(iii) Subsequent award years.--
``(I) Award years 2018-2019, 2019-
2020 and 2020-2021.--For each of the
award years 2018-2019, 2019-2020, and
2020-2021 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.
``(II) Award year 2021-2022.--For
award year 2021-2022, the amount
determined under this subparagraph for
purposes of subparagraph (B)(iii) shall
be equal to--
``(aa) $6,195 or the total
maximum Federal Pell Grant for
the preceding award year (as
determined under clause
(iv)(II)), whichever is
greater, increased by $625;
reduced by
``(bb) $5,135 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
``(cc) rounded to the neared
$5.
``(III) Award year 2022-2023 and each
subsequent award year.--For award year
2022-2023 and each subsequent award
year, the amount determined under this
subparagraph for purposes of
subparagraph (B)(iii) shall be equal
to--
``(aa) $6,820 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 the
award year for which the amount
under this subparagraph is
being determined; reduced by
``(bb) $5,135 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
``(cc) rounded to the nearest
$5.'';
(3) in subsection (f)--
(A) in paragraph (1), by striking the matter
preceding subparagraph (A) and inserting the following:
``After receiving an application for a Federal Pell
Grant under this subpart, the Secretary (including any
contractor of the Secretary processing applications for
Federal Pell Grants under this subpart) shall, in a
timely manner, furnish to the student financial aid
administrator at each institution of higher education
that a student awarded a Federal Pell Grant under this
subpart is attending, the expected family contribution
for each such student. Each such student financial
administrator shall--''; and
(B) in paragraph (3), by striking ``after academic
year 1986-1987''; and
(4) in subsection (j)--
(A) in paragraph (1) by inserting before the period
the following: ``, or if such institution of higher
education is subject to an ineligibility determination
under section 435(a)(9) or 493I(b)''; and
(B) in paragraph (2) by inserting ``, final adjusted
cohort default rate, or on-time repayment rate'' before
``determination''.
SEC. 4012. GRANT ELIGIBILITY.
Section 401(c) of the Higher Education Act of 1965 (20 U.S.C.
1070a(c)) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) Period of eligibility for grants.--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--
``(A) 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; and
``(B) the period during which a student may receive
Federal Pell Grants shall also include the period
required for the completion of the first
postbaccalaureate course of study at an eligible
institution that meets the definition of institution of
higher education in section 101, in a case in which--
``(i) the student received a Federal Pell
Grant during the period required for the
completion of the student's first undergraduate
baccalaureate course of study for fewer than 14
semesters, or the equivalent of fewer than 14
semesters, as determined under paragraph (5);
``(ii) the student would otherwise be
eligible for a Federal Pell Grant, but for the
completion of such baccalaureate course of
study; and
``(iii) the period during which the student
receives Federal Pell Grants does not exceed
the student's duration limits under paragraph
(5).''; and
(2) in paragraph (5)--
(A) by striking ``(5) The period'' and inserting the
following: ``(5) Maximum period.--
``(A) In general.--Except as provided in subparagraph
(B), the period'';
(B) by striking ``12'' each place the term appears
and inserting ``14''; and
(C) by adding at the end the following:
``(B) Exception.--
``(i) In general.--Any Federal Pell Grant
that a student received during a period
described in subclause (I) or (II) of clause
(ii) shall not count toward the student's
duration limits under this paragraph.
``(ii) Applicable periods.--Clause (i) shall
apply with respect to any Federal Pell Grant
awarded to a student to attend an institution--
``(I) during a period--
``(aa) for which the student
received a loan under this
title; and
``(bb) for which the loan
described in item (aa) is
forgiven under--
``(AA) section
437(c)(1) or 464(g)(1)
due to the closing of
the institution;
``(BB) section 493H
due to the student's
successful assertion of
a defense to repayment
of the loan; or
``(CC) section
432(a)(6), section
685.215 of title 34,
Code of Federal
Regulations (or a
successor regulation),
or any other loan
forgiveness provision
or regulation under
this Act, as a result
of a determination by
the Secretary or a
court that the
institution committed
fraud or other
misconduct; or
``(II) during a period for which the
student did not receive a loan under
this title but for which, if the
student had received such a loan, the
student would have qualified for loan
forgiveness under subclause (I)(bb).''.
SEC. 4013. EXTENDING FEDERAL PELL GRANT ELIGIBILITY OF CERTAIN SHORT-
TERM PROGRAMS.
(a) In General.--Section 401 of the Higher Education Act of 1965 (20
U.S.C. 1070a) is amended by inserting after subsection (j) the
following:
``(k) Job Training Federal Pell Grant Program.--
``(1) In general.--For the award year beginning on July 1,
2021, and each subsequent award year, the Secretary shall carry
out a program through which the Secretary shall award job
training Federal Pell Grants to students in eligible job
training programs approved by the Secretary in accordance with
paragraph (4).
``(2) Terms and conditions.--Each job training Federal Pell
Grant awarded under this subsection shall have the same terms
and conditions, and be awarded in the same manner, as a Federal
Pell Grant awarded under subsection (a), except as follows:
``(A) A student who is eligible to receive a job
training Federal Pell Grant under this subsection is a
student who--
``(i) has not yet attained a
postbaccalaureate degree; and
``(ii) is enrolled, or accepted for
enrollment, in an eligible job training program
at an institution of higher education.
``(B) The amount of a job training Federal Pell Grant
for an eligible student shall be determined under
subsection (b), except that subsection (b)(4) shall not
apply.
``(3) Treatment of job training federal pell grant.--
``(A) Inclusion in total eligibility period.--The
period during which a student received a job training
Federal Pell Grant under this subsection shall be
included in calculating the duration limits with
respect to such student under subsection (c)(5) and to
the extent that such period was a fraction of a
semester or the equivalent, only that same fraction of
such semester or equivalent shall count towards such
duration limits.
``(B) Prevention of double benefits.--No student may
for the same payment period receive both a job training
Federal Pell Grant under this subsection and a Federal
Pell Grant under subsection (a).
``(4) Approval of eligible job training programs.--
``(A) Eligible job training program.--An eligible job
training program shall be a career and technical
education program at an institution of higher education
that the Secretary determines meets the following
requirements:
``(i) The job training program provides not
less than 150, and less than 600, clock hours
of instructional time over a period of not less
than 8, and less than 15, weeks.
``(ii) The job training program provides
training aligned with the requirements of high-
skill, high-wage, or in-demand industry sectors
or occupations in the State or local area in
which the job training program is provided, as
determined by an industry or sector partnership
in such State or local area.
``(iii) The job training program has been
determined by the institution of higher
education and by such industry or sector
partnership to provide academic content, an
amount of instructional time, and a recognized
postsecondary credential that are sufficient
to--
``(I) meet the hiring requirements of
potential employers in the sectors or
occupations described in clause (ii);
and
``(II) satisfy any applicable
educational prerequisite requirement
for professional license or
certification, so that a student who
completes the program and seeks
employment is qualified to take any
licensure or certification examination
needed to practice or find employment
in such sectors or occupations.
``(iv) The job training program prepares
students to pursue related certificate or
degree programs at an institution of higher
education, including--
``(I) by ensuring the acceptability
of the credits received under the job
training program toward meeting such
certificate or degree program
requirements (such as through an
articulation agreement); and
``(II) by ensuring that a student who
completes noncredit coursework in the
job training program, upon completion
of the job training program and
enrollment in such a related
certificate or degree program, will
receive academic credit for such
noncredit coursework that will be
accepted toward meeting such
certificate or degree program
requirements.
``(v) The job training program provides to
the Secretary the annual earnings expected to
be paid in the sectors or occupations for which
the program provides training not later than 6
months after completion of such program (in
this subsection referred to as the `expected
earnings'), as such earnings are determined by
an industry or sector partnership in the State
or local area in which the program is provided,
and which shall be--
``(I) greater than the average or
median annual earnings paid to
individuals with only a high school
diploma (or the equivalent) based on
the most recently available data from
the Bureau of Labor Statistics or the
Bureau of the Census with respect to
such State or local area, or the Nation
as a whole, as selected by such
program;
``(II) validated by the Secretary;
and
``(III) used to review the job
training program under subparagraph
(C).
``(vi) The job training program is part of a
career pathway, and includes counseling for
students to--
``(I) support each such student in
achieving the student's education and
career goals; and
``(II) ensure that each such student
receives information on--
``(aa) the sectors or
occupations described in clause
(ii) for which the job training
program provides training
(including the expected
earnings to be paid, and, if
available, the mean and median
earnings (described in
subparagraph (C)(ii)) paid, in
such sectors or occupations));
and
``(bb) the related
certificate or degree programs
described in clause (iv) for
which the job training program
provides preparation.
``(vii) The job training program meets the
requirements under section 104 that are
applicable to a program of training to prepare
students for gainful employment in a recognized
occupation.
``(viii) The job training program does not
exceed by more than 50 percent the minimum
number of clock hours required by a State to
receive a professional license or certification
in the State.
``(ix) The job training program is provided
by an institution of higher education that--
``(I) is approved by an accrediting
agency or association that meets the
requirements of section 496(a)(4)(C);
``(II) during the preceding 5 years,
has not been subject to any adverse
actions or negative actions by the
accrediting agency or association of
the institution, State or Federal
enforcement agencies, or the Secretary;
``(III) is listed on the provider
list under section 122(d) of the
Workforce Innovation and Opportunity
Act (29 U.S.C. 3152(d)); and
``(IV) has a designated official
responsible for engaging with the
workforce development system in the
State or local area in which the job
training program is provided.
``(x) The job training program has a verified
completion rate and a verified annual earnings
rate that meets the requirements of clauses (i)
and (iii) of section 481(b)(2)(A),
respectively, and satisfies the criteria
described in clause (v) of such section.
``(xi) The State board representing the State
in which the job training program is provided
certifies to the Secretary that the program
meets the requirements of clauses (ii), (viii),
and (ix)(III).
``(B) Initial approval by the secretary.--Not later
than 180 days after the date on which a job training
program is submitted for approval under this
subparagraph, the Secretary shall make a determination
as to whether such job training program is an eligible
job training program in accordance with subparagraph
(A).
``(C) Review of approval.--
``(i) In general.--Not later than 3 years
after the date an eligible job training program
is approved under subparagraph (B), and not
less than once every 3 years thereafter, the
Secretary shall, using the data collected under
paragraph (5) and such other information as the
Secretary may require, determine whether such
job training program continues to meet the
requirements of subparagraph (A).
``(ii) Requirements.--Subject to clause
(iii), a determination under clause (i) that a
job training program continues to meet the
requirements of subparagraph (A) shall, at a
minimum, require the Secretary to determine
that the mean or median earnings (whichever is
higher) paid to students not later than 6
months after completing such program is equal
to or greater than the expected earnings of the
program.
``(iii) Exception and appeals.--
``(I) Exception.--The Secretary may
extend, by not more than an additional
6 months, the period by when, after
completion of the job training program,
the mean or median earnings (whichever
is higher) paid to students meets the
requirements of clause (ii), in a case
in which the job training program
requesting such extension provides
sufficient justification for such
extension (as determined by the
Secretary).
``(II) Appeals.--Not later than 60
days after receiving notification from
the Secretary of the loss of
eligibility resulting from the review
under subparagraph (C), a job training
program may appeal any loss of
eligibility under this subparagraph by
demonstrating extenuating
circumstances.
``(III) Secretarial requirements.--
The Secretary shall issue a decision on
any appeal submitted by a job training
program under subclause (II) not later
than 45 days after its submission.
``(5) Data collection.--Using the postsecondary student data
system established under section 132(l) or a successor system
(whichever includes the most recent data) to streamline
reporting requirements and minimize reporting burdens, and in
coordination with the National Center for Education Statistics,
the Secretary of Labor, and each institution of higher
education offering an eligible job training program under this
subsection, the Secretary shall, on at least an annual basis,
collect data with respect to each such eligible job training
program, including the following:
``(A) The number and demographics of students who
enroll in the program.
``(B) The number of credits attempted and accumulated
annually by students enrolled in the program.
``(C) The share of such students who cease enrollment
on or before the completion of 60 percent of the
payment period or period of enrollment.
``(D) The verified completion rate and the verified
annual earnings rate described in clauses (i) and (iii)
of section 481(b)(2)(A), respectively, for the program.
``(E) The number and demographics of--
``(i) students who complete the program; and
``(ii) students who do not complete the
program.
``(F) The outcomes of the students who complete the
program, including--
``(i) the share of such students who continue
enrollment at the institution of higher
education offering the program;
``(ii) the share of such students who
transfer to another institution of higher
education;
``(iii) the share of such students who
complete a subsequent certificate or degree
program;
``(iv) the share of such students who secure
employment 6 months and 1 year, respectively--
``(I) after completion of such
program; or
``(II) in the case of a program that
prepares students for a professional
license or certification exam, after
acquiring such license or
certification;
``(v) the expected earnings in the sectors or
occupations for which the program provides
training;
``(vi) the mean and median earnings paid in
such sectors or occupations to such students
not later than 6 months after completing such
program (as described in paragraph (4)(C)(ii));
and
``(vii) in the case of a job training program
that prepares students for a professional
license or certification exams, the share of
such students who pass such exams.
``(6) Title of job training federal pell grant.--Grants made
under this subsection shall be known as `job training Federal
Pell Grants'.
``(7) Definitions.--In this subsection:
``(A) Articulation agreement.--The term `articulation
agreement' has the meaning given the term in section
486A.
``(B) Career and technical education.--The term
`career and technical education' has the meaning given
the term in section 3 of the Carl D. Perkins Career and
Technical Education Act (20 U.S.C. 2302).
``(C) Institution of higher education.--The term
`institution of higher education' means an eligible
institution for purposes of this subpart that is an
institution of higher education (as defined in section
101) or a postsecondary vocational institution (as
defined in section 102(c)).
``(D) WIOA definitions.--The terms `career pathway',
`industry or sector partnership', `in-demand industry
sector or occupation', `recognized postsecondary
credential', `State board', and `workforce development
system' have the meanings given such terms in section 3
of the Workforce Innovation and Opportunity Act (29
U.S.C. 3102).''.
(b) Report.--Not later than 3 years after the date of enactment of
this Act, the Secretary of Education shall--
(1) submit to the Committee on Education and Labor of the
House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate a report on the
impact of eligible job training programs described in
subsection (k) of section 401 of the Higher Education Act of
1965 (20 U.S.C. 1079a), as added by this section, based on the
most recent data collected under paragraph (5) of such
subsection (k); and
(2) make the report described in paragraph (1) available
publicly on the website of the Department of Education.
SEC. 4014. PROVIDING FEDERAL PELL GRANTS FOR IRAQ AND AFGHANISTAN
VETERAN'S DEPENDENTS.
(a) Amendment.--Section 401 of the Higher Education Act of 1965 (20
U.S.C. 1070a et seq.) as amended by this subpart, is further amended by
inserting after subsection (k) the following:
``(l) Scholarships for Veteran's Dependents.--
``(1) Definition of eligible veteran's dependent.--In this
subsection, the term `eligible veteran's dependent' means a
dependent or an independent student--
``(A) whose parent or guardian was a member of the
Armed Forces of the United States and died as a result
of performing military service in Iraq or Afghanistan
after September 11, 2001; and
``(B) who, at the time of the parent or guardian's
death, was--
``(i) less than 24 years of age; or
``(ii) enrolled at an institution of higher
education on a part-time or full-time basis.
``(2) Grants.--
``(A) In general.--The Secretary shall award a
Federal Pell Grant, as modified in accordance with the
requirements of this subsection, to each eligible
veteran's dependent to assist in paying the eligible
veteran's dependent's cost of attendance at an
institution of higher education.
``(B) Designation.--Federal Pell Grants made under
this subsection may be known as `Iraq and Afghanistan
Service Grants'.
``(3) Prevention of double benefits.--No eligible veteran's
dependent may receive a grant under both this subsection and
subsection (a) or (k).
``(4) Terms and conditions.--The Secretary shall award Iraq
and Afghanistan Service Grants under this subsection in the
same manner and with the same terms and conditions, including
the length of the period of eligibility, as the Secretary
awards Federal Pell Grants under subsection (a), except that--
``(A) the award rules and determination of need
applicable to the calculation of Federal Pell Grants
under subsection (a) shall not apply to Iraq and
Afghanistan Service Grants;
``(B) the provisions of paragraph (2)(A)(iii) and (3)
of subsection (b), and subsection (f), shall not apply;
``(C) the maximum period determined under subsection
(c)(5) shall be determined by including all Iraq and
Afghanistan Service Grants received by the eligible
veteran's dependent, including such Grants received
under subpart 10 before the date of enactment of the
College Affordability Act; and
``(D) an Iraq and Afghanistan Service Grant to an
eligible veteran's dependent for any award year shall
equal the maximum Federal Pell Grant available under
subsection (b)(5) for that award year, except that an
Iraq and Afghanistan Service Grant--
``(i) shall not exceed the cost of attendance
of the eligible veteran's dependent for that
award year; and
``(ii) shall be adjusted to reflect the
attendance by the eligible veteran's dependent
on a less than full-time basis in the same
manner as such adjustments are made for a
Federal Pell Grant under subsection (a).
``(5) Estimated financial assistance.--For purposes of
determinations of need under part F, an Iraq and Afghanistan
Service Grant shall not be treated as estimated financial
assistance as described in sections 471(3) and 480(j).''.
(b) Effective Date; Transition.--
(1) Effective date.--The amendments made by this section
shall take effect with respect to the award year that begins
following the date of enactment of this Act, and each
succeeding award year.
(2) Transition.--The Secretary shall take such steps as are
necessary to transition from the Iraq and Afghanistan Service
Grants program under subpart 10 of part A of title IV of the
Higher Education Act of 1965 (20 U.S.C. 1070h), as in effect on
the day before the effective date of this Act, and the Iraq and
Afghanistan Service Grants program under section 401(l) of the
Higher Education Act of 1965 (20 U.S.C. 1070a(j)), as added by
this section.
SEC. 4015. FEDERAL PELL GRANT FRAUD PREVENTION.
Section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a et
seq.), as amended by this subpart, is further amended by inserting
after subsection (l) the following:
``(m) Prevention of Fraud.--
``(1) Report.--Not later than December 31 of each year, the
Secretary shall prepare and submit a report to the authorizing
committees that includes the following information with respect
to unusual enrollment history:
``(A) The number and percentage of total applicants
who were flagged for an unusual enrollment history in
the preceding award year.
``(B) The number and percentage of institutions that
have had fewer than 2 percent of applicants flagged for
an unusual enrollment history in the preceding award
year.
``(C) The name of each institution that has had more
than 2 percent of total applicants flagged for an
unusual enrollment history in the preceding award year.
``(D) If the percentage of total applicants in
subparagraph (A) is greater than 2 percent, a detailed
plan from the Secretary as to how to reduce that
percentage below 2 percent by the following award year.
``(2) Definition.--For the purposes of this subsection the
term `unusual enrollment history' means, with respect to the
application for Federal student aid--
``(A) a pattern in which a student attends an
institution long enough to receive a disbursement of
credit balance funds authorized by this title, does not
complete the enrollment period, enrolls at another
institution and repeats this pattern to collect an
additional credit balance of funds authorized by this
title without earning academic credit; or
``(B) any other enrollment pattern that the
Department believes may signal an attempt by a student
to receive funds authorized under this title in a
fraudulent manner.''.
SEC. 4016. FEDERAL PELL GRANTS ON BEHALF OF INCARCERATED INDIVIDUALS.
(a) In General.--Section 401 of the Higher Education Act of 1965 (20
U.S.C. 1070a), as amended by this subpart, is further amended by adding
at the end the following:
``(n) Federal Pell Grants on Behalf of Incarcerated Individuals.--
``(1) Institutional requirements.--An eligible institution
may not award a Federal Pell Grant to an incarcerated
individual or on behalf of such individual, unless the
institution meets the following:
``(A) The institution is approved to enroll
incarcerated individuals by--
``(i) the Secretary in accordance with
paragraph (2); and
``(ii) an accrediting agency or association
that meets the requirements of section
496(a)(4)(D).
``(B) The institution--
``(i) is an institution of higher education
(as defined in section 101) or a postsecondary
vocational institution (as defined in section
102(c)); and
``(ii) during the preceding 5 years, has not
been subject to the denial, withdrawal,
suspension, or termination of accreditation.
``(C) The institution provides each incarcerated
individual, upon completion of a course offered by the
institution, with academic credits that are the
equivalent to credits earned by non-incarcerated
students for an equivalent course of study.
``(D) The institution provides to the Secretary
confirmation from each facility involved that the
course of study offered by the institution at such
facility is accessible to incarcerated individuals
(including such individuals who are individuals with
disabilities).
``(E) The institution does not enroll incarcerated
individuals in a course of study offered primarily as a
distance education program, except in a case in which
the institution provides to the Secretary--
``(i) confirmation that the distance
education program offers levels of faculty
interaction, peer engagement, and student
support sufficient to enable incarcerated
individuals to successfully participate in such
a program; and
``(ii) evidence of the institution's success
in offering other distance education programs;
``(F) The institution develops and carries out a
process to allow each incarcerated individual to access
the transcripts and any other educational records of
such individual held by the institution, without regard
to the facility at which the individual is being held
or whether the individual has been released from such a
facility.
``(G) The institution develops and carries out a
process to allow each incarcerated individual an
opportunity to provide feedback on courses that is
comparable to the opportunity to provide such feedback
that the institution offers to non-incarcerated
students.
``(H) The institution does not directly charge an
incarcerated individual--
``(i) in the case of such an individual who
is an individual with a disability, for any
cost of the provision of reasonable
accommodations for the individual to
participate in a course of study offered by the
institution;
``(ii) in the case of such an individual with
an expected family contribution for an award
year that would not disqualify the individual
from receiving a Federal Pell Grant, for any
amount of the cost of attendance not covered by
the Federal Pell Grant or other Federal
assistance received by the institution on
behalf of the individual by ensuring that any
such amount is offset--
``(I) by a State or institutional
grant; or
``(II) other non-Federal financial
assistance that does not have to be
repaid by such individual; or
``(iii) in the case of such an individual
with an expected family contribution for an
award year that would disqualify the individual
from receiving a Federal Pell Grant, an amount
that exceeds such expected family contribution.
``(I) The institution makes available to incarcerated
individuals who are considering enrolling in a course
of study offered by the institution, in simple and
understandable terms, the following:
``(i) Information with respect to each course
of study at the institution for which such an
individual may receive a Federal Pell Grant,
including--
``(I) the cost of attendance;
``(II) the mode of instruction (such
as distance education, in-person
instruction, or a combination of such
modes);
``(III) how enrollment in such course
of study will impact the period of
eligibility for Federal Pell Grants for
such an individual, including in a case
in which the individual is transferred
to another facility or released before
the completion of such course;
``(IV) the transferability of credits
earned, and the acceptability of such
credits toward a certificate or degree
program offered by the institution;
``(V) the process for continuing
postsecondary education--
``(aa) upon transfer to
another facility; or
``(bb) after the student's
period of incarceration or
confinement; and
``(VI) the process for continuing
enrollment at the institution after the
student's period of incarceration or
confinement, including any barriers to
admission (such as criminal history
questions on applications for admission
to such institution).
``(ii) In the case of an institution that
offers a program to prepare incarcerated
individuals for gainful employment in a
recognized occupation (as such term is defined
in section 104)--
``(I) information on any applicable
State licensure and certification
requirements, including the
requirements of the State in which the
facility involved is located and each
State in which such individuals
permanently reside; and
``(II) restrictions related to the
employment of formerly incarcerated
individuals for each recognized
occupation for which the course of
study prepares students, including such
restrictions--
``(aa) in Federal law; and
``(bb) in the laws of the
State in which the facility
involved is located and each
State in which such individuals
permanently reside.
``(J) The institution submits the information
described in subparagraph (I) to each facility
involved, the Secretary, and the accrediting agency or
association described in subparagraph (A)(ii).
``(2) Approval by the secretary.--
``(A) Initial eligibility.--With respect to an
institution that seeks to award Federal Pell Grants to
incarcerated individuals under this subsection, the
Secretary shall make an initial determination about
whether such institution meets the requirements of this
subsection, which shall include a confirmation that the
institution--
``(i) has secured the approval required under
paragraph (1)(A)(ii); and
``(ii) meets the requirements of paragraph
(1)(B).
``(B) Ongoing eligibility.--Not later than 5 years
after the Secretary makes an initial determination
under subparagraph (A) that an institution meets the
requirements of this subsection, and not less than
every 5 years thereafter, the Secretary shall determine
whether such institution continues to meet the
requirements of this subsection, based on--
``(i) a review of the data collected under
paragraph (3) with respect to the courses of
study offered by such institution in which
incarcerated individuals are enrolled, and
other applicable information that may be
available to the Secretary; and
``(ii) whether such institution meets the
requirements of paragraph (1).
``(3) Data collection.--The Secretary shall, on at least an
annual basis, collect data with respect to each course of study
offered by each institution at which incarcerated individuals
are enrolled, including--
``(A) the demographics of such individuals;
``(B) the share of such individuals receiving Federal
Pell Grants;
``(C) information on the academic outcomes of such
individuals (such as credits attempted and earned, and
credential and degree completion);
``(D) to the extent practicable, information on post-
release outcomes of such individuals (such as continued
postsecondary enrollment, employment, and recidivism);
and
``(E) any data from student satisfaction surveys
conducted by the institution or the facility involved
regarding such course of study.
``(4) Best practices in educating incarcerated individuals.--
Not later than 3 years after the date of enactment of the
College Affordability Act, and at least once every 3 years
thereafter, the Secretary shall collect and disseminate to
institutions awarding Federal Pell Grants to incarcerated
individuals under this subsection, best practices with respect
to the postsecondary education of such individuals.
``(5) Definitions.--In this subsection:
``(A) Facility.--The term `facility' means--
``(i) a place used for the confinement of
individuals convicted of a criminal offense
that is owned by, or under contract to, the
Bureau of Prisons, a State, or a unit of local
government; or
``(ii) a facility to which an individual
subject to involuntary civil confinement is
committed.
``(B) Facility involved.--The term `facility
involved' means, when used with respect to an
institution of higher education, a facility at which a
course of study of the institution is offered to
incarcerated individuals.
``(C) Incarcerated individual.--The term
`incarcerated individual' means an individual who is
incarcerated in a facility or who is subject to an
involuntary civil commitment.
``(D) Non-incarcerated student.--The term `non-
incarcerated student' means a student at an institution
of higher education who is not an incarcerated
individual.''.
(b) Report on Impacts of Federal Pell Grants Awarded to Incarcerated
Individuals.-- Not later than 3 years after the date of enactment of
this Act, the Secretary of Education shall submit to the authorizing
committees and make publicly available on the website of the Department
of Education, a report on the impacts of subsection (n) of section 401
of the Higher Education Act of 1965 (20 U.S.C. 1070a), as added by this
section, based on the most recent data collected under paragraph (3) of
such subsection (n).
Subpart 2--Federal Early Outreach and Student Services Programs
CHAPTER 1--FEDERAL TRIO PROGRAMS
SEC. 4021. PROGRAM AUTHORITY; AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Section 402A of the Higher Education Act of 1965 (20
U.S.C. 1070a-11) is amended--
(1) in subsection (b)(3), by striking ``$200,000'' and all
that follows through the period at the end and inserting the
following: ``$220,000, except that for any fiscal year for
which such minimum individual grant amount would result in
fewer than 2,780 grants awarded under this chapter, an
individual grant authorized under this chapter shall be awarded
in an amount that would result in not fewer than 2,780 grants
awarded under this chapter for such fiscal year.'';
(2) 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 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.'';
(B) in paragraph (6)--
(i) in the heading, by striking ``With other
programs for disadvantaged students''; and
(ii) by striking the last sentence;
(C) by redesignating paragraphs (7) and (8) as
paragraphs (8) and (9), respectively;
(D) by inserting after paragraph (6) the following:
``(7) Inclusion of homeless and foster students.--The
Secretary shall, as appropriate, require each applicant for
funds under the programs authorized by this chapter (other than
the programs authorized under section 402E or 402G) to identify
and conduct outreach to foster care youth and homeless
individuals and make available to foster care youth and
homeless individuals services under such programs, including
mentoring, tutoring, and other services provided by such
programs.'';
(E) in paragraph (8), as so redesignated, by striking
``8 months'' both places it appears and inserting ``90
days''; and
(F) in paragraph (9), as so redesignated--
(i) in subparagraph (A)--
(I) by striking ``Not later than 180
days after the date of enactment of the
Higher Education Opportunity Act,'' and
inserting ``Not less than 90 days
before the date on which a competition
for a grant under this chapter
begins,'';
(II) in clause (iii), by striking
``prior experience'' and inserting
``accountability for outcomes''; and
(III) in clause (v), by striking
``prior experience'' and inserting
``accountability for outcomes''; and
(ii) by striking subparagraph (B) and
redesignating subparagraph (C) as subparagraph
(B);
(iii) in subparagraph (B), as so
redesignated, by adding at the end the
following:
``(vii) Technical components of
applications.--
``(I) Treatment of nonsubstantive
technical components of applications.--
With respect to any competition for a
grant under this chapter, the Secretary
may not reject grant applications on
the sole basis of a failure to meet
page limits and formatting standards
(including with respect to font size,
font style, font type, line spacing,
paragraph justification, and page
margins).
``(II) Treatment of technical budget
errors in applications.--
``(aa) In general.--With
respect to any competition for
a grant under this chapter, the
Secretary may not reject grant
applications on the sole basis
of a typographical or rounding
error in a proposed budget
until the Secretary has given
the applicant an opportunity
for correction in accordance
with item (bb).
``(bb) Notice and opportunity
for correction.--The Secretary
shall provide notice and
identification of an error
described in item (aa) to the
applicant before awarding
grants for each competition and
shall allow the applicant to
submit a revised application
that corrects the identified
error.
``(cc) Treatment of revised
applications.--The Secretary
shall treat the revised
application in the same manner
as a timely submitted
application.
``(dd) Failure to correct.--
If an applicant has received a
notice and opportunity for
correction of a typographical
or rounding error in a proposed
budget in accordance with item
(bb) and the applicant fails to
correct the error and submit a
revised application, the
Secretary may reject or
penalize that grant
application.'';
(3) in subsection (d)(3), by adding at the end the following:
``In addition, the Secretary shall host at least one virtual,
interactive training to ensure that any interested applicants
have access to technical assistance.'';
(4) in subsection (e)--
(A) in paragraph (1)--
(i) by striking ``or'' at the end of
subparagraph (C);
(ii) by striking the period at the end of
subparagraph (D) and inserting a semicolon; and
(iii) by adding at the end the following:
``(E) documentation that the student has been determined
eligible for a Federal Pell Grant authorized under section 401;
or
``(F) for a grant authorized under section 402B or 402F of
this chapter, documentation that a student is attending a
school that--
``(i) elects, or for which the local educational
agency serving the school elects on behalf of the
school, to receive special assistance payment under
section 11(a)(1)(F)(ii) of the Richard B. Russell
National School Lunch Act (42 U.S.C.
1759a(a)(1)(F)(ii)); or
``(ii) had a percentage of enrolled students who were
identified students (defined in clause (i) of section
11(a)(1)(F) of such Act (42 U.S.C. 1759a(a)(1)(F)))
that meets or exceeds the threshold described in clause
(viii) of such section (42 U.S.C. 1759a(a)(1)(F))
during the school year that ends prior to the first
period for which such grant is awarded.''; and
(B) in paragraph (2)--
(i) by striking ``or'' at the end of
subparagraph (C);
(ii) by striking the period at the end of
subparagraph (D) and inserting a semicolon; and
(iii) by adding at the end the following:
``(E) documentation that the student has been determined to
be eligible for a Federal Pell Grant authorized under section
401; or
``(F) for a grant authorized under section 402B or 402F of
this chapter, documentation that a student is attending a
school that--
``(i) elects, or for which the local educational
agency serving the school elects on behalf of the
school, to receive special assistance payment under
section 11(a)(1)(F)(ii) of the Richard B. Russell
National School Lunch Act (42 U.S.C.
1759a(a)(1)(F)(ii)); or
``(ii) had a percentage of enrolled students who were
identified students (defined in clause (i) of section
11(a)(1)(F) of such Act (42 U.S.C. 1759a(a)(1)(F)))
that meets or exceeds the threshold described in clause
(viii) of such section (42 U.S.C. 1759a(a)(1)(F))
during the school year that ends prior to the first
period for which such grant is awarded.'';
(5) in subsection (f)--
(A) in paragraph (1)--
(i) by striking ``prior experience'' and
inserting ``accountability in outcomes'' in the
heading;
(ii) by striking ``on or after January 1,
2009'' and inserting ``on or after the date of
enactment of the College Affordability Act'';
and
(iii) by striking ``prior experience of'' and
inserting ``success in achieving'';
(B) in paragraph (2), by striking ``college students,
and'' and inserting ``college students, foster care
youth, homeless individuals, and''; and
(C) in paragraph (3)--
(i) in subparagraph (A)--
(I) in clause (iv), by striking
``will make such students eligible for
programs such as the Academic
Competitiveness Grants Program'' and
inserting ``includes at least 4 years
of mathematics, 3 years of science, and
2 years of a foreign language'';
(II) by redesignating clauses (v) and
(vi) as clauses (vi) and (vii),
respectively; and
(III) by inserting after clause (iv)
the following:
``(v) the completion of financial aid
applications, including the Free Application
for Federal Student Aid described in section
483(a) and college admissions applications;''.
(ii) in subparagraph (B)--
(I) by inserting ``except in the case
of programs that specifically target
veterans,'' after ``under section
402C,'';
(II) in clause (v), by striking
``will make such students eligible for
programs such as the Academic
Competitiveness Grants Program'' and
inserting ``includes at least 4 years
of mathematics, 3 years of science, and
2 years of a foreign language'';
(III) by redesignating clauses (vi)
and (vii) as clauses (vii) and (viii),
respectively; and
(IV) by inserting after clause (v)
the following:
``(vi) the completion of financial aid
applications, including the Free Application
for Federal Student Aid described in section
483(a) and college admission applications;'';
(iii) by redesignating subparagraphs (C),
(D), and (E), as subparagraphs (D), (E), and
(F), respectively;
(iv) by inserting after subparagraph (B) the
following:
``(C) 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 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 of the program;
``(ii) such students' academic performance as
measured by standardized tests;
``(iii) the retention and completion of
participants in the program;
``(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 completion of such students.'';
(v) in subparagraph (D)(ii), as redesignated
in clause (iii)--
(I) in subclause (I), by striking
``in which such students were
enrolled'' and inserting ``at any
baccalaureate granting institution
within 6 years of initial enrollment in
the project''; and
(II) in subclause (II), by striking
items (aa) and (bb) and inserting the
following:
``(aa) the transfer of such students
to institutions of higher education
that offer baccalaureate degrees,
regardless of whether the transferring
student completes a degree or
certificate; or
``(bb) the completion of a degree or
certificate by such students at any
accredited institution within 4 years
of initial enrollment in the
project;'';
(vi) in subparagraph (E), as redesignated--
(I) in clause (iii), by striking ``;
and'' and inserting ``within 2 years of
receiving the baccalaureate degree;'';
and
(II) in clause (iv), by striking
``graduate study and the attainment of
doctoral degrees by former program
participants.'' and inserting
``graduate study; and
``(v) the attainment of doctoral degrees by
former program participants within 10 years of
receiving the baccalaureate degree.''; and
(vii) in subparagraph (F), as redesignated--
(I) in clause (i), by inserting
``within 2 years of service'' before
the semicolon; and
(II) in clause (ii), by inserting
``or re-enrollment'' after ``the
enrollment'';
(6) in subsection (g)--
(A) by striking ``$900,000,000 for fiscal year 2009
and such sums as may be necessary for each of the five
succeeding fiscal years.'' and inserting
``$1,120,000,000 for fiscal year 2021, and each of the
5 succeeding fiscal years. The amount authorized to be
appropriated in the preceding sentence for fiscal year
2022 and each of the 4 succeeding fiscal years shall be
deemed increased by the annual adjustment percentage.
For purposes of this subsection, the term `adjustment
percentage' as applied to a fiscal year, means 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 before the beginning of that fiscal year.'';
(B) by striking ``\1/2\ of'';
(C) by striking ``, and to provide'' and inserting
``, to provide''; and
(D) by striking ``current grantees.'' and all that
follows through ``additional readers.'' and inserting
``current grantees, and to carry out the requirements
of subsection (c)(9)(A).'';
(7) in subsection (h)--
(A) by striking paragraph (4) and inserting the
following:
``(4) Homeless individual.--The term `homeless individual'
has the meaning given the term `homeless children and youth'
under section 725 of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11434a).
``(5) Low-income individual.--The term `low-income
individual' means--
``(A) an individual from a family whose taxable
income for the preceding year did not exceed 150
percent of the poverty line applicable to the
individual's family size as determined under section
673(2) of the Community Services Block Grant Act (42
U.S.C. 9902(2));
``(B) an individual whose taxable income as reported
on the individual's most recently completed Free
Application for Federal Student Aid under section
483(a) did not exceed 150 percent of such poverty line;
``(C) an individual who has been determined to be
eligible for a Federal Pell Grant authorized under
section 401; or
``(D) for grants authorized under 402B and 402F of
this chapter, a student who is attending a school
that--
``(i) elects, or for which the local
educational agency serving the school elects on
behalf of the school, to receive special
assistance payment under section
11(a)(1)(F)(ii) of the Richard B. Russell
National School Lunch Act (42 U.S.C.
1759a(a)(1)(F)(ii)); or
``(ii) had a percentage of enrolled students
who were identified students (defined in clause
(i) of section 11(a)(1)(F) of such Act (42
U.S.C. 1759a(a)(1)(F))) that meets or exceeds
the threshold described in clause (viii) of
such section (42 U.S.C. 1759a(a)(1)(F)) during
the school year that ends prior to the first
year of the period for which such grant is
awarded.'';
(B) by redesignating paragraph (5) as subsection (i)
and subparagraphs (A) through (D) as paragraphs (1)
through (4); and
(C) by redesignating paragraph (6) as subsection (j);
and
(8) in subsection (j), as redesignated, by striking
``subparagraph (A), (B), or (C) of paragraph (5)'' and
inserting ``paragraph (1), (2), or (3) of subsection (i)''.
(b) Conforming Amendments.--Chapter 1 of subpart 2 of part A of title
IV of the Higher Education Act of 1965 (20 U.S.C. 1070a-11) is
amended--
(1) by striking ``homeless children and youths as defined in
section 725 of the McKinney-Vento Homeless Assistance Act''
each place it appears and inserting ``homeless individuals'';
and
(2) by striking ``homeless children and youths (as such term
is defined in section 725 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11434a))'' each place it appears and
inserting ``homeless individuals''.
SEC. 4022. TALENT SEARCH.
Section 402B of the Higher Education Act of 1965 (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:
``(3) to advise such youths regarding the postsecondary
education selection process, including consideration of
financial aid awards offered, potential Federal loan burden,
and likelihood of graduating; and'';
(2) in subsection (b)--
(A) by striking ``and'' at the end of paragraph (5);
and
(B) by striking paragraph (6) and inserting the
following:
``(6) education or counseling services to assist students and
their families regarding career choice; and
``(7) connections to programs providing financial literacy
and economic literacy so that students and their families are
able to make informed choices regarding postsecondary
education, including considering degree choices and potential
Federal loan burdens.'';
(3) in subsection (c)(2), by striking ``career'' and
inserting ``academic''; and
(4) in subsection (d)--
(A) in paragraph (3), by striking ``and'' after the
semicolon;
(B) in paragraph (4), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following:
``(5) require an assurance that the entity carrying out the
project has reviewed and revised policies and practices as
needed to remove barriers to the participation and retention in
the project of homeless individuals, including unaccompanied
youth and foster care youth;
``(6) require that such entity submit, as part of the
application for the project, a description of the activities
that will be undertaken to reach out to such homeless
individuals and foster care youth as part of the project; and
``(7) require an assurance that such entity will prepare and
submit the report required under section 402H(e) at the
conclusion of the project regarding such homeless individuals
and foster care youth.''.
SEC. 4023. UPWARD BOUND.
Section 402C of the Higher Education Act of 1965 (20 U.S.C. 1070a-13)
is amended--
(1) in subsection (b), by striking paragraphs (5) and (6) and
inserting the following:
``(5) assistance to students and their families regarding
career choice;
``(6) education or counseling services designed to improve
the financial literacy and economic literacy of students or the
students' parents in order to aid them in making informed
decisions about the postsecondary education selection process
and assist students and their families in making informed
choices regarding the postsecondary education selection
process; and
``(7) in the case of such a project that is not specifically
designed for veterans, as part of core curriculum, instruction
in mathematics through pre-calculus, science, foreign language,
language arts, and literature, and in the case of such a
project that is specifically designed for veterans, instruction
in mathematics through pre-calculus, science, foreign language,
and language arts.'';
(2) by striking subsections (c) and (g) and redesignating
subsections (d), (e), (f), and (h) as subsections (c), (d),
(e), and (f), respectively;
(3) in subsection (c), as so redesignated--
(A) in paragraph (1), by striking ``youth'' and
inserting ``participants'';
(B) in paragraph (2)--
(i) by striking ``youth participating in the
project'' and inserting ``project
participants''; and
(ii) by striking ``youth;'' and inserting
``participants;'' and
(C) in paragraph (5), by striking ``youth
participating in the project'' and inserting
``participants''; and
(4) in subsection (d), as so redesignated--
(A) in paragraph (4), by striking ``and'' after the
semicolon;
(B) in paragraph (5), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following:
``(6) require an assurance that the entity carrying out the
project has reviewed and revised policies and practices as
needed to remove barriers to the participation and retention in
the project of homeless individuals, including unaccompanied
youth and foster care youth;
``(7) require that such entity submit, as part of the
application, a description of the activities that will be
undertaken to reach out to such homeless individuals and foster
care youth regarding the project; and
``(8) require an assurance that such entity will prepare and
submit the report required under section 402H(e) at the
conclusion of the project regarding such homeless individuals
and foster care youth.''; and
(5) in subsection (e), as so redesignated--
(A) by striking ``$60'' and inserting ``$90'';
(B) by striking ``$300'' and inserting ``$450'';
(C) by striking ``$40'' and inserting ``$60''; and
(D) by adding at the end the following: ``Adults
participating in a project specifically targeting
veterans under this section may be paid stipends not in
excess of $100 per month during the year.''.
SEC. 4024. STUDENT SUPPORT SERVICES.
Section 402D of the Higher Education Act of 1965 (20 U.S.C. 1070a-14)
is amended--
(1) in subsection (a)--
(A) in paragraph (3), by striking ``limited English
proficient'' and inserting ``low-income and first
generation college students, including limited English
proficient students''; and
(B) in paragraph (4), by striking ``, including--''
and all that follows through the end of the paragraph
and inserting a period;
(2) in subsection (b)--
(A) in paragraph (4), by striking ``including
financial planning for postsecondary education;'' and
inserting ``including--
``(A) financial planning for postsecondary education,
including loan burdens required, repayment options, and
expected earnings in potential career fields;
``(B) basic personal income, household money
management, and financial planning skills; and
``(C) basic economic decisionmaking skills.'';
(B) in paragraph (5), by striking ``and'' at the end;
(C) in paragraph (6), by striking the period at the
end and inserting ``; and''; and
(D) by adding at the end the following:
``(7) basic and emergency supplemental living assistance
grants in accordance with subsection (f).'';
(3) in subsection (e)--
(A) in paragraph (5), by striking ``and'' after the
semicolon;
(B) in paragraph (6)(B), by striking the period at
the end and inserting a semicolon; and
(C) by adding at the end the following:
``(7) require an assurance that the entity carrying out the
project has reviewed and revised policies and practices as
needed to remove barriers to the participation and retention in
the project of homeless individuals, including unaccompanied
youth and foster care youth;
``(8) require that such entity submit, in the application for
the project, a description of the activities that will be
undertaken to reach out to such homeless individuals and foster
care youth, who are enrolled or accepted for enrollment at the
institution; and
``(9) require an assurance that such entity will prepare and
submit the report required under section 402H(e) at the
conclusion of the project regarding such homeless individuals
and foster care youth.''; and
(4) by adding at the end the following:
``(f) Basic and Emergency Supplemental Living Assistance Grants.--
``(1) In general.--In carrying out the activities required
under subsection (b)(7) with a grant received under this
section, the recipient of such grant shall provide basic and
emergency supplemental living assistance grants to assist
students who are current participants in the student support
services program offered by the institution (in this subsection
referred to as `eligible students')--
``(A) in the case of a basic supplemental living
assistance grant, in covering reasonable, anticipated
expenses necessary for the completion of an academic
year of the students' first undergraduate baccalaureate
course of study; and
``(B) in the case of an emergency supplemental living
assistance grant, in covering reasonable, unanticipated
expenses necessary for the students to persist in
college during such academic year.
``(2) Amount of grants.--The recipient may determine--
``(A) the appropriate division of the funds between
basic and emergency supplemental assistance grants,
except that funds shall be provided for both basic and
emergency grants;
``(B) the amount of each such grant and the total
grant funds that an eligible student may receive,
except that a student may not receive more than a total
of $500 in emergency supplemental assistance grants per
academic year; and
``(C) the anticipated and unanticipated expenses
referred to in paragraph (1) that such grants will
cover based on the needs of eligible students, which--
``(i) may vary by factors including academic
year, housing, parental status, location in
urban or rural area, or other circumstances;
and
``(ii) for an individual student, may cover--
``(I) any component of the cost of
attendance for the student;
``(II) an allowance for actual or
expected expenses incurred for
dependent care that exceeds such
expenses determined for the student
under section 472(8);
``(III) an allowance for actual or
expected expenses for transportation
that exceeds such expenses determined
for the student under section 472; and
``(IV) personal items or expenses not
otherwise covered by the cost of
attendance for the student.
``(3) Percentage of total funds.--The recipient may use not
more than 2 percent of the funds awarded under this section for
grants under this subsection.
``(4) Determination of need.--A grant provided to a student
under this subsection 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 by more than $500.
``(5) Consultation.--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.
``(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.
``(7) Funds.--For a fiscal year for which the funds allocated
for projects authorized under this section from the amounts
appropriated pursuant to the authority of section 402A(g)
exceeds the funds allocated for such purpose for fiscal year
2020, not more than 2 percent of such excess funds may be made
available for grants under this subsection.''.
SEC. 4025. POSTBACCALAUREATE ACHIEVEMENT PROGRAM AUTHORITY.
Section 402E of the Higher Education Act of 1965 (20 U.S.C. 1070a-15)
is amended--
(1) in subsection (b)(2)--
(A) by striking ``summer''; and
(B) by inserting ``or faculty-led research
experiences'' before the semicolon;
(2) in subsection (d)(4)--
(A) by striking ``summer''; and
(B) by inserting ``or faculty-led experiences who
have stipends'' after ``internships''; and
(3) in subsection (f)(1), by striking ``$2,800'' and
inserting ``$4,000''.
SEC. 4026. EDUCATIONAL OPPORTUNITY CENTERS.
Section 402F of the Higher Education Act of 1965 (20 U.S.C. 1070a-16)
is amended--
(1) in subsection (a)(1), by striking ``pursue'' and
inserting ``begin or re-enter'';
(2) in subsection (b)(5), by striking ``students;'' and
inserting ``students, including--
``(A) financial planning for postsecondary education,
including student loan debt, repayment options, and
expected earnings in potential career fields;
``(B) basic personal income, household money
management, and financial planning skills; and
``(C) basic economic decisionmaking skills;''; and
(3) in subsection (c)--
(A) in paragraph (2), by striking ``and'' after the
semicolon;
(B) in paragraph (3), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following:
``(4) require an assurance that the entity carrying out the
project has reviewed and revised policies and practices as
needed to remove barriers to the participation and retention in
the project of homeless individuals, including unaccompanied
youth and foster care youth;
``(5) require that such entity submit, as part of the
application, a description of the activities that will be
undertaken to reach out to such homeless individuals and foster
care youth regarding the project; and
``(6) require an assurance that such entity will prepare and
submit the report required under section 402H(e) at the
conclusion of the project regarding such homeless individuals
and foster care youth.''.
SEC. 4027. STAFF DEVELOPMENTAL ACTIVITIES.
Section 402G(b) of the Higher Education Act of 1965 (20 U.S.C. 1070a-
17(b)) is amended--
(1) by inserting ``webinars, online classes,'' after
``seminars, workshops,'';
(2) by striking ``new directors'' and inserting ``staff'';
(3) by redesignating paragraphs (1) through (5) as paragraphs
(2) through (6), respectively;
(4) by inserting before paragraph (2), as so redesignated,
the following:
``(1) Legislative and regulatory requirements and program
management for new directors of programs funded under this
chapter.'';
(5) in paragraph (2), as redesignated, by inserting ``for
continuing directors and staff of programs'' after ``operation
of programs''; and
(6) in paragraph (4), as redesignated, by striking ``model
programs'' and inserting ``innovations''.
SEC. 4028. REPORTS AND EVALUATIONS.
(a) Other Reporting Requirements.--Section 402H of the Higher
Education Act of 1965 (20 U.S.C. 1070a-18) is further amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking ``,
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'' and
inserting ``The issues such evaluations shall
measure shall include the effectiveness of
programs and projects assisted under this
chapter in--
``(i) meeting or exceeding the stated
objectives regarding the outcome criteria under
section 402A(f);
``(ii) enhancing the access of low-income
individuals and first-generation college
students to postsecondary education;
``(iii) preparing individuals for
postsecondary education; and
``(iv) comparing students who participate in
the programs funded under this chapter with
students who do not participate in such
programs with respect to--
``(I) level of education completed;
``(II) retention rates;
``(III) graduation rates;
``(IV) college admission and
completion rates; and
``(V) other issues as the Secretary
considers appropriate.''; and
(ii) in subparagraph (C), by inserting ``and
take into account the agreed upon target
determined under section 402A(f)(4)'' before
the period; and
(B) by amending paragraph (2) to read as follows:
``(2) Practices.--The evaluations described in paragraph (1)
shall identify institutional, community, and program or project
practices that are effective in--
``(A) enhancing the access of low-income individuals
and first-generation college students to postsecondary
education;
``(B) the preparation of such individuals and
students for postsecondary education;
``(C) fostering the success of the individuals and
students in postsecondary education; and
``(D) for programs and projects assisted under
section 402C, the characteristics of students who
benefit most from such programs and projects.''; and
(2) in subsection (d), by inserting ``, including the
authorizing committees'' before the period.
(b) Homeless Individuals and Foster Care Youth.--Section 402H of the
Higher Education Act of 1965 (20 U.S.C. 1070a-18) is further amended by
adding at the end the following:
``(e) Report Regarding Homeless Individuals and Foster Care Youth.--
Each entity carrying out a project under section 402B, 402C, 402D, or
402F shall, at the conclusion of the project, prepare and submit a
report to the Secretary that includes--
``(1) where available, data on the number of homeless
individuals and foster care youth served through the project;
and
``(2) a description of any strategies or program enhancements
that were used in the project and that were effective in
meeting the needs of such homeless individuals and foster care
youth.''.
CHAPTER 2--GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE
PROGRAMS
SEC. 4031. GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE
PROGRAMS.
Chapter 2 of subpart 2 of part A of title IV of the Higher Education
Act of 1965 (20 U.S.C. 1070a-21 et seq.) is amended--
(1) in section 404A (20 U.S.C. 1070a-21)--
(A) in the matter preceding subparagraph (A) of
subsection (a)(1), by inserting ``, including for
college readiness'' after ``academic support''; and
(B) in subsection (b)--
(i) by amending paragraph (3) to read as
follows:
``(3) Priority.--In making awards to eligible entities
described in subsection (c), the Secretary may give a
competitive priority--
``(A) to eligible entities that--
``(i) on the day before the date of enactment
of the College Affordability 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
and readiness through collaboration and
replication of successful strategies; or
``(B) to eligible entities that ensure that students
that received assistance under this chapter on the day
before the date of enactment of the College
Affordability Act continue to receive such assistance
through the completion of secondary school.'';
(ii) by adding at the end the following:
``(4) Multiple award prohibition.--
``(A) In general.--An eligible entity described in
subsection (c)(1) that receives a grant under this
chapter shall not be eligible to receive an additional
grant under this chapter until after the date on which
the grant period with respect to such grant expires.
``(B) Exception for no-cost extension.--
Notwithstanding subparagraph (A), an eligible entity
described in subsection (c)(1) that receives a grant
under this chapter that has been extended under section
75.261 of title 34, Code of Federal Regulations may
receive an additional grant under this chapter prior to
the date on which the grant period applicable to such
extension expires.''; and
(2) in section 404B (20 U.S.C. 1070a-22)--
(A) in subsection (a), in the matter preceding
paragraph (1), by inserting ``(except with respect to
continuation awards under this chapter)'' after
``grants''; and
(B) in subsection (d)(1)--
(i) in subparagraph (A), by inserting ``and''
after the semicolon;
(ii) in subparagraph (B), by striking ``;
and'' and inserting a period; and
(iii) by striking subparagraph (C);
(3) in section 404C (20 U.S.C. 1070a-23)--
(A) in subsection (a)(2)--
(i) in subparagraph (I), by striking ``and''
after the semicolon;
(ii) in subparagraph (J), by striking the
period at the end and inserting a semicolon;
and
(iii) by adding at the end the following:
``(K) provide an assurance that the eligible entity
has reviewed and revised policies and practices as
needed to remove barriers to the participation and
retention of homeless individuals (as defined in
section 402A) in the program, including unaccompanied
youth and foster care youth;
``(L) describe the activities that will be undertaken
to reach out to such homeless individuals and foster
care youth as part of the program; and
``(M) provide an assurance that the eligible entity
will prepare and submit the report required under
section 404G(c) at the conclusion of the grant
regarding such homeless individuals and foster care
youth.'';
(B) in subsection (b)(1)(A)--
(i) by inserting ``matching funds'' after
``will provide'';
(ii) by inserting ``equaling'' after
``private funds,''; and
(iii) by striking ``the cost of the program,
which matching funds'' and inserting ``the
total Federal grant award under this chapter,
which'';
(C) in subsection (c)(1), by inserting ``at any point
during the grant award period'' after ``obligated to
students''; and
(D) by striking subsection (d) and inserting the
following:
``(d) Peer Review Panels and Competitions.--The Secretary shall--
``(1) convene peer review panels to assist in making
determinations regarding the awarding of grants under this
chapter; and
``(2) host a grant competition to make new awards under this
chapter in any year in which there are funds available to make
new awards.'';
(4) in section 404D (20 U.S.C. 1070a-24)--
(A) in subsection (b)--
(i) in paragraph (1), by striking ``or former
participants of a program under this chapter''
and inserting ``, former participants of a
program under this chapter, or peers and near
peers'';
(ii) in paragraph (3), by inserting
``academic, social, and postsecondary
planning'' after ``supportive'';
(iii) in paragraph (10)--
(I) by redesignating subparagraphs
(E) through (K) as subparagraphs (F)
through (L), respectively;
(II) by inserting after subparagraph
(D) the following:
``(E) counseling or referral services to address the
behavioral, social-emotional, and mental health needs
of at-risk students;'';
(III) in subparagraph (I), as
redesignated by subclause (I), by
inserting ``, cognitive, non-cognitive,
and credit-by-examination'' after
``skills'';
(IV) in subparagraph (K), as
redesignated by subclause (I), by
striking ``and'' after the semicolon;
(V) in subparagraph (L), as
redesignated by subclause (I), 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 educational agencies.''; and
(iv) by adding at the end the following:
``(16) Creating or expanding secondary school drop-out
recovery programs that allow students who have dropped out of
secondary school to complete a regular secondary school diploma
and begin college-level work.
``(17) Establishing data collection and data sharing
agreements to obtain, analyze, and report postsecondary outcome
data for eligible students for a period of not more than 72
months after the end of the grant award period, which may
include postsecondary enrollment, persistence, and completion
data.
``(18) Establishing or maintaining an agreement with a
consortium of eligible entities described in section 404A(c)
to--
``(A) foster collaborative approaches to research and
evaluation;
``(B) improve the quality of data collection, data
sharing, analysis and reporting; and
``(C) apply evidence to improve programs and
evaluation under this chapter.
``(19) Facilitating the recruitment, participation, and
retention of homeless individuals (as defined in section 402A)
and foster care youth in the services provided under this
chapter, including--
``(A) establishing partnerships with community-based
organizations, child welfare agencies, homeless
shelters, and local educational agency liaisons for
homeless individuals to identify such individuals and
youth, improve policies and practices, and to establish
data sharing agreements;
``(B) carrying out activities (consistent with the
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301
et seq.)) to facilitate continued participation of
students who are no longer enrolled in a school served
under this chapter due to changes in residence
resulting from homelessness or foster care placement,
including--
``(i) allowing continued participation when
such a student is no longer enrolled, on a
temporary basis, in a school served under this
chapter; or
``(ii) providing transitional services and
referrals when such a student is no longer
enrolled, on a permanent basis, in a school
served under this chapter; and
``(C) carrying out other activities to meet the needs
of such homeless individuals and foster care youth.
``(20) Providing services under this chapter to students who
have received services under a previous grant award under this
chapter but have not yet completed grade 12.'';
(B) in subsection (c)--
(i) in paragraph (3), by inserting ``and
technical assistance'' after ``support''; and
(ii) by striking paragraph (9); and
(C) in subsection (d)--
(i) in paragraph (3), by striking ``or'';
(ii) by redesignating paragraph (4) as
paragraph (5); and
(iii) by inserting after paragraph (3) the
following:
``(4) eligible for free or reduced-price lunch under the
Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et
seq.); or'';
(5) in section 404E (20 U.S.C. 1070a-25)--
(A) in subsection (a)--
(i) by redesignating paragraph (2) as
paragraph (3);
(ii) by inserting after paragraph (1) the
following:
``(2) Application requirements.--
``(A) Plan for maintenance of financial assistance.--
An eligible entity proposing to establish or maintain a
financial assistance program providing scholarships for
students assisted by the program of the eligible entity
under this chapter shall include a plan regarding the
financial application program with the application
submitted under section 404C.
``(B) Scholarship details.--Under a plan described in
subparagraph (A), an eligible entity--
``(i) may elect to offer 1 or more types of
scholarships; and
``(ii) shall describe, for each type of
scholarship--
``(I) the minimum and maximum awards
for the scholarships, consistent with
subsection (d), based on criteria and
disbursement priorities established by
the eligible entity;
``(II) the duration of the
scholarships, which may be single-year
or multi-year awards;
``(III) the enrollment requirements
for participating students, which may
include providing scholarships for
participating students who are enrolled
in an institution of higher education
on less than a full-time basis during
any award year; and
``(IV) any additional student
eligibility criteria established by the
eligible entity for earning and
maintaining scholarships under this
section, including--
``(aa) financial need;
``(bb) meeting participation
milestones in the activities
offered by the eligible entity
under section 404D;
``(cc) meeting and
maintaining satisfactory
academic milestones; and
``(dd) other criteria aligned
with State and local goals to
incentivize postsecondary
readiness, access, and
success.''; and
(iii) in paragraph (3), as redesignated by
clause (i), by striking ``may award'' and
inserting ``may use not less than 10 percent
and not more than 50 percent of funds made
available under this chapter to award'';
(B) in subsection (b)--
(i) in the subsection heading, by striking
``Limitation'' and inserting ``State
Limitation''; and
(ii) in paragraph (2), by striking ``eligible
entity demonstrates'' and all that follows
through the period at the end and inserting the
following: ``eligible entity--
``(A) demonstrates that the eligible entity has
another means of providing the students with the
financial assistance described in this section or
eligible students have reasonable access to State and
local financial assistance programs; and
``(B) describes such means or access in the
application submitted under section 404C.'';
(C) in subsection (e)--
(i) by striking paragraph (1) and inserting
the following:
``(1) In general.--
``(A) Scholarship plan.--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 estimated amount that is
based on the eligible entity's scholarship plan
described in subsection (a)(1).
``(B) Interest use.--Interest earned on funds held in
reserve under subparagraph (A) may be used by the
eligible entity to administer the scholarship program
during the award period and through the post-award
period described in paragraph (4).'';
(ii) in paragraph (2)(B), by inserting ``, or
been accepted for enrollment,'' after
``enrolled''; and
(iii) in paragraph (3)--
(I) in subparagraph (A), by striking
``and'' after the semicolon;
(II) by redesignating subparagraph
(B) as subparagraph (C); and
(III) by inserting after subparagraph
(A) the following:
``(B) the costs associated with enrolling in an
institution of higher education; and''; and
(D) in subsection (g)--
(i) in paragraph (3)--
(I) by inserting ``or, if the
eligible entity chooses, in another
program of study or credential program
for which an individual could use funds
received under a Federal Pell Grant to
attend,'' before ``that is located'';
and
(II) by striking ``except that, at
the State's option'' and inserting
``except that, at the eligible entity's
option''; and
(ii) in paragraph (4), by inserting ``and
qualifies for an award, consistent with the
eligible entity's scholarship plan as described
in subsection (a)(2)'' after ``404D(a)'';
(6) in section 404G (20 U.S.C. 1070a-27)--
(A) in subsection (b)--
(i) in paragraph (1), by striking ``and''
after the semicolon;
(ii) in paragraph (2), by striking the period
at the end and inserting ``; and''; and
(iii) by inserting after paragraph (2) the
following:
``(3) include the following metrics:
``(A) The number of students completing the Free
Application for Federal Student Aid under section 483.
``(B) If applicable, the number of students receiving
a scholarship under section 404E.
``(C) The graduation rate of participating students
from high school.
``(D) The enrollment of participating students in
postsecondary education.
``(E) Such other metrics as the Secretary may
require.'';
(B) by redesignating subsections (c) and (d) as
subsections (d) and (e), respectively;
(C) by inserting after subsection (b) the following:
``(c) Report on Homeless Individuals and Foster Care Youth.--Each
eligible entity that receives a grant under section 404A shall, at the
conclusion of such grant, prepare and submit a report to the Secretary
that includes--
``(1) where available, the number of homeless individuals (as
defined in section 402A) and foster care youth served through
the program; and
``(2) a description of any strategies or program enhancements
that were used by the eligible entity in carrying out the
program that were effective in meeting the needs of such
homeless individuals and foster care youth.'';
(D) in subsection (d), as so redesignated--
(i) in the subsection heading, by inserting
``and Technical Assistance'' after ``Federal
Evaluation'';
(ii) in the matter preceding paragraph (1)--
(I) by inserting ``after consultation
with the community of eligible entities
receiving grants under this chapter
and'' after ``Secretary shall,'';
(II) by striking ``0.75'' and
inserting ``1''; and
(III) by striking ``evaluate the
effectiveness of the program and, as
appropriate, disseminate the results of
the evaluation. Such evaluation shall
include a separate analysis of'';
(iii) by redesignating paragraphs (1) and (2)
as subparagraphs (A) and (B), respectively, and
indenting the margins appropriately; and
(iv) before subparagraph (A) (as redesignated
by clause (iii)), by inserting the following:
``(1) provide pre-application technical assistance workshops
for eligible entities and potential applicants in any year in
which new awards are expected to be made;
``(2) support initiatives designed to improve the research,
data collection and infrastructure, and evaluation capacity of
eligible entities; and
``(3) evaluate the effectiveness of the program and, as
appropriate, disseminate the results of the evaluation. Such
evaluation may include a separate analysis of--''; and
(7) in section 404H, by striking ``$400,000,000 for fiscal
year 2009'' and inserting ``$500,000,000 for fiscal year
2021''.
Subpart 3--Federal Supplemental Educational Opportunity Grants
SEC. 4041. PURPOSE; APPROPRIATIONS AUTHORIZED.
Section 413A of the Higher Education Act of 1965 (20 U.S.C. 1070b) is
amended--
(1) by amending subsection (a) to read as follows:
``(a) Purpose of Subpart.--It is the purpose of this subpart to--
``(1) 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; and
``(2) to establish grant programs at various institutions of
higher education, as defined in section 101, to determine best
practices and policies regarding the distribution of emergency
grant aid to assist students in completing their program of
study, notwithstanding aid they may have received in accordance
with the provisions of part F of this title.'';
(2) in subsection (b)(1), by striking ``appropriated'' and
all that follows through the end and inserting ``appropriated--
``(A) $1,150,000,000 for fiscal year 2021;
``(B) $1,300,000,000 for fiscal year 2022;
``(C) $1,450,000,000, for fiscal year 2023;
``(D) $1,600,000,000 for fiscal year 2024; and
``(E) $1,750,000,000 for fiscal year 2025 and each succeeding
fiscal year.'';
(3) in subsection (b), by redesignating paragraph (2) as
paragraph (3); and
(4) in subsection (b), by inserting after paragraph (1) the
following:
``(2) For the purpose of enabling the Secretary to fund emergency
grant aid programs under section 420DD, there are allocated, from funds
authorized under paragraph (b)(1), $12,500,000 for fiscal year 2021 and
each of the 5 succeeding fiscal years.''.
SEC. 4042. INSTITUTIONAL ELIGIBILITY.
Section 413C(a) of the Higher Education Act of 1965 (20 U.S.C. 1070b-
2) is amended--
(1) in paragraph (2)--
(A) by striking ``agrees'' and inserting ``except as
provided in paragraph (4), agrees''; and
(B) by striking ``and'' at the end;
(2) in paragraph (3)(D), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(4) agrees that the Federal share of an award under this
subpart to an institution eligible for assistance under title
III or title V shall equal 100 percent of such award.''.
SEC. 4043. ALLOCATION OF FUNDS.
Section 413D of the Higher Education Act of 1965 (20 U.S.C. 1070b-3)
is amended to read as follows:
``SEC. 413D. ALLOCATION OF FUNDS.
``(a) Allocation Formula for Fiscal Years 2021 Through 2025.--
``(1) In general.--From the amount appropriated under section
413A(b)(1) for a fiscal year, the Secretary shall allocate to
each institution--
``(A) for fiscal year 2021, an amount equal to the
greater of--
``(i) 90 percent of the amount the
institution received under subsection (a) for
fiscal year 2020, as such subsection was in
effect with respect to such fiscal year (in
this subparagraph referred to as `the 2020
amount for the institution'); or
``(ii) the fair share amount for the
institution determined under subsection (c);
``(B) for fiscal year 2022, an amount equal to the
greater of--
``(i) 80 percent of the 2020 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (c);
``(C) for fiscal year 2023, an amount equal to the
greater of--
``(i) 60 percent of the fiscal year 2020
amount for the institution; or
``(ii) the fair share amount for the
institution determined under subsection (c);
``(D) for fiscal year 2024, an amount equal to the
greater of--
``(i) 40 percent of the 2020 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (c);
and
``(E) for fiscal year 2025, an amount equal to the
greater of--
``(i) 20 percent of the 2020 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (c).
``(2) Ratable reduction.--
``(A) In general.--If the amount appropriated under
section 413A(b)(1) for a fiscal year 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).
``(b) Allocation Formula for Fiscal Year 2026 and Each Succeeding
Fiscal Year.--From the amount appropriated under section 413A(b)(1) for
fiscal year 2026 and each succeeding fiscal year, the Secretary shall
allocate to each institution the fair share amount for the institution
determined under subsection (c).
``(c) Determination of Fair Share Amount.--
``(1) In general.--Subject to paragraph (2), the fair share
amount for an institution for a fiscal year shall be equal to
the sum of the institution's undergraduate student need
described in paragraph (2) for the preceding fiscal year.
``(2) Institutional undergraduate student need calculation.--
The institutional undergraduate student need 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 awarded 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.
``(3) Eligibility for fair share amount.--The Secretary may
not allocate funds under this subpart to any institution that,
for 2 or more fiscal years during any 3 fiscal year period
beginning not earlier than the first day of the first fiscal
year that is 2 years after the date of the enactment of this
paragraph, has a student population with less than 7 percent of
undergraduate students who are recipients of Federal Pell
Grants.
``(d) Definitions.--In this section:
``(1) Average cost of attendance.--The term `average cost of
attendance' has the meaning given the term in section
4202(e)(5)(B).
``(2) Undergraduate student need.--The term `undergraduate
student need' means, with respect to an undergraduate student
for an award year, the lesser of the following:
``(A) 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
award year, minus
``(ii) such undergraduate student's expected
family contribution (computed in accordance
with part F of this title) for the preceding
award year.
``(B) The total loan annual limit for a Federal
Direct Unsubsidized Stafford Loan and a Federal Direct
Loan.''.
SEC. 4044. EMERGENCY FINANCIAL AID GRANT PROGRAM.
Part A of title IV of the Higher Education Act of 1965 (20 U.S.C.
1070b et seq.) is amended by inserting after subpart 12, as added by
section 4093, the following:
``Subpart 13--Emergency Financial Aid Grants
``SEC. 420DD. EMERGENCY FINANCIAL AID GRANT PROGRAM.
``(a) Emergency Financial Aid Grant Programs Authorized.--The
Secretary shall carry out a grant program to make grants, in accordance
with subsection (c), to eligible entities to provide emergency
financial aid grants to students in accordance with subsection (d).
``(b) Matching Funds.--
``(1) Limitation on amount of federal share.--Except as
provided in paragraph (3), the Federal share of the cost of any
emergency grant aid program carried out under this section may
not exceed 50 percent.
``(2) Limitation.--Matching funds provided by an eligible
entity under this subsection may not include in-kind
contributions.
``(3) Exceptions.--The Federal share of the cost of an
emergency grant aid program carried out under this section
shall equal 100 percent if the institution carrying out the
emergency grant aid is an institution of higher education
eligible for assistance under title III or V.
``(c) Application.--
``(1) In general.--Each eligible entity desiring to carry out
an emergency grant aid program 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) Outreach.--The Secretary shall, at least 30 days before
each deadline to submit applications under paragraph (1),
conduct outreach to institutions of higher education described
in subsection (b)(3) to provide such institutions with
information on the opportunity to apply under paragraph (1) to
carry out an emergency grant aid program under this section.
``(3) Contents.--Each application under paragraph (1) shall
include a description of the emergency grant aid program to be
carried out by the eligible entity, including--
``(A) an estimate of the number of emergency
financial aid grants that such entity will make in an
award year and how such eligible entity assessed such
estimate;
``(B) the criteria the eligible entity will use to
determine an emergency for which an eligible student
will be eligible to receive an emergency financial aid
grant;
``(C) an assurance that an emergency for which an
eligible student will be eligible to receive an
emergency financial aid grant will include financial
challenges that would directly impact the ability of an
eligible student to continue and complete the course of
study of such student, including--
``(i) a loss of employment, transportation,
child care, utilities, or housing of the
student;
``(ii) a medical condition (including
pregnancy) of the student, or a dependent of
the student;
``(iii) with respect to the eligible student,
food insecurity; and
``(iv) in the case of an eligible student who
is a dependent student--
``(I) the death of a parent or
guardian of such eligible student; or
``(II) a medical condition of the
parent or guardian of such eligible
student which results in the loss of
employment of such parent or guardian;
``(D) a description of the process by which an
eligible student may apply and receive an emergency
financial aid grant;
``(E) an assurance that the eligible entity, when
applicable, will make information available to eligible
students about the eligibility of such students and
their dependents for assistance under the supplemental
nutrition assistance program under the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), the
special supplemental nutrition program for women,
infants, and children under the Child Nutrition Act of
1966 (42 U.S.C. 1786), and 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.);
``(F) how the eligible entity will administer the
emergency grant aid program, including the processes
the eligible entity will use to respond to
applications, approve applications, and disburse
emergency financial aid grants outside of normal
business hours;
``(G) an assurance that the process by which an
eligible student applies for an emergency financial aid
grant includes--
``(i) to the extent practicable, an
interview; and
``(ii) at least one opportunity to appeal a
denial of such a grant;
``(H) an assurance that the eligible entity will
acknowledge receipt of a student's request and
distribute funds in a timely manner as determined by
the Secretary;
``(I) a description of how the school intends to
limit fraud or abuse; and
``(J) any other information the Secretary may
require.
``(4) Priority.--In selecting eligible entities to carry out
an emergency grant aid program under this section, the
Secretary shall give priority to an eligible entity in which at
least 30 percent of the students enrolled at such eligible
entity are eligible to receive a Federal Pell Grant.
``(d) Use of Funds.--
``(1) In general.--An eligible entity may only use funds
provided under this section to make emergency financial aid
grants to eligible students.
``(2) Limitations.--
``(A) Amount.--An emergency financial aid grant to an
eligible student may not be in an amount greater than
$750.
``(B) Total amount.--The total amount of the Federal
share of emergency financial aid grants that an
eligible student may receive from an eligible entity
may not exceed $2,000. An eligible student may 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 of
higher education in which the student is enrolled.
``(e) Reporting and Oversight.--
``(1) In general.--Not less frequently than once annually,
each eligible entity that receives a grant under this subpart
shall submit to the Secretary a report on the progress of the
eligible entity in carrying out the programs supported by such
grant.
``(2) Form of report.--The report under paragraph (1) shall
be submitted to the Secretary at such time, in such manner, and
containing such information as the Secretary may require. The
Secretary shall issue uniform guidelines describing the
information that shall be reported by grantees under such
paragraph.
``(3) Content of report.--The report under paragraph (1)
shall include, at minimum, the following:
``(A) The number of students that received a grant,
including the number of students who received more than
one grant.
``(B) The average award amount awarded to eligible
students.
``(C) The types of emergencies declared and
frequencies emergencies declared by eligible students.
``(D) The number of students that applied for
emergency grant aid.
``(E) The number of students that were denied such
grants.
``(F) The average amount of time it took an eligible
entity to respond to requests for emergency grant aid
and average amount of time it took the eligible entity
to award or deny the emergency grant aid.
``(G) Outcomes of the eligible students that received
emergency grant aid, including rates of persistence,
retention, and completion, and a comparison of such
rates for such students as compared to such rates for
Federal Pell recipients at the institution.
``(f) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means an
institution of higher education that on the date such entity
receives a grant under this section, is participating in the
FSEOG program under subpart 3.
``(2) Eligible student.--The term `eligible student' means a
student who--
``(A) is enrolled in an eligible entity on an at
least half-time basis; and
``(B) who is making satisfactory academic progress.
``(3) Institution of higher education.--The term `institution
of higher education' has the meaning given the term in section
101.''.
Subpart 4--Special Programs for Students Whose Families Are Engaged in
Migrant and Seasonal Farmwork
SEC. 4051. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMILIES ARE ENGAGED IN
MIGRANT AND SEASONAL FARMWORK.
Section 418A(i) of the Higher Education Act of 1965 (20 U.S.C. 1070d-
2(i)) is amended by striking ``2009'' and inserting ``2021''.
Subpart 5--Child Care Access Means Parents in School
SEC. 4061. CCAMPIS REAUTHORIZATION.
Section 419N of the Higher Education Act of 1965 (20 U.S.C. 1070e) is
amended--
(1) in subsection (b)--
(A) in paragraph (2)--
(i) in subparagraph (A)--
(I) by striking ``The amount'' and
inserting ``Except as provided in
subparagraph (C), the amount''; and
(II) by striking ``1 percent'' and
inserting ``2 percent'';
(ii) in subparagraph (B)(ii), by striking
``subsection (g)'' and inserting ``subsection
(h)''; and
(iii) by adding at the end the following:
``(C) Performance bonus.--
``(i) In general.--Notwithstanding
subparagraph (A), for any fiscal year for which
the amount appropriated under subsection (h) is
not less than $140,000,000, the Secretary may
pay a performance bonus to an eligible
institution of higher education.
``(ii) Maximum amount.--A bonus paid to an
eligible institution of higher education under
clause (i) for a fiscal year shall not exceed
an amount equal to 20 percent of the amount of
the annual grant payment received by the
institution under paragraph (3)(B) for the
fiscal year preceding the fiscal year for which
the bonus is paid.
``(iii) Use of bonus.--A bonus received by an
institution under clause (i) shall be used by
the institution in the same manner as a grant
under this section and shall be treated as
grant funds for purposes of the application of
paragraph (5), except that the Secretary may
extend the grant period as necessary for the
institution to use such bonus.
``(iv) Eligible institution of higher
education.--In this subparagraph, the term
`eligible institution of higher education'
means an institution of higher education that--
``(I) has received a grant under this
section for not less than the period of
three consecutive fiscal years
preceding the fiscal year in which the
bonus is paid under clause (i);
``(II) for each such preceding fiscal
year, has met or exceeded the
performance levels established by the
institution for such year under
subsection (e)(1)(B)(v); and
``(III) has demonstrated the need for
such bonus.'';
(B) in paragraph (3)--
(i) in subparagraph (A), by striking ``4
years'' and inserting ``5 years''; and
(ii) in subparagraph (B), by striking
``subsection (e)(2)'' and inserting
``subsection (e)(3)''; and
(C) by amending paragraph (5) to read as follows:
``(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 the following services to the extent necessary to
enable low-income students enrolled at the institution of
higher education to pursue postsecondary education--
``(A) evening, summer, weekend and before and after
school services; and
``(B) services to expectant parents, such as the
provision of information regarding the relationship
between prenatal health and early child development and
the administration of a home visit closely following
the birth of the child.'';
(2) by amending subsection (c) to read as follows:
``(c) Applications.--
``(1) In general.--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. Such
application shall--
``(A) demonstrate that the institution is an eligible
institution described in subsection (b)(4);
``(B) specify the amount of funds requested;
``(C) demonstrate the need of low-income students at
the institution for campus-based child care services by
including in the application--
``(i) information regarding student
demographics, including the share of students
enrolled full-time;
``(ii) an assessment of child care capacity
on or near campus;
``(iii) information regarding the waiting
lists for child care services on or near
campus;
``(iv) information regarding additional needs
created by concentrations of poverty or by
geographic isolation;
``(v) information about the number of low-
income student parents being served through
campus-based child care services; and
``(vi) other relevant data;
``(D) specify the estimated percentage of the
institution's grant that will be used directly to
subsidize the fee charged for on-campus and off-campus
childcare, respectively, for low-income students;
``(E) contain a description of the activities to be
assisted, including whether the grant funds will
support an existing child care program or a new child
care program;
``(F) identify the resources, including technical
expertise and financial support, that 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 resources will not
result in increases in student tuition;
``(G) 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;
``(H) 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;
``(I) in the case of an institution seeking
assistance for a new child care program--
``(i) 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;
``(ii) 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
``(iii) 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;
``(J) contain an assurance that any child care
facility assisted under this section will meet the
applicable State and local government licensing,
certification, approval, or registration requirements;
``(K) in the case of an institution that is awarded a
grant under this section after the date of the
enactment of the College Affordability Act, provide an
assurance that, not later than three years after the
date on which such grant is awarded, any child care
facility assisted with such grant will--
``(i) meet Head Start performance standards
under subchapter B of chapter 13 of title 45,
Code of Federal Regulations (as in effect on
the date of enactment of the College
Affordability Act) and any successor
regulations;
``(ii) be in the top tier of the quality
rating improvement system for such facilities
used by the State in which the facility is
located;
``(iii) meet the licensing requirements of
the State in which the facility is located and
the quality requirements under the Child Care
and Development Block Grant Act of 1990 (42
U.S.C. 9858 et seq.); or
``(iv) be accredited by a national early
childhood accrediting body with demonstrated
valid and reliable program quality standards;
``(L) contain an assurance that the institution, when
applicable, will make information available to students
receiving child care services provided under this
section about the eligibility of such students and
their dependents for assistance under the supplemental
nutrition assistance program under the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), the
special supplemental nutrition program for women,
infants, and children under the Child Nutrition Act of
1966 (42 U.S.C. 1786), and 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.);
``(M) contain an abstract summarizing the contents of
such application and how the institution intends to
achieve the purpose under subsection (a); and
``(N) contain an assurance that the institution will
provide information on the institution's website
regarding the availability of child care subsidies for
student parents and the dependent care cost allowance
available to parents with dependent children in
accordance with section 472.
``(2) Technical assistance.--The Secretary may provide
technical assistance to eligible institutions to help such
institutions qualify for, apply for, and maintain a grant under
this section.'';
(3) in subsection (d)--
(A) in the matter preceding paragraph (1), by
striking ``to institutions of higher education that
submit applications describing programs that'';
(B) by amending paragraph (1) to read as follows:
``(1) based on the extent to which institutions of higher
education that submit applications for such a grant leverage
local or institutional resources, including in-kind
contributions, to support the activities assisted under this
section;'';
(C) by redesignating paragraph (2) as paragraph (3);
(D) by inserting after paragraph (1), the following:
``(2) to institutions of higher education that, compared to
other institutions of higher education that submit applications
for such a grant, demonstrate a high likelihood of need for
campus-based child care based on student demographics (such as
a high proportion of low-income students or independent
students); and''; and
(E) in paragraph (3) (as redesignated by subparagraph
(C)), by inserting ``to institutions of higher
education that submit applications describing programs
that'' before ``utilize''; and
(4) in subsection (e)--
(A) in paragraph (1)(B)--
(i) by redesignating clauses (ii), (iii), and
(iv) as clauses (vi), (vii), and (viii),
respectively; and
(ii) by striking the semicolon at the end of
clause (i) and inserting the following: ``which
shall include--
``(I) the number of full- and part-
time students, respectively, receiving
child care services under this section
at least once per week during the
academic year;
``(II) the number of credits
accumulated by students receiving such
child care services; and
``(III) the number of students
receiving child care services under
this section at least once per week
during the academic year who--
``(aa) remain enrolled at the
institution during the academic
year for which they received
such services;
``(bb) enroll at the
institution for the following
academic year; and
``(cc) graduate or transfer
within--
``(AA) 150 percent of
the normal time for
completion of a
student's four-year
degree granting
program; or
``(BB) 200 percent of
the normal time for
completion of a
student's two-year
degree-granting
program;
``(ii) with respect to the total student
enrollment at the institution and the total
enrollment of low-income students at the
institution, respectively--
``(I) the rate at which students who
complete an academic year at the
institution re-enroll in the
institution for the following academic
year; and
``(II) the percentage of students
graduating or transferring within--
``(aa) 150 percent of the
normal time for completion of a
student's four-year degree
granting program; or
``(bb) 200 percent of the
normal time for completion of a
student's two-year degree
granting program;
``(iii) the percentage of the institution's
grant that was used directly to subsidize the
fee charged for on-campus and off-campus
childcare, respectively, for low-income
students;
``(iv) whether the institution restricts
eligibility for child care services to only
full-time students;
``(v) the sufficiently ambitious levels of
performance established for such year by the
institution that demonstrate meaningful
progress and allow for meaningful evaluation of
program quality based on the information in
clauses (i)(III) and (iii);'';
(B) by redesignating paragraph (2) as paragraph (3);
(C) by inserting after paragraph (1) the following:
``(2) Report.--
``(A) Report required.--On an annual basis, the
Secretary shall submit to the authorizing committees a
report that includes--
``(i) a summary of the information described
in paragraph (1); and
``(ii) each abstract submitted under
subsection (c)(1)(M) by an institution of
higher education that receives a grant under
this section.
``(B) Public availability.--The Secretary shall make
each report submitted under subparagraph (A) publicly
available.'';
(D) in paragraph (3), as so redesignated, by
inserting ``(other than the information provided under
subparagraph (B)(v) of such paragraph)'' after
``paragraph (1)''; and
(E) by adding at the end the following:
``(4) Technical assistance.--The Secretary shall provide
technical assistance to institutions of higher education
receiving grants under this section to help such institutions
meet the reporting requirements under this subsection.''; and
(5) in subsection (g), by striking ``such sums as may be
necessary for fiscal year 2009'' and inserting ``$200,000,000
for fiscal year 2021''.
Subpart 6--Jumpstart to College Grant Programs
SEC. 4071. JUMPSTART TO COLLEGE GRANT PROGRAMS.
Part A of title IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.) is further amended by inserting after subpart 7 the
following:
``Subpart 8--Jumpstart to College
``SEC. 419O. DEFINITIONS.
``In this subpart:
``(1) Eligible entity.--The term `eligible entity' means an
institution of higher education in partnership with one or more
local educational agencies (which may be an educational service
agency). Such partnership may also include other entities such
as nonprofit organizations or businesses, and schools in
juvenile detention centers.
``(2) Institution of higher education.--The term `institution
of higher education' has the meaning given the term in section
101 (20 U.S.C. 1001).
``(3) ESEA terms.--The terms `dual or concurrent enrollment
program', `early college high school', `educational service
agency', `four-year adjusted cohort graduation rate', `local
educational agency', `secondary school', and `State' have
meanings given the terms in section 8101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801).
``(4) Low-income student.--The term `low-income student'
means a student counted under section 1124(c) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6333(c)).
``(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).
``SEC. 419P. AUTHORIZATION OF APPROPRIATIONS; RESERVATIONS.
``(a) In General.--To carry out this subpart, there are authorized to
be appropriated $250,000,000 for fiscal year 2021 and each of the five
succeeding fiscal years.
``(b) Reservations.--From the funds appropriated under subsection (a)
for each fiscal year, the Secretary shall reserve--
``(1) not less than 40 percent for grants to eligible
entities under section 419Q;
``(2) not less than 55 percent for grants to States under
section 419R; and
``(3) not less than 5 percent for national activities under
section 419T.
``SEC. 419Q. GRANTS TO ELIGIBLE ENTITIES.
``(a) In General.--The Secretary shall award grants to eligible
entities, on a competitive basis, to assist such entities in
establishing or supporting an early college high school or dual or
concurrent enrollment program in accordance with this section.
``(b) Duration.--Each grant under this section shall be awarded for a
period of 6 years.
``(c) Grant Amount.--The Secretary shall ensure that the amount of
each grant under this section is sufficient to enable each grantee to
carry out the activities described in subsection (h), except that a
grant under this section may not exceed $2,000,000.
``(d) Matching Requirement.--
``(1) In general.--For each year that an eligible entity
receives a grant under this section, the entity shall
contribute matching funds, in the amounts described in
paragraph (2), for the activities supported by the grant.
``(2) Amounts described.--The amounts described in this
paragraph are--
``(A) for each of the first and second years of the
grant period, 20 percent of the grant amount;
``(B) for each of the third and fourth years of the
grant period, 30 percent of the grant amount;
``(C) for the fifth year of the grant period, 40
percent of the grant amount; and
``(D) for the sixth year of the grant period, 50
percent of the grant amount.
``(3) Determination of amount contributed.--
``(A) In-kind contributions.--The Secretary shall
allow an eligible entity to meet the requirements of
this subsection through in-kind contributions.
``(B) Non-federal sources.--Not less than half of
each amount described in paragraph (2) shall be
provided by the eligible entity from non-Federal
sources.
``(e) Supplement, Not Supplant.--An eligible entity shall use a grant
received under this section only to supplement funds that would, in the
absence of such grant, be made available from other Federal, State, or
local sources for activities supported by the grant, not to supplant
such funds.
``(f) Priority.--In awarding grants under this section, the Secretary
shall give priority to eligible entities that--
``(1) propose to establish or support an early college high
school or other dual or concurrent enrollment program that will
serve a student population of which not less than 51 percent
are low-income students;
``(2) include a local educational agency which serves a high
school that is--
``(A) identified for comprehensive support and
improvement under section 1111(c)(4)(D)(i) of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 6311(c)(4)(D)(i)); or
``(B) implementing a targeted support and improvement
plan as described in section 1111(d)(2) of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 6311(d)(2));
``(3) are from States that provide assistance to early
college high schools or other dual enrollment programs, such as
assistance to defray the costs of higher education (including
costs of tuition, fees, and textbooks); and
``(4) propose to establish or support an early college high
school or dual or concurrent enrollment program that meets
quality standards established by--
``(A) a nationally recognized accrediting agency or
association that offers accreditation specifically for
such programs; or
``(B) a State process specifically for the review and
approval of such programs.
``(g) Equitable Distribution.--The Secretary shall ensure, to the
extent practicable, that eligible entities receiving grants under this
section--
``(1) are from a representative cross section of--
``(A) urban, suburban, and rural areas; and
``(B) regions of the United States; and
``(2) include both two-year and four-year institutions of
higher education.
``(h) Uses of Funds.--
``(1) Mandatory activities.--
``(A) In general.--An eligible entity shall use grant
funds received under this section--
``(i) to support the activities described in
its application under subsection (i);
``(ii) to create and maintain a coherent
system of supports for students, teachers,
principals, and faculty under the program,
including--
``(I) college and career readiness,
academic, and social support services
for students; and
``(II) professional development for
secondary school teachers, faculty, and
principals, and faculty from the
institution of higher education,
including--
``(aa) joint professional
development activities; and
``(bb) activities to assist
such teachers, faculty, and
principals in using effective
parent and community engagement
strategies and to help ensure
the success of students
academically at risk of not
enrolling in or completing
postsecondary education, first-
generation college students,
and students described in
section 1111(b)(2)(B)(xi) of
the Elementary and Secondary
Education Act of 1965 (20
U.S.C. 6311(b)(2)(B)(xi));
``(iii) to carry out liaison activities among
the partners that comprise the eligible entity
pursuant to an agreement or memorandum of
understanding documenting commitments,
resources, roles, and responsibilities of the
partners consistent with the design of the
program;
``(iv) for outreach programs to ensure that
secondary school students and their families,
including students academically at risk of not
enrolling in or completing postsecondary
education, first-generation college students,
and students described in section
1111(b)(2)(B)(xi) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
6311(b)(2)(B)(xi)), are--
``(I) aware of, and recruited into,
the early college high school or dual
or concurrent enrollment program; and
``(II) assisted with the process of
enrolling and succeeding in the early
college high school or dual or
concurrent enrollment program, which
may include providing academic support;
``(v) to collect, share, and use data (in
compliance with section 444 of the General
Education Provisions Act (20 U.S.C. 1232g)) for
program improvement and program evaluation; and
``(vi) to review and strengthen its program
to maximize the potential that students
participating in the program will eventually
complete a recognized postsecondary credential,
including by optimizing--
``(I) the curriculum of the program;
``(II) the use of high-quality
assessments of student learning, such
as performance-based, project-based, or
portfolio assessments that measure
higher-order thinking skills;
``(III) the sequence of courses
offered by the program; and
``(IV) the alignment of academic
calendars between the secondary schools
and the institution of higher education
participating in the program.
``(B) New programs.--In the case of an eligible
entity that uses a grant under this section to
establish an early college high school or dual or
concurrent enrollment program, the entity shall use
such funds during the first year of the grant period--
``(i) to design the curriculum and sequence
of courses in collaboration with, at a
minimum--
``(I) faculty from the institution of
higher education;
``(II) teachers and faculty from the
local educational agency; and
``(III) in the case of a career and
technical education program, employers
or workforce development entities to
ensure that the program is aligned with
labor market demand;
``(ii) to develop and implement an
articulation agreement between the institution
of higher education and the local educational
agency that governs how secondary and
postsecondary credits will be awarded under the
program; and
``(iii) to carry out the activities described
in subparagraph (A).
``(2) Allowable activities.--An eligible entity may use grant
funds received under this section to support the activities
described in its application under subsection (i), including
by--
``(A) purchasing textbooks and equipment that support
the program's curriculum;
``(B) pursuant to the assurance provided by the
eligible entity under subsection (i)(3)(A), paying
tuition and fees for postsecondary courses taken by
students under the program;
``(C) incorporating work-based learning opportunities
(other than by paying wages of students) into the
program (which may include partnering with entities
that provide such opportunities), including--
``(i) internships;
``(ii) career-based capstone projects;
``(iii) pre-apprenticeships and registered
apprenticeships provided by eligible providers
of apprenticeship programs described in section
122(a)(2)(B) of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3152(a)(2)(B)); and
``(iv) work-based learning opportunities
provided under chapters 1 and 2 of subpart 2 of
part A of title IV of the Higher Education Act
of 1965 (20 U.S.C. 1070a-11 et seq.);
``(D) providing students with transportation to and
from the program;
``(E) paying costs for--
``(i) high school teachers to obtain the
skills, credentials, or industry certifications
necessary to teach for the institution of
higher education participating in the program;
or
``(ii) postsecondary faculty to become
certified to teach high school; or
``(F) providing time during which secondary school
teachers and faculty and faculty from an institution of
higher education can collaborate, which may include
professional development, the planning of team
activities for such teachers and faculty and curricular
design and student assessment
``(i) Application.--
``(1) In general.--To be eligible to receive a grant under
this section, an eligible entity shall submit to the Secretary
an application at such time, in such manner, and containing
such information as the Secretary may require.
``(2) Contents of application.--The application under
paragraph (1) shall include, at minimum, a description of--
``(A) the partnership that comprises the eligible
entity, including documentation of partner commitments,
resources and budget, roles, and responsibilities;
``(B) how the partners that comprise the eligible
entity will coordinate to carry out the mandatory
activities described in subsection (h)(1);
``(C) the number of students intended to be served by
the program and demographic information relating to
such students;
``(D) how the eligible entity's curriculum and
sequence of courses form a program of study leading to
a recognized postsecondary credential;
``(E) how postsecondary credits earned will be
transferable to institutions of higher education within
the State, including any applicable statewide transfer
agreements and any provisions of such agreements that
are specific to dual or concurrent enrollment programs;
``(F) how the eligible entity will conduct outreach
to students;
``(G) how the eligible entity will determine the
eligibility of students for postsecondary courses,
including an explanation of the multiple factors the
entity will take into account to assess the readiness
of students for such courses; and
``(H) the sustainability plan for the early college
high school or other dual or concurrent enrollment
program.
``(3) Assurances.--The application under paragraph (1) shall
include assurances from the eligible entity that--
``(A) students participating in a program funded with
a grant under this section will not be required to pay
tuition or fees for postsecondary courses taken under
the program;
``(B) postsecondary credits earned by students under
the program will be transcribed upon completion of the
required course work; and
``(C) instructors of postsecondary courses under the
program will meet the same standards applicable to
other faculty at the institution of higher education
that is participating in the program.
``SEC. 419R. GRANTS TO STATES.
``(a) In General.--The Secretary shall award grants to States, on a
competitive basis, to assist States in supporting or establishing early
college high schools or dual or concurrent enrollment programs.
``(b) Duration.--Each grant under this section shall be awarded for a
period of 6 years.
``(c) Grant Amount.--The Secretary shall ensure that the amount of
each grant under this section is sufficient to enable each grantee to
carry out the activities described in subsection (f).
``(d) Matching Requirement.--For each year that a State receives a
grant under this section, the State shall provide, from non-Federal
sources, an amount equal to 50 percent of the amount of the grant
received by the State for such year to carry out the activities
supported by the grant.
``(e) Supplement, Not Supplant.--A State shall use a grant received
under this section only to supplement funds that would, in the absence
of such grant, be made available from other Federal, State, or local
sources for activities supported by the grant, not to supplant such
funds.
``(f) Uses of Funds.--
``(1) Mandatory activities.--A State shall use grant funds
received under this section to--
``(A) support the activities described in its
application under subsection (g);
``(B) plan and implement a statewide strategy for
expanding access to early college high schools and dual
or concurrent enrollment programs for students who are
underrepresented in higher education to raise statewide
rates of secondary school graduation, readiness for
postsecondary education, and completion of recognized
postsecondary credentials, with a focus on students
academically at risk of not enrolling in or completing
postsecondary education;
``(C) identify any obstacles to such a strategy under
State law or policy;
``(D) provide technical assistance (either directly
or through a knowledgeable intermediary) to early
college high schools and other dual or concurrent
enrollment programs, which may include--
``(i) brokering relationships and agreements
that forge a strong partnership between
elementary and secondary and postsecondary
partners; and
``(ii) offering statewide training,
professional development, and peer learning
opportunities for school leaders, instructors,
and counselors or advisors;
``(E) identify and implement policies that will
improve the effectiveness and ensure the quality of
early college high schools and dual or concurrent
enrollment programs, such as eligibility and access,
funding, data and quality assurance, governance,
accountability, and alignment policies;
``(F) update the State's requirements for a student
to receive a regular high school diploma to align with
the challenging State academic standards and entrance
requirements for credit-bearing coursework as described
in subparagraphs (A) and (D) of section 1111(b)(1) of
the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6311(b)(1));
``(G) incorporate indicators regarding student access
to and completion of early college high schools and
dual or concurrent enrollment programs into the school
quality and student success indicators included in the
State system of annual meaningful differentiation as
described under section 1111(c)(4)(B)(v)(I) of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 6311(c)(4)(B)(v)(I));
``(H) disseminate best practices for early college
high schools and dual or concurrent enrollment
programs, which may include best practices from
programs in the State or other States;
``(I) facilitate statewide secondary and
postsecondary data collection, research and evaluation,
and reporting to policymakers and other stakeholders;
and
``(J) conduct outreach programs to ensure that
secondary school students, their families, and
community members are aware of early college high
schools and dual or concurrent enrollment programs in
the State.
``(2) Allowable activities.--A State may use grant funds
received under this section to--
``(A) establish a mechanism to offset the costs of
tuition, fees, standardized testing and performance
assessment costs, and support services for low-income
students, and students from underrepresented
populations enrolled in early college and high schools
or dual or concurrent enrollment;
``(B) establish formal transfer systems within and
across State higher education systems, including two-
year and four-year public and private institutions, to
maximize the transferability of college courses;
``(C) provide incentives to school districts that--
``(i) assist high school teachers in getting
the credentials needed to participate in early
college high school programs and dual or
concurrent enrollment; and
``(ii) encourage the use of college
instructors to teach college courses in high
schools;
``(D) support initiatives to improve the quality of
early college high school and dual or concurrent
enrollment programs at participating institutions,
including by assisting such institutions in aligning
programs with the quality standards described in
section 419Q(f)(3);
``(E) support the development, implementation, and
strengthening of Advanced Placement and International
Baccalaureate programs especially at high schools with
low levels of participation by low-income students and
underrepresented students in such programs; and
``(F) reimburse low-income students to cover part or
all of the costs of an Advanced Placement or
International Baccalaureate examination.
``(g) State Applications.--
``(1) Application.--To be eligible to receive a grant under
this section, a State shall submit to the Secretary an
application at such time, in such manner, and containing such
information as the Secretary may require.
``(2) Contents of application.--The application under
paragraph (1) shall include, at minimum, a description of--
``(A) how the State will carry out the mandatory
State activities described in subsection (f)(1);
``(B) how the State will ensure that any programs
funded with a grant under this section are coordinated
with programs under--
``(i) the Carl D. Perkins Career and
Technical Education Act of 2006 (20 U.S.C. 2301
et seq.);
``(ii) the Workforce Innovation and
Opportunity Act (29 U.S.C. 3101 et seq.);
``(iii) the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6301 et seq.);
and
``(iv) the Individuals with Disabilities
Education Act (20 U.S.C. 1400 et seq.);
``(C) how the State intends to use grant funds to
address achievement gaps for each category of students
described in section 1111(b)(2)(B)(xi) of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 6311(b)(2)(B)(xi));
``(D) how the State will access and leverage
additional resources necessary to sustain early college
high schools or other dual or concurrent enrollment
programs;
``(E) how the State will identify and eliminate
barriers to implementing effective early college high
schools and dual or concurrent enrollment programs
after the grant expires, including by engaging
businesses and nonprofit organizations; and
``(F) such other information as the Secretary
determines to be appropriate.
``SEC. 419S. REPORTING AND OVERSIGHT.
``(a) In General.--Not less frequently than once annually, each State
and eligible entity that receives a grant under this subpart shall
submit to the Secretary a report on the progress of the State or
eligible entity in carrying out the programs supported by such grant.
``(b) Form of Report.--The report under subsection (a) shall be
submitted to the Secretary at such time, in such manner, and containing
such information as the Secretary may require. The Secretary shall
issue uniform guidelines describing the information that shall be
reported by grantees under such subsection.
``(c) Contents of Report.--
``(1) In general.--The report under subsection (a) shall
include, at minimum, the following:
``(A) The number of students enrolled in the early
college high school or dual or concurrent enrollment
program.
``(B) The number and percentage of students
reimbursed by the State for part or all of the costs of
an Advanced Placement or International Baccalaureate
examination and the student test scores.
``(C) The number and percentage of students enrolled
in the early college high school or dual or concurrent
enrollment program who earn a recognized postsecondary
credential concurrently with a high school diploma.
``(D) The number of postsecondary credits earned by
eligible students while enrolled in the early college
high school or dual or concurrent enrollment program
that may be applied toward a recognized postsecondary
credential.
``(E) The number and percentage of students who earn
a high school diploma.
``(F) The number and percentage of graduates who
enroll in postsecondary education.
``(2) Categories of students.--The information described in
each of subparagraphs (A) through (G) of paragraph (1) shall be
set forth separately for each category of students described in
section 1111(b)(2)(B)(xi) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6311(b)(2)(B)(xi)).
``SEC. 419T. NATIONAL ACTIVITIES.
``(a) Reporting by Secretary.--Not less frequently than once
annually, the Secretary shall submit to Congress a report that
includes--
``(1) an analysis of the information received from States and
eligible entities under section 419S;
``(2) an identification of best practices for carrying out
programs supported by grants under this subpart; and
``(3) the results of the evaluation under subsection (b).
``(b) National Evaluation.--Not later than 6 months after the date of
the enactment of the College Affordability Act, the Secretary shall
seek to enter into a contract with an independent entity to perform an
evaluation of the grants awarded under this subtitle. Such evaluation
shall apply rigorous procedures to obtain valid and reliable data
concerning student outcomes by social and academic characteristics and
monitor the progress of students from secondary school to and through
postsecondary education.
``(c) Technical Assistance.--The Secretary shall provide technical
assistance to States and eligible entities concerning best practices
and quality improvement programs in early college high schools and dual
or concurrent enrollment programs and shall disseminate such best
practices among eligible entities, States, and local educational
agencies.
``(d) Administrative Costs.--From amounts reserved to carry out this
section under section 419P(b)(3), the Secretary may reserve such sums
as may be necessary for the direct administrative costs of carrying out
the Secretary's responsibilities under this subtitle.
``SEC. 419U. RULES OF CONSTRUCTION.
``(a) Employees.--Nothing in this subpart shall be construed to alter
or otherwise affect the rights, remedies, and procedures afforded to
the employees of local educational agencies (including schools) or
institutions of higher education 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.
``(b) Graduation Rate.--A student who graduates from an early college
high school supported by a grant under section 419Q within 100 percent
of the normal time for completion described in the eligible entity's
application under such section shall be counted in the four-year
adjusted cohort graduation rate for such high school.''.
Subpart 7--TEACH Grants
SEC. 4081. REVISED DEFINITIONS OF TEACH GRANTS.
Section 420L of the Higher Education Act of 1965 (20 U.S.C. 1070g) is
amended by adding at the end the following:
``(4) Teacher preparation program.--The term `teacher
preparation program' means a State-approved course of study
provided by an institution of higher education, the completion
of which signifies that an enrollee has met all the State's
educational or training requirements for initial certification
or licensure to teach in the State's elementary schools or
secondary schools.''.
SEC. 4082. REVISIONS TO ESTABLISHING TEACH GRANT PROGRAM.
Section 420M of the Higher Education Act of 1965 (20 U.S.C. 1070g-1)
is amended--
(1) in subsection (a)(1)--
(A) by striking ``an application'' and inserting ``a
Free Application for Federal Student Aid authorized
under section 483(a)''; and
(B) by striking ``in the amount of'' and all that
follows through the period at the end and inserting the
following: ``except as provided in subsection (d)(4),
in the amount of--
``(A) $8,000, to be available to a teacher candidate
who is enrolled as an undergraduate junior at the
eligible institution;
``(B) $8,000, to be available to a teacher candidate
who is enrolled as an undergraduate senior at the
eligible institution; and
``(C) $4,000, to be available to a teacher candidate
who is enrolled in the first or second year of an
associate's degree program and intends to teach in an
early childhood education program.''; and
(2) in subsection (d)--
(A) in paragraph (1), by striking ``undergraduate''
each place it appears and inserting ``associate,
undergraduate,''; and
(B) by adding at the end the following:
``(4) Associate degree students.--
``(A) Maximum amount for associate degree study.--The
period during which an associate degree student
intending to teach in an early childhood education
program may receive grants under this subpart shall be
the period required for the completion of an
associate'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 an associate's degree course of study
shall not exceed $8,000.
``(B) Effect on further undergraduate or post-
baccalaureate study.--In the case of a teacher
candidate intending to teach in an early childhood
education program who receives a grant under this
subpart for an associate's degree course of study and
who seeks to receive a grant described in subparagraph
(A) or (B) of subsection (a)(1), the amount of such
grant shall be equal to--
``(i) one half of the amount that is equal to
$16,000, minus the amount the teacher candidate
received under this subpart for the associate's
degree course of study of such candidate, to be
available to a teacher candidate who is
enrolled as an undergraduate junior at the
eligible institution; and
``(ii) one half of the amount that is equal
to $16,000, minus the amount the teacher
candidate received under this subpart for the
associate's degree course of study of such
candidate, to be available to a teacher
candidate who is enrolled as an undergraduate
senior at the eligible institution.''.
SEC. 4083. REVISIONS TO TEACH GRANT AGREEMENTS TO SERVE AND
ELIGIBILITY.
Section 420N of the Higher Education Act of 1965 (20 U.S.C. 1070g-2)
is amended--
(1) in subsection (a)--
(A) in the heading of paragraph (2), by striking
``Demonstration of teach'' and insert ``Teach'';
(B) in paragraph (2)(A)(ii)(II), by striking
``batteries in an undergraduate, post-baccalaureate, or
graduate school admissions test'' and inserting
``assessments used for admission to an undergraduate,
post-baccalaureate, or graduate school program'';
(C) in paragraphs (2)(B)(i), by striking ``or another
high-need'' and inserting ``early childhood education,
or another high-need''; and
(D) in paragraph (2)(B)(ii), by striking ``, such as
Teach for America,'';
(2) in subsection (b)--
(A) in paragraph (1)--
(i) in subparagraph (B), by inserting before
the semicolon at the end the following: ``or in
a high-need early childhood education program
(as defined in section 200(15))'';
(ii) in subparagraph (C)--
(I) by striking ``or'' at the end of
clause (vi);
(II) by redesignating clause (vii) as
clause (viii);
(III) by inserting after clause (vi),
as so amended, the following:
``(vii) early childhood education; or''; and
(IV) in clause (viii), as so
redesignated, by adding ``and'' at the
end;
(iii) in subparagraph (D)--
(I) by inserting ``or early childhood
education program'' after ``school'';
and
(II) by striking ``and'' at the end;
and
(iv) by striking subparagraph (E);
(B) by striking ``and'' at the end of paragraph (2);
(C) by striking the period at the end of paragraph
(3) and inserting ``; and''; and
(D) by adding at the end the following:
``(4) the Secretary will--
``(A) notify, or ensure that the applicable loan
servicer will notify, the applicant of--
``(i) the date on which submission of the
certification under paragraph (1)(D) is
required; and
``(ii) any failure to submit such
certification; and
``(B) allow employers and borrowers to use electronic
signatures to certify such employment.'';
(3) in subsection (c)--
(A) by striking ``In the event'' and inserting the
following:
``(1) In general.--Subject to paragraph (2), in the event'';
and
(B) by adding at the end the following:
``(2) Clarification.--
``(A) Application.--Paragraph (1) may only apply with
respect to a recipient of a grant under this subpart
if--
``(i) after completing the course of study
for which the recipient received the grant,
such recipient does not serve as a full-time
teacher as required under subsection (b)(1) for
at least--
``(I) 1 year, as certified under
subsection (b)(1)(D) on a date that is
not later than 5 years after the date
such course of study was completed;
``(II) 2 years, as certified under
subsection (b)(1)(D) on a date that is
not later than 6 years after the date
such course of study was completed;
``(III) 3 years, as certified under
subsection (b)(1)(D) on a date that is
not later than 7 years after the date
such course of study was completed; or
``(IV) 4 years, as certified under
subsection (b)(1)(D) on a date that is
not later than 8 years after the date
such course of study was completed; or
``(ii) the recipient elects to have such
grant treated as a loan in accordance with such
paragraph (1).
``(B) Appeal.--A recipient of a grant may appeal a
decision to convert a loan under paragraph (1).''; and
(4) in subsection (d)--
(A) by redesignating paragraph (2) as paragraph (5);
(B) in paragraph (1), by striking ``subsection
(b)(1)(C)(vii)'' and inserting ``subsection
(b)(1)(C)(viii)''; and
(C) by inserting after paragraph (1), the following:
``(2) Change of school description or program definition.--If
a recipient of an initial grant under this subpart teaches in a
school or an early childhood education program for an academic
year during which the school is identified as a school
described in section 465(a)(2)(A) or a program that meets the
definition of section 200(15), but the school or program no
longer meets such description or definition during a subsequent
academic year, the grant recipient may fulfill the service
obligation described in subsection (b)(1) by continuing to
teach at that school or program.
``(3) Change of teacher duties or assignment.--If a recipient
of an initial grant under this subpart teaches as a full-time
teacher described in subsection (b)(1)(A), but the recipient no
longer meets such description during a subsequent academic year
due to switching academic roles to that of a full-time co-
teacher, teacher leader, instructional or academic coach,
department chairperson, special education case manager,
guidance counselor, or school administrator within a school or
program, the grant recipient may fulfill the service obligation
described in subsection (b)(1) by continuing to work in any
such academic role on a full-time basis at that school or
program.
``(4) Change in high-need field status.--If a recipient of an
initial grant under this subpart teaches in a field at a school
or an early childhood education program for an academic year
during which the field is designated under subsection
(b)(1)(C)(viii), but the field no longer is so designated
during a subsequent academic year, the grant recipient may
fulfill the service obligation described in subsection (b)(1)
by continuing to teach in such field at such school or early
childhood education program.''.
SEC. 4084. REVISIONS TO TEACH GRANT DATA COLLECTION AND REPORTING.
Section 420P of the Higher Education Act of 1965 (20 U.S.C. 1070g-4)
is amended to read as follows:
``SEC. 420P. DATA COLLECTION AND REPORTING.
``(a) Data Collection.--
``(1) Aggregate student data.--On an annual basis, using the
postsecondary student data system established under section
132(l) or a successor system (whichever includes the most
recent data) to streamline reporting requirements and minimize
reporting burdens, and in coordination with the National Center
for Education Statistics, the Secretary shall determine,
disaggregate in accordance with paragraph (2), and make
available to the public in accordance with paragraph (3), with
respect to each institution (and each category of institution
listed in section 132(d)) that received a payment under this
subpart in the previous academic year, the following
information:
``(A) The number and mean dollar amount of TEACH
Grants awarded to students at the institution.
``(B) The number and proportion of TEACH Grant
recipients who exit their program of study before
completing the program.
``(C) The number and proportion of TEACH Grant
recipients who complete their program of study and
begin employment as a teacher in the first academic
year following the year of such completion.
``(D) The number and proportion of individuals
employed as teachers who received a TEACH Grant and
whose TEACH Grants are converted into loans during the
8-year period following the year in which the recipient
completed the recipient's program of study, set forth
separately for each year in such period.
``(E) The number and proportion of TEACH Grant
recipients who fulfill the terms of their agreement to
serve under section 420N(b) during the 8-year period
following the year in which the recipient completed the
recipient's program of study, set forth separately for
each year in such period.
``(2) Disaggregation.--The information determined under
paragraph (1)--
``(A) except in cases in which such disaggregation
would reveal personally identifiable information about
an individual student, shall be disaggregated by--
``(i) race;
``(ii) ethnicity;
``(iii) gender;
``(iv) socioeconomic status;
``(v) Federal Pell Grant eligibility status;
``(vi) status as a first-generation college
student (as defined in section 402A(h));
``(vii) military or veteran status;
``(viii) disability status;
``(ix) level of study (associate,
undergraduate, postbaccalaureate, or graduate,
as applicable); and
``(x) each teacher preparation program
offered by an institution; and
``(B) may be disaggregated by any combination of
subgroups or descriptions described in subparagraph
(A).
``(3) Availability of data.--The information determined under
paragraph (1) shall--
``(A) remain available to the public for a period of
not less than 10 years after its initial release by the
Secretary; and
``(B) be updated as necessary to reflect the most
accurate and up-to-date information for each
institution for each year of data collection.
``(b) Information From Institutions.--Each institution that receives
a payment under this subpart shall provide to the Secretary, on an
annual basis, such information as may be necessary for the Secretary to
carry out subsection (a).
``(c) Reports and Dissemination.--
``(1) Initial and interim reports.--Not later than 3 years
after the date on which the first TEACH Grant is awarded under
this subpart after the date of enactment of the College
Affordability Act, and at least once every 3 years thereafter,
the Secretary shall submit to the authorizing committees a
report that includes the information required under paragraph
(2).
``(2) Elements.--Each report under this subsection shall
include, based on information determined under subsection (a),
the following:
``(A) A review of the utilization of TEACH Grants at
teacher preparation programs at institutions that
received a payment under this subpart.
``(B) A review of TEACH Grant practices that
correlate with higher rates of completion of agreements
under section 420N(b).
``(C) Guidance and recommendations on how effective
utilization of TEACH Grants can be replicated.
``(3) Availability.--Each report under this subsection shall
be made available to the public in an accessible format--
``(A) on a website of the Department of Education;
and
``(B) in any other format determined to be
appropriate by the Secretary.''.
Subpart 8--Northern Mariana Islands and American Samoa College Access
SEC. 4091. NORTHERN MARIANA ISLANDS AND AMERICAN SAMOA COLLEGE ACCESS.
Subpart 10 of part A of title IV (20 U.S.C. 1070(h)) is amended to
read as follows:
``Subpart 10--Northern Mariana Islands and American Samoa College
Access
``SEC. 420R. PUBLIC SCHOOL GRANTS.
``(a) Purpose.--It is the purpose of this subpart to establish a
program that enables college-bound residents of the Northern Mariana
Islands and American Samoa to have greater choices among institutions
of higher education.
``(b) Grants.--
``(1) In general.--From amounts appropriated under subsection
(j), the Secretary shall provide--
``(A) 50 percent of such amount to the Northern
Mariana Islands for the Governor to award grants to
eligible institutions that enroll eligible students to
pay the difference between the tuition and fees charged
for in-State students and the tuition and fees charged
for out-of-State students on behalf of each eligible
student enrolled in the eligible institution; and
``(B) 50 percent of such amount to the American Samoa
for the Governor to award grants to eligible
institutions that enroll eligible students to pay the
difference between the tuition and fees charged for in-
State students and the tuition and fees charged for
out-of-State students on behalf of each eligible
student enrolled in the eligible institution.
``(2) Maximum student amounts.--The amount paid on behalf of
an eligible student under this section shall be--
``(A) not more than $15,000 for any one award year
(as defined in section 481); and
``(B) not more than $45,000 in the aggregate.
``(3) Proration.--The Governor shall prorate payments under
this section for students who attend an eligible institution on
less than a full-time basis.
``(c) Reduction for Insufficient Appropriations.--
``(1) In general.--If the funds appropriated pursuant to
subsection (j) for any fiscal year are insufficient to award a
grant in the amount determined under subsection (a) on behalf
of each eligible student enrolled in an eligible institution,
then the Governor, in consultation with the Secretary of
Education, shall--
``(A) first, ratably reduce the amount of the tuition
and fee payment made on behalf of each eligible student
who has not received funds under this section for a
preceding year; and
``(B) after making reductions under subparagraph (A),
ratably reduce the amount of the tuition and fee
payments made on behalf of all other eligible students.
``(2) Adjustments.--The Governor, in consultation with the
Secretary of Education, may adjust the amount of tuition and
fee payments made under paragraph (1) based on--
``(A) the financial need of the eligible students to
avoid undue hardship to the eligible students; or
``(B) undue administrative burdens on the Governor.
``(3) Further adjustments.--Notwithstanding paragraphs (1)
and (2), the Governor may prioritize the making or amount of
tuition and fee payments under this subsection based on the
income and financial need of eligible students.
``(d) Definitions.--In this subpart:
``(1) Eligible institution.--The term `eligible institution'
means an institution that--
``(A) is a public four-year institution of higher
education located in one of the several States, the
District of Columbia, Puerto Rico, the United States
Virgin Islands, or Guam;
``(B) is eligible to participate in the student
financial assistance programs under title IV; and
``(C) enters into an agreement with the Governors of
the Northern Mariana Islands and American Samoa
containing such conditions as each Governor may
specify, including a requirement that the institution
use the funds made available under this section to
supplement and not supplant assistance that otherwise
would be provided to eligible students from the
Northern Mariana Islands and American Samoa.
``(2) Eligible student.--The term `eligible student' means an
individual who--
``(A) graduated from a public institution of higher
education located in the Northern Mariana Islands or
American Samoa;
``(B) begins the individual's course of study within
the 3 calendar years (excluding any period of service
on active duty in the Armed Forces or service under the
Peace Corps Act (22 U.S.C. 2501 et seq.) or subtitle D
of title I of the National and Community Service Act of
1990 (42 U.S.C. 12571 et seq.)) of graduation from a
public institution of higher education located in the
Northern Mariana Islands or American Samoa;
``(C) is enrolled or accepted for enrollment, on at
least a half-time basis, in a baccalaureate degree or
other program (including a program of study abroad
approved for credit by the institution at which such
student is enrolled) leading to a recognized
educational credential at an eligible institution;
``(D) if enrolled in an eligible institution, is
maintaining satisfactory progress in the course of
study the student is pursuing in accordance with
section 484(c); and
``(E) has not completed the individual's first
undergraduate baccalaureate course of study.
``(3) Institution of higher education.--The term `institution
of higher education' has the meaning given the term in section
101.
``(4) Governor.--The term `Governor' means the Governor of
the Commonwealth of the Northern Mariana Islands or American
Samoa.
``(e) Construction.--Nothing in this subpart shall be construed to
require an institution of higher education to alter the institution's
admissions policies or standards in any manner to enable an eligible
student to enroll in the institution.
``(f) Applications.--Each student desiring a tuition payment under
this section shall submit an application to the eligible institution at
such time, in such manner, and accompanied by such information as the
eligible institution may require.
``(g) Administration of Program.--
``(1) In general.--Each Governor shall carry out the program
under this section in consultation with the Secretary. Each
Governor may enter into a grant, contract, or cooperative
agreement with another public or private entity to administer
the program under this section if the Governor determines that
doing so is a more efficient way of carrying out the program.
``(2) Policies and procedures.--Each Governor, in
consultation with institutions of higher education eligible for
participation in the program authorized under this section,
shall develop policies and procedures for the administration of
the program.
``(3) Memorandum of agreement.--Each Governor and the
Secretary shall enter into a Memorandum of Agreement that
describes--
``(A) the manner in which the Governor shall consult
with the Secretary with respect to administering the
program under this section; and
``(B) any technical or other assistance to be
provided to the Governor by the Secretary for purposes
of administering the program under this section (which
may include access to the information in the common
financial reporting form developed under section 483).
``(h) Governor's Report.--Each Governor shall report to the Secretary
and the authorizing committees annually regarding--
``(1) the number of eligible students attending each eligible
institution and the amount of the grant awards paid to those
institutions on behalf of the eligible students;
``(2) the extent, if any, to which a ratable reduction was
made in the amount of tuition and fee payments made on behalf
of eligible students; and
``(3) the progress in obtaining recognized academic
credentials of the cohort of eligible students for each year.
``(i) GAO Report.--Not later than 24 months of the date of the
enactment of this College Affordability Act, the Comptroller General of
the United States shall report on the effect of the program assisted
under this section on educational opportunities for eligible students.
The Comptroller General shall analyze whether eligible students had
difficulty gaining admission to eligible institutions because of any
preference afforded to in-State residents by eligible institutions, and
shall expeditiously report any findings regarding such difficulty to
Congress. In addition the Comptroller General shall--
``(1) analyze and identify any challenges eligible students
face in gaining admission to eligible institutions, including
admission aided by assistance provided under this subpart, due
to--
``(A) caps on the number of out-of-State students the
institution will enroll;
``(B) significant barriers imposed by academic
entrance requirements (such as grade point average and
standardized scholastic admissions tests); and
``(C) absence of admission programs benefitting
minority students; and
``(2) report the findings of the analysis described in
paragraph (1) and the assessment described in paragraph (2) to
Congress and the Governor.
``(j) Authorization of Appropriations.--There are authorized to be
appropriated to the Commonwealth of the Northern Mariana Islands and
American Samoa to carry out this subpart $5,000,000, to be available
until expended, for fiscal year 2021 and each of the 5 succeeding
fiscal years.
``(k) Effective Date.--This subpart shall take effect with respect to
payments for periods of instruction that begin on or after January 1,
2021.
``SEC. 420S. GENERAL REQUIREMENTS.
``(a) Personnel.--The Secretary shall arrange for the assignment of
an individual, pursuant to subchapter VI of chapter 33 of title 5,
United States Code, to serve as an adviser to each Governor with
respect to the programs assisted under this subpart.
``(b) Administrative Expenses.--Each Governor may use not more than 5
percent of the funds made available for a program under section 420R
for a fiscal year to pay the administrative expenses of a program under
section 420R for the fiscal year.
``(c) Inspector General Review.--Each of the programs assisted under
this subpart shall be subject to audit and other review by the
Inspector General of the Department of Education in the same manner as
programs are audited and reviewed under the Inspector General Act of
1978 (5 U.S.C. App.).
``(d) Gifts.--The Governor may accept, use, and dispose of donations
of services or property for purposes of carrying out this subpart.
``(e) Maximum Student Amount Adjustments.--Each Governor shall
establish rules to adjust the maximum student amounts described in
section 440S(b)(2) for eligible students described in section
440S(d)(2) who transfer between the eligible institutions described in
section 440S(d)(1).''.
Subpart 9--Student Success
SEC. 4092. COMMUNITY COLLEGE STUDENT SUCCESS GRANT PROGRAM AUTHORIZED.
Part A of title IV (20 U.S.C. 1070 et seq.) is further amended by
adding at the end the following:
``Subpart 11--Community College Student Success
``SEC. 420T. COMMUNITY COLLEGE STUDENT SUCCESS GRANT PROGRAM
AUTHORIZED.
``From the amounts appropriated under 420BB, the Secretary of
Education shall establish and carry out the community college student
success grant program to award grants under sections 420U and 420V, on
a competitive basis, to eligible institutions to plan and implement
community college student success programs designed to increase--
``(1) the rate at which program participants graduate from a
program of study at such eligible institution within 150
percent of the normal time for graduation; and
``(2) transfer rates of program participants.
``SEC. 420U. GRANTS TO PLAN COMMUNITY COLLEGE STUDENT SUCCESS PROGRAMS.
``(a) Planning Grants Authorized.--From the amounts appropriated to
carry out this section under section 420BB for a fiscal year, the
Secretary shall award planning grants for such fiscal year, on a
competitive basis, to eligible institutions to develop plans for
community college student success programs.
``(b) Duration.--A grant awarded under this section shall be for a 1-
year period.
``(c) Peer Review Process; Priority.--In awarding grants under this
section for a fiscal year, the Secretary shall--
``(1) carry out a peer review process that--
``(A) requires that each application submitted under
subsection (d) be peer reviewed by a panel of readers
composed of individuals selected by the Secretary,
which shall include--
``(i) not less than 50 percent of readers--
``(I) who are not employees of the
Federal Government; and
``(II) who have relevant research or
practical experience with respect to
student support programs designed to
increase graduation rates and transfer
rates at public 2-year institutions of
higher education; and
``(ii) to the maximum extent practicable,
individuals who are members of groups
underrepresented in higher education, including
African Americans, Hispanics, Native Americans,
Alaska Natives, Asian Americans, Native
American Pacific Islanders (including Native
Hawaiians), and individuals with disabilities;
and
``(B) ensures that no individual assigned under
subparagraph (A) to review an application has any
conflict of interest with regard to that application
that may make the individual unable to impartially
conduct such review; and
``(2) give priority to eligible institutions that are
eligible to receive funding under title III or V.
``(d) Application.--An eligible institution 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, which shall include--
``(1) the graduation rate and transfer rate for the most
recent academic year for which data are available for eligible
students and all students, respectively;
``(2) an analysis of how implementing a community college
student success program may improve the graduation rate or
transfer rate for eligible students; and
``(3) a description of the methods the eligible institution
has previously used to improve the graduation rate or transfer
rate with respect to eligible students and all students,
respectively.
``(e) Use of Funds.--An eligible institution that receives a grant
under this section shall use the grant to develop a plan to implement a
community college student success program at the eligible institution.
``(f) Report.--Not later than 1 year after the date on which an
eligible institution receives a grant under this section, such eligible
institution shall submit to the Secretary a report that includes--
``(1) a plan for implementing a community college student
success program at the eligible institution, including--
``(A) the sufficiently ambitious outcome goals for
achieving significant improvements in graduation rates
and transfer rates for program participants, as such
rates are defined by the eligible institution, in
consultation with the Secretary, before the end of the
grant period;
``(B) the number of such eligible students who will
participate in such program, including how such
eligible students will be identified, referred, and
selected, in cases where the interest in the program is
larger than the budget for the program;
``(C) based on the most recent academic year for
which data are available, disaggregated by full-time
students and all students--
``(i) graduation rates; and
``(ii) transfer rates;
``(D) an analysis of the financial needs of the full-
time students;
``(E) a description of how the eligible institution
will effectively staff a community college student
success program; and
``(F) a timeline for the implementation of such
program;
``(2) a budgetary analysis that includes--
``(A) a description of how the eligible institution
will provide non-Federal funds for such program under
subsection (d) of section 420V; and
``(B) a description of how the eligible institution
will continue to fund such program after the end of the
grant period for the grant awarded to the institution
under section 420V; and
``(3) such other information as the Secretary may require.
``SEC. 420V. GRANTS TO IMPLEMENT COMMUNITY COLLEGE STUDENT SUCCESS
PROGRAMS.
``(a) Implementation Grants Authorized.--
``(1) In general.--From the amounts appropriated to carry out
this section under section 420BB for a fiscal year, the
Secretary shall award grants for such fiscal year, on a
competitive basis, to eligible institutions awarded a grant
under section 420U to implement community college student
success programs.
``(2) Consultation.--In awarding grants under this section
for a fiscal year, the Secretary shall consult with the
independent evaluator before finalizing which eligible
institutions will receive such a grant for such fiscal year.
``(b) Requirements for Selection.--To be eligible to receive a grant
under this section, an eligible institution shall meet the following
requirements:
``(1) The eligible institution was awarded a grant under
section 420U at least 1 year before such eligible institution
submits an application under subsection (e).
``(2) The eligible institution submits an application under
subsection (e).
``(3) The eligible institution demonstrates, on the date of
the application described in subsection (e), the availability
of non-Federal funding for the matching funds required under
subparagraphs (A), (B), and (C) of subsection (d)(1).
``(c) Duration.--A grant awarded under this section shall be for a 5-
year period.
``(d) Non-Federal Contribution.--
``(1) In general.--Except as provided in paragraph (2), an
eligible institution awarded a grant under this section shall
contribute in cash from non-Federal sources, the following:
``(A) For the second year of the grant period, an
amount equal to 20 percent of the cost of carrying out
the community college student success program at the
institution for such year.
``(B) For the third year of the grant period, an
amount equal to 30 percent of the cost of carrying out
such program for such year.
``(C) For the fourth year of the grant period, an
amount equal to 40 percent of the cost of carrying out
such program for such year.
``(D) For the fifth year of the grant period, an
amount equal to 50 percent of the cost of carrying out
such program for such year.
``(2) Exception.--
``(A) In general.--Notwithstanding paragraph (1),
with respect to an exempt institution awarded a grant
under this section, for each year of the grant period
beginning with the second year through the fifth year,
the Secretary shall not require the institution to make
a cash contribution from non-Federal sources in an
amount that is greater than the amount equal to 5
percent of the cost of carrying out the community
college student success program at the institution for
such year.
``(B) Definitions.--For purposes of this paragraph:
``(i) Exempt institution.--The term `exempt
institution' means an eligible institution that
is a--
``(I) Tribal college or university;
or
``(II) an institution located in the
Commonwealth of Puerto Rico, Guam,
American Samoa, the United States
Virgin Islands, the Commonwealth of the
Northern Mariana Islands, the Republic
of the Marshall Islands, the Federated
States of Micronesia, or the Republic
of Palau.
``(ii) Tribal college or university.--The
term `Tribal college or university' has the
meaning given the term in section 316 of the
Higher Education Act of 1965 (20 U.S.C. 1059c).
``(e) Application.--An eligible institution 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, which shall include a copy of the report described in 420U(e).
``(f) Required Use of Funds.--An eligible institution that receives a
grant under this section shall use the grant funds to--
``(1) implement a community college student success program;
and
``(2) regularly review--
``(A) data to monitor the academic progress of
eligible students participating in such program; and
``(B) the meeting and program participation
requirements described in section 420AA(1).
``(g) Permissible Use of Funds.--An eligible institution that
receives a grant under this section may use the grant to--
``(1) establish or expand a data tracking system that
includes early alerts to complete the regular reviews required
under subsection (f)(2);
``(2) provide eligible students participating in the
community college student success program for which the grant
is awarded with financial assistance to cover the costs
described in paragraph (2), (3), or (8) of section 472;
``(3) establish or expand career development services for
such students, such as career workshops or career counseling;
``(4) establish or expand tutoring services for such
students;
``(5) cover the employment of administrators for the program
whose sole job shall be to administer the program, without
regard to whether the employment is full-time or less than
full-time; and
``(6) provide financial support for eligible students
participating in such program to enroll in courses offered
during enrollment periods that are outside the fall and spring
semesters (or equivalent terms).
``(h) Reports.--Using the postsecondary student data system
established under section 132(l) or a successor system (whichever
includes the most recent data) to streamline reporting requirements and
minimize reporting burdens, and in coordination with the National
Center for Education Statistics, the Secretary shall, on at least an
annual basis, collect data with respect to each community college
student success program, including the following:
``(1) Each eligible institution that receives a grant under
this subpart shall, on an annual basis, provide to the
Secretary such information as may be necessary for the
Secretary to collect such data, including--
``(A) the demographic characteristics of the students
participating in the community college student success
program;
``(B) the average number of credits attempted and
average number of credits earned, rate of retention,
rate of degree completion, and rates of transfer of
such eligible students; and
``(C) the graduation rate of such eligible students.
``(2) Each such eligible institution shall, not less than
once for each year of the grant period, submit to the Secretary
an annual performance report for such year of the grant period
that includes--
``(A) an analysis of the implementation and progress
of such program based on the sufficiently ambitious
outcome goals described in the report submitted by the
institution under section 420U(e)(1)(A), including
challenges to and changes made to such program;
``(B) if according to the analysis under subparagraph
(A), the program is not on track to meet such
sufficiently ambitious outcome goals, a description of
the plans to adjust the program to improve the
performance of the program;
``(C) the participation of such eligible students in
tutoring, career services (which can include benefit
counseling), and meetings with program advisors; and
``(D) when data is available, which shall compare the
data collected for such year under this paragraph with
such data collected for each of the 2 years preceding
the date on which the grant was awarded.
``(3) Not later than 6 years after the date on which the
eligible institution received such grant, submit a final report
to the Secretary that includes an analysis of--
``(A) the factors that contributed to the success or
failure of the community college student success
program in meeting the ambitious outcome goals
described in the report submitted by the institution
under section 3(e)(1)(A);
``(B) the challenges faced in attempting to implement
such program;
``(C) information on how to improve such program;
``(D) whether the program has created an institution-
wide reform with respect to graduation rates and
transfer rates for all students, and if so, how such
reform was created; and
``(E) how the eligible institution will continue to
fund such program after the end of the grant period.
``SEC. 420W. EVALUATIONS.
``(a) Independent Evaluations.--Before finalizing which eligible
institutions will receive grants under section 420V for a fiscal year,
the Secretary, acting through the Director of the Institute of
Education Sciences, shall enter into a contract with an independent
evaluator--
``(1) to consult with the Secretary on which eligible
institutions should receive the grants; and
``(2) to use the What Works Clearinghouse Standards (without
reservations) to evaluate, throughout the duration of the grant
period of such grants--
``(A) each community college student success program
for which such grant is awarded, including whether the
program met its ambitious outcome goals described in
the report submitted by the institution under section
420U(e)(1)(A);
``(B) the average impact of community college student
success programs on graduation rates and transfer rates
for eligible students;
``(C) the variation in program impact across eligible
institutions with respect to such rates; and
``(D) whether such programs lead to higher graduation
rates and transfer rates of eligible students per
dollar spent for such students by such institutions
compared with such rates at eligible institutions
without such programs.
``(b) Results of Evaluations.--The results of the evaluations under
subsection (a) shall be made publicly available on the website of the
Department of Education.
``(c) Funding for Evaluations.--The Secretary may reserve not more
than 15 percent of the funds appropriated under section 420BB for a
fiscal year to carry out this section for such fiscal year.
``SEC. 420X. OUTREACH AND TECHNICAL ASSISTANCE.
``(a) Outreach.--The Secretary shall conduct outreach activities to
notify eligible institutions of the availability of grants under this
subpart.
``(b) Technical Assistance.--The Secretary shall provide technical
assistance--
``(1) to eligible institutions that may be interested in
applying for grants under this subpart, including assistance
with applications for such grants; and
``(2) to eligible institutions awarded grants under this
subpart, including assistance with--
``(A) establishing ambitious outcome goals described
in section 420U(e)(1)(A); and
``(B) the implementation of a community college
student success program.
``(c) Funding for Technical Assistance for Evaluations.--The
Secretary may reserve not more than 7 percent of the funds appropriated
under section 420BB for a fiscal year for technical assistance under
this section for such fiscal year.
``SEC. 420Y. REPORT TO CONGRESS.
``Not later than 1 year after the date on which the Secretary
receives the final evaluation results under section 420W for eligible
institutions that were awarded grants under section 420V for the same
fiscal year, the Secretary shall submit to Congress a report that
includes--
``(1) the number of grants awarded under section 420V for
such fiscal year, and the amount of such grants;
``(2) the number of grants awarded under section 420U to
eligible institutions that received the grants described in
paragraph (1), and the amount of such grants;
``(3) the number of grants awarded under section 420U to
eligible institutions that would have been eligible but did not
receive the grants in paragraph (1);
``(4) such final evaluation results; and
``(5) any other information the Secretary may deem relevant.
``SEC. 420Z. SUPPLEMENT, NOT SUPPLANT.
``Funds awarded to an eligible institution under this subpart shall
be used only to supplement the amount of funds that would, in the
absence of the Federal funds provided under this subpart, be made
available from non-Federal sources or other Federal sources to carry
out the activities under this subpart, and not to supplant such funds.
``SEC. 420AA. DEFINITIONS.
``In this subpart:
``(1) Community college student success program.--The term
`community college student success program' means a program
carried out by an eligible institution under which the
institution carries out the following:
``(A) Provides eligible students participating in
such program with an amount that covers the cost of
tuition and fees that are not covered by any Federal,
State, or institutional financial assistance received
by the student.
``(B) Requires eligible students participating in
such program to--
``(i) be enrolled in the eligible institution
and carry a full-time academic workload during
each fall and spring semester (or equivalent
terms) during which the student participates in
such program;
``(ii) if the eligible student is referred to
remedial courses or is on academic probation,
meet, on at least a weekly basis or under an
alternate schedule, as determined by the
institution, with a tutor, except that in the
case of an eligible student who is academically
struggling, but who is not referred to remedial
courses or on academic probation, the student
may meet with a tutor as often as the program
advisor for such student requires or under an
alternate schedule, as determined by the
institution;
``(iii) meet with a program advisor--
``(I) twice each month during the
first semester (or equivalent term) of
participation in such program; and
``(II) as directed by the program
advisor in subsequent semesters (or
equivalent terms) under subparagraph
(C)(ii); and
``(iv) meet with an on-campus career advisor
or participate in a career services event once
each semester (or equivalent term) or under an
alternate schedule, as determined by the
institution.
``(C) Provides a program advisor to each eligible
student participating in such program who--
``(i) provides comprehensive academic and
personal advising to the eligible student,
including--
``(I) the creation and implementation
of an academic plan for the student to
graduate from a program of study at the
eligible institution within 150 percent
of the normal time for graduation from
such program;
``(II) if an eligible student is
referred to remedial courses,
encouraging such student to complete
such courses as quickly as possible;
and
``(III) assisting the eligible
student with developing and achieving
academic goals, including creating
strong transfer pathways that
demonstrate programmatic transfer for
students interested in transferring to
a 4-year institution of higher
education;
``(ii) after the eligible student
participating in such program completes a
semester (or equivalent term), creates for the
eligible student a needs-based advising
schedule that indicates, based on the eligible
student's academic performance, the frequency
with which such eligible student shall be
required to meet with a program advisor for
each subsequent semester (or equivalent term)
of program participation;
``(iii) has a caseload of not more than 150
eligible students;
``(iv) tracks the attendance of the eligible
student at the meetings described in clauses
(ii), (iii), and (iv) of subparagraph (B);
``(v) monitors the academic progress of the
eligible student; and
``(vi) provides each eligible student who
meets the requirements of subparagraph (B), on
at least a monthly basis, with financial
incentives, such as a transportation pass or a
gas card.
``(D) Provides free tutoring and career services
(which can include benefit counseling) to eligible
students participating in such program, and may reserve
places in select courses for such eligible students in
order to create a community within cohorts of eligible
students.
``(E) Provides information to eligible students
participating in such program about the eligibility of
such students for assistance under the supplemental
nutrition assistance program under the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) and 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.).
``(2) Eligible institution.--The term `eligible institution'
means a public 2-year institution of higher education.
``(3) Eligible student.--The term `eligible student' means a
student enrolled at an eligible institution who--
``(A) on the date such eligible student would begin
participation in a community college student success
program at such eligible institution--
``(i) is enrolled in a program of study
leading to an associate degree;
``(ii) is enrolled at such institution and
carrying a full-time academic workload during
each fall and spring semester (or equivalent
terms) during which the student participates in
such program;
``(iii) is--
``(I) a first-time undergraduate
student; or
``(II) a continuing or transfer
student with not more than 15 credits
and a minimum grade point average of
2.0 (or its equivalent); and
``(iv) is considered by the eligible
institution to need no more than two remedial
courses; and
``(B) if the student is eligible for financial aid
under title IV, has completed the Free Application for
Federal Student Aid or other common financial reporting
form under section 483(a); and
``(C) meets any other requirements established by the
institution.
``(4) Full-time academic workload.--The term `full-time
academic workload', when used with respect to a semester or
equivalent term, means at least 12 credits (or the equivalent).
``(5) Institution of higher education.--The term `institution
of higher education' has the meaning given the term under
section 101.
``(6) Transfer rate.--The term `transfer rate', when used
with respect to students enrolled in a program of study at an
eligible institution, means the rate at which such students
transfer to a 4-year institution of higher education.
``SEC. 420BB. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this subpart
$1,000,000,000, to be available until expended for fiscal year 2021 and
each of the 5 succeeding fiscal years.''.
SEC. 4093. FEDERAL PELL BONUS PROGRAM.
Part A of title IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.) is amended by adding at the end the following:
``Subpart 12--Federal Pell Grant Bonus Program
``SEC. 420CC. FEDERAL PELL GRANT BONUS PROGRAM.
``(a) In General.--The Secretary shall allot funds in an amount
determined under subsection (b) to each eligible institution to support
the attainment of bachelor's degrees among low-income students, which
may include providing financial aid and student support services to
such students.
``(b) Allotment Formula.--For each fiscal year, each eligible
institution shall be allotted an amount under subsection (a) that bears
the same proportion to the amount appropriated under subsection (c) for
such fiscal year as the number of bachelor's degrees awarded by the
institution for the award year ending prior to the beginning of the
preceding fiscal year to students who, during such award year, received
a Federal Pell Grant and graduated from the program in which such
students were enrolled in the normal time for completion of such
program (within the meaning of section 132(i)(1)(J)(i)) bears to the
total number of bachelor's degrees awarded to such students by all
eligible institutions for such award year.
``(c) Data.--In determining the allotments under subsection (b), the
Secretary may request from eligible institutions any data that may be
necessary.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated, and there are appropriated, to carry out this section
$500,000,000 for fiscal year 2021 and each succeeding fiscal year. Any
amounts appropriated under this subsection shall be available until
expended.
``(e) Definitions.--In this section:
``(1) Eligible institution.--The term `eligible institution'
means an institution of higher education (as defined in section
101)--
``(A) in which, for the 3 most recent award years,
the average percentage of undergraduate students
enrolled at the institution who received Federal Pell
Grants is not less than 25 percent of the total number
of undergraduate students enrolled at such institution;
and
``(B) that has not opted out of receiving an
allotment under this section.
``(2) Low-income student.--The term `low-income student' has
the meaning given such term in section 499R(3).''.
PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM
SEC. 4101. TERMINATION OF CERTAIN REPAYMENT PLAN OPTIONS AND
OPPORTUNITY TO CHANGE REPAYMENT PLANS.
(a) Selection of Repayment Plans.--Section 428(b) of the Higher
Education Act of 1965 (20 U.S.C. 1078(b)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (D)--
(i) in clause (ii), by striking ``may
annually change the selection of a repayment
plan under this part,'' and inserting ``may at
any time after July 1, 2021, change the
selection of a repayment plan under this part
to one of the 2 repayment plans described in
paragraph (9)(C),''; and
(ii) in clause (iii), by striking ``be
subject to income contingent repayment in
accordance with subsection (m);'' and inserting
``be subject to income-based repayment in
accordance with section 493C(f);''; and
(B) in subparagraph (E)(i), by striking ``the option
of repaying the loan in accordance with a standard,
graduated, income-sensitive, or extended repayment
schedule (as described in paragraph (9)) established by
the lender in accordance with regulations of the
Secretary; and'' and inserting ``the option of repaying
the loan in accordance with a repayment plan described
in paragraph (9)(C) established by the lender in
accordance with regulations of the Secretary; and'';
and
(2) in paragraph (9), by adding at the end the following:
``(C) Selection of repayment plans on and after july
1, 2021.--Notwithstanding any other provision of this
paragraph, or any other provision of law, and in
accordance with regulations, beginning on July 1, 2021,
the lender shall offer a borrower of a loan made,
insured, or guaranteed under this part the opportunity
to change repayment plans, and to enroll in one of the
following repayment plans:
``(i) A fixed repayment plan described in
section 493E.
``(ii) The income-based repayment plan under
section 493C(f).''.
(b) Assignment by the Secretary.--Section 428(m) of the Higher
Education Act of 1965 (20 U.S.C. 1078(m)) is amended--
(1) in the subsection heading, by striking ``Income
Contingent and'';
(2) by amending paragraph (1) to read as follows:
``(1) Authority of secretary to require.--The Secretary may
require borrowers who have defaulted on loans made under this
part that are assigned to the Secretary under subsection (c)(8)
to repay those loans under the income-based repayment plan
under section 493C(f).''; and
(3) in the heading for paragraph (2), by striking ``income
contingent or''.
SEC. 4102. TERMINATION OF INTEREST CAPITALIZATION FOR SUBSIDIZED LOANS
AFTER CERTAIN PERIODS.
Section 428(c)(3)(C) of the Higher Education Act of 1965 (20 U.S.C.
1078(c)(3)(C)) is amended--
(1) in clause (iii), by inserting before the semicolon the
following: ``, and with respect to a forbearance granted to a
borrower on or after the date of enactment of the College
Affordability Act on a loan made, insured or guaranteed under
this section, provide information to the borrower to assist the
borrower in understanding that interest shall accrue on the
loan but not be capitalized at the expiration of such period of
forbearance''; and
(2) in clause (iv)--
(A) in subclause (III), by inserting before the
semicolon at the end the following: ``, except that
this subclause shall not apply with respect to any
period of forbearance beginning on or after the date of
enactment of the College Affordability Act''; and
(B) in subclause (IV), by inserting before the
semicolon at the end the following: ``except that this
subclause shall not apply with respect to any period of
forbearance beginning on or after the date of enactment
of the College Affordability Act''.
SEC. 4103. TERMINATION OF INTEREST CAPITALIZATION FOR PLUS LOANS AFTER
CERTAIN PERIODS.
Section 428B(d)(2) of the Higher Education Act of 1965 (20 U.S.C.
1078-2(d)(2)) is amended--
(1) in subparagraph (A), by striking ``Interest on'' and
inserting ``Subject to subparagraph (C), interest on''; and
(2) by adding at the end the following:
``(C) Interest capitalization.--Interest shall not be
added to the principal amount of a loan made under this
section at the expiration of any period that begins on
or after the date of enactment of the College
Affordability Act, of--
``(i) deferment described in clause (i)(II),
(ii), (iii), or (iv) of section 427(a)(2)(C) or
clause (i)(II), (ii), (iii), (iv), or (v) of
section 428(b)(1)(M); or
``(ii) forbearance.''.
SEC. 4104. CONSOLIDATION LOANS.
(a) Subsequent Consolidation Loans.--Section 428C(a)(3)(B)(i)(V) of
the Higher Education Act of 1965 (20 U.S.C. 1078-3(a)(3)(B)(i)(V)) is
amended--
(1) by striking ``or'' at the end of item (bb);
(2) by striking the period at the end of item (cc) and
inserting a semicolon; and
(3) by adding at the end the following:
``(dd) for the purpose of
separating a joint
consolidation loan into 2
separate Federal Direct
Consolidation Loans under
section 455(g)(2); or
``(ee) for the purpose of
section 455(m)(9)(A)(ii),
493C(f)(2)(G), or 493E(c).''.
(b) Termination of Interest Capitalization After Certain Periods.--
Section 428C(b)(4)(C)(ii)(III) of the Higher Education Act of 1965 (20
U.S.C. 1078-3(b)(4)(C)(ii)(III)) is amended by inserting before the
semicolon the following: ``, except that with respect to a period of
deferment described in clause (i)(II), (ii), (iii), (iv), or (v) of
section 428(b)(1)(M), or any period of forbearance, beginning on or
after the date of enactment of the College Affordability Act on such a
consolidation loan, interest shall not be capitalized at the expiration
of such period of deferment or forbearance''.
SEC. 4105. DEFAULT REDUCTION PROGRAM.
Section 428F(a)(1)(C) of the Higher Education Act of 1965 (20 U.S.C.
1078-6(a)(1)(C)) is amended by striking ``to remove the record of the
default from the borrower's credit history'' and inserting ``to remove
any adverse item of information relating to such loan from the
borrower's credit history''.
SEC. 4106. TERMINATION OF INTEREST CAPITALIZATION FOR UNSUBSIDIZED
LOANS AFTER CERTAIN PERIODS.
Section 428H(e)(2)(A)(ii)(III) of the Higher Education Act of 1965
(20 U.S.C. 1078-8(e)(2)(A)(ii)(III)) is amended by inserting before the
semicolon the following: ``, except that with respect to a period of
deferment described in clause (i)(II), (ii), (iii), or (iv) of section
427(a)(2)(C) or clause (i)(II), (ii), (iii), (iv), or (v) of section
428(b)(1)(M), or any period of forbearance, beginning on or after the
date of enactment of the College Affordability Act on a loan made,
insured, or guaranteed under this section, interest shall not be added
to the principal amount of the loan at the expiration of such period of
deferment or forbearance''.
SEC. 4107. DISBURSEMENT OF STUDENT LOANS.
Section 428G of the Higher Education Act of 1965 (20 U.S.C. 1078-
7(a)) is amended--
(1) in subsection (a) by adding at the end the following:
``(5) Adjusted cohort default rate.--Beginning on the date on
which the final adjusted cohort default rates are published by
the Secretary for not less than 3 fiscal years under section
435(m), an institution whose adjusted cohort default rate (as
determined under section 435(m)) for each of the 3 most recent
fiscal years for which data are available is less than 5
percent may disburse any loan made, insured, or guaranteed
under this part in a single installment for any period of
enrollment that is not more than 1 semester, 1 trimester, 1
quarter, or 4 months.''; and
(2) in subsection (e), by inserting before the period the
following: ``, or beginning on the date on which the final
adjusted cohort default rates are published by the Secretary
for fiscal year 2018 under section 435(m), an adjusted cohort
default rate (as determined under section 435(m)) of less than
2 percent''.
SEC. 4108. STUDENT LOAN CONTRACT AND LOAN DISCLOSURES.
(a) Student Loan Contract.--Section 432(m)(1)(D) of the Higher
Education Act of 1965 (20 U.S.C. 1082(m)(1)(D)) is amended by adding at
the end the following:
``(iv) Student loan contract.--
``(I) In general.--Any master
promissory note form described in this
subparagraph that is developed or used
for loans made under part D for periods
of enrollment beginning on or after the
date of enactment of the College
Affordability Act shall be referred to
as a `student loan contract'.
``(II) Clarification on use.--
Notwithstanding clause (i), each
student loan contract for a part D loan
made for periods of enrollment
beginning on or after the date of
enactment of the College Affordability
Act shall--
``(aa) not be entered into by
a student unless the student
has completed all required
counseling related to such
loan, including counseling
required under section 485(l);
``(bb) be signed by the
student entering such student
loan contract after completion
of such counseling; and
``(cc) be used only for the
academic year for which the
initial loans are made under
the contract, and shall not be
valid for additional loans for
the same or subsequent periods
of enrollment.''.
(b) Loan Disclosures.--Section 432(m)(1)(D) of the Higher Education
Act of 1965 (20 U.S.C. 1082(m)(1)(D)) is further amended by adding
after clause (iv) (as added) the following:
``(v) Loan disclosures.--For loans made for
periods of enrollment beginning on or after the
date of enactment of the College Affordability
Act, the Secretary shall take such steps as are
necessary to streamline the student loan
disclosure requirements under this Act. The
Secretary shall ensure that information
required to be disclosed to a student who is
applying for, receiving, or preparing to repay
a loan under part D of this Act shall be
streamlined in a manner that--
``(I) based upon consumer testing,
reduces and simplifies the paperwork
students are required to complete; and
``(II) limits the number of times
students are presented with disclosures
by incorporating the streamlined
disclosures into required student loan
counseling under section 485(l), the
student loan contract under this
subparagraph, or both.''.
SEC. 4109. BORROWER ADVOCATE CONFORMING AMENDMENTS.
Section 433 of the Higher Education Act of 1965 (20 U.S.C. 1083) is
amended--
(1) in subsection (b)(13), by striking ``Student Loan
Ombudsman'' and inserting ``Borrower Advocate''; and
(2) in subsection (e)(3)(E), by striking ``Student Loan
Ombudsman'' and inserting ``Borrower Advocate''.
SEC. 4110. COHORT DEFAULT RATES.
(a) Ineligibility Based on High Default Rates.--
(1) In general.--Section 435(a) of the Higher Education Act
of 1965 (20 U.S.C. 1085(a)) is amended--
(A) in paragraph (7)(A), by adding at the end the
following:
``(iii) Default management plan.--The default
management plan required under clause (i) may
not include placing students in forbearance as
a means of reducing the cohort default rate or
the adjusted cohort default rate of the
institution.''; and
(B) by adding at the end the following:
``(9) Ineligibility based on high adjusted cohort default
rates.--
``(A) In general.--Except as provided in
subparagraphs (B) and (D), beginning on the date that
is one year after the date on which the final adjusted
cohort default rates are published by the Secretary for
not less than 3 fiscal years, in a case in which one of
the following determinations is made with respect to an
institution, such institution shall be ineligible to
participate in a program under this title for the
fiscal year for which the determination is made and for
the two succeeding fiscal years:
``(i) The institution's adjusted cohort
default rate is greater than 20 percent for
each of the 3 most recent fiscal years for
which the final adjusted cohort default rates
are published.
``(ii) With respect to the 6 most recent
fiscal years for which the final adjusted
cohort default rates are published--
``(I) the institution's adjusted
cohort default rate is greater than 15
percent for each such fiscal year; and
``(II) the Secretary determines that,
during such 6-year period, the
institution has not made adequate
progress in meeting standards for
student achievement established by the
relevant accrediting agency or
association pursuant to section
496(a)(5)(A).
``(iii) With respect to the 8 most recent
fiscal years for which the final adjusted
cohort default rates are published--
``(I) the institution's adjusted
cohort default rate is greater than 10
percent for each such fiscal year; and
``(II) the Secretary determines that,
during such 8-year period, the
institution has not made adequate
progress in meeting standards for
student achievement established by the
relevant accrediting agency or
association pursuant to section
496(a)(5)(A).
``(B) Exceptions for certain categories of
educational programs.--With respect to an institution
that loses eligibility to participate in a program
under this title in accordance with subparagraph
(A)(ii), such institution may request and be granted an
exception to such loss of eligibility for a category of
educational programs at such institution by
demonstrating to the Secretary that the adjusted cohort
default rate for the category of educational programs
is 15 percent or less for each fiscal year of the 6-
year period on which such loss of eligibility for the
institution is based.
``(C) Determination of the adjusted cohort rate for a
category of educational programs.--In determining the
adjusted cohort default rate for a category of
educational programs for purposes of this paragraph--
``(i) subsection (m) shall be applied--
``(I) in paragraph (1)--
``(aa) in subparagraph (A),
by substituting `received for
enrollment in the category of
educational programs for which
such rate is being determined'
for `received for attendance at
the institution'; and
``(bb) in subparagraph
(E)(i)(II), by substituting,
`percentage of students
enrolled in the category of
educational programs for which
such rate is being determined'
for `percentage of students
enrolled at the institution';
and
``(II) as if the following were added
at the end of paragraph (2):
```(E) In the case of a student who has received a
loan for enrollment in more than one category of
educational programs, the student (and such student's
subsequent repayment or default) is attributed to the
last category of educational programs in which such
student was enrolled.'.
``(D) Transition exception.--
``(i) In general.--A covered institution with
an adjusted cohort default rate that is greater
than 20 percent for the first fiscal year for
which such rates are published by the Secretary
may request that any determination of such
institution's ineligibility under paragraph
(9)(A) not be based on the adjusted cohort
default rate of such institution for any or all
of the first 3 fiscal years for which such
rates are published by the Secretary.
``(ii) Requirement.--To be granted a request
under clause (i), an institution shall submit
to the Secretary a default management plan as
specified in paragraph (7).
``(iii) Definition of covered institution.--
In this subparagraph, the term `covered
institution' means--
``(I) a public institution of higher
education;
``(II) a part B institution (as
defined in section 322); or
``(III) a private, nonprofit
institution of higher education at
which not less than 45 percent of the
total student enrollment consists of
low-income students (as such term is
defined in section 419N(b)(7)).
``(E) Category of educational programs defined.--The
term `category of educational programs', when used with
respect to an institution, means one of the following:
``(i) The educational programs at the
institution leading to an undergraduate, non-
degree credential.
``(ii) The educational programs at the
institution leading to an associate's degree.
``(iii) The educational programs at the
institution leading to a bachelor's degree.
``(iv) The educational programs at the
institution leading to a graduate, non-degree
credential.
``(v) The educational program at the
institution leading to a graduate degree.
``(10) Application of adjusted cohort default rate.--
Beginning on the date on which the final adjusted cohort
default rates are published by the Secretary for not less than
3 fiscal years--
``(A) paragraph (1) shall be applied by substituting
`paragraph (9)' for `paragraph (2)'.
``(B) paragraph (3) shall be applied by substituting
`adjusted cohort default rate, calculated in accordance
with subsection (m)(1)(D), is greater than 20 percent
for any 3 consecutive fiscal years' for `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';
``(C) paragraph (4) shall be applied--
``(i) in subparagraph (C), by substituting
`adjusted cohort default rate is greater than
15 percent' for `cohort default rate equals or
exceeds 20 percent'; and
``(ii) in the matter following subparagraph
(C), by substituting `adjusted 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)' for `cohort default rate to reflect
the percentage of defaulted loans in the
representative sample that are required to be
excluded pursuant to subsection (m)(1)(B)';
``(D) paragraph (5)(A) shall be applied by
substituting `paragraph (9)' for `paragraph (2)'; and
``(E) paragraph (7) shall be applied--
``(i) in subparagraph (A)(i)--
``(I) in the matter preceding
subclause (I), by substituting
`adjusted cohort default rate is
greater than 20 percent' for `cohort
default rate is equal to or greater
than the threshold percentage specified
in paragraph (2)(B)(iv)'; and
``(II) in subclauses (I) and (II), by
substituting `adjusted cohort default
rate' for `cohort default rate'; and
``(ii) in subparagraph (B)(i), by
substituting `adjusted cohort default rate is
greater than 20 percent' for `cohort default
rate is equal to or greater than the threshold
percentage specified in paragraph
(2)(B)(iv)'.''.
(2) Conforming amendments.--Section 435(a)(2) of the Higher
Education Act of 1965 (20 U.S.C. 1085(a)) is amended--
(A) in the paragraph heading, by adding at the end
the following: ``before fiscal year 2018''; and
(B) in subparagraph (B)(iv), by striking ``and any
succeeding fiscal year'' and inserting ``through fiscal
year 2017''.
(b) Adjusted Cohort Default Rate Defined.--Section 435(m)(1) of the
Higher Education Act of 1965 (20 U.S.C. 1085(m)(1)) is amended by
adding at the end the following:
``(D)(i) With respect to a cohort default rate calculated for
an institution under this paragraph for fiscal year 2018 and
for each succeeding fiscal year, such cohort default rate shall
be adjusted as follows:
``(I) In determining the number of current and former
students at an institution who enter repayment for such
fiscal year--
``(aa) any such student who is in
nonmandatory forbearance for such fiscal year
for a period of greater than 18 months but less
than 36 months shall not be counted as entering
repayment for such fiscal year;
``(bb) such a student shall be counted as
entering repayment for the first fiscal year
for which the student ceases to be in a period
of forbearance and otherwise meets the
requirements for being in repayment; and
``(cc) any such student who is in a period of
forbearance for 3 or more years shall be
counted as in default and included in the
institution's total number of students in
default.
``(II) Such rate shall be multiplied by the
percentage of students enrolled at the institution for
such fiscal year who are borrowing a loan under part D
of this title.
``(ii) The result obtained under this subparagraph for an
institution shall be referred to in this Act as the `adjusted
cohort default rate'.''.
(c) Publication of Adjusted Cohort Default Rate.--Section 435(m) of
the Higher Education Act of 1965 (20 U.S.C. 1085(m)) is amended by
adding at the end the following:
``(5) Adjusted cohort default rates.--Beginning on the date
on which the final adjusted cohort default rates for fiscal
year 2018 are made available for publication by the Secretary,
paragraph (4) shall be applied by substituting `adjusted cohort
default' for `cohort default' each place it appears.''.
SEC. 4111. AUTOMATIC INCOME MONITORING PROCEDURES AFTER A TOTAL AND
PERMANENT DISABILITY DISCHARGE.
Section 437(a) of the Higher Education Act of 1965 (20 U.S.C.
1087(a)) is amended by adding at the end the following:
``(3) Automatic income monitoring.--
``(A) In general.--Not later than 2 years after the
date of enactment of the College Affordability Act, the
Secretary shall establish and implement, with respect
to any borrower described in subparagraph (B),
procedures to--
``(i) obtain (for each year of the income-
monitoring period described in subparagraph (B)
and without further action by the borrower)
such information as is reasonably necessary
regarding the income of such borrower for the
purpose of determining the borrower's continued
eligibility for the loan discharge described in
subparagraph (B) for such year, and any other
information necessary to determine such
continued eligibility of the borrower for such
year, except that in the case of a borrower
whose returns and return information indicate
that the borrower has no earned income for any
year of such income-monitoring period, such
borrower shall be treated as not having earned
income in excess of the poverty line for such
year subject to clause (ii);
``(ii) allow the borrower, at any time, to
opt out of clause (i) and prevent the Secretary
from obtaining information under such clause
without further action by the borrower; and
``(iii) provide the borrower with an
opportunity to update the information obtained
under clause (i) before the determination of
the borrower's continued eligibility for such
loan discharge for such year.
``(B) Applicability.--Subparagraph (A) shall apply--
``(i) to each borrower of a covered loan
(defined in section 455(d)(10)) that is
discharged under this subsection or section
464(c)(1)(F) due to the permanent and total
disability of the borrower; and
``(ii) during the income-monitoring period
under this subsection, defined in this
paragraph as the period--
``(I) beginning on the date on which
such loan is so discharged; and
``(II) during which the Secretary
determines whether a reinstatement of
the obligation of, and resumption of
collection on, such loan may be
necessary.''.
SEC. 4112. AUTOMATIC CLOSED SCHOOL DISCHARGE.
Section 437(c) of the Higher Education Act of 1965 (20 U.S.C.
1087(c)) is amended--
(1) by redesignating paragraphs (2) through (5) as paragraphs
(3) through (6), respectively; and
(2) by inserting after paragraph (1), the following:
``(2) Automatic closed school discharge.--
``(A) Secretarial requirements.--With respect to a
borrower described in subparagraph (B), the Secretary
shall, without any further action by the borrower,
discharge the borrower's liability on the loan
described in subparagraph (B)(i).
``(B) Borrower requirements.--A borrower described in
this subparagraph means a borrower who--
``(i) receives a loan--
``(I) made, insured, or guaranteed
under this title for enrollment in a
program that the borrower was unable to
complete due to the closure of the
institution; and
``(II) for which the Secretary has
not already discharged the borrower's
liability on such loan pursuant to this
subsection; and
``(ii) as of the date that is 2 years after
the closure of the institution, has not re-
enrolled in an institution of higher education
that participates in programs under this
title.''.
SEC. 4113. REPAYMENT OF PARENT LOANS DUE TO STUDENT DISABILITY.
Section 437(d) of the Higher Education Act of 1965 (20 U.S.C.
1087(d)) is amended--
(1) by striking ``If a student'' and inserting the following:
``(1) Death.--If a student''; and
(2) by adding at the end the following:
``(2) Disability.--
``(A) In general.--The Secretary shall discharge a
parent's liability on a loan described in section 428B
by repaying the amount owed on the loan if the student
on whose behalf the parent has received the loan--
``(i) becomes permanently and totally
disabled (as determined in accordance with
regulations of the Secretary); or
``(ii) 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.
``(B) Disability determinations.--Subsection (a)(2)
shall apply to a disability determination under this
paragraph in the same manner as such subsection applies
to a determination under subsection (a)(1).
``(C) Safeguards.--The safeguards to prevent fraud
and abuse developed under subsection (a)(1) shall apply
under this paragraph.
``(D) Reinstatement of loans.--The Secretary may
promulgate regulations to reinstate the obligation of,
and resume collection on, loans discharged under this
paragraph in cases in which the Secretary determines
that the reinstatement and resumption is necessary and
appropriate based upon the regulations developed under
subsection (a)(1).''.
PART C--FEDERAL WORK-STUDY PROGRAMS
SEC. 4201. PURPOSE; AUTHORIZATION OF APPROPRIATIONS.
Section 441 of the Higher Education Act of 1965 (20 U.S.C. 1087-51)
is amended--
(1) 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) $1,500,000,000 for fiscal year 2021;
``(2) $1,750,000,000 for fiscal year 2022;
``(3) $2,000,000,000 for fiscal year 2023;
``(4) $2,250,000,000 for fiscal year 2024; and
``(5) $2,500,000,000 for fiscal year 2025 and each succeeding
fiscal year.'';
(2) in subsection (c)--
(A) in paragraph (1), by inserting ``child
development and early learning (including Head Start
and Early Head Start programs carried out under the
Head Start Act (42 U.S.C. 9831 et seq.)),'', before
``literacy training,'';
(B) in paragraph (3), by striking ``and'';
(C) in paragraph (4)(C), by striking the period at
the end and inserting ``; and''; and
(D) by adding at the end the following:
``(5) work-based learning designed to give students
experience in any activity described in paragraph (1), (2),
(3), or (4), without regard to whether credit is awarded.'';
and
(3) by adding at the end the following:
``(d) Work-based Learning Defined.--For purposes of this part, the
term `work-based learning' means sustained interactions with industry,
community, or academic professionals in real workplace settings that
shall--
``(1) include on campus opportunities;
``(2) 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; and
``(3) may include internships, fellowships, research
assistant positions, teacher residencies, participation in
cooperative education, and 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.).''.
SEC. 4202. ALLOCATION FORMULA.
Section 442 of the Higher Education Act of 1965 (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.--Beginning with the first fiscal year
that is 2 years after the date of the enactment of the
College Affordability Act, 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 equal to the greater of the following:
``(I) The amount 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.
``(II) $5,000.
``(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)--
``(i) is an institution of higher education
(as defined under section 101) participating
under this part;
``(ii) is with respect to--
``(I) the completion rate or
graduation rate of Federal Pell Grant
recipients at the institution, in the
top 75 percent of all institutions
participating under this part for the
preceding fiscal year;
``(II) the percentage of Federal Pell
Grant recipients at the institution, in
the top 50 percent of the institutions
described in subclause (I); and
``(III) the annual increase in the
completion rate or graduation rate of
Federal Pell Grant recipients at the
institution, in the top 50 percent of
the institutions described in
subclauses (I) and (II).
``(C) Completion rate or graduation rate.--For
purposes of determining the completion rate or
graduation rate under this section, a Federal Pell
Grant recipient who is either a full-time student or a
part-time student shall be counted as a completer or
graduate 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 institution participating
in any program under this title for which the prior
program provides substantial preparation.
``(2) Reservation for grant program.--From the amount
appropriated under section 441(b) for a fiscal year and
remaining after the Secretary reserves funds under subparagraph
(A), the Secretary shall reserve $30,000,000 to carry out
grants under section 449.
``(3) Reallocation of amount returned by improved
institutions.--If an institution returns to the Secretary any
portion of the sums allocated to such institution under this
subsection for any fiscal year, the Secretary shall reallot
such excess to improved institutions on the same basis as under
paragraph (1)(A).
``(4) Publication.--Beginning 1 year after the first
allocations are made to improved institutions under paragraph
(1)(A) and annually thereafter, the Secretary shall make
publicly available--
``(A) a list of the improved institutions that
received funding under such paragraph in the prior
fiscal year;
``(B) the percentage of students at each such
improved institution that are Federal Pell Grant
recipients;
``(C) the completion rate or graduation rate for the
students described in subparagraph (B) with respect to
each such improved institution; and
``(D) a comparison between the information described
in subparagraphs (A), (B), and (C) for the prior fiscal
year for such improved institution, and such
information for the year prior to such year.
``(c) Allocation Formula for Fiscal Years 2021 Through 2025.--
``(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 2021, 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 2020, as such
subsections were in effect with respect to such
fiscal year (in this subparagraph referred to
as `the 2020 amount for the institution'); or
``(ii) the fair share amount for the
institution determined under subsection (d);
``(B) for fiscal year 2022, an amount equal to the
greater of--
``(i) 80 percent of the 2020 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (d);
``(C) for fiscal year 2023, an amount equal to the
greater of--
``(i) 60 percent of the 2020 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (d);
``(D) for fiscal year 2024, an amount equal to the
greater of--
``(i) 40 percent of the 2020 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (d);
and
``(E) for fiscal year 2025, an amount equal to the
greater of--
``(i) 20 percent of the 2020 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).
``(d) Allocation Formula for Fiscal Year 2026 and Each Succeeding
Fiscal Year.--Except as provided in subsection (d)(5), from the amount
appropriated under section 441(b) for fiscal year 2026 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).
``(e) Determination of Fair Share Amount.--
``(1) In general.--Subject to paragraph (2), the fair share
amount for an institution for a fiscal year shall be equal to
the sum of--
``(A) 100 percent of the institution's undergraduate
student need described in paragraph (2) for the
preceding fiscal year; and
``(B) 25 percent of the institution's graduate
student need described in paragraph (3) for the
preceding fiscal year.
``(2) Institutional undergraduate student need calculation.--
The undergraduate student need 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 awarded 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.
``(3) Institutional graduate student need calculation.--The
graduate student need for an institution for a fiscal year
shall be equal to the amount that bears the same proportion to
the available appropriated amount for such fiscal year as the
total amount of the graduate student need at the institution
for the preceding fiscal year bears to the total amount of
graduate student need at all institutions participating under
this part for the preceding fiscal year.
``(4) Eligibility for fair share amount.--The Secretary may
not allocate funds under this part to any institution that, for
two or more fiscal years during any three fiscal year period
beginning not earlier than the first day of the first fiscal
year that is 2 years after the date of the enactment of this
paragraph, has--
``(A) a student population with less than 7 percent
of undergraduate students who are recipients of Federal
Pell Grants; or
``(B) if the institution only enrolls graduate
students, a student population with less than 5 percent
of students that have an expected family contribution
of zero.
``(5) Definitions.--In this subsection:
``(A) Available appropriated amount.--In this
section, 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 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;
``(ii) standard living expenses 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; and
``(iii) books and supplies, in an amount not
exceeding $1,000.
``(C) Graduate student need.--The term `graduate
student need' means, with respect to a graduate student
for a fiscal year, the lesser of the following:
``(i) 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 preceding fiscal year, minus
``(II) such graduate student's
expected family contribution (computed
in accordance with part F of this
title) for the preceding fiscal year.
``(ii) The total annual loan limit for a
Federal Direct Unsubsidized Stafford Loan.
``(D) 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) such undergraduate student's
expected family contribution (computed
in accordance with part F of this
title) for the preceding fiscal year.
``(ii) The total annual loan limit for a
Federal Direct Unsubsidized Stafford Loan and a
Federal Direct Loan.
``(f) Return of Surplus Allocated Funds.--
``(1) In general.--Except with respect to funds returned
under subsection (a)(3), 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
reallot such excess to institutions that used at least 10
percent of the total amount of funds granted to such
institution under this section to compensate students employed
during a qualified period of nonenrollment (as such term is
defined in section 443(f)) on the same basis as excess eligible
amounts are allocated under subsection (d).
``(2) Use of funds.--Funds received by institutions pursuant
to this subsection shall, to maximum extent practicable, be
used to compensate students employed in work-based learning
positions.
``(3) Retained funds.--
``(A) Amount returned.--If an institution returns
more than 10 percent of its allocation under paragraph
(1), the institution's allocation for the next fiscal
year shall be reduced by the amount returned.
``(B) 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.
``(g) Filing Deadlines.--The Secretary may require applications under
this section, at such time, in such manner, and containing such
information as the Secretary may require.''.
SEC. 4203. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.
Section 443 of the Higher Education Act of 1965 (20 U.S.C. 1087-53)
is amended--
(1) in subsection (b)--
(A) by amending paragraph (2) to read as follows:
``(2) provide that funds granted an institution of higher
education, pursuant to this section may only be used to make
payments to students participating in work-study programs
except that an institution--
``(A) shall, beginning fiscal year 2023--
``(i) use at least 3 percent of the total
amount of funds granted to such institution
under this section for such fiscal year to
compensate students who have exceptional need
(as defined in section 413C(c)(2)) and are
employed in a work-based learning position
during a qualified period of nonenrollment, as
defined in subsection (f), except that the
Secretary may waive this clause if the
Secretary determines that enforcing this clause
would cause hardship for students at the
institution; and
``(ii) 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 work-based
learning positions, except that the Secretary
may waive this clause if the Secretary
determines that enforcing this clause would
cause hardship for students at the institution;
``(B) may--
``(i) use a portion of the sums granted to it
to compensate students employed in community
service;
``(ii) use a portion of the sums granted to
it to meet administrative expenses in
accordance with section 489;
``(iii) 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
``(iv) transfer funds in accordance with the
provisions of section 488;'';
(B) in paragraph (4)--
(i) by striking ``$300'' and inserting
``$500''; and
(ii) by inserting ``except as provided under
subsection (f),'' before ``provide'';
(C) in paragraph (5)--
(i) in subparagraph (A)(ii), by striking
``and'' at the end;
(ii) in subparagraph (B), by inserting
``and'' after the semicolon; and
(iii) by adding at the end the following:
``(C) the Federal share shall equal 100 percent if
the institution is eligible for assistance under title
III or title V;''.
(D) in paragraph (6)--
(i) by inserting ``who demonstrate
exceptional need (as defined in section
413C(c)(2))'' after ``students''; and
(ii) by inserting ``and prioritize employment
for students who are currently homeless
individuals described in section 725 of the
McKinney-Vento Homeless Assistance Act (42
U.S.C. 11434a) or foster care youth'' after
``institution'';
(E) in paragraph (7), by striking ``vocational'' and
inserting ``career'';
(F) in paragraph (8)(A)(i), by striking ``or
vocational goals'' and inserting ``career goals'';
(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 compensation of students
employed in the work-study program in accordance with the
agreement shall include reimbursement for reasonable travel
(not including the purchase of a vehicle) directly related to
such work-study program;
``(13) provide assurances that the institution will
administer and use feedback from the surveys required under
section 450, to improve the experiences of students employed in
the work-study program in accordance with the agreement;
``(14) 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
``(15) provide assurances that if the institution receives
funds under section 442(a)(1)(A), such institution shall--
``(A) use such funds to compensate students employed
in the work-study program in accordance with the
agreement; and
``(B) prioritize the awarding of such funds (and
increasing the amount of each award) to students--
``(i) who demonstrate exceptional need (as
defined in section 413C(c)(2)); and
``(ii) who are employed in work-based
learning opportunities through the work study
program in accordance with the agreement.'';
(2) in subsection (c)--
(A) by amending paragraph (2) to read as follows:
``(2) provide that--
``(A) in the case of an institution that has not
received a waiver from the Secretary, such institution
will not use 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); and
``(B) in the case of an institution that has received
a waiver from the Secretary, such institution will not
use more than 50 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);''.
(B) in paragraph (4)--
(i) by inserting ``and complement and
reinforce the educational goals or career goals
of each student receiving assistance under this
part'' after ``academically relevant''; and
(ii) by striking ``and'' at the end;
(C) in paragraph (5), by striking the period at the
end and inserting ``; and''; and
(D) by adding at the end the following:
``(6) provide assurances that compensation of students
employed in the work-study program in accordance with the
agreement shall include reimbursement for reasonable travel
(not including the purchase of a vehicle) directly related to
such work-study program.'';
(3) in subsection (d)(1)--
(A) 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
(B) by striking ``travel'' and inserting ``reasonable
travel (not including the purchase of a vehicle)''; and
(4) by adding at the end the following:
``(f) Qualified Period of Nonenrollment.--
``(1) In general.--A student may be awarded work-study
employment during a qualified period of nonenrollment if--
``(A) the student demonstrates exceptional need (as
defined in section 413C(c)(2)) in the award year prior
to the qualified period of nonenrollment;
``(B) the student is employed in a work-based
learning position; and
``(C) the employment--
``(i) involves less than 25 percent
administrative work; and
``(ii) is for at least 20 hours per week,
unless the institution waives such
requirement--
``(I) at the request of the student;
or
``(II) based on a finding by the
institution that such requirement
presents a hardship in finding a work-
based learning position for the
student.
``(2) Funds earned.--
``(A) In general.--Any funds earned by a student
(beyond standard living expenses (as such term is
described in section 413D(c)(3)(C))) during the
qualified period of nonenrollment less than or equal to
$2,500 may not be applied to such student's cost of
attendance for the next period in which the student is
enrolled.
``(B) Excess funds.--Any funds earned by a student
(beyond standard living expenses (as such term is
described in section 413D(c)(3)(C))) during the
qualified period of nonenrollment in excess of $2,500
shall be applied to such student's cost of attendance
for the next period in which the student is enrolled.
``(3) Definition of qualified period of nonenrollment.--In
this subsection, the term `qualified period of nonenrollment'
means, with respect to a student, a period of nonenrollment
that--
``(A) occurs between a period of enrollment and a
period of anticipated enrollment; and
``(B) the duration of which is no longer than 6
months.
``(g) Cooperative Education.--
``(1) In general.--A student may be awarded work-study
employment for participation in cooperative education on--
``(A) a part-time basis; or
``(B) a full-time basis for a period equal to or less
than 6 months.
``(2) Private agreements for cooperative education.--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 provide for the
operation by the institution of a program of cooperative
education of its students (on the basis described in
subparagraph (A) or (B) of paragraph (1)) by a private for-
profit organization under an agreement between the institution
and such organization that complies with the requirements of
subsection (c).
``(3) Full-time basis period.--The period specified in
paragraph (1)(B) may be non-consecutive and include
participation during qualified periods of nonenrollment (as
defined in subsection (f)(3)).
``(4) Cooperative education defined.--In this subsection, the
term `cooperative education' means a program of alternating or
parallel periods of academic study and work-based learning
designed to give students work experiences related to their
academic or career objectives.
``(h) Notification Regarding SNAP.--
``(1) In general.--An institution receiving a grant under
this part shall send a notification (by email or other
electronic means) to each eligible student informing the
student of their potential eligibility for participation in the
SNAP and the process for obtaining more information, confirming
eligibility, and accessing benefits under that program. The
notification shall be developed by the Secretary of Education
in consultation with the Secretary of Agriculture, and shall
include details on eligibility requirements for participation
in the SNAP that a student must satisfy. The notification shall
be, to the extent practicable, specific to the student's State
of residence and shall provide contact information for the
local office where an application for the SNAP may be made.
``(2) Evidence of participation in federally financed work-
study program.--The notification under paragraph (1) shall
include an official document confirming that the recipient is
an eligible student sufficient for purposes of demonstrating
that the exclusion from ineligibility for participation in the
SNAP under section 6(e)(4) of the Food and Nutrition Act of
2008 (7 U.S.C. 2015(e)(4)) applies to the student.
``(3) Guidance.--The Secretary of Education, in consultation
with the Secretary of Agriculture, shall provide guidance to
States and institutions of higher education on how to identify
and communicate with students who are likely to be eligible for
the SNAP, including those eligible for a State or federally
financed work-study program.
``(4) Definitions.--For purposes of this subsection:
``(A) The term `eligible student' means a student
receiving work-study assistance under this part.
``(B) The term `SNAP' means the supplemental
nutrition assistance program (as defined in section
3(t) of the Food and Nutrition Act of 2008 (7 U.S.C.
2012(t))).''.
SEC. 4204. FLEXIBLE USE OF FUNDS.
Section 445 of the Higher Education Act of 1965 (20 U.S.C. 1087-55)
is amended--
(1) in subsection (a), by adding at the end the following:
``(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 period 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.''; and
(2) by striking ``10 percent'' both places it appears and
inserting ``20 percent''.
SEC. 4205. JOB LOCATION AND DEVELOPMENT PROGRAMS.
Section 446 of the Higher Education Act of 1965 (20 U.S.C. 1087-56)
is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``10 percent or
$75,000'' and inserting ``20 percent or $150,000''; and
(B) in paragraph (2), by striking ``vocational'' and
inserting ``career''; and
(2) in subsection (b)--
(A) by striking paragraphs (1) and (2); and
(B) by inserting before paragraph (3) the following:
``(1) provide satisfactory assurance that the institution
will prioritize placing students with exceptional need (as
defined in section 413C(c)(2)) and Federal work-study
recipients in jobs located and developed under this section;
and
``(2) provide satisfactory assurances that the funds
available under this section will be used to locate and develop
work-based learning positions;''; and
(C) in paragraph (6), by striking the period and
inserting ``, including--
``(A) the number of students employed in work-based
learning positions through such program;
``(B) the number of students demonstrating
exceptional need (as defined in section 413C(c)(2)) and
Federal work-study recipients employed through such
program; and
``(C) the number of students demonstrating
exceptional need (as defined in section 413C(c)(2)) and
Federal work-study recipients employed in work-based
learning positions through such program.''.
SEC. 4206. COMMUNITY SERVICE.
Section 447 of the Higher Education Act of 1965 (20 U.S.C. 1087-57)
is amended to read as follows:
``SEC. 447. ADDITIONAL FUNDS TO CONDUCT COMMUNITY SERVICE WORK STUDY
PROGRAMS.
``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;
``(3) assuring, to the maximum extent practicable, that the
community service-learning program will support the educational
goals or career goals of students participating in such
program;
``(4) 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; and
``(5) to recruit and compensate students for community
service-learning (including compensation for time spent in
training and for reasonable travel (not including the purchase
of a vehicle) directly related to such community service).''.
SEC. 4207. AMENDMENTS TO WORK COLLEGES.
Section 448 of the Higher Education Act of 1965 (20 U.S.C. 1087-58)
is amended--
(1) in subsection (a), by inserting ``student'' after
``comprehensive'';
(2) in subsection (b)(2)(D), by inserting ``student'' after
``comprehensive'';
(3) in subsection (c)--
(A) by striking ``Each eligible institution'' and
inserting the following:
``(1) In general.--Each eligible institution''; and
(B) by adding at the end the following:
``(2) Application dates.--The Secretary shall require an
eligible institution that submits an application for funding
under this section for the first time to submit such
application 5 months prior to the application due date for
returning applicants.''; and
(4) in subsection (e)--
(A) in paragraph (1)--
(i) by striking subparagraph (B) and
inserting the following:
``(B) is accredited by an accrediting agency or
association recognized by the Secretary pursuant to
part H, has operated a work-study program under this
part for at least the 2 years preceding the date of the
determination, and has operated a comprehensive student
work-learning-service program for at least the 2 years
preceding the date of the determination;'';
(ii) in subparagraph (C), by inserting
``student'' after ``comprehensive''; and
(iii) in subparagraph (D), by inserting
``student'' after ``comprehensive''; and
(B) in paragraph (2)--
(i) by redesignating subparagraphs (A)
through (F) as subparagraphs (B) through (G),
respectively; and
(ii) by inserting before subparagraph (B), as
redesignated by clause (i), the following:
``(A) is a 4-year, degree-granting program;''.
SEC. 4208. PILOT GRANT PROGRAM.
Part C of title IV of the Higher Education Act of 1965 (20 U.S.C.
1087-51 et seq.), as amended by this part, is further amended by adding
at the end the following:
``SEC. 449. WORK-BASED LEARNING OPPORTUNITIES PILOT GRANT PROGRAM.
``(a) Establishment.--
``(1) In general.--The Secretary shall establish a program to
provide grants to eligible institutions participating under
this part to establish or expand a program to develop work-
based learning positions.
``(2) Limitations.--
``(A) Duration.--A grant awarded under this section
shall be for a period of not more than 4 years, but may
be renewed by the Secretary for a period of 2 years.
``(B) Amount.--A grant under this section may not be
in an amount greater than $1,000,000.
``(b) Application.--To be selected to receive a grant under this
section an eligible institution participating under this part shall
submit an application to the Secretary at such time, in such manner,
and containing such information as the Secretary may require, including
a plan that describes how the eligible institution will establish or
expand a program to develop work-based learning positions that will--
``(1) benefit students who demonstrate exceptional need (as
defined in section 413C(c)(2));
``(2) identify in-demand industry sectors and occupations (as
defined in section 3 of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3102) and as determined by the
Bureau of Labor and Statistics, State departments of labor, and
local boards (as defined in such section 3)) and develop
partnerships with high-demand employers (including nonprofit
organizations, joint labor-management organizations, for-profit
firms, or public agencies);
``(3) involve participating employers in evaluating and
improving such program;
``(4) track and report academic and employment outcomes for
participating students; and
``(5) be able to continue after the end of the grant term.
``(c) Use of Funds.--Grant funds awarded under this program shall be
used to pay wages for students participating under this program and
develop work-based learning positions that--
``(1) are for a period of at least 12 weeks;
``(2) serve students who demonstrate exceptional need (as
defined in section 413C(c)(2));
``(3) limit administrative work to no more than 25 percent of
such position;
``(4) provide a minimum of 15 hours of work per week during
periods of enrollment and 30 hours per week during periods of
nonenrollment, except such requirement may be waived by the
institution in consultation with a student;
``(5) include career coaching from participating employers
(including mock interviews, resume writing assistance, career
exploration, and counseling on applying for and attaining
employment); and
``(6) provide participating students with opportunities to
meet with employers in fields or industries related to those of
participating employers.
``(d) Report.--On a date that is before the date on which the period
of the grant received by an eligible institution under this section
terminates, such institution shall submit a report to the Secretary
including--
``(1) the graduation rate or completion rate (as described
under section 442(a)(1)(C)) with respect to students
participating in work-based learning positions under the pilot
program; and
``(2) the results of the work-based learning opportunities
program for which such institution received such grant,
including--
``(A) participating students' satisfaction with the
program as reported in surveys under section 450, as
added by section 4209 of the College Affordability Act;
``(B) the types of jobs in which participating
students were employed and the types of duties
performed in such jobs;
``(C) the academic programs of the participating
students;
``(D) the share of participating students who worked
at another job, in addition to the one under the pilot
program;
``(E) the percentage of participating students who,
during the second quarter after completing their
academic program, are in education or training
activities or unsubsidized employment;
``(F) the percentage of participating students
employed in in-demand industry sectors or occupations
as described in subsection (b)(2) within 2 quarters of
completing their academic programs; and
``(G) other items as deemed relevant by the
Secretary.
``(e) Reservation of Funding for Such Program.--From the amount
appropriated under section 441(b) for a fiscal year and remaining after
the Secretary reserves funds under section 442(a)(1), the Secretary
shall reserve $30,000,000 to carry out grants under this section.''.
SEC. 4209. DEPARTMENT ACTIVITIES.
Part C of title IV of the Higher Education Act of 1965 (20 U.S.C.
1087-51 et seq.), as amended by this part, is further amended by adding
at the end the following:
``SEC. 450. DEPARTMENT ACTIVITIES.
``(a) Surveys.--Not later than 1 year after the date of the enactment
of this section, the Secretary shall develop, in consultation with
work-study administrators from institutions of higher education,
participating employers, and participating students--
``(1) a consumer-tested electronic survey for students
awarded work-study employment under the Federal work-study
program under this part that--
``(A) measures each such student's satisfaction with
the Federal work-study program, including--
``(i) any complaints the student has with
respect to the program;
``(ii) the amount and quality of the on-the-
job training the student received;
``(iii) the amount and quality of on-the-job
supervision and employer feedback the student
received;
``(iv) the amount and quality of information
provided by the institution about the work-
study program and job opportunities and the
availability of work-study staff at the
institution;
``(v) the quality of the assistance provided
by the institution to the student in finding a
work-study job and the availability of types of
jobs; and
``(vi) the student's overall satisfaction
with the work-study program;
``(B) measures the applicability of work-study
employment to the educational goals and career goals of
each such student;
``(C) elicits an assessment by each such student of
the capacity to manage time between work-study
employment and coursework;
``(D) measures, with respect to the program--
``(i) the award amounts under the program;
``(ii) the average number of hours students
worked per week, and the wages received for
such work;
``(iii) the number of on campus jobs and off
campus jobs;
``(iv) how students located work-study
positions;
``(v) the work performed at each job;
``(vi) whether students worked additional
jobs while employed in a work-study job (and
the reason for such additional job);
``(vii) whether the work-study employment had
an impact on the student's academic
performance; and
``(viii) the voluntarily disclosed
demographics of students awarded work-study
employment; and
``(E) includes such information as the Secretary may
require; and
``(2) a consumer-tested electronic survey for employers of
students described in paragraph (1) that--
``(A) measures each such employer's satisfaction with
the Federal work-study program, including--
``(i) the extent to which the employer is
satisfied with its ability to accommodate
students' schedules;
``(ii) the extent to which student-employees
are prepared for the duties advertised for the
job; and
``(iii) the extent to which the employer is
satisfied with opportunities to make
recommendations for improving institutions'
academic programs;
``(B) elicits an assessment by each such employer
of--
``(i) any complaints the employer had with
respect to the program;
``(ii) any skills or knowledge necessary for
the job that student-employees are lacking; and
``(iii) the extent of outreach from
institutions to the employer; and
``(C) includes such information as the Secretary may
require; and
``(3) a consumer-tested electronic survey that, not less than
once every 4 years, with respect to each institution of higher
education participating in the Federal work-study program,
measures--
``(A) methods used to recruit on-campus and off-
campus employers;
``(B) if an institution operates a job location
development program--
``(i) the share of jobs filled on-campus and
off-campus;
``(ii) the share of jobs filled by--
``(I) work-study recipients; and
``(II) students who demonstrate
exceptional need (as defined in section
413C(c)(2));
``(iii) the primary factors considered in
matching work-study students and jobs;
``(iv) the share of students employed in
work-based learning opportunities; and
``(v) the share of students employed during
qualified periods of nonenrollment, including
the share of students with exceptional need (as
defined in section 413C(c)(2)) employed during
qualified periods of nonenrollment;
``(C) the institution's Federal and non-Federal
contributions toward work-study wages;
``(D) the primary factors considered in awarding
students work-study and in determining the amount of
the award;
``(E) the acceptance rate among students who were
offered work-study aid; and
``(F) other information the Secretary may require.
``(b) Results.--The Secretary shall develop an online portal--
``(1) for students, employers, and institutions of higher
education to access the surveys required under subsection (a);
and
``(2) to compile the results of such surveys.
``(c) Report.--Not less than once every 4 years after the date of the
enactment of this subsection, the Secretary shall submit a report to
Congress that includes--
``(1) the data collected under this section (redacted for
personal information);
``(2) with respect to students employed in work-study through
the Federal work-study program--
``(A) the types of jobs such students participated
in;
``(B) the average hours worked per week;
``(C) the average award amount;
``(D) the average wage rates;
``(E) the extent to which students enter employment
with skills and knowledge gained from work-study
participation that have prepared them for the job; and
``(F) the students' satisfaction with the program and
primary complaints;
``(3) the extent to which institutions conduct outreach to
employers and engage them in discussions on improving academic
programs;
``(4) the extent to which institutions conduct outreach to
students and make jobs readily available;
``(5) the extent to which the work-study employment aligns
with students' academic programs or career goals;
``(6) the employers' satisfaction with the program and
primary complaints; and
``(7) recommendations for improving the program.
``(d) Consultation.--
``(1) In general.--In consulting with the entities described
in subsection (a) to create the electronic surveys required
under such subsection, the Secretary shall engage with--
``(A) a representative sample of institutions of
higher education participating in the Federal work-
study program;
``(B) a representative sample of employers
participating in the Federal work-study program; and
``(C) a representative sample of students
participating in the Federal work-study program.
``(2) Response rate.--The Secretary shall--
``(A) consult with a survey consultant to develop a
target response rate with respect to the electronic
surveys required under subsection (a); and
``(B) provide guidance to institution with respect to
such developed target response rate.
``(e) Technical Assistance.--The Secretary shall--
``(1) provide technical assistance to institutions
participating under the Federal work-study program under this
part to--
``(A) comply with the amendments made by part C of
title IV of the College Affordability Act and the
regulations issued pursuant to such part;
``(B) administer the surveys described in subsection
(a) to students and employers participating in the
Federal work-study program; and
``(C) ensure that Federal work-study positions align
with students' educational goals or career goals to the
maximum extent practicable; and
``(2) issue guidance and provide technical assistance to
institutions to support improved partnerships and coordination
among financial aid, career services, and academic advisors to
administer the Federal work-study program.
``(f) Authorization of Appropriations.--There is authorized to be
appropriated $2,000,000 to carry out subsection (a).''.
SEC. 4210. STUDY AND REPORT.
(a) Study.--The Comptroller General of the United States shall, not
later than a reasonable amount of time after the date of the enactment
of this Act, conduct a study on best practices for assisting students
participating in the Federal work-study program under part C of title
IV of the Higher Education Act (42 U.S.C. 1087-51 et seq.) with--
(1) connecting to off-campus employers;
(2) procuring work-based learning opportunities through such
program;
(3) procuring employment that aligns with students'
educational goals or career goals;
(4) locating employment through job location and development
programs;
(5) procuring employment in in-demand industry sectors or
occupations (as defined in section 3 of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3102));;
(6) balancing employment with academic programs to improve
graduation and completion rates; and
(7) with respect to students with exceptional need (as
defined in section 413C(c)(2) of the Higher Education Act of
1965 (20 U.S.C. 1070b-2(c)(2)))--
(A) locating and coordinating work-study employment
during qualified periods of nonenrollment;
(B) increasing participation of such students in such
work-study program; and
(C) limiting the need for additional employment
outside the work-study program.
(b) Report.--Not later than one year after the date on which the
study required under subsection (a) is completed, the Comptroller
General of the United States shall submit to Congress a report
summarizing the findings of such study.
(c) Publish Report.--The Comptroller General of the United States
shall make the report required under subsection (b) available to the
public on the website of the Government Accountability Office.
PART D--FEDERAL DIRECT LOAN PROGRAM
SEC. 4301. PROGRAM AUTHORITY.
Section 451(a) of the Higher Education Act of 1965 (20 U.S.C.
1087a(a)) is amended--
(1) by striking ``and (2)'' and inserting ``(2)''; and
(2) by inserting ``; and (3) to make loans under section 460A
and section 460B'' after ``section 459A''.
SEC. 4302. AMENDMENTS TO TERMS AND CONDITIONS OF LOANS AND REPAYMENT
PLANS.
(a) Subsidized Loans for Graduate and Professional Students.--Section
455(a)(3) of the Higher Education Act of 1965 (20 U.S.C. 1087e(a)(3))
is amended--
(1) in subparagraph (A), in the matter preceding clause (i),
by striking ``subparagraph (B)'' and inserting ``subparagraphs
(B) and (C)''; and
(2) by adding at the end the following:
``(C) For any period of instruction at an institution
of higher education (as defined in section 101)
beginning on or after July 1, 2021, a graduate or
professional student shall be eligible to receive a
Federal Direct Stafford loan under this part.''.
(b) Interest Rate on Subsidized Loans for Graduate and Professional
Students.--Section 455(b)(8)(B) of the Higher Education Act of 1965 (20
U.S.C. 1087e(b)(8)(B)) is amended by inserting ``and Federal Direct
Stafford Loans'' after ``Federal Direct Unsubsidized Stafford Loans''.
(c) Repeal of Origination Fees.--Subsection (c) of section 455 of the
Higher Education Act of 1965 (20 U.S.C. 1087e(c)) is repealed.
(d) Rulemaking Regarding Termination of Certain Repayment Plans.--
Beginning on the date of enactment of this Act, the Secretary of
Education shall carry out a plan to end all eligibility for repayment
plans other than a fixed repayment plan described in section 493E of
the Higher Education Act of 1965, as added by section 4632, and an
income-based repayment plan described under section 493C(f) of the
Higher Education Act of 1965, as added by section 4631(c), for loans
made under part B or D of title IV of the Higher Education Act of 1965,
unless the borrower is enrolled in another repayment plan before such
effective date, in accordance with the amendments made by this Act.
(e) Notification to Borrowers.--
(1) In general.--Beginning on the date of enactment of this
Act, the Secretary of Education, in coordination with the
Director of the Bureau of Consumer Financial Protection, shall
undertake a campaign to alert all borrowers of loans made,
insured, or guaranteed under part B or D of title IV of the
Higher Education Act of 1965 that they are eligible to change
repayment plans and to enroll in one of the following repayment
plans:
(A) A fixed repayment plan described in section 493E
of the Higher Education Act of 1965, as added by
section 4632.
(B) The income-based repayment plan under section
493C(f) of the Higher Education Act of 1965, as added
by section 4631(c).
(2) Campaign activities.--The campaign shall include the
following activities:
(A) Developing consumer information materials about
the opportunity to change repayment plans and to enroll
in one of the following repayment plans:
(i) A fixed repayment plan described in such
section 493E.
(ii) The income-based repayment plan under
such section 493C(f).
(B) Requiring servicers of loans made, insured, or
guaranteed under parts B and D of title IV of the
Higher Education Act of 1965 to provide such consumer
information to borrowers in a manner determined
appropriate by the Secretary.
(f) Repayment Plans.--Section 455(d) of the Higher Education Act of
1965 (20 U.S.C. 1087e(d)) is amended--
(1) by redesignating paragraphs (2) through (5) as paragraphs
(3) through (6), respectively;
(2) by inserting after paragraph (1), the following:
``(2) Design and selection on and after july 1, 2021.--
``(A) In general.--Notwithstanding paragraph (1), for
the borrower of a loan made on or after July 1, 2021,
and for other borrowers subject to paragraph (7), the
Secretary shall offer a borrower of a loan made under
this part 2 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--
``(i) a fixed repayment plan described in
section 493E; or
``(ii) the income-based repayment plan under
section 493C(f).
``(B) Selection by the secretary.--If a borrower of a
loan made under this part on or after July 1, 2021,
does not select a repayment plan described in
subparagraph (A), the Secretary may provide the
borrower with a fixed repayment plan described in
section 493E.
``(C) Changes in selections.--Beginning on July 1,
2021, a borrower of a loan made under this part may
change the borrower's selection of a repayment plan in
accordance with paragraph (7) and under such terms and
conditions as may be established by the Secretary.'';
(3) in paragraph (6)(B), as redesignated, by striking ``an
income contingent repayment plan.'' and inserting ``the income-
based repayment plan under section 493C(f).''; and
(4) by adding at the end the following:
``(7) Borrowers of loans made before july 1, 2021.--A
borrower who is in repayment on a loan made under part B or
part D before July 1, 2021--
``(A) may choose to retain the repayment plan that
the borrower was enrolled in on the day before such
date;
``(B) may elect to--
``(i) enter the income-based repayment plan
under section 493C(f); or
``(ii) enter a fixed repayment plan described
in section 493E; and
``(C) after electing to leave a repayment plan other
than an income-based repayment plan described under
section 493C(f) or a fixed repayment plan described in
section 493E, shall not be permitted to re-elect a
repayment plan that is not an income-based repayment
plan under section 493C(f) or a fixed repayment plan
described in section 493E.
``(8) Notification and automatic enrollment procedures for
borrowers who are delinquent on loans.--
``(A) Authority to obtain income information.--In the
case of any borrower who is at least 60 days delinquent
on a covered loan, the Secretary may obtain such
information as is reasonably necessary regarding the
income and family size of the borrower (and the
borrower's spouse, if applicable).
``(B) Borrower notification.--With respect to each
borrower of a covered loan who is at least 60 days
delinquent on such loan and who has not been subject to
the procedures under this paragraph for such loan in
the preceding 120 days, the Secretary shall, as soon as
practicable after such 60-day delinquency, provide to
the borrower the following:
``(i) Notification that the borrower is at
least 60 days delinquent on at least 1 covered
loan, and a description of all delinquent
covered loans, nondelinquent covered loans, and
noncovered loans of the borrower.
``(ii) A brief description of the repayment
plans for which the borrower is eligible and
the covered loans and noncovered loans of the
borrower that may be eligible for such plans,
based on information available to the
Secretary.
``(iii) The amount of monthly payments for
the covered and noncovered loans under the
income-based repayment plan under section
493C(f) and the fixed repayment plan described
in section 493E, based on information available
to the Secretary, including, if the income
information of the borrower is available to the
Secretary under subparagraph (A)--
``(I) the amount of the monthly
payment under the income-based
repayment plan under section 493C(f)
and the fixed repayment plan described
in section 493E for which the borrower
is eligible for the borrower's covered
and noncovered loans, based on such
income information; and
``(II) the income, family size, tax
filing status, and tax year information
on which each monthly payment is based.
``(iv) Clear and simple instructions on how
to select the repayment plans.
``(v) An explanation that, in the case of a
borrower for whom adjusted gross income is
unavailable--
``(I) if the borrower selects to
repay the covered loans of such
borrower pursuant to the income-based
repayment plan under section 493C(f)
that defines discretionary income in
such a manner that an individual not
required under section 6012(a)(1) of
the Internal Revenue Code of 1986 to
file a return with respect to income
taxes imposed by subtitle A of such
Code may have a calculated monthly
payment greater than $0, the borrower
will be required to provide the
Secretary with other documentation of
income satisfactory to the Secretary,
which documentation the Secretary may
use to determine an appropriate
repayment schedule; and
``(II) if the borrower selects to
repay such loans pursuant to an income-
driven repayment plan that is not
described in subclause (I), the
borrower will not be required to
provide the Secretary with such other
documentation of income, and the
borrower will have a calculated monthly
payment of $0.
``(vi) An explanation that the Secretary
shall take the actions under subparagraph (C)
with respect to such borrower, if--
``(I) the borrower is 120 days
delinquent on 1 or more covered loans
and has not selected a new repayment
plan for the covered loans of the
borrower; and
``(II) in the case of such a borrower
whose repayment plan for the covered
loans of the borrower is not an income-
driven repayment plan described in
subparagraph (D) or (E) of paragraph
(1), the monthly payments under such
repayment plan are higher than such
monthly payments would be under the
income-based repayment plan under
section 493C(f).
``(vii) Instructions on updating the
information of the borrower obtained under
subparagraph (A).
``(C) Secretary's initial selection of a plan.--With
respect to each borrower described in subparagraph (B)
who has a repayment plan for the covered loans of the
borrower that meets the requirements of clause (vi)(II)
of subparagraph (B) and has not selected a new
repayment plan for such loans in accordance with the
notice received under such subparagraph, and who is at
least 120 days delinquent on such a loan, the Secretary
shall, as soon as practicable--
``(i) provide the borrower with the income-
based repayment plan under section 493C(f); and
``(ii) authorize the borrower to change the
Secretary's selection of a plan under this
clause to the fixed repayment plan described in
section 493E.
``(D) Opt-out.--A borrower of a covered loan shall
have the right to opt out of the procedures under this
paragraph.
``(E) Procedures.--The Secretary shall establish
procedures as are necessary to effectively implement
this paragraph.
``(9) Notification and automatic enrollment procedures for
borrowers who are rehabilitating defaulted loans.--
``(A) Authority to obtain income information.--In the
case of any borrower who is rehabilitating a covered
loan pursuant to section 428F(a), the Secretary may
obtain such information as is reasonably necessary
regarding the income and family size of the borrower
(and the borrower's spouse, if applicable).
``(B) Borrower notification.--Not later than 30 days
after a borrower makes the 6th payment required for the
loan rehabilitation described in subparagraph (A), the
Secretary shall notify the borrower of the process
under subparagraph (C) with respect to such loan.
``(C) Secretary's selection of plan.--With respect to
each borrower who has made the 9th payment required for
the loan rehabilitation described in subparagraph (A),
the Secretary shall, as soon as practicable after such
payment, provide the borrower with the income-based
repayment plan under section 493C(f), without regard to
whether the loan has been so rehabilitated.
``(D) Opt-out.--A borrower of a covered loan shall
have the right to opt out of the procedures under this
paragraph.
``(E) Procedures.--The Secretary shall establish
procedures as are necessary to effectively implement
this paragraph.
``(10) Definitions.--In this subsection:
``(A) Covered loan.--The term `covered loan' means--
``(i) a loan made under this part;
``(ii) a loan purchased under section 459A;
or
``(iii) a loan that has been assigned to the
Secretary under section 428(c)(8) or part E.
``(B) Noncovered loan.--The term `noncovered loan'
means a loan made, insured, or guaranteed under this
title that is not a covered loan.
``(11) Application of prepayment amounts.--
``(A) Requirement.--Notwithstanding any other
provision of this subsection or any other provision of
law--
``(i) with respect to loans made to an
eligible borrower under this part or part B,
which are held by the same holder and which
have different applicable rates of interest,
the holder of such loans shall, unless
otherwise requested by the borrower in writing,
apply the borrower's prepayment amount (within
the meaning of section 682.209(b) of title 34,
Code of Federal Regulations, or a successor
regulation) for one or more of such loans,
first toward the outstanding balance of
principal due on the loan with the highest
applicable rate of interest among such loans;
and
``(ii) except as provided in clause (i), with
respect to loans made to an eligible borrower
under this part or part B, which are held by
the same holder and which have the same
applicable rates of interest, the holder of
such loans shall, unless otherwise requested by
the borrower in writing, apply the borrower's
prepayment amount (within the meaning of
section 682.209(b) of title 34, Code of Federal
Regulations, or a successor regulation) for one
or more of such loans, first toward the
outstanding balance of principal due on the
loan with the highest principal balance among
such loans.
``(B) Eligible borrower.--
``(i) In general.--For purposes of this
paragraph, the term `eligible borrower' means a
borrower with no outstanding balance of fees,
including collection costs and authorized late
charges, due on any loan made under this part
or part B.
``(ii) Prepayment amounts.--A prepayment
amount (as described in subparagraph (A)) made
by a borrower who is not an eligible borrower
to a holder shall be applied first toward the
borrower's outstanding balance of fees,
including collection costs and authorized late
charges, due on any loan made under this part
or part B held by such holder.''.
(g) Application.--The amendments made by subsection (c)(4) shall--
(1) take effect as soon as the Secretary of Education
determines practicable after the Secretary finalizes the
procedures under section 9004, but not later than 2 years after
the date of enactment of this Act; and
(2) apply to all borrowers of covered loans (as defined in
section 455(d)(10) of the Higher Education Act of 1965, as
added by subsection (c)(4)).
(h) Maximum Repayment Period for Income-contingent Repayment.--
Section 455(e) of the Higher Education Act of 1965 (20 U.S.C. 1087e(e))
is further amended--
(1) in paragraph (7)(B)--
(A) by striking ``or'' at the end of clause (iv);
(B) by striking the period at the end of clause (v)
and inserting a semicolon; and
(C) by adding at the end the following:
``(vi) makes payments under the income-based
repayment plan under section 493C(f); or
``(vii) makes payments under the fixed
repayment plan described in section 493E.'';
and
``(8) Additional qualifying repayment plans.--A borrower
repaying a loan pursuant to income-contingent repayment under
this subsection may elect at any time to terminate repayment
under such repayment plan and repay such loan under the income-
based repayment plan under section 493C(f) or the fixed
repayment plan described in section 493E.''.
(i) Automatic Recertification of Income for Income-driven Repayment
Plans.--Section 455(e) of the Higher Education Act of 1965 (20 U.S.C.
1087e(e)) is amended--
(1) in paragraph (3)--
(A) by striking ``does not reasonably reflect the
borrower's current income'' and inserting ``whose
income has decreased relative to the adjusted gross
income available to the Secretary''; and
(B) by inserting ``, consistent with the procedures
established under paragraph (9)(B)(iv)'' before the
period at the end; and
(2) by adding at the end the following:
``(9) Automatic recertification.--
``(A) Definition.--In this paragraph, the term
`covered loan' has the meaning given the term in
subsection (d)(10).
``(B) In general.--Beginning as soon as the Secretary
determines practicable after the Secretary finalizes
the procedures under section 9004 of the College
Affordability Act, but not later than 2 years after the
date of enactment of such Act, the Secretary shall
establish and implement, with respect to any borrower
described in subparagraph (C), procedures to--
``(i) obtain (for each year of repayment and
without further action by the borrower) such
information as is reasonably necessary
regarding the income of such borrower (and the
borrower's spouse, if applicable), for the
purpose of determining the repayment obligation
of the borrower for such year, including
information with respect to the borrower's
family size in accordance with the procedures
under section 9004 of the College Affordability
Act, subject to clause (ii);
``(ii) allow the borrower, at any time, to
opt out of clause (i) and prevent the Secretary
from obtaining information under such clause
without further action by the borrower;
``(iii) provide the borrower with an
opportunity to update the information obtained
under clause (i) before the determination of
the annual repayment obligation of the
borrower; and
``(iv) in the case of a borrower for whom
adjusted gross income is unavailable--
``(I) if the borrower has selected to
repay the covered loans of such
borrower pursuant to an income
contingent repayment plan that defines
discretionary income in such a manner
that an individual not required under
section 6012(a)(1) of the Internal
Revenue Code of 1986 to file a return
with respect to income taxes imposed by
subtitle A of such Code may have a
calculated monthly payment greater than
$0, the borrower will be required to
provide the Secretary with other
documentation of income satisfactory to
the Secretary, which documentation the
Secretary may use to determine an
appropriate repayment schedule; or
``(II) if the borrower has selected
to repay such loans pursuant to an
income contingent repayment that is not
described in subclause (I), the
borrower will not be required to
provide the Secretary with such other
documentation of income, and the
borrower will have a calculated monthly
payment of $0.
``(C) Applicability.--Subparagraph (B) shall apply to
each borrower of a covered loan who, on or after the
date on which the Secretary establishes procedures
under such subparagraph, recertifies income and family
size under such plan.
``(D) Other requirements.--The procedures established
by the Secretary under this paragraph shall be
consistent with the requirements of paragraphs (1)
through (7), except as otherwise provided in this
paragraph.''.
(j) Deferment and Forbearance.--Section 455(f) of the Higher
Education Act of 1965 (20 U.S.C. 1087e(f)) is amended--
(1) in the subsection heading, by inserting at the end the
following: ``and Forbearance''; and
(2) by amending subparagraph (B) of paragraph (1) to read as
follows:
``(B) 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), beginning on or after the date of enactment of
the College Affordability Act--
``(i) for a deferment during a period
described in paragraph (2)(A)(i), shall accrue
and be capitalized or paid by the borrower; and
``(ii) for a deferment during a period
described in subparagraphs (B) through (D) of
paragraph (2), shall accrue but not be
capitalized.''; and
(3) by adding at the end the following:
``(6) Forbearance.--At the expiration of a period of
forbearance that begins on or after the date of enactment of
the College Affordability Act, interest may accrue but shall
not be capitalized on any loans made under this part.''.
(k) Separating Joint Consolidation Loans.--Section 455(g) of the
Higher Education Act of 1965 (20 U.S.C. 1087e(g)) is amended--
(1) by striking ``A borrower'' and inserting the following:
``(1) In general.--A borrower''; and
(2) by adding at the end the following:
``(2) Separating joint consolidation loans.--
``(A) In general.--A married couple, or 2 individuals
who were previously a married couple, and who received
a joint consolidation loan as such married couple under
subparagraph (C) of section 428C(a)(3) (as such
subparagraph was in effect on or before June 30, 2006),
may apply to the Secretary for each individual borrower
in the married couple (or previously married couple) to
receive a separate Federal Direct Consolidation Loan
under this part--
``(i) that shall--
``(I) unless the Secretary receives
notice of an agreement described in
subclause (II)(aa), be equal to the sum
of--
``(aa) the unpaid principal
and accrued unpaid interest of
the percentage of the joint
consolidation loan that, as of
the day before such joint
consolidation loan was made,
was attributable to the loans
of the individual borrower for
whom such separate
consolidation loan is being
made; and
``(bb) any other loans
described in section 428C(a)(4)
that such individual borrower
selects for consolidation under
this part; or
``(II) be equal to the sum of--
``(aa) the unpaid principal
and accrued unpaid interest of
the percentage of the joint
consolidation loan that, as of
the date of application under
this paragraph, the married
couple (or previously married
couple) agrees shall be
considered attributable to the
loans of the individual
borrower for whom such separate
consolidation loan is being
made; and
``(bb) any other loans
described in section 428C(a)(4)
that such individual borrower
selects for consolidation under
this part;
``(ii) the proceeds of which shall be paid by
the Secretary to the holder or holders--
``(I) of the joint consolidation loan
for the purpose of discharging the
liability on the percentage of such
joint consolidation loan described in
subclause (I)(aa) or (II)(aa) of clause
(i); and
``(II) of the loans selected for
consolidation under subclause (I)(bb)
or subclause (II)(bb) of clause (i) for
the purpose of discharging the
liability on such loans;
``(iii) except as otherwise provided in this
paragraph, that has the same terms and
conditions, and rate of interest as the joint
consolidation loan;
``(iv) for which any payment made under
section 455(m)(1)(A) on the joint consolidation
loan during a period in which the individual
borrower for whom such separate consolidation
loan is being made was employed in a public
service job described in section 455(m)(1)(B)
shall be treated as if such payment were made
on the portion of the separate consolidation
loan described in clause (i)(I)(aa); and
``(v) for which any payment made under any
repayment plan described in section 455(d)(1)
on the joint consolidation loan shall be
treated as if such payment were made on such
portion of such separate consolidation loan.
``(B) Application for separate direct consolidation
loan.--
``(i) Joint application.--Except as provided
in clause (ii), to receive separate
consolidation loans under subparagraph (A),
both individual borrowers in a married couple
(or previously married couple) shall jointly
apply under subparagraph (A).
``(ii) Separate application.--An individual
borrower in a married couple (or previously
married couple) may apply for a separate
consolidation loan under subparagraph (A)
separately and without regard to whether or
when the other individual borrower in the
married couple (or previously married couple)
applies under subparagraph (A), in a case in
which--
``(I) the individual borrower has
experienced from the other individual
borrower--
``(aa) domestic violence (as
defined in section 40002(a) of
the Violence Against Women Act
of 1994 (34 U.S.C. 12291(a)));
or
``(bb) economic abuse
(including behaviors that
control such borrower's ability
to acquire, use, and maintain
access to money, credit, or the
joint financial obligations of
both borrowers);
``(II) the individual borrower
certifies, on a form approved by the
Secretary, that such borrower is unable
to reasonably reach or access the loan
information of the other individual
borrower; or
``(III) the Secretary determines that
authorizing each individual borrower to
apply separately under subparagraph (A)
would be in the best fiscal interests
of the Federal Government.
``(C) Borrower eligibility.--Notwithstanding section
428C(a)(3)(A), the Secretary shall award a
consolidation loan under this part to each borrower
who--
``(i) applies for such loan under
subparagraph (A); and
``(ii) meets the requirements of
subparagraphs (A) and (B).
``(3) Consumer reporting agencies.--Upon obtaining a Federal
Direct Consolidation Loan that discharges the liability on a
defaulted loan made, insured, or guaranteed under this title,
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 any adverse item of
information relating to a delinquent or defaulted loan made,
insured, or guaranteed under this title from the borrower's
credit history.''.
(l) Repeal of Subsidized Loan Usage Limitation.--Subsection (q) of
section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e) is
repealed.
SEC. 4303. AMENDMENTS TO TERMS AND CONDITIONS OF PUBLIC SERVICE LOAN
FORGIVENESS.
Section 455(m) of the Higher Education Act of 1965 (20 U.S.C.
1087e(m)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A)--
(i) by striking ``or'' at the end of clause
(iii);
(ii) in clause (iv), by striking ``and''; and
(iii) by adding at the end the following:
``(v) payments under the income-based
repayment plan under section 493C(f); or
``(vi) payments under the fixed repayment
plan described in section 493E; and''; and
(B) in subparagraph (B), by striking ``(i) is
employed'' and all that follows through ``has been''
and inserting ``has been'';
(2) in paragraph (2), by adding at the end the following:
``In the case of a borrower who meets the requirements under
paragraph (1) for such cancellation, such cancellation shall
occur without further action by the borrower.'';
(3) by redesignating paragraphs (3) and (4) as paragraphs (6)
and (7), respectively; and
(4) by inserting after paragraph (2) the following:
``(3) Treatment of loans refinanced under sections 460a.--In
the case of an eligible Federal Direct Loan refinanced under
section 460A, any monthly payment pursuant to any repayment
plan listed in paragraph (1)(A) made on a loan, for which the
liability has been discharged by such refinanced loan and
without regard to whether such loan is an eligible Federal
Direct Loan, shall be treated as a monthly payment under
paragraph (1)(A) on the portion of such refinanced loan that is
attributable to such discharged loan.
``(4) On-line portal.--
``(A) Borrowers.--The Secretary shall ensure that
borrowers have access to an on-line portal that
provides each borrower who signs on to such portal with
the following:
``(i) Instructions on how to access the
database under paragraph (5) so that the
borrower can determine whether the borrower is
employed in a public service job.
``(ii) An identification of the loans of the
borrower that are eligible Federal Direct
Loans.
``(iii) With respect to each such eligible
Federal Direct Loan, the number of monthly
payments on such loan that qualify as a monthly
payment under paragraph (1)(A), and the
estimated number of monthly payments under
paragraph (1)(A) remaining on such loan before
the borrower may be eligible for loan
cancellation under this subsection.
``(iv) With respect to each loan of the
borrower that is not eligible for loan
cancellation under this subsection, an
explanation of why the loan is not so eligible
and instructions on how what, if anything, the
borrower may do to make the loan so eligible.
``(v) Instructions for the submission of any
forms associated with such loan cancellation,
and an ability for the borrower to use the
portal to electronically sign and submit such
forms.
``(vi) In the case of a borrower who disputes
a determination of the Secretary relating to
the entitlement of the borrower to loan
cancellation under paragraph (2)--
``(I) an ability for the borrower to
file a claim with the Secretary to
dispute such determination through the
portal; and
``(II) in the case of such a claim
that has been filed, the status of such
claim, for which updates shall be
provided not fewer than once every 90
days.
``(B) Employers.--The Secretary shall ensure that an
employer of a borrower has the ability to
electronically sign and submit any forms associated
with loan cancellation under this subsection.
``(C) Information.--The Secretary shall ensure that
any information provided through the on-line portal
described in this paragraph is up-to-date information.
``(5) Database of public service jobs.--
``(A) In general.--The Secretary, in consultation
with the Commissioner of the Internal Revenue Service,
shall establish and regularly update a database that
lists public service jobs.
``(B) Public availability.--The database established
under subparagraph (A) shall be made available on a
publicly accessible website of the Department in an
easily searchable format.'';
(5) in paragraph (6), as so redesignated--
(A) in subparagraph (A)--
(i) by inserting before the period at the end
the following: ``(including any Federal Direct
Stafford Loan, Federal Direct PLUS Loan,
Federal Direct Unsubsidized Stafford Loan, or
Federal Direct Consolidation Loan refinanced
under section 460A)'';
(ii) by striking ``The term'' and inserting
the following:
``(i) In general.--The term''; and
(iii) by adding at the end the following:
``(ii) Treatment of certain consolidation
loan payments.--In the case of an eligible
Federal Direct Loan that is a Federal Direct
Consolidation Loan made on or after the date of
enactment of the College Affordability Act, any
monthly payment pursuant to any repayment plan
listed in paragraph (1)(A) made on a loan, for
which the liability has been discharged by the
proceeds of such Federal Direct Consolidation
Loan and without regard to whether the loan is
an eligible Federal Direct Loan, shall be
treated as a monthly payment under paragraph
(1)(A) on the portion of such Federal Direct
Consolidation Loan that is attributable to such
discharged loan, except that in the case of a
subsequent consolidation loan, for purposes of
this clause--
``(I) any monthly payment made on the
first consolidation loan or any other
loan for which the liability has been
discharged by such subsequent
consolidation loan shall be applicable;
and
``(II) any monthly payment made on a
loan for which the liability has been
discharged by such first consolidation
loan shall not be applicable.'';
(B) in subparagraph (B)--
(i) in clause (i), by striking ``or'' at the
end;
(ii) in clause (ii)--
(I) by striking ``teaching as'' and
inserting the following: ``teaching--
``(I) as'';
(II) by striking ``, foreign language
faculty, and part-time faculty at
community colleges), as determined by
the Secretary.'' and inserting ``and
foreign language faculty), as
determined by the Secretary; or'';
(III) by adding at the end the
following:
``(II) as a part-time faculty member
or instructor who--
``(aa) teaches not less than
2 courses at an institution of
higher education (as defined in
section 101(a)), a
postsecondary vocational
institution (as defined in
section 102(c)), or a Tribal
College or University (as
defined in section 316(b));
``(bb) is not a student
enrolled at such institution;
and
``(cc) is not employed on a
full-time basis by any other
employer;''; and
(iii) by adding at the end the following:
``(iii) a full-time job as an employee or
manager of a farm or ranch that, with respect
to a fiscal year, has earnings of gross revenue
during such year from the sale of agricultural
products equal to or greater than--
``(I) in the case of 2019, $35,000;
or
``(II) in the case of any succeeding
year, the amount applicable under this
subparagraph for the previous year,
increased by the estimated percentage
change in the Consumer Price Index for
the most recent year preceding such
year; or
``(iv) a full-time job with a veterans or
military service organization as described in
paragraph (19) or (23) of section 501(c) of the
Internal Revenue Code, that does not engage in
partisan political campaign activity.''; and
(C) by adding at the end the following:
``(C) Full-time job as health care practitioner.--The
term `full-time professionals engaged in health care
practitioner occupations' includes an individual who--
``(i) has a full-time job as a health care
practitioner;
``(ii) provides medical services in such
full-time job at a nonprofit or public hospital
or other nonprofit or public health care
facility; and
``(iii) is prohibited from being employed
directly by such hospital or other health care
facility by State law.''; and
(6) in paragraph (10), as so redesignated, by striking
``section 428J, 428K, 428L, or 460'' and inserting ``section
428K or 428L''.
SEC. 4304. FEDERAL DIRECT PERKINS LOANS TERMS AND CONDITIONS.
Part D of title IV of the Higher Education Act of 1965 (20 U.S.C.
1087a et seq.) is amended by inserting after section 455 the following
new section:
``SEC. 455A. FEDERAL DIRECT PERKINS LOANS.
``(a) Designation of Loans.--Loans made to borrowers under this
section shall be known as `Federal Direct Perkins Loans'.
``(b) In General.--It is the purpose of this section to authorize
loans to be awarded by institutions of higher education through
agreements established under section 463(f). Unless otherwise specified
in this section, all terms and conditions and other requirements
applicable to Federal Direct Unsubsidized Stafford loans established
under section 455(a)(2)(D) shall apply to loans made pursuant to this
section.
``(c) Eligible Borrowers.--Any student meeting the requirements for
student eligibility under section 464(b) (including graduate and
professional students as defined in regulations promulgated by the
Secretary) shall be eligible to borrow a Federal Direct Perkins Loan,
provided the student attends an eligible institution with an agreement
with the Secretary under section 463(f), and the institution uses its
authority under that agreement to award the student a loan.
``(d) Loan Limits.--The annual and aggregate limits for loans under
this section shall be the same as those established under section 464,
and aggregate limits shall include loans made by institutions under
agreements under section 463(a).
``(e) Applicable Rates of Interest.--Loans made pursuant to this
section shall bear interest, on the unpaid principal balance of the
loan, at the rate of 5 percent per year.''.
SEC. 4305. COMMON MANUAL FOR LOAN SERVICERS.
Section 456(a)(2) of the Higher Education Act of 1965 (20 U.S.C.
1087f(a)(2)) is amended in the first sentence by inserting before the
period at the end the following: ``, including the applicable
procedures and policies described in the manual developed under section
493F''.
SEC. 4306. REFINANCING FFEL AND FEDERAL DIRECT LOANS.
Part D of title IV of the Higher Education Act of 1965 (20 U.S.C.
1087a et seq.) is amended by adding at the end the following:
``SEC. 460A. REFINANCING FFEL AND FEDERAL DIRECT LOANS.
``(a) In General.--The Secretary shall establish a program under
which the Secretary, upon the receipt of an application from a
qualified borrower, makes a loan under this part, in accordance with
the provisions of this section, in order to permit the borrower to
obtain the interest rate provided under subsection (c).
``(b) Refinancing Direct Loans.--
``(1) Federal direct loans.--Upon application of a qualified
borrower, the Secretary shall repay a Federal Direct Stafford
Loan, a Federal Direct Unsubsidized Stafford Loan, a Federal
Direct PLUS Loan, or a Federal Direct Consolidation Loan of the
qualified borrower, for which the first disbursement was made,
or the application for the consolidation loan was received,
before July 1, 2020, with the proceeds of a refinanced Federal
Direct Stafford Loan, a Federal Direct Unsubsidized Stafford
Loan, a Federal Direct PLUS Loan, or a Federal Direct
Consolidation Loan, respectively, issued to the borrower in an
amount equal to the sum of the unpaid principal, accrued unpaid
interest, and late charges of the original loan.
``(2) Refinancing ffel program loans as refinanced federal
direct loans.--Upon application of a qualified borrower for any
loan that was made, insured, or guaranteed under part B and for
which the first disbursement was made, or the application for
the consolidation loan was received, before July 1, 2010, the
Secretary shall make a loan under this part, in an amount equal
to the sum of the unpaid principal, accrued unpaid interest,
and late charges of the original loan to the borrower in
accordance with the following:
``(A) The Secretary shall pay the proceeds of such
loan to the eligible lender of the loan made, insured,
or guaranteed under part B, in order to discharge the
borrower from any remaining obligation to the lender
with respect to the original loan.
``(B) A loan made under this section that was
originally--
``(i) a loan originally made, insured, or
guaranteed under section 428 shall be a Federal
Direct Stafford Loan;
``(ii) a loan originally made, insured, or
guaranteed under section 428B shall be a
Federal Direct PLUS Loan;
``(iii) a loan originally made, insured, or
guaranteed under section 428H shall be a
Federal Direct Unsubsidized Stafford Loan; and
``(iv) a loan originally made, insured, or
guaranteed under section 428C shall be a
Federal Direct Consolidation Loan.
``(C) The interest rate for each loan made by the
Secretary under this paragraph shall be the rate
provided under subsection (c).
``(c) Interest Rates.--
``(1) In general.--The interest rate for the refinanced
Federal Direct Stafford Loans, Federal Direct Unsubsidized
Stafford Loans, Federal Direct PLUS Loans, and Federal Direct
Consolidation Loans, shall be a rate equal to--
``(A) in any case where the original loan was a loan
under section 428 or 428H, a Federal Direct Stafford
loan, or a Federal Direct Unsubsidized Stafford Loan,
that was issued to an undergraduate student, a rate
equal to the rate for Federal Direct Stafford Loans and
Federal Direct Unsubsidized Stafford Loans issued to
undergraduate students for the 12-month period
beginning on July 1, 2019, and ending on June 30, 2020;
``(B) in any case where the original loan was a loan
under section 428 or 428H, a Federal Direct Stafford
Loan, or a Federal Direct Unsubsidized Stafford Loan,
that was issued to a graduate or professional student,
a rate equal to the rate for Federal Direct
Unsubsidized Stafford Loans issued to graduate or
professional students for the 12-month period beginning
on July 1, 2019, and ending on June 30, 2020;
``(C) in any case where the original loan was a loan
under section 428B or a Federal Direct PLUS Loan, a
rate equal to the rate for Federal Direct PLUS Loans
for the 12-month period beginning on July 1, 2019, and
ending on June 30, 2020; and
``(D) in any case where the original loan was a loan
under section 428C or a Federal Direct Consolidation
Loan, a rate calculated in accordance with paragraph
(2).
``(2) Interest rates for consolidation loans.--
``(A) Method of calculation.--In order to determine
the interest rate for any refinanced Federal Direct
Consolidation Loan under paragraph (1)(D), the
Secretary shall--
``(i) determine each of the component loans
that were originally consolidated in the loan
under section 428C or the Federal Direct
Consolidation Loan, and calculate the
proportion of the unpaid principal balance of
the loan under section 428C or the Federal
Direct Consolidation Loan that each component
loan represents;
``(ii) use the proportions determined in
accordance with clause (i) and the interest
rate applicable for each component loan, as
determined under subparagraph (B), to calculate
the weighted average of the interest rates on
the loans consolidated into the loan under
section 428C or the Federal Direct
Consolidation Loan; and
``(iii) apply the weighted average calculated
under clause (ii) as the interest rate for the
refinanced Federal Direct Consolidation Loan.
``(B) Interest rates for component loans.--The
interest rates for the component loans of a loan made
under section 428C or a Federal Direct Consolidation
Loan shall be the following:
``(i) The interest rate for any loan under
section 428 or 428H, Federal Direct Stafford
Loan, or Federal Direct Unsubsidized Stafford
Loan issued to an undergraduate student shall
be a rate equal to the lesser of--
``(I) the rate for Federal Direct
Stafford Loans and Federal Direct
Unsubsidized Stafford Loans issued to
undergraduate students for the 12-month
period beginning on July 1, 2019, and
ending on June 30, 2020; or
``(II) the original interest rate of
the component loan.
``(ii) The interest rate for any loan under
section 428 or 428H, Federal Direct Stafford
Loan, or Federal Direct Unsubsidized Stafford
Loan issued to a graduate or professional
student shall be a rate equal to the lesser
of--
``(I) the rate for Federal Direct
Unsubsidized Stafford Loans issued to
graduate or professional students for
the 12-month period beginning on July
1, 2019, and ending on June 30, 2020;
or
``(II) the original interest rate of
the component loan.
``(iii) The interest rate for any loan under
section 428B or Federal Direct PLUS Loan shall
be a rate equal to the lesser of--
``(I) the rate for Federal Direct
PLUS Loans for the 12-month period
beginning on July 1, 2019, and ending
on June 30, 2020; or
``(II) the original interest rate of
the component loan.
``(iv) The interest rate for any component
loan that is a loan under section 428C or a
Federal Direct Consolidation Loan shall be the
weighted average of the interest rates that
would apply under this subparagraph for each
loan comprising the component consolidation
loan.
``(v) The interest rate for any eligible loan
that is a component of a loan made under
section 428C or a Federal Direct Consolidation
Loan and is not described in clauses (i)
through (iv) shall be the interest rate on the
original component loan.
``(3) Fixed rate.--The applicable rate of interest determined
under paragraph (1) for a refinanced loan under this section
shall be fixed for the period of the loan.
``(d) Terms and Conditions of Loans.--
``(1) In general.--A loan that is refinanced under this
section shall have the same terms and conditions as the
original loan, except as otherwise provided in this section.
``(2) No automatic extension of repayment period.--
Refinancing a loan under this section shall not result in the
extension of the duration of the repayment period of the loan,
and the borrower shall retain the same repayment term that was
in effect on the original loan. Nothing in this paragraph shall
be construed to prevent a borrower from electing a different
repayment plan at any time in accordance with section
455(d)(4).
``(e) Definition of Qualified Borrower.--
``(1) In general.--For purposes of this section, the term
`qualified borrower' means a borrower--
``(A) of a loan under this part or part B for which
the first disbursement was made, or the application for
a consolidation loan was received, before July 1, 2020;
and
``(B) who meets the eligibility requirements based on
income or debt-to-income ratio established by the
Secretary.
``(2) Income requirements.--The Secretary shall establish
eligibility requirements based on income or debt-to-income
ratio that take into consideration providing access to
refinancing under this section for borrowers with the greatest
financial need.
``(f) Notification to Borrowers.--The Secretary, in coordination with
the Director of the Bureau of Consumer Financial Protection, shall
undertake a campaign to alert borrowers of loans that are eligible for
refinancing under this section that the borrowers are eligible to apply
for such refinancing. The campaign shall include the following
activities:
``(1) Developing consumer information materials about the
availability of Federal student loan refinancing.
``(2) Requiring servicers of loans under this part or part B
to provide such consumer information to borrowers in a manner
determined appropriate by the Secretary, in consultation with
the Director of the Bureau of Consumer Financial Protection.''.
SEC. 4307. REFINANCING PRIVATE STUDENT LOANS.
Part D of title IV of the Higher Education Act of 1965 (20 U.S.C.
1087a et seq.) is amended by adding at the end the following:
``SEC. 460B. FEDERAL DIRECT REFINANCED PRIVATE LOAN PROGRAM.
``(a) Definitions.--In this section:
``(1) Eligible private education loan.--The term `eligible
private education loan' means a private education loan, as
defined in section 140(a) of the Truth in Lending Act (15
U.S.C. 1650(a)), that--
``(A) was disbursed to the borrower before July 1,
2020; and
``(B) was for the borrower's own postsecondary
educational expenses for an eligible program at an
institution of higher education participating in the
loan program under this part, as of the date that the
loan was disbursed.
``(2) Federal direct refinanced private loan.--The term
`Federal Direct Refinanced Private Loan' means a loan issued
under subsection (b)(1).
``(3) Private educational lender.--The term `private
educational lender' has the meaning given the term in section
140(a) of the Truth in Lending Act (15 U.S.C. 1650(a)).
``(4) Qualified borrower.--The term `qualified borrower'
means an individual who--
``(A) has an eligible private education loan;
``(B) has been current on payments on the eligible
private education loan for the 6 months prior to the
date of the qualified borrower's application for
refinancing under this section, and is in good standing
on the loan at the time of such application;
``(C) is not in default on the eligible private
education loan or on any loan made, insured, or
guaranteed under this part or part B or E; and
``(D) meets the eligibility requirements described in
subsection (b)(2).
``(b) Program Authorized.--
``(1) In general.--The Secretary, in consultation with the
Secretary of the Treasury, shall carry out a program under
which the Secretary, upon application by a qualified borrower
who has an eligible private education loan, shall issue such
borrower a loan under this part in accordance with the
following:
``(A) The loan issued under this program shall be in
an amount equal to the sum of the unpaid principal,
accrued unpaid interest, and late charges of the
private education loan.
``(B) The Secretary shall pay the proceeds of the
loan issued under this program to the private
educational lender of the private education loan, in
order to discharge the qualified borrower from any
remaining obligation to the lender with respect to the
original loan.
``(C) The Secretary shall require that the qualified
borrower undergo loan counseling that provides all of
the information and counseling required under clause
(i) and clauses (iv) through (xiv) of section
485(b)(1)(A) (as amended by the College Affordability
Act) before the loan is refinanced in accordance with
this section, and before the proceeds of such loan are
paid to the private educational lender.
``(D) The Secretary shall issue the loan as a Federal
Direct Refinanced Private Loan, which shall have the
same terms, conditions, and benefits as a Federal
Direct Unsubsidized Stafford Loan, except as otherwise
provided in this section.
``(2) Borrower eligibility.--The Secretary, in consultation
with the Secretary of the Treasury and the Director of the
Bureau of Consumer Financial Protection, shall establish
eligibility requirements--
``(A) based on income or debt-to-income ratio that
take into consideration providing access to refinancing
under this section for borrowers with the greatest
financial need;
``(B) to ensure eligibility only for borrowers in
good standing;
``(C) to minimize inequities between Federal Direct
Refinanced Private Loans and other Federal student
loans;
``(D) to preclude windfall profits for private
educational lenders; and
``(E) to ensure full access to the program authorized
in this subsection for borrowers with private loans who
otherwise meet the criteria established in accordance
with subparagraphs (A) and (B).
``(c) Interest Rate.--
``(1) In general.--The interest rate for a Federal Direct
Refinanced Private Loan is--
``(A) in the case of a Federal Direct Refinanced
Private Loan for a private education loan originally
issued for undergraduate postsecondary educational
expenses, a rate equal to the rate for Federal Direct
Stafford Loans and Federal Direct Unsubsidized Stafford
Loans issued to undergraduate students for the 12-month
period beginning on July 1, 2019, and ending on June
30, 2020; and
``(B) in the case of a Federal Direct Refinanced
Private Loan for a private education loan originally
issued for graduate or professional degree
postsecondary educational expenses, a rate equal to the
rate for Federal Direct Unsubsidized Stafford Loans
issued to graduate or professional students for the 12-
month period beginning on July 1, 2019, and ending on
June 30, 2020.
``(2) Combined undergraduate and graduate study loans.--If a
Federal Direct Refinanced Private Loan is for a private
education loan originally issued for both undergraduate and
graduate or professional postsecondary educational expenses,
the interest rate shall be a rate equal to the rate for Federal
Direct PLUS Loans for the 12-month period beginning on July 1,
2019, and ending on June 30, 2020.
``(3) Fixed rate.--The applicable rate of interest determined
under this subsection for a Federal Direct Refinanced Private
Loan shall be fixed for the period of the loan.
``(d) No Inclusion in Aggregate Limits.--The amount of a Federal
Direct Refinanced Private Loan, or a Federal Direct Consolidated Loan
to the extent such loan was used to repay a Federal Direct Refinanced
Private Loan, shall not be included in calculating a borrower's annual
or aggregate loan limits under section 428 or 428H.
``(e) No Eligibility for Service-Related Repayment.--A Federal Direct
Refinanced Private Loan, or any Federal Direct Consolidation Loan to
the extent such loan was used to repay a Federal Direct Refinanced
Private Loan, shall not be eligible for any loan repayment or loan
forgiveness program under section 428K, 428L, or 460 or for the
repayment plan for public service employees under section 455(m).
``(f) Private Educational Lender Reporting Requirement.--
``(1) Reporting required.--The Secretary, in consultation
with the Secretary of the Treasury and the Director of the
Bureau of Consumer Financial Protection, shall establish a
requirement that private educational lenders report the data
described in paragraph (2) to the Secretary, to Congress, to
the Secretary of the Treasury, and to the Director of the
Bureau of Consumer Financial Protection, in order to allow for
an assessment of the private education loan market.
``(2) Contents of reporting.--The data that private
educational lenders shall report in accordance with paragraph
(1) shall include each of the following about private education
loans (as defined in section 140(a) of the Truth in Lending Act
(15 U.S.C. 1650(a))):
``(A) The total amount of private education loan debt
the lender holds.
``(B) The total number of private education loan
borrowers the lender serves.
``(C) The average interest rate on the outstanding
private education loan debt held by the lender.
``(D) The proportion of private education loan
borrowers who are in default on a loan held by the
lender.
``(E) The proportion of the outstanding private
education loan volume held by the lender that is in
default.
``(F) The proportions of outstanding private
education loan borrowers who are 30, 60, and 90 days
delinquent.
``(G) The proportions of outstanding private
education loan volume that is 30, 60, and 90 days
delinquent.
``(g) Notification to Borrowers.--The Secretary, in coordination with
the Secretary of the Treasury and the Director of the Bureau of
Consumer Financial Protection, shall undertake a campaign to alert
borrowers about the availability of private student loan refinancing
under this section.''.
PART E--FEDERAL PERKINS LOANS
SEC. 4401. AUTHORIZATION OF APPROPRIATIONS FOR PERKINS LOAN.
Section 461(b) of the Higher Education Act of 1965 (20 U.S.C.
1087aa(b)) is amended--
(1) by striking ``(1) In general.--'';
(2) by striking paragraphs (2) and (3); and
(3) by redesignating subparagraphs (A), (B), and (C) as
paragraphs (1), (2), and (3), respectively.
SEC. 4402. ALLOCATION OF FUNDS FOR PERKINS LOAN.
Section 462 of the Higher Education Act of 1965 (20 U.S.C. 1087bb) is
amended--
(1) in subsection (a)(1), by striking ``From'' and inserting
``For any fiscal year before fiscal year 2021, from''; and
(2) in subsection (i)(1), by striking ``for any fiscal
year,'' and inserting ``for any fiscal year before fiscal year
2021,''.
SEC. 4403. FEDERAL DIRECT PERKINS LOAN ALLOCATION.
Part E of title IV of the Higher Education Act of 1965 (20 U.S.C.
1087aa et seq.) is amended by inserting after section 462 the
following:
``SEC. 462A. FEDERAL DIRECT PERKINS LOAN ALLOCATION.
``(a) Purpose.--The purpose of this section is to make funds
available, in accordance with section 452, to each participating
institution in an amount not to exceed the sum of an institution's
allocation of funds under subsection (b)(1)(B) to enable each such
participating institution to make Federal Direct Perkins Loans under
section 455A to eligible students at such participating institution.
``(b) Available Direct Perkins Annual Loan Authority.--
``(1) Availability and allocations.--
``(A) In general.--There are hereby made available,
from funds made available for loans made under part D,
not to exceed $2,400,000,000 of annual loan authority
for award year 2021-2022 and each succeeding award
year, to be allocated as provided in subparagraph (B).
``(B) Allocation formula.--Except as provided in
paragraphs (2) and (3), for each award year, the
Secretary shall allocate an amount to each
participating institution that is equal to--
``(i) 100 percent of the institutional
undergraduate student need (as determined under
subparagraph (C)) for the preceding award year;
and
``(ii) 25 percent of the institutional
graduate student need (as determined under
subparagraph (D)) for the preceding award year.
``(C) Institutional undergraduate student need
calculation.--The institutional undergraduate student
need for a participating institution for an award year
shall be equal to the sum of the following:
``(i) An amount equal to 50 percent of the
amount that bears the same proportion to the
amount made available under subparagraph (A)
for such award year as the total amount of
Federal Pell Grant funds awarded at the
participating institution for the preceding
award year bears to the total amount of Federal
Pell Grant funds awarded at all participating
institutions for the preceding award year.
``(ii) An amount equal to 50 percent of the
amount that bears the same proportion to the
amount made available under subparagraph (A)
for such award year as the total amount of the
undergraduate student need at the participating
institution for the preceding award year bears
to the total amount of undergraduate student
need at all participating institutions for the
preceding award year.
``(D) Institutional graduate student need
calculation.--The institutional graduate student need
for a participating institution for an award year shall
be equal to the amount that bears the same proportion
to the amount made available under subparagraph (A) for
such award year as the total amount of the graduate
student need at the participating institution for the
preceding award year bears to the total amount of
graduate student need at all participating institutions
for the preceding award year.
``(2) Required minimum amount.--In no case shall the sum of a
participating institution's allocation of loan authority
computed under paragraph (1)(B) be less than the average of the
institution's total principal amount of loans made under this
part for each of the academic years 2012-2013 through 2016-
2017.
``(3) Additional adjustments.--If the Secretary determines
that the sum of a participating institution's allocation of
loan authority under paragraph (1)(B) is below the minimum
amount required under paragraph (3), the Secretary shall--
``(A) for each participating institution for which
the minimum amount under paragraph (3) is not
satisfied, increase the amount of such sum to the
amount of the required minimum under such paragraph;
and
``(B) ratably reduce the amount of the sum of such
loan authority of all participating institutions not
described in subparagraph (A).
``(c) Definitions.--In this section:
``(1) Annual loan authority.--The term `annual loan
authority' means the total original principal amount of loans--
``(A) made available for loans under part D; and
``(B) that may be allocated under subsection (b)(1)
for an award year to participating institutions to make
Federal Direct Perkins Loans under section 455A.
``(2) Average cost of attendance.--The term `average cost of
attendance' has the meaning given the term in section
4202(e)(5)(B).
``(3) Graduate student need.--The term `graduate student
need' means, with respect to a graduate student for an award
year, the lesser of the following:
``(A) The amount equal to (except the amount computed
by this subparagraph shall not be less than zero)--
``(i) the average cost of attendance for the
preceding award year, minus
``(ii) such graduate student's expected
family contribution (computed in accordance
with part F of this title) for the preceding
award year.
``(B) The total annual loan limit for a Federal
Direct Unsubsidized Stafford Loan.
``(4) Undergraduate student need.--The term `undergraduate
student need' means, with respect to an undergraduate student
for an award year, the lesser of the following:
``(A) 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
award year, minus
``(ii) such undergraduate student's expected
family contribution (computed in accordance
with part F of this title) for the preceding
award year.
``(B) The total loan annual limit for a Federal
Direct Unsubsidized Stafford Loan and a Federal Direct
Loan.
``(5) Participating institution.--The term `participating
institution' means an institution of higher education--
``(A) that has an agreement under section 463(f);
``(B) that participates in the Federal Direct
Stafford Loan Program; and
``(C) is not an institution described in section
102(a)(1)(C).''.
SEC. 4404. AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION FOR
PURPOSES OF THE PERKINS LOAN PROGRAM.
(a) Amendments.--Section 463 of the Higher Education Act of 1965 (20
U.S.C. 1087cc) is amended--
(1) in subsection (a)--
(A) in the heading, by inserting ``for Loans Made
Before July 1, 2021'' after ``Agreements'';
(B) in paragraph (3)(A), by inserting ``before July
1, 2021'' after ``students'';
(C) in paragraph (4), by striking ``thereon--'' and
all that follows and inserting ``thereon, if the
institution has 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 require
the institution to assign such note or agreement to the
Secretary, without recompense;''; and
(D) in paragraph (5), by striking ``and the Secretary
shall apportion'' and all that follows through ``in
accordance with section 462'' and inserting ``and the
Secretary shall return a portion of funds from loan
repayments to the institution as specified in section
466(b)'';
(2) by amending subsection (b) to read as follows:
``(b) Administrative Expenses.--An institution that has entered into
an agreement under subsection (a) shall be entitled, for each fiscal
year during which it services student loans from a student loan fund
established under such agreement, to a payment in lieu of reimbursement
for its expenses in servicing student loans made before July 1, 2021.
Such payment shall be equal to 0.50 percent of the outstanding
principal and interest balance of such loans being serviced by the
institution as of September 30 of each fiscal year.''; and
(3) by adding at the end the following:
``(f) Contents of Agreements for Loans Made on or After July 1,
2021.--An agreement with any institution of higher education that
elects to participate in the Federal Direct Perkins Loan program under
section 455A shall provide--
``(1) for the establishment and maintenance of a Direct
Perkins Loan program at the institution under which the
institution shall use annual loan authority allocated under
section 462A to make loans to eligible students attending the
institution;
``(2) that the institution, unless otherwise specified in
this subsection, shall operate the program consistent with the
requirements of agreements established under section 454; and
``(3) that if the institution ceases to be eligible to
receive Federal loans under this title based on loss of
eligibility under section 435(a), due to a high adjusted cohort
default rate, the Secretary shall suspend or terminate the
institution's eligibility to make Federal Direct Perkins Loans
under section 455A unless and until the institution would
qualify for a resumption of eligible institution status under
such section 435(a).''.
(b) Effective Date.--The amendments made by paragraph (2) of
subsection (a) shall take effect on October 1, 2021.
SEC. 4405. STUDENT LOAN INFORMATION BY ELIGIBLE INSTITUTIONS FOR
PURPOSES OF THE PERKINS LOAN PROGRAM.
Section 463A of the Higher Education Act of 1965 (20 U.S.C. 1087cc-1)
is amended--
(1) in subsection (a), by striking ``Each institution'' and
inserting ``For loans made before July 1, 2021, each
institution''; and
(2) in subsection (b), by striking ``Each institution'' and
inserting ``For loans made before July 1, 2021, each
institution''.
SEC. 4406. TERMS OF LOANS FOR PURPOSES OF THE PERKINS LOAN PROGRAM.
Section 464 of the Higher Education Act of 1965 (20 U.S.C. 1087dd) is
amended--
(1) in subsection (a)(1), by striking ``section 463'' and
inserting ``section 463(a)'';
(2) in subsection (b)--
(A) in paragraph (1), by inserting ``made before July
1, 2021,'' after ``A loan''; and
(B) in paragraph (2), by inserting ``(with respect to
a loan made before July 1, 2021) or an allocation under
section 462A (with respect to a loan made on or after
July 1, 2021)'' after ``capital contribution under
section 462'';
(3) in subsection (c)--
(A) in paragraph (1), by inserting ``made before July
1, 2021,'' after ``a loan'';
(B) in paragraph (2)--
(i) in subparagraph (A), by inserting ``made
before July 1, 2021,'' after ``any loan''; and
(ii) in subparagraph (B), by inserting ``made
before July 1, 2021,'' after ``any loan'';
(C) in paragraph (3)(B), by inserting ``for a loan
made before July 1, 2021,'' after ``Secretary, the
repayment period'';
(D) in paragraph (4), by inserting ``before July 1,
2021,'' after ``for a loan made'';
(E) in paragraph (5), by striking ``The institution''
and inserting ``For loans made before July 1, 2021, the
institution''; and
(F) in paragraph (6), by inserting ``made before July
1, 2021,'' after ``of loans'';
(4) in subsection (d), by inserting ``made before July 1,
2021,'' before ``from the student loan fund'';
(5) in subsection (e), by inserting ``with respect to loans
made before July 1, 2021, and'' before ``as documented in
accordance with paragraph (2),'';
(6) in subsection (f)(1), by inserting ``before July 1,
2021'' after ``this part'';
(7) in subsection (g)(1), by inserting ``and before July 1,
2021,'' after ``January 1, 1986,'';
(8) in subsection (h)--
(A) in paragraph (1)(A) by inserting ``before July 1,
2021,'' after ``made under this part''; and
(B) in paragraph (2), by inserting ``before July 1,
2021,'' after ``under this part''; and
(9) in subsection (j)(1), by inserting ``before July 1,
2021,'' after ``under this part''.
SEC. 4407. REIMBURSEMENT FOR CANCELLATION OF PERKINS LOANS FOR CERTAIN
PUBLIC SERVICE.
Section 465 of the Higher Education Act of 1965 (20 U.S.C. 1087ee) is
amended--
(1) in subsection (a), by inserting ``and before July 1,
2021,'' after ``June 30, 1972,''; and
(2) by amending subsection (b) to read as follows:
``(b) Reimbursement for Cancellations.--
``(1) Assigned loans.--In the case of loans made under this
part before July 1, 2021, and that are assigned to the
Secretary, the Secretary shall, from amounts repaid each
quarter on assigned Perkins Loans made before July 1, 2021, pay
to each institution for each quarter an amount equal to--
``(A) the aggregate of the amounts of loans from its
student loan fund that are canceled pursuant to this
section for such quarter, minus
``(B) an amount equal to the aggregate of the amounts
of any such loans so canceled that were made from
Federal capital contributions to its student loan fund.
``(2) Retained loans.--In the case of loans made under this
part before July 1, 2021, and that are retained by the
institution for servicing, the institution shall deduct from
loan repayments owed to the Secretary under section 466, an
amount equal to--
``(A) the aggregate of the amounts of loans from its
student loan fund that are canceled pursuant to this
section for such quarter, minus
``(B) an amount equal to the aggregate of the amounts
of any such loans so canceled that were made from
Federal capital contributions to its student loan
fund.''.
SEC. 4408. DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS FOR PURPOSES
OF THE PERKINS LOAN PROGRAM.
Section 466 of the Higher Education Act of 1965 (20 U.S.C. 1087ff) is
amended to read as follows:
``SEC. 466. DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS.
``(a) Capital Distribution.--Beginning July 1, 2021, 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) For the quarter beginning July 1, 2021, the Secretary
shall first be paid, no later than September 30, 2021, an
amount that bears the same ratio to the cash balance in such
fund at the close of June 30, 2021, as the total amount of the
Federal capital contributions to such fund by the Secretary
under this part bears to--
``(A) the sum of such Federal contributions and the
institution's capital contributions to such fund, less
``(B) an amount equal to--
``(i) the institution's outstanding
administrative costs as calculated under
section 463(b);
``(ii) outstanding charges assessed under
section 464(c)(1)(H); and
``(iii) outstanding loan cancellation costs
incurred under section 465.
``(2) At the end of each quarter subsequent to the quarter
ending September 30, 2021, the Secretary shall first be paid an
amount that bears the same ratio to the cash balance in such
fund at the close of the preceding quarter, as the total amount
of the Federal capital contributions to such fund by the
Secretary under this part bears to--
``(A) the sum of such Federal contributions and the
institution's capital contributions to such fund, less
``(B) an amount equal to--
``(i) the institution's administrative costs
incurred for that quarter as calculated under
section 463(b);
``(ii) charges assessed for that quarter
under section 464(c)(1)(H); and
``(iii) loan cancellation costs incurred for
that quarter under section 465.
``(3)(A) The Secretary shall calculate the amounts due to the
Secretary under paragraph (1) (adjusted in accordance with
subparagraph (B), as appropriate) and paragraph (2) and shall
promptly inform the institution of such calculated amounts.
``(B) In the event that, prior to the date of enactment of
the College Affordability Act, an institution made a short-
term, interest-free loan to the institution's student loan fund
established under this part in anticipation of collections or
receipt of Federal capital contributions, and the institution
demonstrates to the Secretary, on or before June 30, 2021, that
such loan will still be outstanding after June 30, 2021, the
Secretary shall subtract the amount of such outstanding loan
from the cash balance of the institution's student loan fund
that is used to calculate the amount due to the Secretary under
paragraph (1). An adjustment of an amount due to the Secretary
under this subparagraph shall be made by the Secretary on a
case-by-case basis.
``(4) Any remaining balance at the end of a quarter after a
payment under paragraph (1) or (2) shall be retained by the
institution for use at its discretion. Any balance so retained
shall be withdrawn from the student loan fund and shall not be
counted in calculating amounts owed to the Secretary for
subsequent quarters.
``(5) Each institution shall make the quarterly payments to
the Secretary described in paragraph (2) until all outstanding
Federal Perkins Loans at that institution have been assigned to
the Secretary and there are no funds remaining in the
institution's student loan fund.
``(6) In the event that the institution's administrative
costs, charges, and cancellation costs described in paragraph
(2) for a quarter exceed the amount owed to the Secretary under
paragraphs (1) and (2) for that quarter, no payment shall be
due to the Secretary from the institution for that quarter and
the Secretary shall pay the institution, from funds realized
from the collection of assigned Federal Perkins Loans made
before July 1, 2021, an amount that, when combined with the
amount retained by the institution under paragraphs (1) and
(2), equals the full amount of such administrative costs,
charges, and cancellation costs.
``(b) Assignment of Outstanding Loans.--Beginning July 1, 2021, an
institution of higher education may assign all outstanding loans made
under this part before July 1, 2021, to the Secretary, consistent with
the requirements of section 463(a)(5). In collecting loans so assigned,
the Secretary shall pay an institution an amount that constitutes the
same fraction of such collections as the fraction of the cash balance
that the institution retains under subsection (a)(2), but determining
such fraction without regard to subparagraph (B)(i) of such
subsection.''.
PART F--NEED ANALYSIS
SEC. 4501. AMENDMENTS TO FAMILY CONTRIBUTION.
Section 473(b) of the Higher Education Act of 1965 (20 U.S.C. 1087mm)
is amended--
(1) in paragraph (1), by striking ``academic year'' and
inserting ``award year''; and
(2) in paragraph (2)--
(A) by striking ``academic year'' each place it
appears and inserting ``award year'';
(B) by striking ``academic years'' and inserting
``award years'';
(C) in subparagraph (B), by striking ``parent or
guardian'' and inserting ``parent, guardian, or
spouse''; and
(D) in subparagraph (C), by inserting ``in the case
of a student whose parent or guardian is described in
clause (i) or (ii) of subparagraph (B),'' before
``who''.
SEC. 4502. AMENDMENTS TO DATA ELEMENTS WHEN DETERMINING THE EXPECTED
FAMILY CONTRIBUTION.
Section 474(b) of the Higher Education Act of 1965 (20 U.S.C.
1087nn(b)) is amended in paragraph (4), by inserting before ``the net''
the following: ``only in the case of a pathway three applicant,''.
SEC. 4503. AMENDMENTS TO FAMILY CONTRIBUTION FOR DEPENDENT STUDENTS.
(a) Dependent Students.--Section 475 of the Higher Education Act of
1965 (20 U.S.C. 1087oo) is amended--
(1) in subsection (a)(3), by inserting before ``the student''
the following: ``only in the case of a pathway three
applicant,'';
(2) in subsection (b)(1)(B), by inserting before ``the
parents''' the following: ``only in the case of a pathway three
applicant,''; and
(3) in subsection (b)(3), by striking ``award period'' and
inserting ``award year''.
(b) Increasing Support for Working Dependent Students.--Section
475(g)(2)(D) of the Higher Education Act of 1965 (20 U.S.C.
1087oo(g)(2)(D)) is amended to read as follows:
``(D) an income protection allowance (or a successor
amount prescribed by the Secretary under section 478)
of $9,230 for award year 2021-2022;''.
SEC. 4504. AMENDMENTS TO FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS
WITHOUT DEPENDENTS OTHER THAN A SPOUSE.
(a) Independent Students Without Dependents Other Than a Spouse.--
Section 476(a)(1)(B) of the Higher Education Act of 1965 (20 U.S.C.
1087pp(a)(1)(B)) is amended by inserting before ``the family's
contribution'' the following: ``only in the case of a pathway three
applicant,''.
(b) Increasing Support for Working Independent Students Without
Dependents Other Than a Spouse.--Section 476 of the Higher Education
Act of 1965 (20 U.S.C. 1087pp) is further amended--
(1) in subsection (a)(2), by striking ``award period'' and
inserting ``award year''; and
(2) by amending subsection (b)(1)(A)(iv) to read as follows:
``(iv) an income protection allowance (or a
successor amount prescribed by the Secretary
under section 478)--
``(I) for single or separated
students, or married students where
both are enrolled pursuant to
subsection (a)(2), of $14,360 for award
year 2021-2022; and
``(II) for married students where 1
is enrolled pursuant to subsection
(a)(2), of $23,030 for award year 2021-
2022;''.
SEC. 4505. AMENDMENTS TO FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS
WITH DEPENDENTS OTHER THAN A SPOUSE.
(a) Independent Students With Dependents Other Than a Spouse.--
Section 477(a)(1)(B) of the Higher Education Act of 1965 (20 U.S.C.
1087qq(a)(1)(B)) is amended by inserting before ``the family's
contribution'' the following: ``only in the case of a pathway three
applicant,''.
(b) Increasing Support for Working Independent Students With
Dependents Other Than a Spouse.--Section 477 of the Higher Education
Act of 1965 (20 U.S.C. 1087qq) is amended--
(1) in subsection (a)(3), by striking ``award period'' and
inserting ``award year''; and
(2) by amending subsection (b)(4) to read as follows:
``(4) Income protection allowance.--The income protection
allowance is determined by the following table (or a successor
table prescribed by the Secretary under section 478), for award
year 2021-2022:
``Income Protection Allowance
----------------------------------------------------------------------------------------------------------------
Family Size Number in College
----------------------------------------------------------------------------------------------------------------
For each
(including 1 2 3 4 5 additional
student) subtract:
----------------------------------------------------------------------------------------------------------------
2 $36,370 $30,160 $6,180
3 45,290 39,100 $32,890
4 55,920 49,720 43,540 $37,300
5 65,990 59,750 53,570 47,360 $41,180
6 77,170 70,960 64,790 58,540 52,350
For each
additional
add: 8,710 ''.
----------------------------------------------------------------------------------------------------------------
SEC. 4506. INSTITUTIONAL CALCULATIONS FOR OFF-CAMPUS ROOM AND BOARD.
(a) Authority to Prescribe Regulations.--Section 478(a) of the Higher
Education Act of 1965 (20 U.S.C. 1087rr(a)) is amended--
(1) in paragraph (1)--
(A) by striking ``or'' at the end of subparagraph
(A);
(B) by striking the period at the end of subparagraph
(B) and inserting ``; or''; and
(C) by adding at the end the following:
``(C) to prescribe--
``(i) one methodology that institutions of higher
education (other than institutions that receive a
waiver under clause (ii)) shall use, or a selection of
two or more methodologies from which such institutions
shall select and use a methodology, to determine the
allowance for room and board costs incurred by students
described in subparagraph (A) of section 472(3) and by
students described in subparagraph (D) of such section,
which shall--
``(I) ensure that each such allowance
determination is sufficient to cover reasonable
room and board costs incurred by the students
for whom such allowance is being determined;
and
``(II) include the sources of information
that institutions shall use in making each such
allowance determination; and
``(ii) a process for granting institutions of higher
education a waiver from the requirements of clause (i),
including--
``(I) a requirement that each institution of
higher education seeking such a waiver submit
to the Secretary--
``(aa) a description of the
methodology that the institution will
use for each allowance determination
described in clause (i);
``(bb) an assurance that each such
allowance determination meets the
requirements of clause (i)(I); and
``(cc) a demonstration that the
institution will use reliable sources
of information for each such allowance
determination; and
``(II) a requirement that each institution of
higher education that receives such a waiver
publicly disclose on the website of the
institution the methodology and sources of
information used by the institution for each
allowance determination described in clause
(i).''; and
(2) by adding at the end the following:
``(3) Any regulation proposed by the Secretary under paragraph (1)(C)
of this subsection shall not be subject to the requirements of
paragraph (2).''.
(b) Requirement to Prescribe Regulations.--Not later than 18 months
after the date of enactment of this Act, the Secretary of Education
shall issue regulations that meet the requirements of subparagraph (C)
of section 478(a)(1) of the Higher Education Act of 1965 (20 U.S.C.
1087rr(a)(1)), as added by subsection (a).
SEC. 4507. UPDATED TABLES AND AMOUNTS TO NEED ANALYSIS.
Section 478 of the Higher Education Act of 1965 (20 U.S.C. 1087rr) is
further amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking subparagraphs (A)
and (B) and inserting the following:
``(A) In general.--For each award year after award
year 2021-2022, the Secretary shall publish in the
Federal Register a revised table of income protection
allowances for the purpose of sections 475(c)(4) and
477(b)(4), subject to subparagraphs (B) and (C).
``(B) Table for independent students.--For each award
year after award year 2021-2022, the Secretary shall
develop the revised table of income protection
allowances by increasing each of the dollar amounts
contained in the table of income protection allowances
under section 477(b)(4) by a percentage equal to the
estimated percentage increase in the Consumer Price
Index (as determined by the Secretary for the most
recent calendar year ending prior to the beginning of
the award year for which the determination is being
made), and rounding the result to the nearest $10.'';
and
(B) in paragraph (2)--
(i) in the first sentence, by striking
``academic year after academic year 2007-2008''
and inserting ``award year after award year
2021-2022''; and
(ii) in the second sentence, by striking
``shall be developed'' and all that follows
through the period at the end and inserting
``shall be developed for each award year after
award year 2021-2022, by increasing each of the
dollar amounts contained in such section for
award year 2021-2022 by a percentage equal to
the estimated percentage increase in the
Consumer Price Index (as determined by the
Secretary for the most recent calendar year
ending prior to the beginning of the award year
for which the determination is being made), and
rounding the result to the nearest $10.''; and
(2) in subsection (e)(1), by striking ``academic year'' and
inserting ``award year''.
SEC. 4508. ZERO EXPECTED FAMILY CONTRIBUTION.
Section 479 of the Higher Education Act of 1965 (20 U.S.C. 1087ss) is
amended to read as follows:
``SEC. 479. ZERO EXPECTED FAMILY CONTRIBUTION.
``(a) In General.--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)(i) the student's parents are not required to
file--
``(I) a Federal income tax return; or
``(II) with respect to Internal Revenue
Service Form 1040, any of the following forms:
Schedule A, Schedule B, Schedule C, Schedule C-
EZ, Schedule D, Schedule E, Schedule F,
Schedule H, Schedule J, and Schedule SE; and
``(ii) the sum of the adjusted gross income of the
parents is less than or equal to $37,000; or
``(B) the student's parents, or the student, received
a benefit at some time during the previous 24-month
period under a means-tested Federal benefit program;
``(2) in the case of an independent student without regard to
whether the student has dependents other than a spouse--
``(A)(i) the student (and the student's spouse, if
any) certifies that the student (and the student's
spouse, if any)--
``(I) is not required to file a Federal
income tax return; or
``(II) with respect to Internal Revenue
Service Form 1040, any of the following forms:
Schedule A, Schedule B, Schedule C, Schedule C-
EZ, Schedule D, Schedule E, Schedule F,
Schedule H, Schedule J, and Schedule SE; and
``(ii) the sum of the adjusted gross income of the
student and spouse (if appropriate) is less than or
equal to $37,000; or
``(B) the student received a benefit at some time
during the previous 24-month period under a means-
tested Federal benefit program; or
``(3) the applicant is a pathway one applicant under section
483(a)(13).
``(b) Earned Income Credit.--An individual is not required to qualify
or file for the earned income credit in order to be eligible under this
section.
``(c) Adjustments.--The Secretary shall annually adjust the income
level necessary to qualify an applicant for the zero expected family
contribution. The income level shall be annually increased by the
estimated percentage change in the Consumer Price Index, as defined in
section 478(f), for the most recent calendar year ending prior to the
beginning of an award year, and rounded to the nearest $1,000.
``(d) Means-tested Federal Benefit Program Defined.--For purposes of
this title, a `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--
``(1) the supplemental security income program under title
XVI of the Social Security Act (42 U.S.C. 1381 et seq.);
``(2) the supplemental nutrition assistance program under the
Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), a
nutrition assistance program carried out under section 19 of
such Act (7 U.S.C. 2028), and a supplemental nutrition
assistance program carried out under section 1841(c) of title
48 of the United States Code;
``(3) 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.);
``(4) 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);
``(5) the State Medicaid program under title XIX of the
Social Security Act (42 U.S.C. 1396 et seq.); and
``(6) any other program identified by the Secretary.''.
SEC. 4509. AMENDMENTS TO DEFINITIONS IN NEED ANALYSIS.
(a) Using Data From the Second Preceding Year.--Section 480(a)(1)(B)
of the Higher Education Act of 1965 (20 U.S.C. 1087vv(a)(1)(B)) is
amended by striking ``may'' in both places it appears and inserting
``shall''.
(b) Changes to Untaxed Income and Benefits.--Section 480(b) of the
Higher Education Act of 1965 (20 U.S.C. 1087vv(b)) is amended--
(1) in paragraph (1), to read as follows:
``(1) The term `untaxed income and benefits' means--
``(A) child support received;
``(B) untaxed portion of pensions;
``(C) payments to individual retirement accounts and
Keogh accounts excluded from income for Federal income
tax purposes; and
``(D) cash support or any money paid on the student's
behalf, except, for dependent students, funds provided
by the student's parents.''; and
(2) in paragraph (2)--
(A) by striking ``or'' at the end of subparagraph
(E);
(B) by striking the period at the end of subparagraph
(F) and inserting a semicolon; and
(C) by adding at the end the following:
``(G) worker's compensation;
``(H) veteran's benefits such as death pension,
dependency, or indemnity compensation, or veterans'
education benefits as defined in subsection (c);
``(I) interest on tax-free bonds;
``(J) housing, food, or other allowances (including
rent subsidies for low-income housing) for military,
clergy, and others (including cash payments and cash
value of benefits), or 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; or
``(K) 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 Innovation and
Opportunity Act (29 U.S.C. 3111 et seq.).''.
(c) Amendment to the Definition of Independent Student As It Relates
to Foster and Homeless Youth.--Section 480(d)(1)(H) of the Higher
Education Act of 1965 (20 U.S.C. 1087vv(d)(1)(H)) is amended--
(1) in the matter preceding clause (i)--
(A) by striking ``during the school year in which the
application is submitted'';
(B) by inserting ``age 23 or younger'' after
``unaccompanied youth''; and
(C) by striking ``terms are'' and inserting ``term
is'';
(2) in clause (i), by inserting ``, or a designee of the
liaison'' after ``Act'';
(3) in clause (ii), by striking ``a program funded under the
Runaway and Homeless Youth Act'' and inserting ``an emergency
or transitional shelter, street outreach program, homeless
youths drop-in center, or other program serving homeless
youths,''; and
(4) in clause (iii), by striking ``program funded under
subtitle B of title IV of the McKinney-Vento Homeless
Assistance Act (relating to emergency shelter grants)'' and
inserting ``Federal TRIO program or a Gaining Early Awareness
and Readiness for Undergraduate program under chapter 1 or 2 of
subpart 2 of part A,''.
(d) Streamlining the Determination and Verification Process for
Foster and Homeless Youth.--Section 480(d) of the Higher Education Act
of 1965 (20 U.S.C. 1087vv(d)) is further amended by adding at the end
the following:
``(3) Simplifying the determination process for unaccompanied
youth.--
``(A) Verification.--A financial aid administrator
shall accept a determination of independence made by
any individual authorized to make such determinations
under clause (i), (ii), or (iii) of paragraph (1)(H) in
the absence of conflicting information. A documented
phone call with, or a written statement from, one of
the authorized individuals is sufficient verification
when needed. For purposes of this paragraph, a
financial aid administrator's disagreement with the
determination made by an authorized individual shall
not be considered conflicting information.
``(B) Determination of independence.--A financial aid
administrator shall make a determination of
independence under paragraph (1)(H) if a student does
not have, and cannot obtain, documentation from any of
the other designated authorities described in such
paragraph. Such a determination shall be--
``(i) based on the definitions outlined in
paragraph (1)(H);
``(ii) distinct from a determination of
independence under paragraph (1)(I);
``(iii) based on a documented interview with
the student; and
``(iv) limited to whether the student meets
the definitions in paragraph (1)(H) and not
about the reasons for the student's
homelessness.
``(C) Additional streamlining permitted.--Nothing in
this paragraph prohibits an institution from
implementing polices that--
``(i) streamline the determination of
independence under paragraph (1)(H); and
``(ii) improve a student's access to
financial aid because that student is an
unaccompanied youth.
``(4) Simplifying the verification process for foster care
youth.--
``(A) Verification of independence.--If an
institution requires documentation to verify that a
student is independent based on a status described in
paragraph (1)(B), a financial aid administrator shall
consider any of the following as adequate verification:
``(i) Submission of a court order or official
State documentation that the student received
Federal or State support in foster care.
``(ii) A documented phone call with, a
written statement from, or verifiable data
match with--
``(I) a child welfare agency
authorized by a State or county;
``(II) a Tribal child welfare
authority;
``(III) an Independent Living case
worker;
``(IV) a public or private foster
care placing agency or foster care
facility or placement;
``(V) another program serving
orphans, foster care youth, or wards of
the court; or
``(VI) a probation officer.
``(iii) A documented phone call with, or a
written statement from, an attorney, a guardian
ad litem, or a Court Appointed Special
Advocate, documenting that person's
relationship to the student.
``(iv) A documented phone call with, or a
written statement from, a representative of a
Federal TRIO program or a Gaining Early
Awareness and Readiness for Undergraduate
program under chapter 1 or 2 of subpart 2 of
part A.
``(v) Verification of the student's
eligibility for an education and training
voucher under the John H. Chafee Foster Care
Independence Program (42 U.S.C. 677).
``(vi) Documentation of foster care provided
pursuant to section 475(5)(I) of the Social
Security Act (45 U.S.C. 675(5)(I)).
``(vii) Submission of a copy of the student's
biological or adoptive parents' or legal
guardians'--
``(I) Certificates of Death; or
``(II) verifiable obituaries.
``(viii) An attestation from the student,
which includes a description of why the student
may qualify for a status described in paragraph
(1)(B), including the approximate dates that
the student was in foster care, dependent, or a
ward of the court, to the best of the student's
knowledge after making reasonable efforts to
provide any requested documentation.
``(B) Additional streamlining permitted.--Nothing in
this paragraph prohibits an institution from
implementing polices that streamline the determination
of independent status and improve a student's access to
financial aid because that student 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
since such student was 13 years of age or older.
``(5) Timing; use of earlier determination.--
``(A) Timing.--A determination under subparagraph (B)
or (H) of paragraph (1) for a student--
``(i) shall be made as quickly as
practicable;
``(ii) may be made as early as the year
before the award year for which the student
initially submits an application; and
``(iii) shall be made no later than during
the award year for which the student initially
submits an application.
``(B) Use of earlier determination.--Any student who
is determined to be independent under subparagraph (B)
or (H) of paragraph (1) for a preceding award year at
an institution shall be presumed to be independent for
each subsequent award year at the same institution
unless--
``(i) the student informs the institution
that circumstances have changed; or
``(ii) the institution has specific
conflicting information about the student's
independence, and has informed the student of
this information and the opportunity to
challenge such information through a documented
interview or an impartial review by the
Borrower Advocate pursuant to section
141(f)(6)(C).
``(6) Retention of documents.--A financial aid administrator
shall retain all documents related to the determination of
independence under subparagraph (B) or (H) of paragraph (1),
including documented interviews, for the duration of the
student's enrollment at the institution and for a minimum of 1
year after the student is no longer enrolled at the
institution.''.
(e) Excludable Income.--Section 480(e) of the Higher Education Act of
1965 (20 U.S.C. 1087vv(e)) is amended by striking paragraph (5) and
inserting the following:
``(5) payments made and services provided under part E of
title IV of the Social Security Act to or on behalf of any
child or youth over whom the State agency has responsibility
for placement, care, or supervision, including the value of
vouchers for education and training and amounts expended for
room and board for youth who are not in foster care but are
receiving services under section 477 of such Act; and''.
PART G--GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE PROGRAMS
SEC. 4601. DEFINITION OF ELIGIBLE PROGRAM.
(a) Eligible Program.--Section 481(b) of the Higher Education Act of
1965 (20 U.S.C. 1088(b))--
(1) in paragraph (1)(A)(i), by striking ``profession'' and
inserting ``occupation'';
(2) in paragraph (2)--
(A) in subparagraph (A)--
(i) by redesignating clause (iii) as clause
(vi); and
(ii) by inserting after clause (ii) the
following:
``(iii) has a verified annual earnings rate among individuals
who completed the program, as determined under subparagraph
(D), that is not less than the average or median annual
earnings rate of individuals with only a high school diploma
(or the equivalent) based on the most recently available data
from the Bureau of Labor Statistics or the Bureau of the Census
with respect to--
``(I) such average or median earnings rate in the
United States; or
``(II) subject to subparagraph (E), such average or
median earnings rate in the State or local area in
which the institution offering the program is located;
``(iv) prepares students for gainful employment in a
recognized occupation;
``(v) has been in operation for not less than two consecutive
years; and''; and
(B) by adding at the end the following:
``(C)(i) For each subsequent year for which a program seeks
eligibility under this paragraph, the Secretary shall reevaluate
whether the program continues to meet the requirements of clauses (i),
(iii), (iv), and (vi) of subparagraph (A). A program that does not meet
such requirements for two consecutive award years (or, in the case of a
program that does not meet the requirements under subparagraph (A)(iv),
for a period of time determined by the Secretary) shall be ineligible
to participate in programs under this title--
``(I) for the period of two award years following the last
award year for which the program was eligible to participate in
such programs; and
``(II) for any subsequent award year, unless the program
reapplies for eligibility in accordance with clause (iii) and
the Secretary determines that the program meets the
requirements of such clauses.
``(ii) Not later than 60 days after receiving notification from the
Secretary of the loss of eligibility under clause (i), a program may
appeal a loss of eligibility to the Secretary. The Secretary may
restore the eligibility of a program under this paragraph if the
program demonstrates to the Secretary that extenuating circumstances
led to the loss of eligibility.
``(iii) The Secretary shall issue a decision on any appeal submitted
by a program under clause (ii) not later than 45 days after its
submission.
``(iv) After the expiration of the two-year period described in
clause (i)(I), a program that lost eligibility under clause (i) may
reapply to the Secretary for a determination of eligibility under this
paragraph.
``(D)(i) In this subsection, the term `verified annual earnings rate'
means the mean or median annual earnings rate (whichever is higher) of
individuals who completed a program calculated as of the date that is
approximately one year after the date on which such individuals
completed the program.
``(ii) For the first year for which a program seeks eligibility under
this paragraph, the institution that offers such program shall--
``(I) determine the verified annual earnings rate using data
obtained on individuals who completed the program;
``(II) obtain an audit of such determination from an
independent auditor;
``(III) together with the auditor described in subclause
(II), certify the accuracy of the verified annual earnings rate
to the Secretary; and
``(IV) determine the completion rate for the program, as
described in subparagraph (A)(i), and certify to the Secretary
the accuracy of such determination.
``(iii) For each subsequent year for which a program seeks
eligibility under this paragraph, the Secretary shall determine the
verified annual earnings rate and completion rate for the program using
data made available to the Secretary through the postsecondary student
data system established under section 132(l) or a successor system
(whichever includes the most recent data).
``(E)(i) Except as provided in clause (ii), for purposes of
calculating the average annual earnings rate of individuals with only a
high school diploma (or the equivalent) under subparagraph (A)(ii) the
Secretary shall apply the national average or median earnings rate in
the United States.
``(ii) The Secretary may apply the average or median earnings rate in
the State or local area in which the institution offering a program is
located, in lieu of the national average earnings rate, if the
institution provides sufficient justification to the Secretary.
``(F) Using the postsecondary student data system established under
section 132(l) or a successor system to streamline reporting
requirements and minimize reporting burdens, and in coordination with
the National Center for Education Statistics and each institution of
higher education offering an eligible program under this paragraph, the
Secretary shall, on at least an annual basis, collect data with respect
to each such eligible program, including the following:
``(i) The number and demographics of students who enroll in
the program.
``(ii) The number of credits attempted and accumulated
annually by students enrolled in the program.
``(iii) The share of such students who cease enrollment on or
before the completion of 60 percent of the payment period or
period of enrollment.
``(iv) The verified completion rate for the program, as
described in subparagraph (A)(i).
``(v) The mean and median annual earnings of graduates and
the verified annual earnings rate for the program, as described
in subparagraph (A)(ii).
``(vi) The number and demographics of students who complete
the program.
``(vii) The outcomes of the students who complete the
program, including--
``(I) the share of such students who continue
enrollment at the institution of higher education
offering the program;
``(II) the share of such students who transfer to
another institution of higher education;
``(III) the share of such students who complete a
subsequent certificate or degree program;
``(IV) the share of such students who secure
employment 6 months and 1 year, respectively--
``(aa) after completion of such program; or
``(bb) in the case of a program that prepares
students for a professional license or
certification exam, after acquiring such
license or certification; and
``(V) in the case of a program that prepares students
for a professional license or certification exam, the
share of such students who pass such exam.''; and
(3) in paragraph (4), by inserting ``or in addition to''
after ``in lieu of''.
(b) Report.--Not later than 3 years after the date of enactment of
this Act, the Secretary of Education shall--
(1) submit to the Committee on Education and Labor of the
House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate a report on the
impact of eligible programs described in section 481(b)(2) of
the Higher Education Act of 1965 (20 U.S.C. 1088(b)(2)), as
amended by this Act, based on the most recent data collected
under subparagraph (F) of such section; and
(2) make the report described in paragraph (1) publicly
available on the website of the Department of Education.
SEC. 4602. DEFINITION OF THIRD PARTY SERVICER.
Section 481(c) of the Higher Education Act of 1965 (20 U.S.C.
1088(c)) is amended--
(1) in paragraph (1), by striking ``or'' at the end;
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
``(2) any eligible institution of higher education to recruit
students; or''.
SEC. 4603. FAFSA SIMPLIFICATION.
Section 483 of the Higher Education Act of 1965 (20 U.S.C. 1090) is
amended--
(1) in subsection (a)--
(A) in paragraph (2)--
(i) in subparagraph (A), by striking
``process'' and all that follows through the
end of clause (ii) and inserting ``process a
paper version of the forms described in this
subsection, in accordance with subparagraph
(B).'';
(ii) by striking subparagraph (B);
(iii) by redesignating subparagraph (C) as
subparagraph (B); and
(iv) in subparagraph (B), as so redesignated,
by striking ``subparagraphs (A) and (B)'' and
inserting ``subparagraph (A)'';
(B) in paragraph (3)--
(i) in subparagraph (A), by striking the last
sentence;
(ii) by striking subparagraph (B), and
redesignating subparagraphs (C) through (H) as
subparagraphs (B) through (G), respectively;
(iii) in subparagraph (D), as so
redesignated--
(I) by striking ``The Secretary'' and
inserting the following:
``(i) In general.--The Secretary''; and
(II) by adding at the end the
following:
``(ii) Scholarship granting organizations.--
``(I) Authorization.--An institution
of higher education may, with explicit
written consent of an applicant who has
completed a form developed under this
section, provide such information
collected from such form as is
necessary to an organization described
in subclause (II) that is designated by
the applicant to assist the applicant
in applying for and receiving financial
assistance for any component of the
applicant's cost of attendance at that
institution.
``(II) Definition of organization.--
An organization described in this
subclause--
``(aa) means a scholarship
granting organization,
including a tribal organization
(defined in section 4 of the
Indian Self-Determination and
Education Assistance Act (25
U.S.C. 5304))) or an
organization assisting an
applicant in applying for and
receiving Federal, State,
local, or tribal assistance;
and
``(bb) shall be subject to
the requirements of clause
(i).''; and
(iv) in subparagraph (E), as so redesignated,
by striking ``subparagraph (G)'' and inserting
``subparagraph (F)'';
(C) in paragraph (4)--
(i) by striking ``academic year'' each place
it appears and inserting ``award year'';
(ii) in subparagraph (A), by striking clause
(iv); and
(iii) by adding at the end the following:
``(C) Single question regarding homeless status.--The
Secretary shall ensure that, on each form developed
under this section for which the information is
applicable, there is a single, easily understood
screening question to identify an applicant for aid who
is--
``(i) an unaccompanied homeless child or
youth (as such term is defined in section 725
of the McKinney-Vento Homeless Assistance Act);
or
``(ii) an unaccompanied youth who is self-
supporting and at risk of homelessness.
``(D) Incarcerated individuals.--
``(i) In general.--The Secretary shall
streamline the forms and processes for an
incarcerated individual (as defined in section
401(n)(4)) to apply for a Federal Pell Grant
under section 401, which--
``(I) shall be used to determine the
expected family contribution for such
individual as of the date of enrollment
in the course for which the individual
is applying for such Federal Pell
Grant; and
``(II) may include--
``(aa) flexibility in the
submission of any required
documentation required to
verify eligibility for a
Federal Pell Grant; and
``(bb) assistance in
rehabilitating loans under
section 428F.
``(ii) Report.--Not later than 1 year after
the date of enactment of the College
Affordability Act, the Secretary shall submit
to the Committee on Education and Labor of the
House of Representatives and the Committee on
Health, Education, Labor, and Pensions of the
Senate, and make publicly available on the
website of the Department, a report on how the
forms and processes are being streamlined under
clause (i).'';
(D) in paragraph (5)--
(i) in subparagraph (A), by striking
``paragraphs (2)(B)(iii), (3)(B), and
(4)(A)(ii)'' and inserting ``paragraph
(4)(A)(ii)'';
(ii) in subparagraph (B)--
(I) by striking ``determine'' and all
that follows through ``which'' and
inserting ``determine which'';
(II) by striking ``; and'' and
inserting a period; and
(III) by striking clause (ii);
(iii) in subparagraph (C), by striking
``Beginning'' and all that follows through ``of
the State-specific'' and inserting ``The
Secretary shall publish on an annual basis a
notice in the Federal Register requiring State
agencies to inform the Secretary of the State-
specific''; and
(iv) by striking subparagraphs (D) through
(F), and redesignating subparagraph (G) as
subparagraph (D); and
(E) by adding at the end the following:
``(13) FAFSA pathways.--
``(A) Memorandum of understanding.--Not later than
the effective date of the College Affordability Act,
the Secretary shall seek to enter into a Memorandum of
Understanding with the Secretary of Health and Human
Services, the Secretary of Agriculture, and the
Secretary of the Treasury, under which any information
exchanged under an income and eligibility verification
system established pursuant to section 1137 of the
Social Security Act by State agencies administering a
program listed in paragraph (1), (4), or (5) of
subsection (b) of such section which may be of use in
establishing or verifying eligibility or benefit
amounts under such program shall be made available to
the Secretary of Education to assist in determining
whether the applicant (or, in the case of a dependent
applicant, whether the applicant or the applicant's
parents) received a benefit at some time during the
previous 24-month period under a means-tested Federal
benefit program, but subject to the requirements of
Federal law.
``(B) Requirement for all applicants and the
secretary.--For any award year for which an applicant
applies for financial assistance under this title
(except for any award year for which, pursuant to
paragraph (14), the applicant is not required to submit
a FAFSA)--
``(i) the applicant shall provide on the form
described in this subsection whether the
applicant received (or, in the case of a
dependent applicant, whether the applicant or
the parents of the applicant received) a
benefit at some time during the previous 24-
month period under a means-tested Federal
benefit program; and
``(ii) the Secretary, to the extent
practicable and pursuant to the Memorandum of
Understanding entered into under subparagraph
(A), and without any further action by the
applicant, shall verify the applicant's (or, in
the case of a dependent applicant, the
applicant's or the applicant's parents')
receipt of such benefit.
``(C) Pathway one applicants.--
``(i) In general.--With respect to an
applicant who received (or, in the case of a
dependent applicant, an applicant who received
or whose parents received) a benefit at some
time during the previous 24-month period under
a means-tested Federal benefit program, the
applicant shall not be required to provide any
further income or asset information on the form
under this subsection.
``(ii) Designation.--For purposes of this
section and part F, an applicant described in
clause (i) shall be referred to as a `pathway
one applicant'.
``(D) Pathway two applicants.--
``(i) In general.--With respect to an
applicant who is not a pathway one applicant
and who is described in clause (ii), the
Secretary, to the extent practicable, shall use
the data retrieval tool under section 484(p) to
obtain any information for the applicant beyond
the information described in subparagraph (A)
for purposes of the form under this subsection.
``(ii) Requirements.--An applicant described
in this clause is an applicant who certifies
that--
``(I) the applicant is not required
to file or, in the case of a dependent
applicant, no parent of the applicant
is required to file--
``(aa) a Federal income tax
return; or
``(bb) with respect to
Internal Revenue Service Form
1040, any of the following
forms: Schedule A, Schedule B,
Schedule C, Schedule C-EZ,
Schedule D, Schedule E,
Schedule F, Schedule H,
Schedule J, and Schedule SE;
and
``(II) the sum of the adjusted gross
income of the applicant or, in the case
of a dependent applicant, the parents
of the applicant, is less than or equal
to $60,000.
``(iii) Designation.--For purposes of this
section and part F, an applicant described in
clause (i) shall be referred to as a `pathway
two applicant'.
``(E) Pathway three applicants.--
``(i) In general.--With respect to an
applicant who is not a pathway one applicant or
a pathway two applicant, the Secretary, to the
extent practicable, shall use the data
retrieval tool under section 484(p) to obtain
any information for the applicant beyond the
information described in subparagraph (A) for
purposes of the form under this subsection.
``(ii) Designation.--For purposes of this
section and part F, an applicant described in
clause (i) shall be referred to as a `pathway
three applicant'.
``(F) Means-tested federal benefit program defined.--
For purposes of this paragraph, the term `means-tested
Federal benefit program' has the meaning given the term
in section 479(d).
``(14) One-time fafsa filing.--
``(A) In general.--Notwithstanding any other
provision of this section and subject to subparagraphs
(B) and (C), an applicant who submits a FAFSA for the
first time for an award year for the period required
for the completion of the first undergraduate
baccalaureate course of study being pursued by such
applicant and is eligible to receive a Federal Pell
Grant for such award year, for any succeeding award
year--
``(i) for which the applicant does not submit
a FAFSA and for which the applicant submits a
certification form described in subparagraph
(D) that does not indicate a change in the
dependency status of such applicant, such
applicant--
``(I) shall not be required to submit
a FAFSA to receive financial assistance
under this title; and
``(II) shall have an expected family
contribution for such year that is
equal to the expected family
contribution of the applicant
determined for the award year for which
the applicant submitted a FAFSA for
such period, except that an adjustment
may be made under section 479A that
results in a change in such expected
family contribution;
``(ii) for which the applicant submits a
certification form described in subparagraph
(D) that indicates a change in the dependency
status of the applicant, such applicant--
``(I) shall be required to submit a
FAFSA with respect to such award year
to receive financial assistance under
this title; and
``(II) shall have an expected family
contribution for such year that is
determined based on such FAFSA;
``(iii) for which the applicant submits a
FAFSA, such applicant--
``(I) shall have an expected family
contribution for such year that is
determined based on such FAFSA; and
``(II) shall be required to submit a
FAFSA for any other award year for
which the applicant seeks financial
assistance under this title; and
``(iv) for which the applicant does not
submit a certification form described in
subparagraph (D), such applicant shall submit a
FAFSA for such succeeding award year and any
other award year for which the applicant seeks
financial assistance under this title.
``(B) Adjustment of expected family contribution.--
With respect to an applicant described in subparagraph
(A)(i) who receives an adjustment under section 479A
that results in a change to the expected family
contribution of the applicant, for any succeeding award
year after the award year for which the adjustment was
made, subclause (II) of such subparagraph shall be
applied to such applicant by substituting `expected
family contribution of the applicant as most recently
changed as a result of an adjustment under section 479A
for such applicant' for the `expected family
contribution of the applicant determined for the award
year for which the applicant submitted a FAFSA for such
period'.
``(C) Rule for certain students.--With respect to an
applicant who submits a FAFSA for award year 2021-2022
and enrolls in an institution of higher education for
such year, subparagraph (A) shall be applied--
``(i) in the matter preceding clause (i), by
substituting `award year 2021-2022' for `the
first time for an award year'; and
``(ii) in clause (i)(II), by substituting
`award year 2021-2022' for `the award year for
which the applicant submitted a FAFSA for such
period'.
``(D) Student certification form.--The Secretary, in
cooperation with representatives of agencies and
organizations involved in student financial assistance,
shall use behavioral science insights to produce,
distribute, and process free of charge a short and
simple consumer-tested certification form that uses
skip logic to bypass fields that are inapplicable to an
applicant. Such form shall not require an applicant to
provide data that the Secretary may otherwise obtain
with respect to the applicant (such as age or active
duty military status), and may only contain the data
elements required for purposes of subparagraph (A)(i)--
``(i) to confirm whether the applicant is--
``(I) a dependent student;
``(II) a single independent student
or a married independent student
without dependents (other than a
spouse); or
``(III) an independent student with
dependents other than a spouse;
``(ii) to allow the applicant to update the
contact information of such applicant or the
Federal School Code of the institution of
higher education in which the applicant is, or
will be enrolled, for the award year for which
the applicant submits such form; and
``(iii) to ask whether the applicant's need
and eligibility for financial assistance under
this title has not changed substantially since
the most recent of the following:
``(I) The applicant submitted a
FAFSA.
``(II) The applicant received an
adjustment under section 479A that
results in a change to the expected
family contribution of the applicant.
``(E) Definitions.--In this paragraph:
``(i) Dependency status.--The term
`dependency status' means the status of an
applicant as--
``(I) a dependent student;
``(II) a single independent student
or a married independent student
without dependents (other than a
spouse); or
``(III) an independent student with
dependents other than a spouse.
``(ii) Succeeding award year.--The term
`succeeding award year'--
``(I) when used with respect to an
applicant who submits a FAFSA for the
first time for an award year for the
period required for the completion of
the first undergraduate baccalaureate
course of study being pursued by such
applicant, means any award year for
such period that follows the award year
for which the applicant submits such
FAFSA; and
``(II) when used with respect to an
applicant described in subparagraph
(C), means any award year after award
year 2021-2022 for the period required
for the completion of the first
undergraduate baccalaureate course of
study being pursued by such applicant.
``(15) FAFSA in various languages.--The Secretary shall--
``(A) translate the form developed under this
subsection into not fewer than 11 foreign languages
based on the languages most often spoken by English
learner students and their parents, and make the
translated form available and accessible to applicants
in paper and electronic formats; and
``(B) ensure that the form developed under this
subsection is available in formats accessible to
individuals with disabilities.'';
(2) in subsection (c), by striking the last sentence;
(3) in subsection (d)(3)--
(A) in subparagraph (A), by striking ``and EZ
FAFSA''; and
(B) in subparagraph (B), by striking ``and EZ
FAFSA'';
(4) in subsection (e)--
(A) in paragraph (3) by striking ``or, as
appropriate, an EZ FAFSA,''; and
(B) in paragraph (5)(D), by striking ``or, as
appropriate, an EZ FAFSA,'';
(5) 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 data retrieval tool to transfer 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 taxpayers, regardless of filing status,
to utilize the 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 other year, the Secretary shall report to the
authorizing committees and the Committees on Appropriations of
the House of Representatives and the Senate on the progress of
the simplification efforts under this subsection.'';
(6) by repealing subsection (g);
(7) by redesignating subsection (h) as subsection (g); and
(8) by adding at the end the following:
``(h) Data Transparency on the Number of Applicants.--
``(1) In general.--The Secretary shall annually publish data
on the number of individuals who apply for Federal student aid
pursuant to this section who are homeless individuals described
in section 725 of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11434a), including unaccompanied youth and foster
care youth.
``(2) Contents.--The data described in paragraph (1) with
respect to homeless individuals shall include, at a minimum,
for each application cycle--
``(A) the total number of all applicants who were
determined to be (or to be at risk of becoming)
unaccompanied homeless youth under section
480(d)(1)(H);
``(B) the number of applicants described in
subparagraph (A), disaggregated--
``(i) by State; and
``(ii) by the sources of determination as
described in clauses (i) through (iv) of
section 480(d)(1)(H); and
``(C) the number of undetermined requests for
homelessness consideration, including statuses that
remain unknown because no determination had been made
in response to the applicant's request for the
institution to consider the applicant's special
circumstance of being homeless.
``(i) Prohibition on Questions Relating to Drug Offenses.--The
Secretary may not include on the forms developed under this subsection
any data items relating to whether an applicant has a conviction of any
offense under any Federal or State law involving the possession or sale
of a controlled substance (as defined in section 102(6) of the
Controlled Substances Act (21 U.S.C. 802(6)).
``(j) FAFSA Verification.--
``(1) In general.--With respect to applicants who submit a
FAFSA for an award year and were determined using data provided
in such FAFSA to be eligible to receive a Federal Pell Grant
for such award year, the Secretary shall submit to the
authorizing committees, and make publicly available, a report
for such award year on--
``(A) the number and share of such applicants who
received a Federal Pell Grant for such award year;
``(B) the number and share of such applicants who did
not receive a Federal Pell Grant for such year;
``(C) the number and share of such applicants who
were selected by the Secretary for verification of the
data provided in the FAFSA;
``(D) to the extent practicable, the number and share
of applicants described in subparagraph (C) who
enrolled in an institution of higher education in a
year after such selection;
``(E) the number and share of applicants described in
subparagraph (C) who completed the verification
process;
``(F) of the applicants described in subparagraph
(E)--
``(i) the average of the expected family
contribution for all such applicants as
determined using data provided in the FAFSA;
``(ii) the average of the expected family
contribution difference for all such
applicants;
``(iii) the average of the expected family
contribution difference for all such applicants
whose expected family contribution as
determined using data provided in the
verification process was greater than the
expected family contribution as determined
using data provided in the FAFSA; and
``(iv) the average of the expected family
contribution difference for all such applicants
whose expected family contribution as
determined using data provided in the FAFSA was
greater than the expected family contribution
as determined using data provided in the
verification process;
``(G) of the applicants described in subparagraph
(E)--
``(i) the average Federal Pell Grant amount
for all such applicants as determined using
data provided in the FAFSA;
``(ii) the average of the Federal Pell Grant
difference for all such applicants;
``(iii) the average of the Federal Pell Grant
difference for all such applicants whose
Federal Pell Grant amount as determined using
data provided in the verification process was
greater than the Federal Pell Grant amount as
determined using data provided in the FAFSA;
``(iv) the average of the Federal Pell Grant
difference for all such applicants whose
Federal Pell Grant amount as determined using
data provided in the FAFSA was greater than the
Federal Pell Grant amount as determined using
data provided in the verification process; and
``(v) the number and share of such applicants
who were determined using the data provided in
the verification process to be ineligible for a
Federal Pell Grant;
``(H) the number and share of applicants described in
subparagraph (C) who received a Federal Pell Grant for
such award year; and
``(I) the number and share of applicants described in
subparagraph (C) who did not receive a Federal Pell
Grant for such award year.
``(2) Disaggregation.--The data provided in a report under
paragraph (1) shall be disaggregated--
``(A) by applicants who were pathway one applicants
for such year;
``(B) by applicants who were pathway two applicants
for such year;
``(C) by applicants who were pathway three applicants
for such year; and
``(D) with respect to applicants described in
subparagraphs (C) and (E), the verification tracking
groups of such applicants.
``(3) Definitions.--In this subsection:
``(A) Expected family contribution difference.--The
term `expected family contribution difference' means,
with respect to an applicant who completed a
verification process with respect to the FAFSA, the
difference between--
``(i) the expected family contribution of
such applicant as determined using data
provided in the FAFSA; and
``(ii) the expected family contribution of
such applicant as determined using data
provided in the verification process.
``(B) Federal pell grant difference.--The term
`Federal Pell Grant difference' means, with respect to
an applicant who completed a verification process with
respect to the FAFSA, the difference between--
``(i) the amount of the Federal Pell Grant of
such applicant as determined using data
provided in the FAFSA; and
``(ii) the amount of the Federal Pell Grant
of such applicant as determined using data
provided in the verification process.
``(k) Financial Aid Offers.--
``(1) Requirements for offers.--
``(A) Secretarial requirements.--Not later than 18
months after the date of enactment of the College
Affordability Act, the Secretary shall, based on the
consumer testing conducted under subparagraph (E),
publish requirements for financial aid offers that
shall--
``(i) include a requirement that financial
aid offers shall serve as the primary source
for Federal, State, and institutional financial
aid information provided by an institution of
higher education participating in any program
under this title to each prospective student
accepted for admission and each enrolled
student at such institution;
``(ii) include a requirement that such offers
include a standardized quick reference box
described in subparagraph (D);
``(iii) establish standardized terms and
definitions, including for the elements listed
in subparagraph (C), that shall be included in
each such offer;
``(iv) establish formatting requirements with
respect to the organization of the elements
listed in subparagraph (C)), which shall
include a requirement that prohibits such
offers from displaying loans in a manner that
indicates or implies that such loans reduce the
amount owed to the institution or reduce the
net price; and
``(v) specify the simple, plain-language, and
consumer-friendly information to be included in
each such offer with respect to the financial
aid being offered to a student, which shall
include--
``(I) an explanation of differences
among each such type of financial aid,
including clear explanations that--
``(aa) grants and
scholarships do not have to be
repaid;
``(bb) loans (including loans
made under part D and private
education loans (as defined in
section 140 of the Truth in
Lending Act)) must be repaid
with interest; and
``(cc) payments under
Federal-work study programs
under part C are contingent on
finding qualified employment
and are typically disbursed
incrementally in paychecks;
``(II) information encouraging
students to consider loans made under
part D before such private education
loans;
``(III) information clarifying that
students may--
``(aa) decline to accept a
loan made under part D; or
``(bb) accept an amount of
such loan that is less than the
amount of such loan included in
the financial aid offer; and
``(IV) in a case in which the
institution offers a student such a
loan in an amount that is less than the
maximum amount for which the student is
eligible, an explanation that the
student is eligible for additional
loans under part D.
``(B) Institutional requirements.--Beginning with the
award year that begins not less than 1 year after the
Secretary publishes requirements under subparagraph
(A), each institution of higher education described in
subparagraph (A)(i) shall provide a financial aid offer
to each student described in such subparagraph prior to
each academic year that--
``(i) shall comply with the requirements
published by the Secretary under subparagraph
(A); and
``(ii) may be supplemented by the institution
with additional, non-contradictory information
related to financial aid as long as such
supplementary information uses the standardized
terms and definitions described in subparagraph
(A)(iii).
``(C) Elements.--A financial aid offer provided by an
institution of higher education shall include the
following elements with respect to the academic year
for which the offer is being provided:
``(i) The cost of attendance, which shall
include separately calculated subtotals of--
``(I) an itemized list of estimated
direct costs owed to the institution;
and
``(II) an itemized list of
anticipated student expenses not
covered under subclause (I).
``(ii) Federal, State, and institutional
financial aid available to the student, which
shall include separately calculated subtotals
of--
``(I) grants and scholarships;
``(II) loans made under part D
(excluding Federal Direct Parent PLUS
Loans) and part E; and
``(III) Federal-work study programs
under part C and other on-campus
employment.
``(iii) Other options that may be available
to students to cover the cost of attendance
(including Federal Direct Parent PLUS Loans,
tuition payment plans, savings, and earnings
from other employment).
``(iv) The net price, which shall be
determined by calculating the difference
between--
``(I) the cost of attendance
described in clause (i); and
``(II) the grants and scholarships
described in clause (ii)(I).
``(v) Next step instructions, including--
``(I) the process and deadlines for
accepting the financial aid; and
``(II) information about where to
find additional information on the
financial aid offered.
``(vi) Any other information determined
necessary by the Secretary based on the
consumer testing conducted under subparagraph
(E), which may include the following:
``(I) An estimate of the net direct
cost, which shall be determined by
calculating the difference between--
``(aa) the direct costs owed
to the institution described in
clause (i)(I); and
``(bb) the grants and
scholarships described in
clause (ii)(I).
``(II) Information on average student
debt, loan repayment and default rates,
loan repayment options, and graduation
rates.
``(III) In the case of a prospective
student, the process and deadlines for
enrolling at the institution.
``(IV) Information regarding the
enrollment period covered by the aid
offer, and whether the cost and aid
estimates are based on full-time or
part-time enrollment.
``(D) Standardized quick reference box.--A financial
aid offer provided by an institution of higher
education shall include a standardized quick reference
box to enable students to quickly and easily compare
key information on college costs and financial aid--
``(i) that shall be included in an identical
fashion for each student receiving a financial
aid offer from the institution on the first
page of such offer;
``(ii) the contents and structure of which
shall be developed through consumer testing
conducted under paragraph (E); and
``(iii) that shall include not more than 8
elements, which, at a minimum, shall include--
``(I) the cost of attendance;
``(II) grants and scholarships; and
``(III) net price (as calculated
under subparagraph (C)(iv)).
``(E) Consumer testing.--The Secretary shall--
``(i) conduct consumer testing that shall
serve as the basis in determining the
requirements for financial aid offers published
under subparagraph (A), which shall include
students (including low-income students,
English learners, first generation college
students, veteran students, graduate students,
and undergraduate students (including
prospective students and returning students)),
students' families (including low-income
families, families of English learners, and
families with first generation college
students), institutions of higher education
(including representatives from two- and four-
year institutions, public and private
institutions, and minority-serving
institutions), secondary school and
postsecondary counselors, financial aid
administrators, nonprofit college access
organizations, and nonprofit consumer groups;
and
``(ii) not later than 60 days after the
publication of the requirements under
subparagraph (A)--
``(I) issue a report on the findings
of the consumer testing under this
subparagraph; and
``(II) specify ways in which the
findings are reflected in such
requirements.
``(2) Definitions.--In this subsection--
``(A) the term `English learner' has the meaning
given the term in section 8101(20) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C.
7801(20)), except that such term does not include
individuals described in subparagraph (B) of such
section;
``(B) the term `first generation college student' has
the meaning given the term in section 402A(h));
``(C) the term `low-income student' has the meaning
given the term in section 419N(b)(7); and
``(D) the term `minority-serving institution' means
an institution of higher education described in section
371(a).''.
SEC. 4604. STUDENT ELIGIBILITY.
(a) In General.--Section 484(a) of the Higher Education Act of 1965
(20 U.S.C. 1091(a)) is amended to read as follows:
``(a) In General.--
``(1) Grants; loans; work assistance.--In order to receive
any grant, loan, or work assistance under this title, a student
must--
``(A) 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 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;
``(B) 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);
``(C) 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, or a loan made, insured, or
guaranteed by the Secretary under this title for
attendance at any institution;
``(D) file with the Secretary, as part of the
original financial aid application process, a
certification, which need not be notarized, but which
shall include--
``(i) 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
``(ii) such student's social security number;
and
``(E) 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.
``(2) Grants; loans; work assistance; services.--
``(A) In general.--In order to receive any grant,
loan, or work assistance under this title, or any
service provided pursuant to a program or project
funded under this title, a student must--
``(i) be a citizen, national, or permanent
resident of the United States;
``(ii) be able to provide evidence from the
Department of Homeland Security 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;
``(iii) have temporary protected status under
section 244 of the Immigration and Nationality
Act (8 U.S.C. 1254a); or
``(iv) be a Dreamer student, as defined in
subsection (q).
``(B) Exceptions.--Subparagraph (A) shall not be
construed to affect eligibility for participation in
projects funded under chapter 2 of subpart 2 of part A
or section 418A(b).''.
(b) Ability to Benefit.--Section 484(d)(1) of the Higher Education
Act of 1965 (20 U.S.C. 1091(d)(1)) is amended--
(1) by redesignating subparagraph (B) as subparagraph (C);
and
(2) by inserting after subparagraph (A) the following:
``(B) The student--
``(i) is enrolled at an institution of higher
education (as defined in section 101) in a
program described in subsection (a)(3) of such
section that--
``(I) prepares an individual to be
successful in any of a full range of
secondary and postsecondary education
options;
``(II) includes counseling to support
an individual in achieving the
individual's education and career
goals;
``(III) enables an individual to
attain a secondary school diploma or
its recognized equivalent; and
``(IV) helps an individual enter or
advance within a specific occupation or
occupational cluster, or to enter and
succeed in a graduate program; and
``(ii) is determined by such institution 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 offered by the institution of
higher education.''.
(c) Exception to Required Registration With Selective Service
System.--Section 484 of the Higher Education Act of 1965 (20 U.S.C.
1091) is further amended--
(1) by repealing subsection (n); and
(2) by redesignating subsections (o) through (q) as
subsections (n) through (p), respectively.
(d) Definition of Dreamer Student.--Section 484 of the Higher
Education Act of 1965 (20 U.S.C. 1091), as amended by this section, is
further amended by adding after subsection (p), as redesignated, the
following:
``(q) Dreamer Student.--
``(1) In general.--In this section, the term `Dreamer
student' means an alien (as defined in section 101(a)(3) of the
Immigration and Nationality Act (8 U.S.C. 1101(a)(3))) who is
inadmissible to the United States or deportable from the United
States under the immigration laws (as defined in section
101(a)(17) of the Immigration and Nationality Act (8 U.S.C.
1101(a)(17))) and who--
``(A)(i) was younger than 16 years of age on the date
on which the alien initially entered the United States;
and
``(ii)(I) has earned a high school diploma, the
recognized equivalent of such diploma from a secondary
school, or a high school equivalency diploma in the
United States, or is scheduled to complete the
requirements for such a diploma or equivalent before
the next academic year begins;
``(II) is enrolled in an institution of higher
education pursuant to subsection (d); or
``(III) has served in the uniformed services, as
defined in section 101 of title 10, United States Code,
for not less than 4 years and, if discharged, received
an honorable discharge; or
``(B) would have been eligible, if the memorandum
were fully in effect since the date issued, for a grant
of deferred action pursuant to the directive in the
November 20, 2014, memorandum from the Secretary of
Homeland Security entitled `Exercising Prosecutorial
Discretion with Respect to Individuals Who Came to the
United States as Children and with Respect to Certain
Individuals Who Are the Parents of U.S. Citizens or
Permanent Residents' to establish a process for
exercising prosecutorial discretion through the use of
deferred action for individuals who, among other
qualifications, had a son or daughter who was a United
States citizen or lawful permanent resident on such
date.
``(2) Hardship exception.--The Secretary shall issue
regulations that direct when the Department shall waive the age
requirement of paragraph (1)(A)(i) for an individual to qualify
as a Dreamer student under paragraph (1), if the individual
demonstrates, through documentation presented to the Secretary
of substantial economic or personal hardship, that deprivation
of the requested benefit under this title would represent a
substantial hardship.''.
(e) Repeal of Suspension of Financial Aid Eligibility for Drug-
related Offenses.--Subsection (r) of section 484 of the Higher
Education Act of 1965 (20 U.S.C. 1091(r)) is repealed.
(f) Conforming Amendments.--The Higher Education Act of 1965 (20
U.S.C. 1001 et seq.) is amended--
(1) in section 102(a)(2)(A)(i)(I)(aa), by striking
``484(a)(5)'' and inserting ``484(a)(2)'';
(2) in section 419N(b)(7)(B)(ii), by striking ``484(a)(5)''
and inserting ``484(a)(2)'';
(3) in section 484(c), by striking ``subsection (a)(2)'' each
place it appears and inserting ``subsection (a)(1)(B)'';
(4) in section 484(g)--
(A) by striking ``subsection (a)(5)'' and inserting
``subsection (a)(2)''; and
(B) by striking ``Immigration and Naturalization
Service'' each place it appears in paragraph (4)(B)(i)
and inserting ``Department of Homeland Security'';
(5) in section 484(h), by striking ``Immigration and
Naturalization Service'' each place it appears and inserting
``Department of Homeland Security'';
(6) in section 484(o), as so redesignated, by striking
``subsection (a)(4)'' and inserting ``subsection (a)(1)(D)'';
and
(7) in section 485(a)(1)(K), by striking ``484(a)(2)'' and
inserting ``484(a)(1)(B)''.
SEC. 4605. REASONABLE COLLECTION COSTS ON DEFAULTED LOANS.
Section 484A(b)(1) of the Higher Education Act of 1965 (20 U.S.C.
1091a(b)(1)) is amended by striking ``collection costs;'' and inserting
``collection costs that--
``(A) for purposes of the first collection efforts,
do not exceed 5 percent of the outstanding principal
and interest on such loan;
``(B) for purposes of the second collection efforts,
do not exceed 10 percent of the outstanding balance of
principal and interest on such loan;
``(C) for purposes of the third collection efforts,
do not exceed 15 percent of the outstanding balance of
principal and interest on such loan; and
``(D) for purposes of the fourth collection efforts
and any succeeding collection efforts, do not exceed 20
percent of the outstanding balance of principal and
interest on such loan;''.
SEC. 4606. STUDENT ELIGIBILITY INFORMATION FOR NUTRITION ASSISTANCE
PROGRAMS.
(a) Information Dissemination Activities.--Section 485(a)(1) of the
Higher Education Act of 1965 (20 U.S.C. 1092(a)(1)) is amended--
(1) in subparagraph (U), by striking the ``and'' at the end;
(2) in subparagraph (V), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(W) the most recent relevant student eligibility
guidance with respect to the nutrition assistance
programs established under--
``(i) the supplemental nutrition assistance
program under the Food and Nutrition Act of
2008 (7 U.S.C. 2011 et seq.); and
``(ii) 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);
``(X) the contact information for the State agencies
responsible for administration of the programs
specified in clauses (i) and (ii) of subparagraph (W);
and
``(Y) the food pantries and other food assistance
facilities and services available to students enrolled
in such institution.''.
(b) College Navigator Website.--Not later than 30 days after the date
of the enactment of this Act, the Secretary of Education shall make
available and annually update on the College Navigator Website the most
recent relevant student eligibility guidance with respect to the
nutrition assistance programs established under--
(1) the supplemental nutrition assistance program under the
Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.); and
(2) 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).
SEC. 4607. EXIT COUNSELING.
(a) Amendments to Exit Counseling for Borrowers.--Section 485(b) of
the Higher Education Act of 1965 (20 U.S.C. 1092(b)) is amended--
(1) in paragraph (1)(A)--
(A) in the matter preceding clause (i), 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)'';
(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 part B, D,
or E;
``(ii) an explanation of the grace period preceding repayment
and the expected date that the borrower will enter repayment;
``(iii) an explanation 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, 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 fixed repayment
plan described in section 493E, the income-
based repayment plan under section 493C(f), and
any other repayment plan for which each loan
may be eligible'';
(E) in clause (ix), as so redesignated--
(i) by inserting ``decreased credit score,''
after ``credit reports,''; and
(ii) by inserting ``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 part B,
D, or E 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;
``(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)); and
``(xv) an explanation that--
``(I) the borrower may be contacted during the
repayment period by third-party student debt relief
companies;
``(II) the borrower should use caution when dealing
with those companies; and
``(III) the services that those companies typically
provide are already offered to borrowers free of charge
through the Department or the borrower's servicer.'';
(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''.
(b) Conforming Amendment.--Section 485(d)(1) of the Higher Education
Act of 1965 (20 U.S.C. 1092(d)(1)) is amended by striking ``including
income-sensitive'' and all that follows through ``part D'' and
inserting ``including, beginning on July 1, 2021, the income-based
repayment plan under section 493C(f) and the fixed repayment plan
described in section 493E''.
SEC. 4608. CLERY ACT AMENDMENTS.
(a) Disclosure of Campus Security Policy and Campus Crime
Statistics.--Section 485(f) of the Higher Education Act of 1965 (20
U.S.C. 1092(f)) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by
inserting ``(including on a prominent location on the
institution's website)'' after ``publish'';
(B) in subparagraph (E), strike ``crimes.'' and
insert ``crimes, including a statement of current
campus policies regarding required background checks
for employees and volunteers working with student
athletes, children, or youth participating in
university-sponsored programs held in campus
facilities.''; and
(C) in subparagraph (F)--
(i) in clause (i), by striking ``and'' at the
end;
(ii) in clause (ii), by striking ``and'' at
the end;
(iii) in clause (iii), by striking the period
at the end and inserting ``;''; and
(iv) by adding at the end the following:
``(iv) of harassment incidents that were
reported to campus security authorities or
local police agencies; and
``(v) of hazing incidents that were reported
to campus security authorities or local police
agencies.''; and
(D) by adding at the end the following:
``(K)(i) Each finding by the institution that, during the
most recent calendar year, and during the 2 preceding calendar
years for which data are available, a student organization
committed a violation of the institution's standards of conduct
relating to hazing, which--
``(I) shall include--
``(aa) the name of the student organization
that committed the violation;
``(bb) a general description of the
activities that led to the violation, the
charges, such findings by the institution, and
the sanctions placed on the organization; and
``(cc) the dates on which--
``(AA) the violation was alleged to
have occurred;
``(BB) the student organization was
charged with misconduct;
``(CC) the investigation was
initiated; and
``(DD) the investigation ended with a
finding that a violation occurred; and
``(II) may not include--
``(aa) any information related to allegations
or investigations of hazing that do not result
in a formal finding of a violation of the
standards of conduct of the institution; or
``(bb) any personally identifiable
information on any individual student or member
of a student organization.
``(ii) The anti-hazing policies (including the standards of
conduct with respect to hazing) of the institution, and the
changes, if any, that have been made in the preceding calendar
year with respect to such policies, and the justification for
such changes.
``(iii) In the case of an allegation that a multi-institution
student organization was involved in a hazing incident, each
institution at which the students involved in such allegation
are enrolled (or were formerly enrolled), including any student
who was a victim in the alleged incident, shall comply with the
requirements of this subparagraph.'';
(2) in paragraph (6)(A), by adding at the end the following:
``(vi) For purposes of reporting under this section, the term
`harassment'--
``(I) means unwelcome conduct, of a hostile,
intimidating, or offensive nature, based on a student's
actual or perceived race, color, religion, sex
(including sexual orientation, gender identity,
pregnancy, childbirth, a medical condition related to
pregnancy or childbirth, and sex stereotype),
disability, or national origin, that unreasonably
interferes with a student's ability to participate in a
program or activity at an institution of higher
education, including by creating an intimidating,
hostile, or offensive environment;
``(II) is not limited to physical acts, and includes
conduct that is verbal or nonverbal, direct or
indirect, undertaken in whole or in part through the
use of electronic messaging services, commercial mobile
services, electronic communications, or other
technology, or the placement or display of hostile or
offensive images or objects based on a protected trait;
and
``(III) includes sexual harassment, which is
unwelcome conduct of a sexual nature, including--
``(aa) a sexual advance;
``(bb) a request for sexual favors;
``(cc) a sexual act, where such submission is
made either explicitly or implicitly a term or
condition of a program or activity at an
institution of higher education, regardless of
a student's submission to or rejection of such
sexual act;
``(dd) a sexual act, where such submission or
rejection is used as the basis for a decision
affecting a term or condition of a program or
activity at an institution of higher education,
regardless of a student's submission to or
rejection of such sexual act; or
``(ee) other conduct of a sexual nature.
``(vii) 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 in
concert with other persons, against another student, that--
``(I) was committed in connection with an initiation
into, an affiliation with, or the maintenance of
membership in, any student organization; and
``(II) causes, or contributes to a substantial risk
of, physical injury, mental harm, or personal
degradation.
``(viii) The term `commercial mobile service' has the meaning
given the term in section 332(d) of the Communications Act of
1934 (47 U.S.C. 332(d)).
``(ix) The term `electronic communication' means any transfer
of signs, signals, writing, images, sounds, or data of any
nature transmitted in whole or in part by a wire, radio,
electromagnetic, photoelectronic, or photooptical system.
``(x) The term `electronic messaging services' has the
meaning given the term in section 102 of the Communications
Assistance for Law Enforcement Act (47 U.S.C. 1001).
``(xi) The term `multi-institution student organization'
means a student organization that includes students from more
than one institution of higher education, including city-wide,
regional, State, and national chapters of student
organizations.
``(xii) The term `student organization' means an organization
that is officially recognized by or otherwise affiliated with
an institution of higher education and that has a membership
that is made up primarily of students enrolled at such
institution.'';
(3) in paragraph (7), by inserting after the second sentence
the following: ``For harassment incidents, such statistics
shall be compiled in accordance with the definition of that
term in paragraph (6)(A)(vi). For hazing incidents, such
statistics shall be compiled in accordance with the definition
of that term in paragraph (6)(A)(vii).''; and
(4) in paragraph (8)--
(A) by adding ``sexual harassment,'' after ``sexual
assault,'' each place it appears;
(B) in subparagraph (B) in subclause (iv)(I)(bb) by
striking ``an investigation'' and inserting ``a trauma-
informed investigation''; and
(C) by adding at the end the following:
``(viii) Written notification of victims
about institutional policies regarding the
reimbursement of lost tuition and costs
associated with student loan interest accrual
related to domestic violence, dating violence,
sexual assault, sexual harassment, or stalking
incidents.''.
(b) Statement of Policy Regarding Harassment.--Section 485(f) of the
Higher Education Act of 1965 (20 U.S.C. 1092(f)) is further amended--
(1) by redesignating paragraphs (9) through (18) as
paragraphs (10) through (19), respectively; and
(2) by inserting after paragraph (8) the following:
``(9)(A) Each institution of higher education participating in any
program under this title, other than a foreign institution of higher
education, shall, as part of the report described in paragraph (1)--
``(i) develop and distribute a statement of policy regarding
harassment, which shall include--
``(I) a prohibition of harassment, including
harassment of enrolled students by other students,
faculty, and staff--
``(aa) on campus;
``(bb) in or on a noncampus building or
property;
``(cc) on public property;
``(dd) in dormitories or other residential
facilities for students on campus;
``(ee) through the use of electronic mail
addresses issued by the institution of higher
education;
``(ff) through the use of computers and
communication networks, including any
telecommunications service, owned, operated, or
contracted for use by the institution of higher
education or its agents; and
``(gg) during an activity sponsored by the
institution of higher education or carried out
with the use of resources provided by the
institution of higher education;
``(II) a prohibition of such harassment that is
carried out in whole or in part through the use of
electronic messaging services, commercial mobile
services, electronic communications, or other
technology;
``(III) a description of the institution's programs
to combat harassment, which shall be aimed at the
prevention of harassment;
``(IV) a description of the procedures that a student
should follow if an incident of harassment occurs; and
``(V) a description of the procedures that the
institution will follow once an incident of harassment
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; and
``(ii) provide, on a prominent location on the institution's
website, a link to the webpage that contains the information
required under paragraph (1)(K), including statement notifying
the public--
``(I) of the availability of such information,
including findings, sanctions, and the implementation
of sanctions, except information protected under
section 444 of the General Education Provisions Act
(commonly known as the `Family Education Rights and
Privacy Act of 1974');
``(II) a description of how a member of the public
may obtain such information; and
``(III) a statement that the institution is required
to provide such information pursuant to paragraph
(1)(K).
``(B) The statement of policy described in subparagraph (A)(i) shall
address the following areas:
``(i) Procedures for timely institutional action in cases of
alleged harassment, which shall include a clear statement that
the accuser and the accused shall be informed of the outcome of
any disciplinary proceedings in response to an allegation of
harassment.
``(ii) Possible sanctions to be imposed following the final
determination of an institutional disciplinary procedure
regarding harassment.
``(iii) Notification of existing counseling, mental health,
or student services for victims or perpetrators of harassment,
both on campus and in the community.
``(iv) Identification of a designated employee or office at
the institution that will be responsible for receiving and
tracking each report of harassment.''.
(c) Civil Penalties.--Section 485(f) of the Higher Education Act of
1965 (20 U.S.C. 1092(f)) is further amended--
(1) in paragraph (14), as redesignated by subsection (b)--
(A) by striking ``in the same amount and''; and
(B) by inserting before the period at the end the
following: ``, expect that such section shall be
applied by substituting `$100,000' for `$60,000'''; and
(2) in paragraph (17), as redesignated by subsection (b), by
adding ``sexual harassment,'' after ``sexual assault,''.
SEC. 4609. ONLINE SURVEY TOOL FOR CAMPUS SAFETY.
Section 485(f) of the Higher Education Act of 1965 (20 U.S.C. 1092)
is further amended--
(1) by redesignating paragraphs (18) and (19) as so
redesignated as paragraphs (19) and (20), respectively; and
(2) by inserting after paragraph (17) the following:
``(18) Online survey tool for campus safety.--
``(A) In general.--The Secretary shall, in
consultation with the Attorney General, Director of the
Centers for Disease Control, and the Secretary of the
Department of Health and Human Services and experts in
domestic violence, dating violence, sexual assault,
sexual harassment, and stalking, develop, design, and
make available through a secure and accessible online
portal, a standardized online survey tool regarding
student experiences with domestic violence, dating
violence, sexual assault, sexual harassment, and
stalking.
``(B) Development of survey tool.--In developing the
survey tool required under subparagraph (A), the
Secretary shall--
``(i) use best practices from peer-reviewed
research measuring domestic violence, dating
violence, sexual assault, sexual harassment,
and stalking;
``(ii) consult with the higher education
community, experts in survey research related
to domestic violence, dating violence, sexual
assault, sexual harassment, and stalking, and
organizations engaged in the prevention of and
response to, and advocacy on behalf of victims
of, domestic violence, dating violence, sexual
assault, sexual harassment, and stalking
regarding the development and design of such
survey tool and the methodology for
administration of such survey tool; and
``(iii) ensure that the survey tool is
readily accessible to and usable by individuals
with disabilities.
``(C) Elements.--
``(i) In general.--The survey tool developed
pursuant to this paragraph shall be fair and
unbiased, scientifically valid and reliable,
and meet the highest standards of survey
research.
``(ii) Survey questions.--Survey questions
included in the survey tool developed pursuant
to this paragraph shall--
``(I) be designed to gather
information on student experiences with
domestic violence, dating violence,
sexual assault, sexual harassment, and
stalking, including the experiences of
victims of such incidents;
``(II) use trauma-informed language
to prevent retraumatization; and
``(III) include the following:
``(aa) Questions designed to
determine the incidence and
prevalence of domestic
violence, dating violence,
sexual assault, sexual
harassment, and stalking.
``(bb) Questions regarding
whether students know about
institutional policies and
procedures related to domestic
violence, dating violence,
sexual assault, sexual
harassment, and stalking.
``(cc) Questions designed to
determine, if victims reported
domestic violence, dating
violence, sexual assault,
sexual harassment, or
stalking--
``(AA) to whom the
incident was reported
and what response the
victim may have
received;
``(BB) whether the
victim was informed of,
or referred to,
national, State, local,
or on-campus resources;
and
``(CC) whether the
entity to whom the
victim reported the
incident conducted an
investigation and the
duration and final
resolution of such an
investigation.
``(dd) Questions regarding
contextual factors, such as
whether force, incapacitation,
or coercion was involved.
``(ee) Questions to determine
whether an accused individual
was a student at the
institution.
``(ff) Questions to determine
whether a victim reported an
incident to State, local, or
campus law enforcement.
``(gg) Questions to determine
why the victim chose to report
or not report an incident to
the institution or State,
local, or campus law
enforcement.
``(hh) Questions to determine
the impact of domestic
violence, dating violence,
sexual assault, sexual
harassment, and stalking on the
victim's education, including
diminished grades, dropped
classes, leaves of absence, and
negative financial consequences
(such as costs associated with
loss in paid tuition due to
leaves of absence, loss in
scholarship awards due to
diminished grades, and cost
associated with counseling,
medical services, or housing
changes).
``(ii) Questions to determine
the impact and effectiveness of
prevention and awareness
programs and complaints
processes.
``(jj) Questions to determine
attitudes toward sexual
violence and harassment,
including the willingness of
individuals to intervene as a
bystander of sex-based
(including sexual orientation-
based and gender identity-
based), race-based, national
origin-based, and disability-
based discrimination,
harassment, assault, domestic
violence, dating violence,
sexual assault, sexual
harassment, and stalking.
``(kk) Other questions, as
determined by the Secretary.
``(iii) Additional elements.--In addition to
the standardized questions developed by the
Secretary under clause (ii), an institution may
request additional information from students
that would increase the understanding of the
institution of school climate factors unique to
their campuses.
``(iv) Responses.--The responses to the
survey questions described in clause (ii)
shall--
``(I) be submitted confidentially;
``(II) not be included in crime
statistics; and
``(III) in the case of such responses
being included in a report, shall not
include personally identifiable
information.
``(D) Administration of survey.--
``(i) Federal administration.--The Secretary,
in consultation with the Attorney General,
Director of the Centers for Disease Control,
and Secretary of the Department of Health and
Human Services, shall develop a mechanism by
which institutions of higher education may,
with respect to the survey tool developed
pursuant to this paragraph--
``(I) administer such survey tool;
and
``(II) modify such survey tool to
include additional elements or
requirements, as determined by the
institution.
``(ii) Costs.--The Secretary may not require
an institution of higher education to pay to
modify the survey tool in accordance with
clause (ii)(II).
``(iii) Accessibility.--The Secretary shall
ensure that the survey tool is administered in
such a way as to be readily accessible to and
usable by individuals with disabilities.
``(iv) Institutional administration.--
Beginning not later than one year after the
date on which the Secretary makes available to
institutions the mechanism described in clause
(i), and every 2 years thereafter, each
institution shall administer the survey tool
developed pursuant to this paragraph.
``(E) Completed surveys.--The Secretary shall require
each institution participating in any program under
this title to ensure, to the maximum extent
practicable, that an adequate, random, and
representative sample size of students (as determined
by the Secretary) enrolled at the institution complete
the survey tool developed pursuant to this paragraph.
``(F) Report.--Beginning not later than 2 years after
the date of enactment of the College Affordability Act,
the Secretary shall prepare a biennial report on the
information gained from the standardized elements of
the survey under this paragraph and publish such report
in an accessible format on the website of the
Department and submit such report to Congress. The
report shall include campus-level data for each school
and attributed by name of each campus in a manner that
permits comparisons across schools and campuses.
``(G) Publication.--Each institution shall publish,
in a manner that is readily accessible and usable by
individuals, including individuals with disabilities--
``(i) the campus-level results of the
standardized elements of the survey under this
paragraph on the website of the institution and
in the annual security report required under
paragraph 1 for the campuses affiliated with
the institution; and
``(ii) the campus-level results of the
additional elements modifying the survey by the
institution, if any, on the website of the
institution.
``(H) Violation.--Upon a determination pursuant to
section 487(c)(3)(B) that an institution of higher
education has violated or failed to carry out any
provision 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).''.
SEC. 4610. TRANSFER OF CREDIT POLICIES.
Section 485(h)(1) of the Higher Education Act of 1965 (20 U.S.C.
1092(h)(1)) is amended--
(1) in the matter preceding subparagraph (A)--
(A) by inserting ``on the website of the institution
and in at least one other relevant publication (such as
a course catalogue)'' after ``publicly disclose''; and
(B) by inserting ``, easy to find,'' after
``readable''; and
(2) in subparagraph (B), by striking the period at the end
and inserting the following: ``, including a link to the
website of each institution of higher education on such list
and a link to or an explanation of the provisions of each such
articulation agreement; and''; and
(3) by adding at the end the following:
``(C) a list of transfer-related resources and
information not otherwise provided under subparagraphs
(A) and (B) that the institution provides (such as
deadlines, financial aid information, and relevant
staff contact information).''.
SEC. 4611. AMENDMENTS TO INSTITUTIONAL AND FINANCIAL ASSISTANCE.
(a) Notice to Students Concerning Drug Violations.--Subsection (k) of
section 485 (20 U.S.C. 1092) is repealed.
(b) Liaison for Homeless Individuals and Foster Care Youth.--Section
485 of the Higher Education Act of 1965 (20 U.S.C. 1092) is amended by
inserting after subsection (j) the following:
``(k) Each institution of higher education participating in any
program under this title shall--
``(1) have designated an appropriate staff person as a
liaison to assist homeless individuals described in section 725
of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11434a) and foster care youth in accessing and completing
postsecondary education, including by ensuring that such
homeless individuals and foster care youth are connected to
applicable and available student support services, programs,
and community resources in areas such as financial aid,
academic advising, housing, food, public benefits, health care,
health insurance, mental health, child care, transportation
benefits, and mentoring;
``(2) post public notice about student financial assistance
and other assistance available to such homeless individuals and
foster care youth, including their eligibility as independent
students under subparagraphs (B) and (H) of sections 480(d)(1);
``(3) give priority for any institutionally owned or operated
housing facilities, including student housing facilities that
remain open for occupation during school breaks or on a year-
round basis, to--
``(A) homeless individuals described in section 725
of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11434a);
``(B) youth who are unaccompanied, at risk of
homelessness, and self-supporting; and
``(C) foster care youth;
``(4) have developed a plan for how such homeless
individuals, youth who are unaccompanied, at risk of
homelessness, and self-supporting, and foster care youth can
access housing resources during and between academic terms,
through means that may include access to institutionally owned
or operated housing during breaks and a list of housing
resources in the community that provide short-term housing; and
``(5) include, in its application for admission, questions
(to be answered voluntarily) regarding the applicant's status
as a homeless individual or foster care youth, that--
``(A) can be answered by the applicant voluntarily
for the limited purpose of being provided information
about financial aid or any other available assistance;
``(B) explain the key terms in the question in a
manner children and youth can understand in order to
self-identify and declare eligibility as a homeless
individual or foster care youth; and
``(C) with consent of the applicant, may be shared
with the liaison after admission but prior to the
beginning of the next academic term.''.
(c) Annual Financial Aid Counseling.--Section 485(l) of the Higher
Education Act of 1965 (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 that each individual who receives a loan made
under part D (other than a Federal Direct Consolidation
Loan or a loan made under section 460A and 460B)
receives comprehensive information on the terms and
conditions of such loan and the responsibilities the
individual has with respect to such loan. Such
information shall be provided, for each award year for
which the individual receives such 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) through the use of interactive
programs, during an annual counseling session that is
in-person or online, that tests the individual's
understanding of the terms and conditions of the loan
awarded to the individual, using simple and
understandable language and clear formatting.
``(2) All individuals.--The information to be provided under
paragraph (1)(A) to each individual receiving counseling under
this subsection shall include the following:
``(A) An explanation of how the individual 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) An introduction to the financial management
resources provided by the Consumer Financial Protection
Bureau.
``(D) 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.
``(3) Borrowers receiving loans made under part d (other than
parent plus loans).--The information to be provided under
paragraph (1)(A) to a borrower of a loan made under part D
(other than a Federal Direct PLUS Loan made on behalf of a
dependent student) shall include the following:
``(A) A notification that some students may qualify
for other financial aid and 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
student loans.
``(B) 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.
``(C) An explanation of the use of the student loan
contract referred to in section 432(m)(1)(D).
``(D) An explanation that the borrower is not
required to accept the full amount of the loan offered
to the borrower.
``(E) An explanation of the approved educational
expenses for which the borrower may use a loan made
under part D.
``(F) A recommendation to the borrower to exhaust the
borrower's Federal student loan options prior to taking
out private education loans, an explanation that
Federal student loans typically offer better terms and
conditions than private education loans, an explanation
that Federal student loans offer consumer protections
typically not available in the private education loan
market, an explanation of treatment of loans made under
part D 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) of the Truth in
Lending Act (15 U.S.C. 1638(e)); 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 (15
U.S.C. 1638(e)(7)).
``(G) The interest rate for the loan, as of the date
of the counseling.
``(H) Information on how interest accrues and is
capitalized during periods when the interest is not
paid by either the borrower or the Secretary.
``(I) In the case of 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.
``(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) 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.
``(M) The likely consequences of default on the loan,
including adverse credit reports, delinquent debt
collection procedures under Federal law, and
litigation.
``(N) Notice of the institution's most recent
adjusted cohort default rate (calculated in accordance
with section 435(m)(1)(D)), an explanation of the
adjusted cohort default rate, the most recent national
average adjusted cohort default rate, and the most
recent national average adjusted cohort default rate
for the category of institution described in section
435(m)(4) to which the institution belongs.
``(O) Information on the National Student Loan Data
System and how the borrower can access the borrower's
records.
``(P) 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.
``(Q) For a first-time borrower, in addition to all
the information described in subparagraphs (A) through
(P)--
``(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 fixed repayment plan
described in section 493E; and
``(II) the income-based repayment
plan under section 493C(f), as
determined using regionally available
data from the Bureau of Labor
Statistics of the average starting
salary for the occupation in which the
borrower has an interest in or intends
to be employed;
``(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 part D who are in
the same program of study as the borrower and
the expected increase in the cost of attendance
of such program; and
``(iv) information on the annual and
aggregate loan limits for Federal Direct
Stafford Loans and Federal Direct Unsubsidized
Stafford Loans as it pertains to the loan for
which the borrower is receiving counseling, and
a statement that such aggregate borrowing limit
may change based on the borrower's student
status (whether undergraduate or graduate) or
if there is a change in the borrower's
dependency status.
``(R) For a borrower with an outstanding balance of
principal or interest due on a loan made under this
title, in addition to all the information described in
subparagraphs (A) through (P)--
``(i) information on each student loan that
the institution is aware that the student has
borrowed, including Federal loans, private
loans, and loans from the institution;
``(ii) the total amount of the outstanding
balance and interest accrued from the Federal
student loans described in clause (i);
``(iii) for each Federal loan described in
clause (i), the interest rate for the loan, as
of the date of the counseling, and a statement
that the interest rate on student loans may
vary based on when the loan was borrowed and
other factors;
``(iv) based on such outstanding balance for
the Federal student loans, the anticipated
monthly payment amount under the fixed
repayment plan described in section 493E, the
income-based repayment plan under section
493C(f), and any other repayment plan for which
each loan may be eligible, calculated using
regionally available data from the Bureau of
Labor Statistics of the average starting salary
for the occupation the borrower intends to be
employed;
``(v) an estimate of the projected monthly
payment amount under each repayment plan
described in clause (iv), based on--
``(I) the outstanding balance
described in clause (ii);
``(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 part D that the
borrower is reasonably expected to
accept during the borrower's program of
study based on at least the average
cumulative indebtedness at graduation
for borrowers of loans made under part
D who are in the same program of study
as the borrower and the expected
increase in the cost of attendance of
such program;
``(vi) a statement that the outstanding
balance described in clause (ii), the interest
rate described in clause (iii), and the monthly
amount described in clause (iv) and clause (v)
does not include any amounts that the student
may be required to repay for private or
institutional loans; and
``(vii) the percentage of the total aggregate
borrowing limit that the student has reached,
as of the date of the counseling, for Federal
Direct Stafford Loans and Federal Direct
Unsubsidized Stafford Loans, and a statement
that such aggregate borrowing limit may change
based on the borrower's student status (whether
undergraduate or graduate) or if there is a
change in the borrower's dependency status.
``(4) Borrowers receiving parent plus loans for dependent
students.--The information to be provided under paragraph
(1)(A) to a borrower of a Federal Direct PLUS Loan made on
behalf of a dependent student shall include the following:
``(A) A notification that some students may qualify
for other financial aid and an explanation that the
student for whom the borrower is taking out the loan
should consider accepting any grant, scholarship, or
State or Federal work-study jobs for which the borrower
is eligible prior to borrowing Parent PLUS Loans.
``(B) The information described in subparagraphs (B)
through (D) and (L) through (O) of paragraph (3).
``(C) The interest rate for the loan, as of the date
of the counseling.
``(D) The option of the borrower to pay the interest
on the loan while the loan is in deferment.
``(E) Debt management strategies that are designed to
facilitate the repayment of such indebtedness.
``(F) An explanation that the borrower has the
options to prepay each loan, pay each loan on a shorter
schedule, and change repayment plans.
``(G) For each Federal Direct PLUS Loan made on
behalf of a dependent student 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.
``(H) For a first-time borrower of 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
fixed repayment plan described in section 493E,
the income-based repayment plan under section
493C(f), and any other repayment plan for which
each loan may be eligible; and
``(iii) an estimate of the projected monthly
payment amount under the fixed repayment plan
described in section 493E, the income-based
repayment plan under section 493C(f), and any
other repayment plan for which each loan may be
eligible, based on the average cumulative
indebtedness of other borrowers of Federal
Direct PLUS Loans made on behalf of dependent
students who are in the same program of study
as the student on whose behalf the borrower
borrowed the loan and the expected increase in
the cost of attendance of such program.
``(I) 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
fixed repayment plan described in section 493E,
the income-based repayment plan under section
493C(f), and any other repayment plan for which
each loan may be eligible; and
``(iii) an estimate of the projected monthly
payment amount under the fixed and income-based
repayment plans, based on--
``(I) the anticipated outstanding
balance on the loan for which the
borrower is receiving counseling under
this subsection; and
``(II) a projection for any other
Federal Direct PLUS Loan made on behalf
of the dependent student that the
borrower is reasonably expected to
accept during the program of study of
such student based on at least the
average cumulative indebtedness of
other borrowers of Federal Direct PLUS
Loans made on behalf of dependent
students who are in the same program of
study as the student on whose behalf
the borrower borrowed the loan and the
expected increase in the cost of
attendance of such program.
``(5) Annual loan acceptance.--Prior to making the first
disbursement of a loan made under part D (other than a Federal
Direct Consolidation Loan or a loan made under section 460A and
460B) 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), (3), and (4) for
the loan the borrower accepts the loan for such award year by--
``(A) signing and returning to the institution the
student loan contract for the loan referred to in
section 432(m)(1)(D) that affirmatively states that the
borrower accepts the loan; or
``(B) electronically signing an electronic version of
the student loan contract described in subparagraph
(A).
``(6) Rule of 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, provided that any
additional information and counseling services for recipients
of Federal student aid shall not preclude or be considered a
condition for disbursement of such aid.''.
(d) Online Counseling Tools.--Section 485 of the Higher Education Act
of 1965 (20 U.S.C. 1092), as amended by this section, is further
amended by adding at the end the following:
``(n) Online Counseling Tools.--
``(1) In general.--Beginning not later than 18 months after
the date of enactment of the College Affordability 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 developing and maintaining
the online counseling tools described in paragraph (1), the
Secretary shall ensure that each such tool is--
``(A) consumer tested, in consultation with other
relevant Federal agencies and including students (low-
income students and student veterans, and students'
families) and borrowers, institutions of higher
education, secondary school and postsecondary
counselors, and nonprofit consumer groups, to ensure
that the tool is effective in helping individuals
understand their options, rights, and obligations with
respect to borrowing a loan made under part D; and
``(B) 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 part D using the tool
described in paragraph (1)(B), notify the borrower by
when the borrower should accept, in a manner described
in subsection (l)(5), 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.''.
(e) Disclosure of Religious Exemptions to Title IX of the Education
Amendments of 1972.--Section 485 of the Higher Education Act of 1965
(20 U.S.C. 1092), as amended by this section, is further amended by
adding at the end the following:
``(o) Disclosure of Religious Exemptions to Title IX of the Education
Amendments of 1972.--Each institution of higher education participating
in any program under this title that requests, receives, or exercises
or intends to exercise a religious exemption to the requirements of
title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.)
shall submit in writing to the Assistant Secretary for Civil Rights a
statement by the highest ranking official of the institution,
identifying the provisions of part 106 of title 34 of the Code of
Federal Regulations that conflict with a specific tenet of the
religious organization and shall publish on its website, in a prominent
location, the following:
``(1) Request letter.--Each letter submitted by the
educational institution to the Department to request such an
exemption.
``(2) Exemption letter.--Each letter from the Department to
the educational institution that grants or denies such an
exemption.
``(3) Notice of request.--Notice that the educational
institution has requested an exemption under section 901(a)(3)
of the Education Amendments of 1972 (20 U.S.C. 1681(a)(3)).
``(4) Notice of exemption.--If applicable, notice that the
educational institution has received an exemption under section
901(a)(3) of the Education Amendments of 1972 (20 U.S.C.
1681(a)(3)).
``(5) Covered personal characteristics or behaviors.--A list
of the personal characteristics or behaviors to which each
requested or granted exemption applies.
``(6) Covered activities or programs.--A list of the
activities or programs to which each exemption applies.
``(7) Statement of rights.--The statement `Students continue
to have rights under title IX of the Education Amendments of
1972. Any student who experiences discrimination may contact
the Office for Civil Rights at the United States Department of
Education at _____ or _____.', with the first blank space being
filled with a link to the website of the Office for Civil
Rights and the second blank space being filled with the
telephone number of the Office for Civil Rights.''.
(f) Expectant and Parenting Students Policies.--Section 485 of the
Higher Education Act of 1965 (20 18 U.S.C. 1092), as amended by this
section, is further amended by adding at the end the following:
``(p) Expectant and Parenting Students Policies.--Each institution of
higher education participating in any program under this title shall
develop and make available, including on the institution's website, a
statement of policy concerning expectant and parenting students, which
shall include, at a minimum--
``(1) the institution's policy regarding leaves of absence
related to pregnancy (and related medical conditions), and the
birth or adoption of a child, which shall include--
``(A) any policies related to the availability of
parental leave; and
``(B) options, including time requirements, for
making up missed work for students who take a leave of
absence;
``(2) information regarding lactation accommodations
available to students;
``(3) a description of the process for requesting
accommodations, and the type of accommodations available to
expectant and parenting students, including--
``(A) information on accommodations for pregnancy-
related medical conditions; and
``(B) information on accommodations for students who
have parental responsibilities;
``(4) information regarding financial aid eligibility for
expectant and parenting students, including--
``(A) the availability of dependent care allowances
for a parenting student for the purposes of determining
the student's cost of attendance;
``(B) the ability to change dependency status,
including during an award year, following the birth of
a child;
``(C) the availability of and eligibility
requirements for any emergency financial aid programs
provided by the institution; and
``(D) an explanation of the effect that a leave of
absence may have on a student's demonstration of
satisfactory academic progress, including for the
purposes of eligibility to participate in financial aid
programs under this title;
``(5) information on available student support services,
programs, and community resources, such as academic advising,
child care (including child care subsidy and assistance
programs), housing (including housing subsidies and utility
assistance programs), food (including food assistance
programs), public benefits, health care, health insurance,
mental health, transportation benefits, mentoring, and other
services available for expectant and parenting students, both
on-campus and in the community, and under local, State, and
Federal law;
``(6) information regarding the availability of on-campus
housing that permits students to live with dependents;
``(7) information on the rights and protections that are
guaranteed to expectant and parenting students under applicable
Federal and State laws;
``(8) the institution's procedures for addressing complaints
under title IX of the Education Amendments of 1972 (20 U.S.C.
1681 et seq.), including procedures for reporting complaints
under such title;
``(9) the institution's procedures for addressing complaints
alleging discrimination based on a pregnancy-related disability
under section 504 of the Rehabilitation Act of 1973 (29 U.S.C.
701 et seq.) or the Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.), including procedures for reporting
complaints under such laws; and
``(10) the contact information for the institution's Office
of Accessibility, the institution's Title IX coordinator, and
any other relevant staff members who serve as a point of
contact for, or offer services available to, expectant and
parenting students.''.
SEC. 4612. PREVENTION OF IMPROPER ACCESS.
Section 485B of the Higher Education Act of 1965 (20 U.S.C. 1092b) is
amended--
(1) by redesignating subsections (e) through (h) as
subsections (f) through (i), respectively;
(2) in subsection (d)--
(A) in paragraph (5)(C), by striking ``and'' after
the semicolon;
(B) in paragraph (6)(C), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(7) preventing access to the data system and any other
system used to administer a program under this title by any
person or entity for the purpose of assisting a student in
managing loan repayment or applying for any repayment plan,
consolidation loan, or other benefit authorized by this title,
unless such access meets the requirements described in
subsection (e).'';
(3) by inserting after subsection (d) the following:
``(e) Requirements for Third-Party Data System Access.--
``(1) In general.--As provided in paragraph (7) of subsection
(d), an authorized person or entity described in paragraph (2)
may access the data system and any other system used to
administer a program under this title if that access--
``(A) is in compliance with terms of service,
information security standards, and a code of conduct
which shall be established by the Secretary and
published in the Federal Register;
``(B) is obtained using an access device (as defined
in section 1029(e)(1) of title 18, United States Code)
issued by the Secretary to the authorized person or
entity; and
``(C) is obtained without using any access device (as
defined in section 1029(e)(1) of title 18, United
States Code) issued by the Secretary to a student,
borrower, or parent.
``(2) Authorized person or entity.--An authorized person or
entity described in this paragraph means--
``(A) a guaranty agency, eligible lender, or eligible
institution, or a third-party organization acting on
behalf of a guaranty agency, eligible lender, or
eligible institution, that is in compliance with
applicable Federal law (including regulations and
guidance); or
``(B) a licensed attorney representing a student,
borrower, or parent, or another individual who works
for a Federal, State, local, or Tribal government or
agency, or for a nonprofit organization, providing
financial or student loan repayment counseling to a
student, borrower, or parent, if--
``(i) that attorney or other individual has
never engaged in unfair, deceptive, or abusive
practices, as determined by the Secretary;
``(ii) that attorney or other individual does
not work for an entity that has engaged in
unfair, deceptive, or abusive practices
(including an entity that is owned or operated
by a person or entity that engaged in such
practices), as determined by the Secretary;
``(iii) system access is provided only
through a separate point of entry; and
``(iv) the attorney or other individual has
consent from the relevant student, borrower, or
parent to access the system.''; and
(4) in subsection (f)(1), as redesignated by paragraph (1)--
(A) in subparagraph (A), by striking ``student and
parent'' and inserting ``student, borrower, and
parent'';
(B) by redesignating subparagraphs (C) and (D) as
subparagraphs (D) and (E), respectively;
(C) by inserting after subparagraph (B) the
following:
``(C) the reduction in improper data system access as
described in subsection (d)(7);''; and
(D) by striking subparagraph (E), as redesignated by
subparagraph (B), and inserting the following:
``(E) any protocols, codes of conduct, terms of
service, or information security standards developed
under paragraphs (6) or (7) of subsection (d) during
the preceding fiscal year.''.
SEC. 4613. INFORMATION WITH RESPECT TO CRIME STATISTICS FOR PROGRAMS OF
STUDY ABROAD.
Part G of title IV of the Higher Education Act of 1965 (20 U.S.C.
1088 et seq.), as amended by the preceding sections, is further amended
by inserting after section 485E (20 U.S.C. 1092f) the following:
``SEC. 485F. INFORMATION WITH RESPECT TO CRIME STATISTICS FOR PROGRAMS
OF STUDY ABROAD.
``(a) In General.--Each institution participating in any program
under this title, other than a foreign institution of higher education,
shall develop and distribute a statement of policy with respect to
students participating in a program of study abroad approved for credit
by the institution concerning crime and harm that may occur while
participating in such program of study abroad that, at a minimum,
includes a biennial review by the institution of the programs of study
abroad approved for credit by the institution to determine--
``(1) the effectiveness of the programs at protecting
students from crime and harm, and whether changes to the
programs are needed (based on the most recent guidance or other
assistance from the Secretary) and will be implemented;
``(2) for the 5 years preceding the date of the report, the
number (in the aggregate for all programs of study abroad
approved for credit by the institution) of--
``(A) deaths of program participants occurring during
program participation or during any other activities
during the study abroad period;
``(B) sexual assaults against program participants
occurring during program participation and reported to
the institution;
``(C) accidents and illnesses occurring during
program participation that resulted in hospitalization
and were reported to the institution; and
``(D) incidents involving program participants during
the program participation that resulted in police
involvement or a police report and were reported to the
institution; and
``(3) with respect to the incidents described in
subparagraphs (A) and (B) of paragraph (2), whether the
incidents occurred--
``(A) on campus;
``(B) in or on noncampus buildings or property;
``(C) on public property;
``(D) in dormitories or other residential facilities
for students on campus; or
``(E) at a location not described in items (A)
through (D) of this clause, without regard to whether
the institution owns or controls a building or property
at the location.
``(b) Other Duties.--An institution of higher education described in
subsection (a) shall--
``(1) provide each student who is interested in participating
in a program of study abroad approved for credit by the
institution, with an orientation session and advising that
includes--
``(A) a list of countries in which such programs of
study abroad are located;
``(B) all current travel information, including all
travel warnings and travel alerts, issued by the Bureau
of Consular Affairs of the Department of State for such
countries; and
``(C) the information described in paragraph (a),
provided specifically for each program of study abroad
approved for credit by the institution in which the
student is considering participation; and
``(2) provide each student who returns from such a program of
study abroad with a post-trip debriefing session, including an
exit interview that assists the institution in carrying out
subsection (a).
``(c) Limitations.--An institution of higher education shall not
disaggregate or otherwise distinguish information for purposes of
subsection (a) or (b) 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.
``(d) Review.--The Secretary shall periodically review a
representative sample of the policies described in subsection (a) that
have been adopted by institutions of higher education.
``(e) Definition.--For the purpose of this section, the definitions
for `campus', `noncampus building or property', and `public property'
shall have the same meaning as in section 485(f)(6).''.
SEC. 4614. REMEDIAL EDUCATION GRANTS.
Part G of title IV of the Higher Education Act of 1965 (20 U.S.C.
1088 et seq.), as amended by the preceding sections, is further amended
by inserting after section 486A (20 U.S.C. 1093a) the following:
``SEC. 486B. REMEDIAL EDUCATION GRANTS.
``(a) Grants Authorized.--
``(1) In general.--From the funds appropriated under
subsection (k) (and not reserved under subsection (c)(4)), the
Secretary, in consultation with the Director of the Institute
of Education Sciences, shall award grants, on a competitive
basis, to eligible entities to improve remedial education in
higher education.
``(2) Duration.--A grant under this section shall be awarded
for a period of 5 years.
``(3) Minimum awards.--The total amount of funds provided
under each grant awarded under this section shall not be less
than $500,000.
``(b) Application.--An eligible entity that desires to receive 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, which shall include the following:
``(1) A description of how the eligible entity will use the
grant funds to develop or improve a remedial education program
that includes evidence-based, effective strategies for
providing instruction to ensure that students are prepared for
courses at the postsecondary level.
``(2) An assurance that the eligible entity will use more
than two measures (such as a student's college entrance
examination score, grade point average, high school course
list, or a placement examination) to identify students in need
of remedial education who may be eligible to participate in the
remedial education program developed or improved under the
grant.
``(3) A description of how the eligible entity, in developing
or improving such a program, will consult with stakeholders,
including individuals with expertise in remedial education,
students enrolled in remedial education, and faculty
instructors for remedial education.
``(4) The eligible entity's plan for sustaining the program
after the grant period has ended.
``(5) The eligible entity's plan for monitoring and
evaluating the program, including how the eligible entity will
use the data collected under subsection (h) to continually
update and improve the program.
``(c) Consultation and Independent Evaluation.--
``(1) In general.--Before selecting eligible entities to
receive grants under this section for a fiscal year, the
Secretary shall--
``(A) ensure that the consultation required under
paragraph (3) is carried out; and
``(B) consider the results of the consultation in
selecting eligible entities to receive such grants.
``(2) Contract authority.--The Secretary, acting through the
Director, shall seek to enter into a contract with an
independent evaluator under which the evaluator will provide
the consultation and evaluation required under paragraph (3).
``(3) Consultation and independent evaluation required.--The
independent evaluator shall carry out the following activities:
``(A) Consultation.--For each fiscal year of the
grant program under this section, the independent
evaluator shall consult with, and provide advice to,
the Secretary regarding which eligible entities should
receive grants under this section for such fiscal year.
``(B) Evaluation.--Throughout the duration of the
grant program under this section, the independent
evaluator shall independently evaluate the impact of
the remedial education programs funded with the grants,
which shall include evaluation of--
``(i) the effectiveness of the remedial
education programs in increasing course and
degree completion at the postsecondary level;
and
``(ii) the outcomes of the remedial education
programs within and among models of remedial
education described in subsection (d).
``(4) Reservation.--The Secretary may reserve not more than
15 percent of the funds appropriated under subsection (k) for a
fiscal year to carry out this subsection for such fiscal year.
``(d) Use of Funds.--An eligible entity that receives a grant under
this section shall use the grant to develop or improve a remedial
education program through one or more of the following models:
``(1) Aligning course work.--Working with a local educational
agency or State educational agency that is part of the eligible
entity to develop or improve programs that provide alignment
between high school coursework and postsecondary education, and
that may include--
``(A) assessments in high school to measure student
readiness for courses at the postsecondary level; or
``(B) interventions in high school that improve
student competencies for courses at the postsecondary
level.
``(2) Accelerated course work.--Redesigning or improving
remedial education that--
``(A) allows students to enroll in more than one
sequential remedial education course or training in a
semester, or the equivalent;
``(B) condenses the time of the remedial education;
or
``(C) provides shortened, intensive courses or
training to improve competencies of students for
courses at the postsecondary level.
``(3) Modular instructional methods.--Developing or improving
remedial education that--
``(A) specifically targets the skills that students
need to move forward in courses at the postsecondary
level; and
``(B) may be used to develop new assessments,
redesign courses to provide targeted skill instruction,
or provide faculty professional development.
``(4) Co-requisite model.--Developing or improving remedial
education programs that allow a student to enroll in remedial
education (which may be provided through a modular
instructional method) while also enrolled in a course at the
postsecondary level.
``(5) Systemic reform to implement comprehensive, integrated
support programs.--Implementing and improving comprehensive,
integrated, evidence-based support programs that--
``(A) enable students enrolled in remedial education
to complete a course of study leading to a recognized
educational credential within 150 percent of the normal
time for completion; and
``(B) may include financial supports, academic
tutoring or support, and advising that enable students
to find success in remedial education and courses at
the postsecondary level.
``(e) Considerations.--In awarding grants under this section, the
Secretary, in consultation with the Director, shall--
``(1) ensure--
``(A) a minimum of 30 eligible entities are awarded
grants for each 5-year grant period;
``(B) an equitable geographic distribution of such
grants, including an equitable distribution between
urban and rural areas; and
``(C) that grants are used to develop or improve
remedial education programs--
``(i) under each model described in
subsection (d) to enable, to the extent
practicable, statistical comparisons of the
relative effectiveness of the models and the
programs within each model; and
``(ii) for a range of types and sizes of
institutions of higher education; and
``(2) give preference to eligible entities that primarily
serve low-income students.
``(f) Fiscal Requirements.--
``(1) Supplement not supplant.--A grant awarded under this
section shall be used to supplement, not supplant, funds that
would otherwise be used to carry out the activities described
in this section.
``(2) Matching funds.--
``(A) In general.--Subject to subparagraph (B), an
eligible entity that receives a grant under this
section shall provide, from non-Federal sources, an
amount equal to 10 percent of the amount of the grant
for the cost of activities assisted under the grant.
``(B) Exceptions.--The requirements of subparagraph
(A) shall not apply to--
``(i) Tribal Colleges or Universities; or
``(ii) institutions of higher education
located in the Commonwealth of Puerto Rico,
Guam, American Samoa, the United States Virgin
Islands, the Commonwealth of the Northern
Mariana Islands, the Republic of the Marshall
Islands, the Federated States of Micronesia, or
the Republic of Palau.
``(g) Experimental Authority.--Notwithstanding any other provision of
this title, a student may be eligible to receive loans or grants under
this title for up to 2 academic years for enrollment in a remedial
education program under this section.
``(h) Data Collection, Reports, Evaluations, and Dissemination.--
``(1) Information.--
``(A) Student-level data.--Each eligible entity that
receives a grant under this section shall provide to
the Director and the Secretary, on an annual basis for
each year of the grant period and for 5 years after
such grant period, the student-level data with respect
to the students who are or were enrolled in a remedial
education program funded with the grant. The Director
and the Secretary shall share such data with the
independent evaluator to enable the evaluator, for each
such year, to determine the information described in
subparagraph (B) with respect to each such remedial
education program.
``(B) Aggregate student data.--The independent
evaluator shall determine, with respect to each
remedial education program for which an eligible entity
provides student-level data under subparagraph (A), the
following information:
``(i) The number of students who are or were
enrolled in such remedial education program.
``(ii) The cost of such remedial education
program.
``(iii) The amount of grant or loan funds
under this title awarded to students for
enrollment in such remedial education program.
``(iv) The type of remedial education offered
under the program.
``(v) The length of time students spend in
such remedial education program, as measured by
semester, trimester, or clock hours.
``(vi) The number of students who complete
such remedial education program.
``(vii) Of the students who complete such
remedial education program--
``(I) the number and percentage of
such students who later enroll in
postsecondary-level courses at an
institution of higher education;
``(II) the number and percentage of
such students who receive a recognized
educational credential from an
institution of higher education;
``(III) the average length of time
required for a student described in
subclause (II) to complete the course
of study leading to such credential;
and
``(IV) the number and percentage of
students described in subclause (II)
who complete the course of study
leading to such credential within 150
percent of the normal time for
completion.
``(C) Disaggregation.--The information determined
under subparagraph (B) shall be disaggregated by race,
gender, socioeconomic status, Federal Pell Grant
eligibility status, status as a first generation
college student, veteran or active duty status, and
disability status.
``(2) Evaluation results.--Not later than six years after the
first grant is awarded under this section, the Director, in
consultation with the Secretary and using the information
determined under paragraph (1), shall submit to the authorizing
committees and make available on a publicly accessible website,
a report on the results of the multiyear, rigorous, and
independent evaluation of the impact of the remedial education
programs carried out by the independent evaluator. The report
shall include the results of such evaluation with respect to--
``(A) the effectiveness of the remedial education
programs in increasing course and degree completion at
the postsecondary level; and
``(B) the outcomes of the remedial education programs
within and among models of remedial education described
in subsection (d).
``(3) Reports and dissemination.--
``(A) Initial report.--Not later than one year after
the first grant is awarded under this section, the
Secretary, in consultation with the independent
evaluator, shall prepare and submit to the authorizing
committees a report on each remedial education program
funded under this section.
``(B) Subsequent report.--Not later than five years
after the last grant is awarded under this section, the
Secretary, in consultation with the independent
evaluator, shall prepare and submit to the authorizing
committees a report that includes--
``(i) a review of the activities and program
performance of each remedial education program
funded under this section; and
``(ii) guidance and recommendations on how
successful remedial education programs (as
determined, at a minimum, by the number and
percentage of remedial education students who
later complete a course of study at an
institution of higher education within 150
percent of the normal time for completion) can
be replicated.
``(C) Public availability.--The reports submitted
under subparagraphs (A) and (B) shall be made available
on a publicly accessible website of the Department of
Education.
``(i) Data Privacy.--
``(1) In general.--It shall be unlawful for any person who
obtains or has access to personally identifiable information
pursuant to this section to knowingly disclose to any person
(except as authorized in this section or any Federal law) such
personally identifiable information.
``(2) Penalty.--Any person who violates paragraph (1) shall
be fined under title 18, United States Code.
``(3) Officer or employee of the united states.--If any
officer or employee of the United States violates paragraph
(1), the officer or employee shall be dismissed from office or
discharged from employment upon conviction for the violation.
``(4) Law enforcement.--Personally identifiable information
collected under this section shall not be used for any law
enforcement activity or any other activity that would result in
adverse action against any student, including debt collection
activity or enforcement of the immigration laws.
``(j) Definitions.--In this section:
``(1) Director.--The term `Director' means the Director of
the Institute of Education Sciences.
``(2) Eligible entity.--The term `eligible entity' means--
``(A) an institution of higher education; or
``(B) a partnership between an institution of higher
education and at least 1 of the following:
``(i) A local educational agency.
``(ii) A State educational agency.
``(3) First generation college student.--The term `first
generation college student' has the meaning given that term in
section 402A(h).
``(4) Independent evaluator.--The term `independent
evaluator' means the independent evaluator with which the
Secretary enters into a contract under subsection (c)(2).
``(5) Institution of higher education.--The term `institution
of higher education' has the meaning given that term in section
101.
``(6) Remedial education.--The term `remedial education'--
``(A) means education (such as courses or training)
offered at an institution of higher education that--
``(i) is below the postsecondary level; and
``(ii) is determined by the institution to be
necessary to help students be prepared for the
pursuit of a first undergraduate baccalaureate
degree, associate's 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; and
``(B) includes developmental education that meets the
requirements of subparagraph (A).
``(7) Tribal college or university.--The term `Tribal College
or University' has the meaning given that term in section
316(b).
``(k) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $162,500,000 for fiscal year
2021 and each of the 5 succeeding fiscal years.''.
SEC. 4615. COMPETENCY-BASED EDUCATION.
(a) In General.--Part G of title IV of the Higher Education Act of
1965 (20 U.S.C. 1088 et seq.), as amended by the preceding sections, is
further amended by inserting after section 486B (as added by section
4614 of this Act) the following:
``SEC. 486C. COMPETENCY-BASED EDUCATION DEMONSTRATION PROJECTS.
``(a) Demonstration Projects Authorized.--The Secretary shall select,
in accordance with subsection (d), eligible entities to voluntarily
carry out competency-based education demonstration projects for a
duration of 5 years and receive waivers or other flexibility described
in subsection (e) to carry out such projects.
``(b) Application.--
``(1) In general.--Each eligible entity desiring to carry out
a demonstration project under this section shall submit an
application to the Secretary, at such time and in such manner
as the Secretary may require.
``(2) Outreach.--
``(A) In general.--The Secretary shall, prior to any
deadline to submit applications under paragraph (1),
conduct outreach to institutions, including those
described in subparagraph (B), to provide those
institutions with information on the opportunity to
apply to carry out a demonstration project under this
section.
``(B) Institutions.--The institutions described in
this subparagraph are the following:
``(i) Part B institutions (as defined in
section 322).
``(ii) Hispanic-serving institutions (as
defined in section 502).
``(iii) Tribal Colleges or Universities (as
defined in section 316).
``(iv) Alaska Native-serving institutions (as
defined in section 317(b)).
``(v) Native Hawaiian-serving institutions
(as defined in section 317(b)).
``(vi) Predominantly Black Institutions (as
defined in section 318).
``(vii) Asian American and Native American
Pacific Islander-serving institutions (as
defined in section 320(b)).
``(viii) Native American-serving, nontribal
institutions (as defined in section 319).
``(ix) Institutions predominately serving
adult learners.
``(x) Institutions serving students with
disabilities.
``(xi) Institutions located in rural areas.
``(3) Amendments.--
``(A) In general.--An eligible entity that has been
selected to carry out a demonstration project under
this section may submit to the Secretary amendments to
the eligible entity's approved application under
paragraph (1), at such time and in such manner as the
Secretary may require, which the Secretary shall
approve or deny within 30 days of receipt.
``(B) Expanding enrollment.--Notwithstanding the
assurance required with respect to maximum enrollment
under paragraph (4)(N)--
``(i) an eligible entity whose demonstration
project has been evaluated under subsection
(g)(2) not less than twice, may submit to the
Secretary an amendment to the eligible entity's
application under paragraph (1) to increase
enrollment in the project to more than 3,000
students, but not more than 5,000 students, and
which shall specify--
``(I) the proposed maximum enrollment
and annual enrollment growth for the
project;
``(II) how the eligible entity will
successfully carry out the project with
such maximum enrollment and enrollment
growth; and
``(III) any other amendments to the
eligible entity's application under
paragraph (1) that are related to such
maximum enrollment or enrollment
growth; and
``(ii) the Secretary shall determine whether
to approve or deny an amendment submitted under
clause (i) for a demonstration project based on
the project's evaluations under subsection
(g)(2).
``(4) Contents.--Each application under paragraph (1) shall
include--
``(A) a description of each competency-based
education program to be offered by the eligible entity
under the demonstration project;
``(B) a description of the alignment of the proposed
competency-based education program to the institution's
mission, and evidence of institutional commitment to
such program;
``(C) a description of how each program will work
with employers and local industry to assess and
incorporate competencies that are relevant in the labor
market and how the program aligns with employer needs;
``(D) a description of the proposed academic design,
academic and support services, delivery, business, and
financial models for the demonstration project,
including explanations and supporting documents,
including financial statements, and, any revenue-
sharing agreements with third-party servicers or online
program managers, of how each competency-based
education program offered under the demonstration
project will--
``(i) result in the achievement of
competencies;
``(ii) differ from standard credit hour
approaches, in whole or in part;
``(iii) result in lower costs of a
certificate or degree; and
``(iv) result in shortened time to completion
of a certificate or degree;
``(E) a description of how each competency-based
education program offered under the demonstration
project will award academic credit to advance the
progress of a student toward completion of a
certificate or degree that is portable and used by in-
demand employers for making employment decisions;
``(F) a description of how each credit-bearing
competency-based education program offered under the
demonstration project is aligned with a career pathway;
``(G) a description of the meaningful role of the
appropriate instructors of the eligible entity in the
development, design, implementation, delivery, and
evaluation of each such competency-based education
program;
``(H) a description of how each such competency-based
education program will provide strong post-enrollment
job placement, earnings, and loan repayment outcomes;
``(I) a description of how the eligible entity will
facilitate transfer, postsecondary study, and employer
understanding by articulating a competency-based
transcript from a competency-based education program
offered under the demonstration project to a credit
hour transcript at another program at the eligible
entity and to other institutions of higher education;
``(J) a description of the statutory and regulatory
requirements described in subsection (e) for which the
eligible entity is seeking a waiver or other
flexibility, and why such waiver or flexibility is
necessary to carry out the demonstration project;
``(K) a description of indicators of a program's
effectiveness to inform how a third party will reliably
assess student learning for each competency-based
education program offered under the demonstration
project;
``(L) a description of how the eligible entity will
develop and evaluate the competencies and assessments
of student knowledge administered as part of the
demonstration project, including whether there is a
relationship between the competency unit and a
traditional credit or clock hour, the average time it
takes to earn a competency, how such competencies and
assessments are aligned with workforce needs and any
other considerations the institution made when it
developed its unit of competency;
``(M) a description of the proposal for determining a
student's Federal student aid eligibility under this
title for participating in the demonstration project,
the award and distribution of such aid, and the
safeguards to ensure that students are making
satisfactory progress that warrants the disbursement of
such aid;
``(N) an assurance that the demonstration project at
each eligible entity--
``(i) will enroll a minimum of 25 students
and a maximum of 3,000 students or, in the case
of an eligible entity with an application
amendment approved under paragraph (3)(B), the
maximum enrollment approved under such
paragraph;
``(ii) will identify and disseminate best
practices with respect to the demonstration
project to the Secretary and to other eligible
entities carrying out a demonstration project
under this section;
``(iii) operates under an agreement with the
accrediting agency or association of the
eligible entity to establish the standards
described in subsection (c); and
``(iv) uses available funds solely for
purposes of awarding academic credit to
eligible students based on the achievement of
competencies and for the related costs or fees
of demonstrating the achievement of
competencies;
``(O) a description of the population of students to
whom competency-based education under the demonstration
project will be offered, including demographic
information and prior educational experience,
disaggregated (as practicable) by students who are
Federal Pell Grant recipients, students of color,
Native students, students with disabilities, students
who are veterans or members of the Armed Forces, adult
learners, and first generation college students, and
how such eligible entity will, when appropriate,
address the specific needs of each such population of
students when carrying out the demonstration project;
``(P) a description of outreach and communication
activities to students who may benefit under the
demonstration project, including those described in
subparagraph (O);
``(Q) a description of how the institution is
ensuring that students participating in the
demonstration project will not, on average, be eligible
for more or less Federal assistance under this title
than such students would have been eligible for under a
program measured in credit or clock hours;
``(R) the cost of attendance for each competency-
based education program offered under the demonstration
project, disaggregated by each of the applicable costs
or allowances described in paragraphs (1) through (13)
of section 472, and the estimated amount of the cost of
attendance of each such program to be covered by need-
based grant aid and merit-based grant aid from Federal,
State, institutional, and private sources;
``(S) a description of other competency-based
education programs the eligible entity offers or plans
to offer outside of the demonstration project;
``(T) a description of how the eligible entity will
use data to--
``(i) ensure that each competency-based
education program under the demonstration
project meets the benchmarks established in
accordance with subsection (c)(2)(E);
``(ii) confirm relevancy of competencies in
the labor market; and
``(iii) improve each such program; and
``(U) other such elements as the Secretary may
require.
``(c) Recognition by Accrediting Agency or Association.--Unless a
program has already been recognized as a direct assessment program by
the accrediting agency or association of the eligible entity, in order
to carry out a competency-based education program under a demonstration
project under this section, an eligible entity shall include in its
application under subsection (b), a letter from the accrediting agency
or association of the eligible entity that describes how it will
establish and enforce the following standards with respect to such
competency-based education program:
``(1) Standards for determining whether the eligible entity
or the program requires students to demonstrate competencies
that are--
``(A) capable of being validly and reliably assessed;
and
``(B) appropriate in scope and rigor for the award of
the relevant certificate or degree.
``(2) Standards for determining whether the eligible entity
or the program demonstrate--
``(A) the administrative capacity and expertise that
will ensure--
``(i) the validity and reliability of
assessments of competencies; and
``(ii) good practices in assessment and
measurement;
``(B) sufficient educational content, activities, and
resources (including faculty support)--
``(i) to enable students to learn or develop
what is required to demonstrate or attain
mastery of competencies; and
``(ii) that are consistent with the
qualifications of graduates of traditional
programs;
``(C) that the quality of demonstration of competence
is judged at mastery for each competency that is
assessed for the award of a certificate or degree;
``(D) a standard for the amount of learning that is
included in a unit of competency;
``(E) reasonable, clear, and actionable benchmarks
for graduation rates and the employment and earnings of
graduates, including job placements in a field for
which the program prepares students, debt-to-earnings
ratios, loan repayment rates, and student satisfaction;
``(F) regular evaluation of whether the program meets
the benchmarks under subparagraph (E), and address what
may be the cause with identified interventions; and
``(G) that students may not receive a subsequent
disbursement until they have completed the anticipated
number of credits for the payment period.
``(3) Standards for determining when to deny, withdraw,
suspend, or terminate the accreditation of the program if the
benchmarks under paragraph (2)(E) are not achieved after 4
consecutive title IV payment periods, including standards for
providing sufficient opportunity--
``(A) for the eligible entity or program to provide a
written response regarding the failure to achieve such
benchmarks be considered by the agency or association
in the manner described in section 496(a)(6)(B); and
``(B) for the eligible entity or program to appeal
any adverse action under this subparagraph before an
appeals panel that meets the requirements of section
496(a)(6)(C).
``(d) Selection.--
``(1) In general.--Not later than 12 months after the date of
enactment of the College Affordability Act, the Secretary shall
select not more than 100 eligible entities to carry out a
demonstration project under this section under which at least 1
competency-based education program is offered at each eligible
entity.
``(2) Considerations.--In selecting eligible entities under
paragraph (1), the Secretary shall--
``(A) consider the number and quality of applications
received;
``(B) consider an eligible entity's--
``(i) ability to successfully execute the
demonstration project as described in the
eligible entity's application under subsection
(b);
``(ii) commitment and ability to effectively
finance the demonstration project;
``(iii) ability to provide administrative
capability and the expertise to evaluate
student progress based on measures other than
credit hours or clock hours;
``(iv) history of compliance with the
requirements of this Act;
``(v) commitment to work with the Director
and the Secretary to evaluate the demonstration
project and the impact of the demonstration
project under subsection (g)(2);
``(vi) commitment and ability to assess
student learning through a third party;
``(vii) commitment of the accrediting agency
or association of the eligible entity to
establish and enforce the standards described
in subsection (c); and
``(viii) commitment to collaboration with an
employer advisory group or specific employers
to determine how the demonstration project will
meet employer needs;
``(C) ensure the selection of a diverse group of
eligible entities with respect to size, mission,
student population, and geographic distribution;
``(D) not limit the types of programs of study or
courses of study approved for participation in a
demonstration project; and
``(E) not select an eligible entity--
``(i) that, for 1 of the preceding 2 fiscal
years--
``(I) had an adjusted cohort default
rate (defined in section 435(m)) that
is 20 percent or greater;
``(II) failed to meet the requirement
under section 487(a)(24); or
``(III) was--
``(aa) under probation or an
equivalent status from the
accrediting agency or
association of the eligible
entity;
``(bb) under sanction from
the authorization agency of the
State in which the eligible
entity is located; or
``(cc) under public
investigation or facing a
pending lawsuit from a State or
Federal agency;
``(ii) if the Department has concerns with
the entity's compliance based on program
reviews or audits; or
``(iii) if the eligible entity fails to meet
the financial responsibility standards
prescribed by the Secretary in accordance with
section 498(c) or is placed on a reimbursement
payment method by the Secretary.
``(e) Waivers and Other Flexibility.--
``(1) In general.--With respect to any eligible entity
selected to carry out a demonstration project under this
section, the Secretary may--
``(A) waive any requirements of the provisions of law
(including any regulations promulgated under such
provisions) listed in paragraph (2) for which the
eligible entity has provided a reason for waiving under
subsection (b)(4)(J); or
``(B) provide other flexibility, but not waive, any
requirements of the provisions of law (including any
regulations promulgated under such provisions) listed
in paragraph (3) for which the eligible entity has
provided a reason with which the Secretary agrees for
such flexibility under subsection (b)(4)(J).
``(2) Provisions eligible for waivers.--The Secretary may
waive the following under paragraph (1)(A):
``(A) Subparagraphs (A) and (B) of section 102(a)(3).
``(B) Section 484(l)(1).
``(3) Provisions eligible for flexibility.--The Secretary may
provide the flexibility described in paragraph (1)(B) with
respect to the requirements under provisions in title I, part F
of this title, or this part, that inhibit the operation of a
competency-based education program, relating to the following:
``(A) Documenting attendance.
``(B) Weekly academic activity.
``(C) Minimum weeks of instructional time.
``(D) Requirements for credit hour or clock hour
equivalencies if an institution proposes a measure
clearly defined in its application that accounts for
the academic intensity of study.
``(E) Requirements for regular and substantive
interaction with the instructor.
``(F) Definitions of the terms `academic year',
`full-time student', `part-time student', `term'
(including `standard term', `non-term', and `non-
standard term'), `satisfactory academic progress',
`educational activity', `program of study', and
`payment period'.
``(G) Methods of disbursing student financial aid by
institutions of higher education selected, as of the
date of enactment of the College Affordability Act, as
experimental sites under section 487A to carry out
competency-based education programs.
``(H) Restrictions regarding concurrent student
enrollment in Direct Assessment and non-Direct
Assessment programs.
``(4) Measurement of activity or academic work.--An
institution granted flexibility under paragraph (3) related to
requirements for credit hour or clock hour equivalencies shall
include a measurement of activity or academic `work' by
students as considered comparable to the standard practice for
measuring credit or clock hours for these areas.
``(f) Notification.--Not later than 9 months after the date of
enactment of the College Affordability Act, the Secretary shall make
available to the authorizing committees and the public a list of
eligible entities selected to carry out a demonstration project under
this section, which shall include for each such eligible entity--
``(1) the specific waiver or other flexibility from statutory
or regulatory requirements offered under subsection (e); and
``(2) a description of the competency-based education
programs, and its associated accreditation standards, to be
offered under the project.
``(g) Information and Evaluation.--
``(1) Information.--
``(A) Student-level data.--Each eligible entity that
carries out a demonstration project under this section
shall provide to the Director the student-level data
for the students enrolled in a program described in
subparagraph (C)(i)(I), the student-level data for the
students enrolled in a program described in
subparagraph (C)(i)(II), and the student-level data for
students enrolled in a program described in
subparagraph (C)(i)(III) to enable the Director--
``(i) to determine the aggregate information
described in subparagraph (B) with respect to
each such program; and
``(ii) to the extent practicable, to compare
the programs using a rigorous evaluation, such
as propensity score matching.
``(B) Aggregate information.--For purposes of the
evaluation under paragraph (2), the Director shall use
the student-level data provided under subparagraph (A)
by an eligible entity to determine the following
information with respect to each program described in
subparagraph (C)(i) offered at such eligible entity:
``(i) The average number of credit hours
students earned prior to enrollment in the
program, if applicable.
``(ii) The number and percentage of students
enrolled in a competency-based education
program that are also enrolled in programs of
study or courses of study offered in credit
hours or clock hours, disaggregated by student
status as a first-year, second-year, third-
year, fourth-year, or other student.
``(iii) The average period of time between
the enrollment of a student in the program and
the first assessment of student knowledge of
such student.
``(iv) The average time to 25 percent, 50
percent, 75 percent, 100 percent, 150 percent,
and 200 percent completion of a certificate or
degree.
``(v) The number and percentage of students
who begin in a certain cohort and complete a
certificate or degree.
``(vi) The number and percentage of students
who begin in a certain cohort and withdraw
without completing a certificate or degree.
``(vii) The number and percentage of students
who begin in a certain cohort who reach 25
percent, 50 percent, 75 percent, and 100
percent completion of a certificate or degree.
``(viii) The number and percentage of
students who begin in a certain cohort who re-
enroll in a second period.
``(ix) The median number of competencies
completed per period.
``(x) The average number of attempts it takes
students to pass all assessments of student
knowledge during the period of enrollment in
the program.
``(xi) The percentage of summative
assessments of student competence that students
passed on the first attempt during the period
of enrollment in the program.
``(xii) The percentage of summative
assessments of student competence that students
passed on the second attempt and the average
period of time between the first and second
attempts during the period of enrollment in the
program.
``(xiii) The average number of competencies a
student acquired and demonstrated while
enrolled in a program and the period of time
during which the student acquired such
competencies.
``(xiv) The number and percentage of students
completing the program who find employment that
lasts not less than 6 months within 6 months of
graduation, disaggregated by number and
percentage of such students finding employment
in a field related to the program.
``(xv) Student job placement rates 1, 2, and
3 years after graduating from the program, if
available.
``(xvi) The median student earnings 1, 2, and
3 years after graduating from the program, if
available.
``(xvii) The number and percentage of
students completing the program who continue
their education.
``(xviii) Such other information as the
Director may reasonably require.
``(C) Disaggregation.--The information determined
under subparagraph (B) shall be disaggregated as
follows, provided that the disaggregation of the
information does not identify any individual student:
``(i) For each eligible entity that carries
out a demonstration project under this section,
disaggregation by--
``(I) the students enrolled in each
competency-based education program
under the project;
``(II) the students enrolled in each
competency-based education program not
being carried out under the project, if
the eligible entity has a competency-
based education program not being
carried out under the project; and
``(III) the students enrolled in a
program not described in subclause (I)
or (II).
``(ii) For each group of students described
in clause (i), disaggregation by prior
postsecondary experience, age group, race,
gender, disability status, students who are
Veterans or servicemembers, first generation
college students, full-time and part-time
enrollment, and status as a recipient of a
Federal Pell Grant.
``(D) Council.--The Director shall provide to the
Competency-Based Education Council any information
described in subparagraph (A) or (B) (other than
personally identifiable information) that may be
necessary for the Council to carry out its duties under
section 4616(e) of the College Affordability Act.
``(2) Evaluation.--
``(A) In general.--The Director, in consultation with
the Secretary and using the information determined
under paragraph (1), shall annually evaluate each
eligible entity carrying out a demonstration project
under this section. Each evaluation shall be
disaggregated in accordance with subparagraph (B) and
include--
``(i) the extent to which the eligible entity
has met the elements of its application under
subsection (b)(4);
``(ii) whether the demonstration project led
to reduced cost, including as reflected by
median debt levels, or time to completion of a
certificate or degree, and the amount of cost
or time reduced for such completion;
``(iii) obstacles related to student
financial assistance for competency-based
education;
``(iv) the extent to which statutory or
regulatory requirements not waived or for which
flexibility is not provided under subsection
(e) presented difficulties or unintended
consequences for students or eligible entities;
``(v) a description of the waivers or
flexibility provided under subsection (e) that
were most beneficial to students or eligible
entities, and an explanation of such benefits;
``(vi) the percentage of students who
received each of the following--
``(I) a grant under this title;
``(II) a loan under this title;
``(III) a State grant;
``(IV) a State loan;
``(V) an institutional grant;
``(VI) an institutional loan;
``(VII) a private loan; and
``(VIII) an employer grant or
subsidy;
``(vii) median annual total cost and net cost
to the student of the program;
``(viii) median total cost and net cost of
the credential and associated examination or
licensure calculated upon completion;
``(ix) median outstanding balance of
principal and interest on loans made under this
title that students have upon graduation;
``(x) the median 3-year adjusted cohort
default rate as defined under section 435(m);
``(xi) the median 1-year and 3-year repayment
rate of loans made under this title;
``(xii) the median student earnings 1, 3, and
4 years after graduation;
``(xiii) a description of the curricular
infrastructure, including assessments of
student knowledge and the corresponding
competencies;
``(xiv) a description of the role of faculty
and faculty involvement; and
``(xv) outcomes of the assessments of student
competency.
``(B) Disaggregation.--The data collected under
clauses (vi) through (xii) shall be disaggregated by
each group of students described in paragraph (1)(C).
``(3) Annual report.--The Director, in consultation with the
Secretary, shall annually provide to the authorizing committees
a report on--
``(A) the evaluations required under paragraph (2);
``(B) the number and types of students receiving
assistance under this title for competency-based
education programs offered under projects under this
section;
``(C) any proposed statutory or regulatory changes
designed to support and enhance the expansion of
competency-based education programs, which may be
independent of or combined with traditional credit hour
or clock hour projects;
``(D) the most effective means of delivering
competency-based education programs through projects
under this section; and
``(E) the appropriate level and distribution
methodology of Federal assistance under this title for
students enrolled in a competency-based education
program.
``(h) Coordination.--An eligible entity or the Director shall consult
with the Secretary of Education or the Secretary of the Treasury to
obtain the employment, earnings, and loan information that may be
necessary for purposes of subsection (c)(2)(F) or subsection (g),
respectively.
``(i) Oversight.--In carrying out this section, the Secretary shall,
at least twice annually--
``(1) assure compliance of eligible entities with the
requirements of this title (other than the provisions of law
and regulations that are waived under subsection (e));
``(2) provide technical assistance;
``(3) monitor fluctuations in the student population enrolled
in the eligible entities carrying out the demonstration
projects under this section;
``(4) consult with appropriate accrediting agencies or
associations and appropriate State regulatory authorities for
additional ways of improving the delivery of competency-based
education programs; and
``(5) collect and disseminate to eligible entities carrying
out a demonstration project under this section, best practices
with respect to such projects.
``(j) Data Privacy.--
``(1) In general.--It shall be unlawful for any person who
obtains or has access to personally identifiable information
pursuant to this section to knowingly disclose to any person
(except as authorized in this section or any Federal law) such
personally identifiable information.
``(2) Penalty.--Any person who violates paragraph (1) shall
be fined under title 18, United States Code.
``(3) Officer or employee of the united states.--If any
officer or employee of the United States violates paragraph
(1), the officer or employee shall be dismissed from office or
discharged from employment upon conviction for the violation.
``(4) Law enforcement.--Personally identifiable information
collected under this section shall not be used for any law
enforcement activity or any other activity that would result in
adverse action against any student, including debt collection
activity or enforcement of the immigration laws.
``(k) Authorization of Appropriations.--There are authorized to be
appropriated $5,000,000 to the Department to carry out the project
under this section.
``(l) Definitions.--For the purpose of this section:
``(1) Career pathway.--The term `career pathway' has the
meaning given the term in section 3 of the Workforce Innovation
and Opportunity Act (29 U.S.C. 3102).
``(2) Competency.--The term `competency' means the knowledge,
skill, and abilities demonstrated for a particular program of
study.
``(3) Competency-based education program.--The term
`competency-based education program' means a postsecondary
program that provides competency-based education for which the
accrediting agency or association of the institution of higher
education offering such program has established or will
establish the standards described in subsection (c) and, in
accordance with such standards--
``(A) measures academic progress and credential
attainment by the assessment of student learning in
lieu of, or in addition to, credit or clock hours;
``(B) measures and assesses such academic progress
and attainment in terms of a student's mastery of
competencies by identifying what students know and the
skills mastered through rigorous assessment;
``(C) determines and reports to the Secretary the
number of credit or clock hours that would be needed
for the attainment of a similar level of knowledge,
skills, and characteristics in a standard credit or
clock hour program;
``(D) provides the educational content, activities,
support, and resources necessary to enable students to
develop and attain the competencies that are required
to demonstrate mastery of such competencies, including
a system for monitoring a student's engagement and
progress in each competency, in which faculty are
responsible for providing proactive academic
assistance, when needed, on the basis of such
monitoring;
``(E) upon a student's demonstration or mastery of a
set of competencies identified and required by the
institution, leads to or results in the awarding of a
certificate or degree;
``(F) ensures that funds received under this title
may be used only for learning that results from
instruction provided or overseen by the institution and
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;
``(G) is organized in a manner that an institution
can determine, based on the method of measurement
selected by the institution, and approved by the
accreditor as described in subsection (c), 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 this title,
or assistance provided under another provision of
Federal law to attend an institution of higher
education; and
``(H) may use a disaggregated faculty model in which
the educational responsibilities for an academic course
are divided among a number of individuals, each
performing specific tasks essential to instruction,
including curriculum design, content delivery, and
student assessment.
``(4) Director.--The term `Director' means the Director of
the Institute of Education Sciences.
``(5) Dual or concurrent enrollment program.--The term `dual
or concurrent enrollment program' has the meaning given the
term in section 8101 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7801).
``(6) Eligible entity.--The term `eligible entity' means an
institution of higher education, which may be an institution of
higher education that offers a dual or concurrent enrollment
program.
``(7) First generation college student.--The term `first
generation college student' has the meaning given the term in
section 402A(h)(3).
``(8) Institution of higher education.--The term `institution
of higher education' has the meaning given the term in section
102, except that such term does not include institutions
described in section 102(a)(1)(C).''.
(b) Rule of Construction.--Nothing in this section or the amendments
made by this section shall be construed to alter the authority of the
Secretary of Education to establish experimental sites under any other
provision of law.
SEC. 4616. COMPETENCY-BASED EDUCATION COUNCIL.
(a) Establishment of a Committee on Competency-Based Education.--Not
later than 6 months after the date of enactment of this Act, there
shall be established the Competency-Based Education Council (referred
to in this section as the ``Council'').
(b) Membership.--
(1) Composition.--The Council shall be composed of--
(A) 3 individuals appointed by the Secretary of
Education;
(B) 2 individuals appointed by the Director of the
Bureau of Consumer Financial Protection;
(C) not less than 8 and not more than 13 individuals
appointed by the Comptroller General of the United
States, representing--
(i) experts in competency-based education;
(ii) faculty members in competency-based
education programs;
(iii) faculty members in non-competency based
education programs;
(iv) administrators at institutions that
offer competency-based education programs;
(v) individuals currently enrolled in or
graduated from a competency-based education
program;
(vi) accrediting agencies or associations
that recognize competency-based education
programs;
(vii) experts from State educational
agencies; and
(viii) business and industry representatives;
and
(D) 4 members appointed by--
(i) the Majority Leader of the Senate;
(ii) the Minority Leader of the Senate;
(iii) the Speaker of the House of
Representatives; and
(iv) the Minority Leader of the House of
Representatives.
(2) Chairperson.--The Council shall select a Chairperson from
among its members.
(3) Vacancies.--Any vacancy in the Council shall not affect
the powers of the Council and shall be filled in the same
manner as an initial appointment.
(c) Meetings.--The Council shall hold, at the call of the
Chairperson, not less than 6 meetings before completing the study
required under subsection (e) and the report required under subsection
(f).
(d) Personnel Matters.--
(1) Compensation of members.--Each member of the Council
shall serve without compensation in addition to any such
compensation received for the member's service as an officer or
employee of the United States, if applicable.
(2) Travel expenses.--The members of the Council shall be
allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies
under subchapter 1 of chapter 57 of title 5, United States
Code, while away from their homes or regular places of business
in the performance of services for the Council.
(e) Duties of the Council.--
(1) Study.--The Council shall conduct a study on the ongoing
innovation and development of competency-based education
programs.
(2) Recommendations.--Based on the findings of the study
under paragraph (1), and the annual evaluations of the
demonstration projects under section 486C of the Higher
Education Act of 1965, as added by section 4615 of this Act,
the Council shall develop recommendations for the authorization
of competency-based education under the Higher Education Act of
1965, including recommendations that--
(A) provide or update standard definitions, if
needed, for relevant terms, including--
(i) competency-based education;
(ii) competency-based education program
including quality indicators, that include
appropriate student outcome metrics, for such
programs; and
(iii) any other relevant definitions agreed
upon; and
(B) address--
(i) the amount of learning in a competency
unit;
(ii) the transfer of competency-based
education credits to other institutions or
programs;
(iii) the minimum amount of time in an
academic year for competency-based education
programs, for financial aid purposes;
(iv) considerations for accreditation
agencies before recognizing competency-based
education programs;
(v) address the role of faculty and faculty
involvement in competency-based education
programs;
(vi) additional resources that may be needed
for adequate oversight of competency-based
education programs; and
(vii) the responsiveness of competencies to
the labor market and employers.
(f) Reports.--
(1) Interim reports.--Not later than 2 years after the date
of enactment of this Act, and biennially thereafter until the
final report is submitted under paragraph (2), the Council
shall prepare and submit to the Secretary of Education and
Congress, and make available to the public, a report that
provides ongoing feedback to the annual evaluations of the
demonstration projects under section 486C(g)(2) of the Higher
Education Act of 1965, as added by section 4615 of this Act,
including a discussion of implementation challenges programs
face, and the items listed in subsection (e)(2)(B).
(2) Final report.--Not later than 6 years after the date of
enactment of this Act, the Council shall prepare and submit to
the Secretary of Education and Congress, and make available to
the public, a report containing the findings of the study under
subsection (e)(1) and the recommendations developed under
subsection (e)(2).
SEC. 4617. WRITTEN ARRANGEMENTS TO PROVIDE EDUCATIONAL PROGRAMS.
Part G of title IV of the Higher Education Act of 1965 (20 U.S.C.
1088 et seq.) is amended by inserting after section 486C (as added by
section 4615 of this Act) the following:
``SEC. 486D. WRITTEN ARRANGEMENTS TO PROVIDE EDUCATIONAL PROGRAMS.
``(a) Written Arrangements Between Eligible Institutions.--
``(1) In general.--Except as provided in paragraph (2), if an
eligible institution enters into a written arrangement with
another eligible institution, or with a consortium of eligible
institutions, under which the other eligible institution or
consortium provides part of the educational program to students
enrolled in the first institution, the Secretary shall consider
that educational program to be an eligible program if the
educational program offered by the institution that grants the
degree or certificate otherwise satisfies the requirements for
eligibility under this title.
``(2) Common ownership or control.--If the written
arrangement described in paragraph (1) is between two or more
eligible institutions that are owned or controlled by the same
individual, partnership, or corporation, the Secretary shall
consider the educational program to be an eligible program if--
``(A) the educational program offered by the
institution that grants the degree or certificate
otherwise satisfies the requirements for eligibility
under this title; and
``(B) the institution that grants the degree or
certificate provides more than 50 percent of the
educational program.
``(b) Written Arrangements for Study-abroad.--Under a study abroad
program, if an eligible institution enters into a written arrangement
under which an institution in another country, or an organization
acting on behalf of an institution in another country, provides part of
the educational program of students enrolled in the eligible
institution, the Secretary considers that educational program to be an
eligible program if it otherwise satisfies the requirements of
paragraphs (1) through (3) of subsection (c).
``(c) Written Arrangements Between an Eligible Institution and an
Ineligible Institution or Organization.--If an eligible institution
enters into a written arrangement with an institution or organization
that is not an eligible institution under which the ineligible
institution or organization provides part of the educational program of
students enrolled in the eligible institution, the Secretary shall
consider that educational program to be an eligible program if--
``(1) the ineligible institution or organization has not--
``(A) had its eligibility to participate in the
programs under this title terminated by the Secretary;
``(B) voluntarily withdrawn from participation
programs under this title under a termination, show-
cause, suspension, or similar type proceeding initiated
by the institution's State licensing agency,
accrediting agency, guarantor, or by the Secretary;
``(C) had its certification to participate in
programs under this title revoked by the Secretary;
``(D) had its application for re-certification to
participate in programs under this title denied by the
Secretary; or
``(E) had its application for certification to
participate in programs under this title denied by the
Secretary;
``(2) the ineligible institution or organization does not
have any role in the admission of students into the educational
program;
``(3) the educational program offered by the institution that
grants the degree or certificate otherwise satisfies the
requirements for eligibility under this title; and
``(4)(A) the ineligible institution or organization provides
25 percent or less of the educational program; or
``(B)(i) the ineligible institution or organization provides
more than 25 percent but less than 50 percent of the
educational program;
``(ii) the eligible institution and the ineligible
institution or organization are not owned or controlled by the
same individual, partnership, or corporation;
``(iii) the eligible institution's accrediting agency, or if
the institution is a public postsecondary vocational
educational institution, the State agency determined by the
Secretary to be a reliable authority as to the quality of
public postsecondary vocational education pursuant to section
487(c)(4), has specifically determined that the institution's
arrangement meets the agency's standards for the contracting
out of educational services; and
``(iv) the eligible institution provides to the Secretary the
institution's expenditures on instruction, student services,
marketing, recruitment, advertising, and lobbying made
available under section 132(i)(1)(AA) with respect to the
portion of the educational program covered by the written
arrangement.
``(d) Administration of Title IV Programs.--
``(1) In general.--If an institution enters into a written
arrangement as described in subsection (a), subsection (b), or
subsection (c), except as provided in paragraph (2), the
institution at which the student is enrolled as a regular
student shall determine the student's eligibility for funds
under this title, and shall calculate and disburse those funds
to that student.
``(2) Special rule for arrangements between eligible
institutions.--In the case of a written arrangement between
eligible institutions, the institutions may agree in writing to
have any eligible institution in the written arrangement
calculate and disburse funds under this title to the student
and the Secretary shall not consider that institution to be a
third party servicer for that arrangement.
``(3) Calculation and disbursement.--The institution that
calculates and disburses a student's funds under paragraph (1)
or paragraph (2) must--
``(A) take into account all the hours in which the
student enrolls at each institution that apply to the
student's degree or certificate when determining the
student's enrollment status and cost of attendance; and
``(B) maintain all records regarding the student's
eligibility for and receipt of funds under this title.
``(e) Information Made Available to Students.--If an institution
enters into a written arrangement described in subsection (a),
subsection (b), or subsection (c), the institution shall provide
directly to enrolled and prospective students, and make available on a
publicly accessible website of the institution, a description of
written arrangements the institution has entered into in accordance
with this section, including information on--
``(1) the portion of the educational program that the
institution that grants the degree or certificate is not
providing;
``(2) the name and location of the other institutions or
organizations that are providing the portion of the educational
program that the institution that grants the degree or
certificate is not providing;
``(3) the method of delivery of the portion of the
educational program that the institution that grants the degree
or certificate is not providing; and
``(4) estimated additional costs students may incur as the
result of enrolling in an educational program that is provided,
in part, under the written arrangement.''.
SEC. 4618. IMPROVEMENTS TO PROGRAM PARTICIPATION AGREEMENTS.
(a) Alcohol and Substance Misuse Prevention.--Section 487(a)(10) of
the Higher Education Act of 1965 (20 U.S.C. 1094(a)(10)) is amended by
striking ``a drug abuse prevention program'' and inserting ``an alcohol
and substance misuse prevention program in accordance with section
120''.
(b) Adjusted Cohort Default Rate.--Section 487(a)(14) of the Higher
Education Act of 1965 is amended by adding at the end the following:
``(D) Beginning on the date on which the final adjusted
cohort default rates are published by the Secretary for fiscal
year 2018 under section 435(m), subparagraph (C) shall be
applied by substituting `adjusted cohort default rate in excess
of 5 percent' for `cohort default rate in excess of 10 percent'
each place it appears.''.
(c) Postsecondary Data.--Paragraph (17) of section 487(a) of the
Higher Education Act of 1965 (20 U.S.C. 1094(a)) is amended to read as
follows:
``(17) The institution of higher education (or the assigned
agent of such institution) shall collect and submit data to the
Commissioner for Education Statistics in a timely manner in
accordance with--
``(A) section 132(l);
``(B) nonstudent-related surveys within the
Integrated Postsecondary Education Data System (IPEDS);
and
``(C) any other Federal postsecondary data collection
effort.''.
(d) Access to Housing for Foster Youth.--Section 487(a)(19) of the
Higher Education Act of 1965 (20 U.S.C. 1094(a)(19)) is amended--
(1) by striking ``The institution will not'' and inserting
the following: ``The institution--
``(A) will not'';
(2) by inserting ``housing facilities,'' after
``libraries,'';
(3) by striking ``institution.'' and inserting ``institution;
and''; and
(4) by adding at the end the following:
``(B) will provide a means for students to access
institutionally owned or operated housing if a student
is temporarily unable to meet financial obligations
related to housing, including deposits, due to delayed
disbursement of vouchers for education and training
made available under section 477 of part E of title IV
of the Social Security Act or delays attributable to
the institution.''.
(e) Distribution of Voter Registration Forms.--
Section 487(a)(23)(A) of the Higher Education Act of 1965 (20
U.S.C. 1094(a)(23)(A)) is amended by striking ``, 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,''.
(f) Proprietary Institutions.--
(1) 85/15 rule.--
(A) Amendment.--Section 487(a)(24) of the Higher
Education Act of 1965 (20 U.S.C. 1094(a)(24)) is
amended by striking ``not less than ten percent of such
institution's revenues from sources other than funds
provided under this title'' and inserting ``not less
than 15 percent of such institution's revenues from
sources other than Federal education assistance
funds''.
(B) Effective date.--The amendment made by this
paragraph shall take effect on July 1, 2022.
(2) Repeals.--
(A) In general.--Subsections (a)(24) and (d)(2) of
section 487 the Higher Education Act of 1965 (20 U.S.C.
1094) are repealed.
(B) Effective date.--The repeals made by this
paragraph shall take effect on July 1, 2023.
(g) Written Arrangements With Other Institutions.--Section 487(a) of
the Higher Education Act of 1965 (20 U.S.C. 1094(a)) is amended by
adding at the end the following:
``(30) In the case of an institution that enters into a
written arrangement with an organization or another institution
to provide part of an educational program, the institution will
comply with the applicable requirements of section 486D.''.
SEC. 4619. COMPLIANCE WITH THE CIVIL RIGHTS ACT OF 1964.
Section 487(a) of the Higher Education Act of 1965 (20 U.S.C.
1094(a)), as amended by the preceding sections, is further amended by
adding at the end the following:
``(31) The institution will--
``(A) designate at least one employee to coordinate
compliance with title VI of the Civil Rights Act of
1964 (42 U.S.C. 2000d et seq.), including any
investigation of any complaint alleging--
``(i) noncompliance with such title; and
``(ii) any actions prohibited by such title;
``(B) annually submit a report to the Secretary that
includes all complaints described in subparagraph (A)
with respect to such institution;
``(C) make the report under subparagraph (B) publicly
available on the internet website of the institution;
and
``(D) notify students and employees of--
``(i) the name, office address, and telephone
number of each employee designated under
subparagraph (A);
``(ii) the report under subparagraph (B);
``(iii) the enforcement policies of the
institution with respect to such title; and
``(iv) the procedure for reporting and
investigating complaints under such title.''.
SEC. 4620. SUBMISSION OF DATA WITH RESPECT TO STUDENTS WITH
DISABILITIES.
Section 487(a) of the Higher Education Act of 1965 (20 U.S.C.
1094(a)), as amended by the preceding sections, is further amended by
adding at the end the following:
``(32) The institution will submit, for inclusion in the
postsecondary student data system established under section
132(l), the Integrated Postsecondary Education Data System of
the Department, or any other Federal postsecondary institution
data collection effort, key data related to undergraduate and
graduate students enrolled at the institution who are formally
registered as students with disabilities with the institution's
office of accessibility, including the total number of students
with disabilities enrolled, the number of students accessing or
receiving accommodation, the percentage of students with
disabilities of all undergraduate students, and the total
number of undergraduate certificates or degrees awarded to
students with disabilities. An institution shall not be
required to submit the information described in the preceding
sentence if the number of such students would reveal personally
identifiable information about an individual student.''.
SEC. 4621. EDUCATION PROGRAM ON HAZING.
(a) Educational Program on Hazing.--Section 487(a) of the Higher
Education Act of 1965 (20 U.S.C. 1094(a)), as amended by the preceding
sections, is further amended by adding at the end the following:
``(33) The institution will provide students with an
educational program on hazing (as that term is defined in
section 485(f)(6)(A)(vii)), which shall include information on
hazing awareness, hazing prevention, and the institution's
policies on hazing.''.
SEC. 4622. CHANGES TO PROGRAM PARTICIPATION AGREEMENTS TO STRENGTHEN
CONSUMER PROTECTIONS.
(a) Prohibition on Loss of Access to Transcripts for Loan Default.--
Section 487(a) of the Higher Education Act of 1965 (20 U.S.C. 1094(a))
is further amended by adding at the end the following:
``(34)(A) The institution will not prohibit a student from
accessing the student's transcripts, degree scrolls, or other
certifications of coursework or educational attainments at the
institution because the student is in default on the repayment
of a loan made, insured, or guaranteed under this title.
``(B) For purposes of this paragraph, the term `student'
includes former students.''.
(b) Prohibition on Limitations on Ability of Students To Pursue
Claims Against Certain Institutions of Higher Education.--Section
487(a) of the Higher Education Act of 1965 (20 U.S.C. 1094(a)) is
further amended by adding at the end the following:
``(35) No agreement between the institution and any student
will contain any limitation or restriction (including a
limitation or restriction on any available choice of applicable
law, a jury trial, or venue) on the ability of the student to
pursue a claim, individually or with others, against an
institution in court.''.
SEC. 4623. MISREPRESENTATION AND SUBSTANTIAL MISREPRESENTATION DEFINED.
Section 487(c)(3) of the Higher Education Act of 1965 (20 U.S.C.
1094(c)(3)) is amended--
(1) in subparagraph (B)(i), by striking ``$25,000'' and
inserting ``$60,000''; and
(2) by adding at the end the following:
``(C) In this paragraph:
``(i) The term `misleading' means having the likelihood or
tendency to mislead under the circumstances.
``(ii) The term `misrepresentation'--
``(I) means any false, erroneous, or misleading
statement an institution, one of its representatives,
or a third-party servicer (as defined in section
481(c)) makes directly or indirectly to a student,
prospective student or any member of the public, or an
accrediting agency, a State agency, or to the
Secretary; and
``(II) includes any statement that omits information
in such a way as to make the statement false,
erroneous, or misleading.
``(iii) The term `statement' means any communication made in
writing, visually, orally, or through other means.
``(iv) The term `substantial misrepresentation' means any
misrepresentation on which the person to whom such
misrepresentation was made could reasonably be expected to
rely, or has reasonably relied, to that person's detriment.''.
SEC. 4624. REVENUE REQUIREMENT.
(a) Amendments.--Section 487(d) of the Higher Education Act of 1965
(20 U.S.C. 1094(d)) is amended--
(1) in the subsection heading, by striking ``Title IV'' and
inserting ``Federal Education Assistance Funds'';
(2) in paragraph (1)--
(A) in subparagraph (B)(iii)--
(i) in subclause (II), by striking ``or'';
(ii) in subclause (III), by adding ``or'' at
the end; and
(iii) by adding at the end the following:
``(IV) provides industry-related
skills training pursuant to a contract
with an entity that is an independent
third-party (such as an employer),
except that revenues from such skills
training shall not exceed 5 percent of
the institution's revenues for the
purposes of the calculation under this
paragraph, if the institution--
``(aa) does not offer more
than 50 percent of the
institution's courses
exclusively through distance
education;
``(bb) ensures that less than
50 percent of students enrolled
at the institution are enrolled
exclusively in courses offered
through distance education; and
``(cc) was providing such
skills training pursuant to
such contract before the date
of enactment of the College
Affordability Act;'';
(B) in subparagraph (C), in the matter preceding
clause (i), by striking ``funds for a program under
this title'' and inserting ``Federal education
assistance funds''; and
(C) in subparagraph (D)(ii), by inserting
``(including any financing or credit instrument of
which the institution was a holder or guarantor)''
after ``proprietary institution of higher education'';
(3) in paragraph (3)--
(A) in the paragraph heading, by striking ``college
navigator'' and inserting ``department of education'';
and
(B) in the matter preceding subparagraph (A), by
striking ``on the College Navigator'' and inserting
``on a Department of Education''; and
(4) in paragraph (4)--
(A) in the matter preceding subparagraph (A), by
inserting ``and make publicly available'' after
``committees''; and
(B) in subparagraph (A), by striking ``sources under
this title'' and inserting ``Federal education
assistance funds''.
(b) Effective Date.--The amendments made by this section shall take
effect on July 1, 2022.
SEC. 4625. TEACH-OUT PLANS.
Section 487(f)(2) of the Higher Education Act of 1965 (20 U.S.C.
1094(f)(2)) is amended to read as follows:
``(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 that--
``(A) shall include--
``(i) a process to maintain a complete list
of such students and the estimated date of
completion of each such student's program of
study; and
``(ii) a record retention plan that
includes--
``(I) a plan to provide each student
with the transcript of such student, at
no cost to such student, regardless of
whether such student chooses to
participate in a teach-out or transfer;
and
``(II) the policies and procedures
required under subparagraphs (B) and
(C) of section 495(a)(6); and
``(B) may include--
``(i) if required by the institution's
accrediting agency or association, an agreement
between institutions for such a teach-out plan;
and
``(ii) such other information as the
Secretary may require.''.
SEC. 4626. EXPERIMENTAL PROGRAMS.
Section 487A of the Higher Education Act of 1965 (20 U.S.C. 1094a) is
amended to read as follows:
``SEC. 487A. EXPERIMENTATION WITH STATUTORY AND REGULATORY FLEXIBILITY.
``(a) Experimental Sites.--The Secretary is authorized to
periodically select a limited number of institutions for voluntary
participation as experimental sites to test the effectiveness of
approaches to statutory and regulatory flexibility that--
``(1) to the extent appropriate, may lead to a reduction of
regulatory burden on institutions of higher education or the
Department of Education, except that the Secretary shall not
waive any requirement of this title for any institution
participating as an experimental site that would reduce the
protections or the information provided to a student under this
Act; and
``(2) aim to increase student success, as determined in
accordance with subsection (g).
``(b) Continuing and Discontinuing Experiments and Experimental
Sites.--The Secretary may continue any experiment or the voluntary
participation of any experimental site in existence as of the date of
enactment of the College Affordability Act, unless the Secretary
determines that such experiment or site has not been successful in
increasing student success as determined in accordance with subsection
(g). Any experiment or experimental site approved by the Secretary
prior to the date of enactment of the College Affordability Act that
has not been successful in increasing student success shall be
discontinued before the first day of the first award year beginning
after such date.
``(c) Waivers.--The Secretary is authorized to waive, for any
institution participating as an experimental site under subsection (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.
``(d) Evaluation Plan Required.--Before notifying institutions of the
intent of the Secretary to carry out an experiment under this section,
the Secretary, in consultation with the Director of the Institute of
Education Sciences, shall develop an evaluation plan for the
experiment. The evaluation plan shall include the following:
``(1) Identification of the methodology to be used for
collecting data on the experiment which shall include, to the
extent practicable, a methodology that allows for the
disaggregation of data by age, race, gender, disability status,
status as a veteran or member of the Armed Forces, status as a
first generation college student, and status as a recipient of
a Federal Pell Grant under section 401.
``(2) Identification of the rigorous evaluation methods to be
used for determining the impact of the experiment, which shall
include, to the extent practicable--
``(A) a randomized controlled design; and
``(B) an assessment of whether the experiment has a
differential impact on any group described in paragraph
(1).
``(3) A schedule for conducting the experiment in accordance
with the duration limit specified in subsection (f).
``(4) An estimate of the cost of conducting the experiment,
to the extent practicable.
``(5) An estimate of the size of the study sample (such as
the number of participating students or institutions) needed to
determine if the experiment has statistically significant
effects.
``(e) Limitation Pending Notice to Congress.--
``(1) Limitation.--The Secretary may not carry out an
experiment at an experimental site under this section until a
period of 60 days has elapsed following the date on which the
Secretary submits to the authorizing committees the notice
described in paragraph (2).
``(2) Notice to congress.--The notice described in this
paragraph is a written notice that includes--
``(A) a description of the experiment proposed to be
carried out by the Secretary, including the rationale
for the proposed experiment;
``(B) the policy-relevant questions the Secretary
intends to evaluate through the experiment and an
explanation of how the design of the experiment will
allow the Secretary to best answer those questions;
``(C) a list of the specific statutory and regulatory
requirements that the Secretary intends to waive with
respect to an institution participating as an
experimental site and the legal authority for such
waivers;
``(D) an explanation of how the statutory and
regulatory flexibility provided to an institution
participating as an experimental site is expected to
increase student success, as required under subsection
(a); and
``(E) a copy of the evaluation plan developed under
subsection (d).
``(f) Duration.--
``(1) In general.--Except as provided in paragraph (2), the
duration of an experiment under this section shall not exceed a
period of four years beginning with the first award year for
which Federal financial aid is disbursed to students
participating in the experiment.
``(2) Extension.--The Secretary may extend an experiment for
up to two years beyond the four-year period specified in
paragraph (1) on a case-by-case basis.
``(g) Determination of Success.--For the purposes of subsection (a),
the Secretary shall make a determination of success regarding an
institution's participation as an experimental site based on--
``(1) whether, and to what extent, student outcomes improve
as a direct result of the experiment;
``(2) whether the experimental site improves the delivery of
services to, or otherwise benefitted, students; and
``(3) the extent to which the experiment reduces
administrative burdens on institutions participating as
experimental sites, as documented in the Secretary's annual
report under subsection (h)(3), without harming students.
``(h) Outcomes Reporting.--
``(1) Data submission.--Each institution participating as an
experimental site shall submit to the Secretary, on a periodic
basis to be determined by the Secretary, data on outcomes
relating to the experiment carried out at the site.
``(2) Review and evaluation.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall review and rigorously evaluate the
activities of each institution participating as an
experimental site.
``(B) Evaluation methodology.--To the extent
practicable, the evaluation under subparagraph (A)
shall be based on data collected in accordance with the
data collection methodology specified in the evaluation
plan for the experiment under subsection (d)(1).
``(3) Annual report.--On an annual basis, the Secretary shall
submit to the authorizing committees a report based on the
review and evaluation carried out under paragraph (2). Each
report shall include, with respect to each experiment carried
out by the Secretary during the period covered by the report,
the following:
``(A) A summary of the status of the experiment.
``(B) A list identifying each institution
participating as an experimental site.
``(C) The specific statutory or regulatory waivers
granted to each institution participating as an
experimental site.
``(D) In a case in which data on the experiment is
not collected in accordance with the methodology
specified in the evaluation plan under subsection
(d)(1)--
``(i) the reasons that such methodology was
not used to collect data on the experiment; and
``(ii) a description of the alternative data
collection methodology used for the experiment.
``(E) An evaluation of the quality of data yielded by
the experiment.
``(F) A summary and analysis of the findings, to
date, of the experiment.
``(G) An assessment of whether the experiment has had
a differential impact on any group listed in subsection
(d)(1).
``(H) An explanation of any current or foreseen
barriers to conducting the experiment.
``(I) In the case of an experiment for which the
Secretary determines there is sufficient value in
continuing the experiment past the duration limit
specified in subsection (f)(1), adequate documentation
to justify such continuation.
``(4) Final report.--Not later than 180 days after the
conclusion of each experiment, the Secretary shall submit to
the authorizing committees a report that includes the
following:
``(A) A summary of the data yielded by the
experiment, including, to the extent practicable, data
on the results of the experiment disaggregated by age,
race, gender, disability status, status as a veteran or
member of the Armed Forces, status as a first
generation college student, and status as a recipient
of a Federal Pell Grant under section 401.
``(B) The conclusions reached regarding each
experiment conducted.
``(C) Recommendations, based on the results of the
experiment--
``(i) to improve and streamline relevant
statutes, including this Act; and
``(ii) for improvements to relevant
regulations.
``(D) An explanation of any changes to regulations
that the Secretary intends to make as a result of the
experiment.
``(5) Public availability.--Each report submitted under
paragraphs (3) and (4) shall be made available on a publicly
accessible website of the Department of Education.
``(i) Fast-track Process to Comply With Information Collection
Requirements.--The requirements of section 3507 of title 44, United
States Code, shall not apply to the collection of information by the
Department of Education on experiments carried out in accordance with
this section.''.
SEC. 4627. ADMINISTRATIVE EXPENSES.
Section 489(a) of the Higher Education Act of 1965 (20 U.S.C.
1096(a)) is amended--
(1) in the second sentence, by striking ``or under part E of
this title''; and
(2) in the third sentence--
(A) by inserting ``and'' after ``subpart 3 of part
A,''; and
(B) by striking ``compensation of students,'' and all
that follows through the period and inserting
``compensation of students.''.
SEC. 4628. CRIMINAL PENALTIES FOR MISUSE OF ACCESS DEVICES.
(a) In General.--Section 490 (20 U.S.C. 1097) is amended by adding at
the end the following:
``(e) Access to Department of Education Information Technology
Systems for Fraud, Commercial Advantage, or Private Financial Gain.--
Any person who knowingly uses an access device, as defined in section
1029(e)(1) of title 18, United States Code, issued to another person or
obtained by fraud or false statement to access Department information
technology systems for purposes of obtaining commercial advantage or
private financial gain, or in furtherance of any criminal or tortious
act in violation of the Constitution or laws of the United States or of
any State, shall be fined not more than $20,000, imprisoned for not
more than 5 years, or both.''.
(b) Guidance.--The Secretary shall issue guidance regarding the use
of access devices in a manner that complies with this section, and the
amendments made by this section.
(c) Effective Date of Penalties.--The penalties described in section
490(e) of the Higher Education Act of 1965 (20 U.S.C. 1097), as added
by subsection (a), shall take effect the day after the date on which
the Secretary issues guidance regarding the use of access devices, as
described in subsection (b).
SEC. 4629. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.
Section 492 of the Higher Education Act of 1965 (20 U.S.C. 1098a) is
amended--
(1) in subsection (a)(1), by striking ``students,
institutions of higher education, State student grant agencies,
guaranty agencies, lenders, secondary markets, loan servicers,
guaranty agency servicers, and collection agencies'' and
inserting ``students and borrowers, consumer representatives,
institutions of higher education, and contractors responsible
for carrying out student financial assistance programs under
this title''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``both
representatives of such groups from Washington, D.C.,
and industry participants'' and inserting
``representatives that are broadly representative of
constituencies in different sectors and geographic
locations''; and
(B) by adding at the end the following:
``(3) Negotiated rulemaking process.--In carrying out a
negotiated rulemaking process required under this section, the
Secretary shall--
``(A) to the extent practicable, comply with requests
from the participants in such negotiated rulemaking
process for data;
``(B) make publicly available issue papers and the
proposed regulations described in paragraph (1) in a
timely manner that allows for public review;
``(C) make video recordings of each negotiated
rulemaking session publicly available through
simultaneous transmission;
``(D) archive the video recordings described in
subparagraph (C) in a publicly available manner; and
``(E) make publicly available the transcripts of each
such negotiated rulemaking session.''.
SEC. 4630. INCOME-BASED REPAYMENT PLAN.
(a) Options to Enter Into the New Fixed Repayment Plan and Income-
based Repayment Plan.--Section 493C(b) of the Higher Education Act of
1965 (20 U.S.C. 1098e) is amended--
(1) in paragraph (7)(B)--
(A) by striking ``or'' at the end of clause (iv); and
(B) by adding at the end the following:
``(vi) has made payments under the income-
based repayment plan under section 493C(f); or
``(vii) has made payments under the fixed
repayment plan described in section 493E;'';
(2) by amending paragraph (8) to read as follows:
``(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 income-based repayment plan under
section 493C(f) or the fixed repayment plan described in
section 493E;'';
(3) in paragraph (9), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(10) a borrower who is repaying a loan made, insured, or
guaranteed under part B or D pursuant to this section may repay
such loan in full at any time without penalty.''.
(b) Automatic Recertification of Income for Income-Driven Repayment
Plans.--Section 493C(c) of the Higher Education Act of 1965 (20 U.S.C.
1098e(c)) is amended--
(1) by striking ``The Secretary shall establish'' and
inserting the following:
``(1) In general.--The Secretary shall establish'';
(2) by striking ``The Secretary shall consider'' and
inserting the following:
``(2) Procedures for eligibility.--The Secretary shall--
``(A) consider''; and
(3) by striking ``428C(b)(1)(E).'' and inserting the
following: ``428C(b)(1)(E); and
``(B) beginning as soon as the Secretary determines
practicable after the Secretary finalizes the
procedures required under section 9004 of the College
Affordability Act, but not later than 2 years after the
date of enactment of such Act, carry out, with respect
to borrowers of any covered loan (as defined in section
455(d)(10)), including such borrowers who select, or
for whom the Secretary selects under paragraph (8)(C)
or (9)(C) of subsection (d), or section 428(m)(1), the
income-based repayment plan under subsection (f),
procedures for income-based repayment plans under this
section that are equivalent to the procedures carried
out under section 455(e)(9) with respect to income
contingent repayment plans.''.
(c) Income-Based Repayment.--Section 493C of the Higher Education Act
of 1965 (20 U.S.C. 1098e) is further amended by adding at the end the
following:
``(f) Income-based Repayment for New Loans on and After July 1, 2021,
and for Borrowers Who Enter Income-based Repayment After June 30,
2021.--
``(1) In general.--The income-based repayment plan under this
subsection shall be carried out in accordance with this
section, except as otherwise specified in this subsection--
``(A) with respect to any loan made under part D on
or after July 1, 2021, if such borrower elects such
income-based repayment plan for the loan; and
``(B) with respect to any loan made, insured, or
guaranteed under part B or D on or before June 30,
2021, if such borrower elects to repay the loan under
such income-based repayment plan on or after July 1,
2021.
``(2) Special terms.--Notwithstanding any other provision of
this section, with respect to a loan described under paragraph
(1), the following terms shall apply to the income-based
repayment plan under this subsection:
``(A)(i) Notwithstanding subsection (a)(3)(B), the
repayment amount under this subsection shall be an
amount equal to 10 percent of the result obtained by
calculating, on at least an annual basis, the amount by
which the adjusted gross income of the borrower
(subject to clause (ii)) exceeds the applicable
percentage of the poverty line in accordance with
clause (iii).
``(ii)(I) Subject to subclause (II), in the case of a
married borrower (regardless of tax filing status),
clause (i) shall be applied by substituting `the
adjusted gross income of the borrower and the
borrower's spouse' for `the adjusted gross income of
the borrower'.
``(II) Subclause (I) shall not be applicable to any
borrower who is married and who certifies to the
Secretary through a form approved by the Secretary that
the borrower is--
``(aa) separated from the spouse of the
borrower; or
``(bb) unable to reasonably access the income
information the spouse of such borrower.
``(iii) For purposes of clause (i), the term
`applicable percentage' means 250 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)))--
``(I) reduced by 10 percentage points for
each $1,000 by which the borrower's adjusted
gross income (in the case of a single borrower)
exceeds $80,000; and
``(II) reduced by 10 percentage points for
each $2,000 by which the borrower's adjusted
gross income (in the case of a married borrower
(regardless of filing status)), exceeds
$160,000.
``(B) Subsection (b)(7)(B) shall apply by
substituting `20 years' for `25 years'.
``(C) A borrower of such a loan may elect, and remain
enrolled in, the income-based repayment plan under this
subsection regardless of--
``(i) whether such borrower has a partial
financial hardship; and
``(ii) the income level of the borrower.
``(D) Notwithstanding subparagraph (A) of subsection
(b)(6), a borrower's monthly payment--
``(i) shall be equal to the repayment amount
determined under subparagraph (A) divided by
12; and
``(ii) may exceed the monthly repayment
amount under a standard 10-year repayment plan
or a fixed repayment plan described in section
493E.
``(E) Subparagraph (B) of subsection (b)(3) shall not
apply.
``(F) Subsection (d) shall not apply.
``(G) In the case of a Federal Direct Consolidation
Loan made on or after the date of enactment of the
College Affordability Act that is being repaid under
this subsection, any monthly payment made pursuant to
any repayment plan listed in subsection (b)(7)(B) on a
loan for which the liability has been discharged by the
proceeds of such consolidation loan shall be treated as
a monthly payment under this subsection on the portion
of such consolidation loan that is attributable to such
discharged loan, except that in the case of a
subsequent consolidation loan, for purposes of this
clause--
``(i) any monthly payment made on the first
consolidation loan or any other loan for which
the liability has been discharged by such
subsequent consolidation loan shall be
applicable; and
``(ii) any monthly payment made on a loan for
which the liability has been discharged by such
first consolidation loan shall not be
applicable.
``(3) Additional special terms for certain borrowers.--A
borrower described in paragraph (1)(B)--
``(A) may--
``(i) choose to continue repayment pursuant
to the repayment plan in which the borrower is
enrolled on June 30, 2021; or
``(ii) make a one-time election to--
``(I) terminate repayment pursuant to
the repayment plan described in clause
(i) and enter the income-based
repayment plan under this subsection;
or
``(II) terminate repayment pursuant
to the repayment plan described in
clause (i) and enter a fixed repayment
plan described in section 493E; and
``(B) who makes an election under subparagraph
(A)(ii), shall not repay a loan described in paragraph
(1)(B) under a repayment plan that is not an income-
based repayment plan under this subsection or a fixed
repayment plan described in section 493E.
``(4) Written, electronic, or verbal enrollment in income-
based repayment.--
``(A) In general.--The Secretary shall develop and
implement a process that is consistent with any
procedures (including verification procedures)
established under subsection (c), which enables a
covered borrower of a loan made under part D who
desires to elect to repay such loan under income-based
repayment under this subsection to make such election
through written, electronic, or verbal notice to the
Secretary.
``(B) Covered borrower defined.--In this paragraph,
the term `covered borrower' means a borrower of a loan
made under part D who--
``(i) is enrolled in the fixed repayment plan
under section 493E; or
``(ii) has not yet selected a repayment plan.
``(g) Special Rule for Refinanced Loans.--
``(1) Refinanced federal direct and ffel loans.--In
calculating the period of time during which a borrower of a
loan that is refinanced under section 460A has made monthly
payments for purposes of subsection (b)(7), the Secretary shall
include each month in which a monthly payment was made for the
original loan or the refinanced loan, if such monthly payment
otherwise meet the requirements of this section.
``(2) Federal direct refinanced private loans.--In
calculating the period of time during which a borrower of a
Federal Direct Refinanced Private Loan under section 460B has
made monthly payments for purposes of subsection (b)(7), the
Secretary shall include only payments--
``(A) that are made after the date of the issuance of
the Federal Direct Refinanced Private Loan; and
``(B) that otherwise meet the requirements of this
section.''.
SEC. 4631. FIXED REPAYMENT PLAN.
Part G of title IV of the Higher Education Act of 1965 (20 U.S.C.
1088 et seq.) is further amended by adding at the end the following:
``SEC. 493E. FIXED REPAYMENT PLAN.
``(a) In General.--A borrower of a loan made under this part on or
after July 1, 2021, and a borrower who is in repayment on a loan made,
insured, or guaranteed under part B or part D before July 1, 2021, may
elect to repay such loan under the fixed repayment plan described in
this section.
``(b) Fixed Repayment Plan.--Under the fixed repayment plan, a
borrower whose total outstanding amount of principal and interest on
such a loan (as of the day before entering repayment on such loan)--
``(1) is equal to or less than $20,000, shall repay such loan
with a fixed monthly repayment amount paid over a period of 10
years;
``(2) is more than $20,000 and less than $30,000, shall repay
such loan with a fixed monthly repayment amount paid over a
period of--
``(A) 15 years; or
``(B) the period described in paragraph (1), if the
borrower elects such period;
``(3) is equal to or greater than $30,000, and less than
$40,000, shall repay such loan with a fixed monthly repayment
amount paid over a period of--
``(A) 20 years; or
``(B) the period described in paragraph (1) or (2),
if the borrower elects such period; and
``(4) is equal to or greater than $40,000, shall repay such
loan with a fixed monthly repayment amount paid over a period
of--
``(A) 25 years; or
``(B) the period described in any of paragraphs (1)
through (3), if the borrower elects such period.
``(c) Treatment of Certain Consolidation Loans.--In the case of a
Federal Direct Consolidation Loan made on or after the date of
enactment of the College Affordability Act that is being repaid under
this section, any monthly payment made pursuant to any repayment plan
listed in section 493C(b)(7)(B) on a loan for which the liability has
been discharged by the proceeds of such consolidation loan shall be
treated as a monthly payment under this section on the portion of such
consolidation loan that is attributable to such discharged loan, except
that in the case of a subsequent consolidation loan, for purposes of
this subsection--
``(1) any monthly payment made on the first consolidation
loan or any other loan for which the liability has been
discharged by such subsequent consolidation loan shall be
applicable; and
``(2) any monthly payment made on a loan for which the
liability has been discharged by such first consolidation loan
shall not be applicable.''.
SEC. 4632. REQUIRING A COMMON MANUAL FOR LOAN SERVICERS.
Part G of title IV of the Higher Education Act of 1965 (20 U.S.C.
1088 et seq.), as amended by this part, is further amended by adding at
the end the following:
``SEC. 493F. REQUIRING A COMMON MANUAL FOR LOAN SERVICERS.
``(a) In General.--Not later than 1 year after the date of enactment
of the College Affordability Act, the Secretary shall develop a manual
of common procedures and policies for entities with which the Secretary
enters into contracts for the origination, servicing, and collection of
covered loans, to standardize procedures to ensure consistency of
quality and practice across such entities, and a minimum standard of
quality and practice, to ensure that borrowers, including individuals
pursuing public service loan forgiveness under section 455(m) and
teachers, are well served.
``(b) Updates.--The Secretary shall update the manual under
subsection (a) as frequently as may be necessary, but not less
frequently than once every 5 years.
``(c) Covered Loans Defined.--The term `covered loans' means--
``(1) loans sold or assigned to the Secretary under part B;
``(2) loans made or purchased under part D; and
``(3) loans referred, transferred, or assigned to the
Secretary under part E.''.
SEC. 4633. REMOVAL OF RECORD OF DEFAULT.
Part G of title IV of the Higher Education Act of 1965 (20 U.S.C.
1088 et seq.), as amended by the preceding sections, is further amended
by adding at the end the following:
``SEC. 493G. REMOVAL OF RECORD OF DEFAULT.
``(a) In General.--Upon repaying in full the amount due on a
defaulted loan made, insured, or guaranteed under this title, 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
any adverse item of information relating to such loan from the
borrower's credit history.
``(b) Retroactive Application.--With respect to a borrower that,
prior to the date of enactment of the College Affordability Act, repaid
in full the amount due on a defaulted loan made, insured, or guaranteed
under this title, the Secretary, guaranty agency, or holder that
reported the default of the loan to a consumer reporting agency shall
request that such consumer reporting agency remove any adverse item of
information relating to such loan from the borrower's credit history,
upon receiving a request from the borrower for such removal.''.
SEC. 4634. AMENDMENTS TO TERMS AND CONDITIONS OF BORROWER DEFENSES.
(a) In General.--Part G of title IV of the Higher Education Act of
1965 (20 U.S.C. 1088 et seq.), as amended by the preceding sections, is
further amended by adding at the end the following:
``SEC. 493H. BORROWER DEFENSES.
``(a) In General.--Notwithstanding any other provision of State or
Federal law, a defense to repayment of a loan under this title
includes--
``(1) a substantial misrepresentation;
``(2) an act or omission that would give rise to a cause of
action against an institution of higher education under
applicable State law, to the extent that such act or omission
relates to--
``(A) a loan received by a borrower under this title;
or
``(B) educational services for which such a loan was
received; or
``(3) such further acts or omissions that the Secretary
determines to be appropriate in accordance with subsection (b).
``(b) Regulations.--The Secretary shall specify in regulations which
further acts or omissions of an institution of higher education a
borrower may assert as a defense to repayment of a loan made under this
title.
``(c) Secretarial Determination.--
``(1) In general.--The Secretary shall determine whether a
borrower is entitled to relief under this section based on all
evidence available to the Secretary.
``(2) Evidentiary standard.--A borrower shall be entitled to
relief under this section if a preponderance of the evidence
available to the Secretary demonstrates that the borrower is
entitled to such relief.
``(3) Independent determination.--A determination under
paragraph (1) shall be independent of any action that the
Secretary may take to recoup funds from the institution of
higher education implicated by the borrower defense claim.
``(d) Procedures for Review and Resolution of Claims.--
``(1) Procedures required.--The Secretary shall establish
procedures for the fair and expeditious review and resolution
of borrower defense claims brought under this section. In
establishing such procedures, the Secretary shall--
``(A) provide a fair process for the review and
resolution of borrower defense claims, which shall
include procedures for the consideration of borrower
defense claims on behalf of groups of similarly
situated borrowers without requiring each borrower in
the group to submit a separate claim;
``(B) review a borrower defense claim at any time
without regard to the repayment status of any loan
subject to such claim;
``(C) allow a legal representative to bring a
borrower defense claim--
``(i) on behalf of an individual borrower; or
``(ii) on behalf of a group of similarly
situated borrowers; and
``(D) specify a fixed timeframe for the resolution of
borrower defense claims, except that--
``(i) such timeframe shall not exceed a 12-
month period beginning on the day on which a
borrower submits such a claim under this
section; and
``(ii) a borrower defense claim that was
submitted to the Secretary before the date of
enactment of the College Affordability Act that
has not been resolved as of such date of
enactment, shall be resolved not later than 12
months after such date of enactment.
``(2) Deferment during pendency of claims.--
``(A) In general.--Subject to subparagraph (B), a
loan made under this title that is subject to a pending
borrower defense claim shall be placed in deferment
status, during which periodic installments of principal
need not be paid and interest shall not accrue (or
shall be paid by the Secretary), without regard to
whether such loan is in default.
``(B) Opt out.--The borrower of a loan subject to
deferment under subparagraph (A) may opt out of such
deferment at any time during the pendency of the
borrower defense claim.
``(C) Suspension of credit reporting and
collection.--The Secretary shall suspend all adverse
credit reporting and collection activity, including
offsets and garnishments, with respect to any loan in
default that is subject to a deferment under
subparagraph (A).
``(f) Terms of Relief.--
``(1) In general.--If the Secretary determines under
subsection (c) that a borrower is entitled to relief, the
Secretary shall, subject to paragraph (2)--
``(A) cancel or repay all or a portion of the balance
of interest and principal due on any loan subject to
the claim for relief; and
``(B) return to the borrower an amount not in excess
of the total amount of payments made on the loan by the
borrower.
``(2) Cancellation of debt and return of payments.--
``(A) Substantial misrepresentation claims.--If the
Secretary determines that a borrower is entitled to
relief based on a claim of substantial
misrepresentation, the Secretary shall--
``(i) cancel or repay the full balance of
interest and principal due on any loan subject
to the claim; and
``(ii) return to the borrower an amount equal
to the total amount of payments made on the
loan by the borrower.
``(B) Other claims.--If the Secretary determines that
a borrower is entitled to relief based on a claim other
than substantial misrepresentation, there shall be a
presumption that the Secretary will cancel or repay the
full balance of principal and interest due on the loan
and return the full amount of payments made by the
borrower as described in subparagraph (A). If the
Secretary determines that full cancellation or
repayment of the debt and return of all funds paid on
the loan is not appropriate in a particular case, the
Secretary shall provide the borrower with a written
explanation as to why partial cancellation or
repayment, or the partial return of funds is
appropriate.
``(g) Appeals.--Upon a determination by the Secretary to deny a
borrower defense claim under this section, the borrower may file an
appeal with the Department. The Secretary shall develop and implement a
standardized process for the treatment of appeals under this
subsection.
``(h) Refiling of Claims.--A borrower whose claim was denied under
this section may refile the claim for good cause, which may include--
``(1) the availability of substantial evidence that was not
available to the Secretary at the time the initial claim was
denied;
``(2) the emergence of facts or circumstances that may have
substantially altered the Secretary's original treatment of the
initial claim; and
``(3) such other factors as may be determined by the
Secretary.
``(i) Designation of Personnel.--The Secretary shall designate
qualified personnel within the Department whose principal
responsibility shall be the processing of borrower defense claims
submitted under his section.
``(j) Availability of Information to Borrowers.--
``(1) Borrower requests for information.--At the request of a
borrower, the Secretary shall identify and provide to the
borrower or the legal representative of the borrower any
records the Secretary is considering as part of the borrower's
claim.
``(2) Status of claim.--The Secretary shall establish a
process under which each borrower with a claim pending under
this section shall be notified of the status of the pending
claim not fewer than once every 90 days.
``(3) Information from institutions.--The Secretary may
request documents and other information relating to a borrower
defense claim from an institution of higher education. An
institution that receives a request for information from the
Secretary under this subsection shall provide the information
to the Secretary at such time, in such form, and in such manner
as the Secretary may direct.
``(k) Quarterly Reports.--
``(1) In general.--Not less than once every fiscal quarter,
the Secretary shall submit to the authorizing committees a
report that includes the following:
``(A) The total number of claims submitted to the
Secretary pursuant to this subsection in the fiscal
quarter covered by the report and in all previous
fiscal quarters.
``(B) Of the claims described in subparagraph (A)--
``(i) the number of claims that remain
pending;
``(ii) the number of claims that were denied
by the Secretary, and the total dollar amount
of such claims; and
``(iii) the number of claims that were
approved by the Secretary, and the total dollar
amount of such claims.
``(2) Disaggregation.--The information described in
subparagraphs (A) and (B) of paragraph (1) shall be
disaggregated by State and institution of higher education
(except that such disaggregation shall not be required in a
case in which the results would reveal personally identifiable
information about an individual borrower).
``(3) Public availability.--The information included in each
report submitted under paragraph (A) shall be made available on
a publicly accessible website of the Department.
``(l) Definitions.--In this section:
``(1) The term `legal representative' means a licensed
attorney working on behalf of a borrower or a group of
borrowers, including--
``(A) a State attorney general; and
``(B) an attorney employed by a State agency, a
Federal agency, or a nonprofit organization that is
qualified to provide legal representation to borrowers.
``(2) The term `substantial misrepresentation' has the
meaning given that term in section 487(c)(3)(C).''.
(b) Conforming Amendment.--Subsection (h) of section 455 of the
Higher Education Act of 1965 (20 U.S.C. 1087e) is repealed.
SEC. 4635. ON-TIME REPAYMENT RATES.
Part G of title IV of the Higher Education Act of 1965 (20 U.S.C.
1088 et seq.), as amended by the preceding sections, is further amended
by adding at the end the following:
``SEC. 493I. ON-TIME REPAYMENT RATES.
``(a) Calculation of On-time Repayment Rates.--
``(1) On-time repayment rate defined.--
``(A) In general.--The term `on-time repayment rate'
means for any fiscal year in which 30 or more current
and former students at an institution have been in
repayment for 3 years on any covered loan received for
attendance at the institution, the percentage of such
current and former students who have paid at least 90
percent of the monthly payments on such loan during
such 3-year repayment period.
``(B) Small cohorts.--For any fiscal year in which
fewer than 30 of an institution's current and former
students have been in repayment for 3 years, the term
`on-time repayment rate' means the percentage of such
current and former students who entered their 3rd year
of repayment on any covered loan received for
attendance at the institution in any of the 3 most
recent fiscal years and who have paid at least 90
percent of the monthly payments on such loan during
such 3-year repayment period.
``(2) Additional requirements for rate determination.--
``(A) Multiple institutions.--In the case of a
student who has attended and borrowed a covered loan
for attendance at more than one institution, the
student (and such student's subsequent repayment or
monthly payment on such loan) is attributed to each
institution for attendance at which the student
received such loan for which the student entered the
3rd year of repayment in the fiscal year for which the
on-time repayment rate is being determined.
``(B) Treatment of consolidation loans.--For purposes
of determining whether a student is in repayment (or
has paid a monthly payment) on a loan under section
428C or a Federal Direct Consolidation Loan, only the
portion of such loan that is used to repay a covered
loan received for attendance at the institution whose
on-time repayment rate is being determined shall be
considered for purposes of such rate.
``(3) Determination of when monthly payment is paid.--For
purposes of determining the on-time repayment rate of an
institution, a student shall be considered to have paid a
monthly payment on a covered loan if one of the following
applies:
``(A) The amount of such monthly payment has been
paid not later than 30 days after the date on which
such monthly payment is due, except that a monthly
payment by the institution, such institution's owner,
agent, contractor, employee, or any other entity or
individual affiliated with such institution made on
behalf of a student who is not employed by the
institution shall not be considered a paid monthly
payment on such loan.
``(B) The monthly payment amount due on such loan is
equal to zero.
``(C) The full amount due on the loan has been repaid
or the liability on the loan has been otherwise
discharged under this Act.
``(D) The student is in a period of deferment, other
than--
``(i) a deferment due to an economic hardship
described section 427(a)(2)(C)(iii),
428(b)(1)(M)(iv), or 455(f)(2)(D); or
``(ii) a deferment due to unemployment
described in section 427(a)(2)(C)(ii),
428(b)(1)(M)(ii), or 455(f)(2)(B)).
``(E) The student is in one of the following periods
of forbearance (as applicable to loans made, insured,
or guaranteed under part B or this title):
``(i) Medical or dental internship or
residency forbearance under subclause (I) of
section 428(c)(3)(A)(i).
``(ii) National service forbearance under
subclause (III) of section 428(c)(3)(A)(i).
``(iii) Forbearance for active duty service
in the Armed Forces under subclause (IV) of
section 428(c)(3)(A)(i).
``(iv) Forbearance for National Guard Duty
under section 428(c)(3)(B).
``(v) Forbearance due to military
mobilization or other local or national
emergency as authorized by the Secretary under
section 685.205(b)(8) of title 34, Code of
Federal Regulations (as in effect on the date
of enactment of the College Affordability Act).
``(vi) Teacher loan forgiveness forbearance
under section 682.213(e) or 685.205(a)(5) of
title 34, Code of Federal Regulations (as in
effect on the date of enactment of the College
Affordability Act).
``(4) Participation rate.--
``(A) In general.--An institution that demonstrates
to the Secretary that the institution's participation
rate is equal to or less than 20 percent for any of the
3 most recent fiscal years for which data is available
shall not be subject to subsection (b).
``(B) Determination.--For purposes of this paragraph,
the term `participation rate' means the percentage of
the institution'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
cohort of borrowers used to calculate the institution's
on-time loan repayment rate is determined.
``(C) Data.--An institution shall provide the
Secretary with sufficient data to determine the
institution's participation rate within 30 days after
receiving an initial notification of the institution's
draft on-time repayment rate.
``(D) Notification.--Prior to publication of a final
on-time repayment rate for 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) Determination of Eligibility Based on Repayment Rates and
Instructional Spending Amounts.--
``(1) Ineligibility.--
``(A) In general.--Except as provided in
subparagraphs (C) and (D), beginning on the date that
is one year after the date on which the final on-time
repayment rates are published by the Secretary for not
less than 3 fiscal years, an institution shall not be
eligible to participate in a program under this title
for the fiscal year for which the determination under
this subparagraph is made and for the two succeeding
fiscal years, if the Secretary determines the following
with respect to such institution--
``(i) the on-time repayment rate of such
institution is less than any threshold on-time
repayment rate specified under subparagraph (B)
for period determined appropriate by the
Secretary for such threshold rate; and
``(ii) with respect to any of the 3 most
recent institutional fiscal years for which the
institution submits to the Secretary
disclosures on the expenditures of the
institution on instruction for purposes of
section 132(i)(1)(AA), the amount expended by
such institution on instruction for such fiscal
year is less than 1/3 of the institution's
revenues derived from tuition and fees.
``(B) Threshold rates.--For purposes of
determinations under subparagraph (A)(i), the Secretary
shall specify 1 or more threshold on-time repayment
rates, which rates--
``(i) shall require that a significant
percentage of students who have been in
repayment for 3 years on a covered loan
received for attendance at an institution of
higher education have paid at least 90 percent
of the monthly payments on such covered loan
during such 3-year repayment period; and
``(ii) may be applicable with respect to a
period of 1 or more fiscal years, as determined
appropriate for such a rate.
``(C) Exceptions for certain categories of
educational programs.--
``(i) Exceptions for certain categories of
educational programs.--With respect to an
institution that loses eligibility to
participate in a program under this title in
accordance with paragraph (1), such institution
may request and be granted an exception to such
loss of eligibility for a category of
educational programs at such institution by
demonstrating to the Secretary that the on-time
loan repayment rate for such category of
educational programs is greater than the
threshold percentage specified under paragraph
(1)(B) for each fiscal year of the period on
which such loss of eligibility for the
institution is based.
``(ii) Determinations.--In determining the
on-time loan repayment rate for a category of
educational programs, subsection (a)(1) shall
be applied--
``(I) in subparagraph (A), by
substituting `received for enrollment
in the category of educational programs
for which such rate is being
determined' for `received for
attendance at the institution'; and
``(II) as if the following were added
at the end of such paragraph:
```(C) Multiple categories of educational programs.--
In the case of a student who has received a covered
loan for enrollment in more than one category of
educational programs, the student (and such student's
subsequent repayment or monthly payment on such covered
loan) is attributed to the last category of educational
programs in which such student was enrolled.'.
``(D) Appeals.--Not later than 60 days of receiving
notification from the Secretary of the loss of
eligibility under subparagraph (A), the institution may
appeal the loss of its eligibility under subsection
(c).
``(2) Repayment management plan requirement for certain
institutions.--
``(A) In general.--Beginning on the date that is one
year after the date on which the final on-time
repayment rates are published by the Secretary for not
less than 3 fiscal years, an institution shall be
subject to the requirements of subparagraph (B), if the
Secretary determines the following with respect to such
institution--
``(i) the on-time repayment rate of such
institution is less than any threshold on-time
repayment rate specified under paragraph (1)(B)
for period determined appropriate by the
Secretary for such threshold rate; and
``(ii) for each of the 3 most recent
institutional fiscal years for which the
institution submits to the Secretary
disclosures on the expenditures of the
institution on instruction for purposes of
section 132(i)(1)(AA), the amount expended by
the institution for instructional spending is
greater than or equal to an amount equal to 1/3
of the amount of revenue derived from tuition
and fees.
``(B) Repayment management plan.--An institution
subject to the requirements of this subparagraph,
shall--
``(i) not later than 6 months after the
determination under subparagraph (A), submit to
the Secretary a repayment management plan which
the Secretary, in the Secretary's discretion,
after consideration of the institution's
history, resources, expenditures, and targets
for improving on-time repayment, determines--
``(I) is acceptable and is in the
best interests of students; and
``(II) provides reasonable assurance
that the institution will have an on-
time repayment rate that exceeds the
on-time threshold referred to in
subparagraph (A)(i) after a reasonable
period;
``(ii) engage an independent third-party to
provide technical assistance in implementing
such repayment management plan; and
``(iii) provide to the Secretary, on an
annual basis or at such other intervals as the
Secretary may require, evidence of on-time
repayment rate improvement and successful
implementation of such repayment management
plan.
``(c) Appeals.--
``(1) Secretarial requirements.--The Secretary shall issue a
decision on any appeal submitted by an institution under
subsection (b)(1)(D) not later than 45 days after its
submission. Such decision may permit the institution to
continue to participate in a program under this title if--
``(A) the institution demonstrates to the
satisfaction of the Secretary that the Secretary's
calculation of its on-time repayment rate is not
accurate, and that recalculation would increase its on-
time repayment rate above the applicable threshold
percentage specified in subsection (b)(1)(B) for the
period on which the determination of the institution's
ineligibility under subsection (b)(1)(A) was based;
``(B) the institution demonstrates to the
satisfaction of the Secretary that there has been
improper loan servicing, which, if remedied, would
increase its on-time repayment rate above the
applicable threshold percentage specified in subsection
(b)(1)(B) for the period on which the determination of
the institution's ineligibility under subsection
(b)(1)(A) was based;
``(C) there are, in the judgment of the Secretary,
exceptional mitigating circumstances that would make
the application of this section inequitable;
``(D) for each of the 3 most recent fiscal years for
which the institution submits to the Secretary
disclosures on expenditures for purposes of section
132(i)(1)(AA), the sum of the expenditures on
instruction and student services of the institution is
equal to an amount greater than or equal to 50 percent
of the institution's revenues derived from tuition and
fees, and the institution complies with the
requirements of subsection (b)(2)(B).
``(2) Institutional requirements.--If an institution
continues to participate in a program under this title, 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 covered loans 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 title.
``(d) Regulations.--The Secretary shall prescribe regulations
designed to prevent an institution from evading the application to that
institution of a on-time repayment rate determination under this
section through the use of such measures as branching, consolidation,
change of ownership or control, or any similar device.
``(e) Publication.--The Secretary shall publish not less often than
once every fiscal year (by September 30 of each year) a report--
``(1) for each category of institution, and for each
institution for which an on-time repayment rate is determined
under this section--
``(A) with respect to the preceding fiscal year--
``(i) the on-time repayment rate for such
institution;
``(ii) the on-time repayment rate for each
category of educational programs; and
``(iii) the number of students on which the
rates described in clauses (i) and (ii) are
based; and
``(B) for each of the 3 most recent fiscal years for
which the institution submits to the Secretary
disclosures on expenditures for purposes of section
132(i)(1)(AA)--
``(i) the amount of the institution's
expenditures on instruction;
``(ii) the amount of revenue derived from
tuition and fees by the institution; and
``(iii) the quotient of the amount described
in clause (i) divided by the amount described
in clause (ii), expressed as a percentage; and
``(2) each on-time repayment rate used for calculating each
of the threshold rates under subsection (b)(1)(B) for the
period determined appropriate by the Secretary for such
threshold rate under such subsection.
``(f) Definitions.--In this section:
``(1) Category of educational programs.--The term `category
of educational programs' has the meaning given the term in
section 435(a)(9)(E).
``(2) Category of institution.--The term `category of
institution' includes--
``(A) four-year public institutions;
``(B) four-year private nonprofit institutions;
``(C) four-year proprietary institutions;
``(D) two-year public institutions;
``(E) two-year private nonprofit institutions;
``(F) two-year proprietary institutions;
``(G) less-than-two year public institutions;
``(H) less-than-two year private nonprofit
institutions; and
``(I) less-than-two year proprietary institutions.
``(3) Covered loan.--
``(A) In general.--The term `covered loan' means a
loan made, insured, or guaranteed under part B or D
(other than an excepted PLUS Loan or an excepted
consolidation Loan).
``(B) Excepted plus loan; excepted consolidation
loan.--The terms `excepted PLUS Loan' and `excepted
consolidation Loan' have the meanings given such terms
in section 493C(a).
``(4) Student services.--The term `student services' has the
meaning given the term in section 498E(a)(2).''.
PART H--PROGRAM INTEGRITY
Subpart 1--State Role
SEC. 4701. STATE RESPONSIBILITIES.
Section 495(a) of the Higher Education Act of 1965 (20 U.S.C.
1099a(a)) is amended--
(1) in paragraph (2)--
(A) by inserting ``and the accrediting agency or
association involved'' after ``Secretary'';
(B) by striking ``revokes a license'' and inserting
``takes a negative action, or revokes a license,''; and
(C) by striking ``and'' at the end;
(2) in paragraph (3), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(4) evaluate each institution of higher education located
in the State or seeking authorization to operate in the State
to determine if such institution of higher education meets the
applicable standards of the State relating to--
``(A) facilities, equipment, and supplies; and
``(B) measures of program length and other factors
relevant for a student or graduate to receive a
professional license from the State;
``(5) certify to the Secretary that the State shall--
``(A) accept student complaints from--
``(i) all students attending an institution
of higher education located in the State; and
``(ii) all students who are residents of the
State and attend an institution of higher
education not located in the State through
correspondence or distance education; and
``(B) report to the Secretary and accrediting
bodies--
``(i) relevant student complaints received by
the State, including multiple student
complaints that present consistent allegations
with respect to an institution of higher
education in the State; and
``(ii) such other complaints the Secretary
determines necessary; and
``(6) establish policies and procedures to anticipate and
respond to the closure of an institution of higher education,
which shall include--
``(A) the maintenance of sufficient cash reserves (or
an equivalent alternative) in accordance with
regulations issued pursuant to section 498(c)(6)(A) to
ensure repayment of any required refunds;
``(B) a plan to address ensuring custodial record-
keeping of institutional records and student
transcripts in the case of such a closure;
``(C) the maintenance of contact information adequate
to ensure communication directly between the State and
each student in the case of such a closure; and
``(D) in the case of an institution of higher
education located in the State, to develop a process to
identify when a campus of such institution of higher
education closes in any State.''.
Subpart 2--Accrediting Agency Recognition
SEC. 4711. ACCREDITING AGENCY RECOGNITION OF ELIGIBLE JOB TRAINING
PROGRAMS.
Section 496(a)(4) of the Higher Education Act of 1965 (20 U.S.C.
1099b(a)(4)) is amended--
(1) in subparagraph (A), by striking ``and'' after the
semicolon; and
(2) by adding at the end the following:
``(C) if such agency or association has or seeks to
include within its scope of recognition the evaluation
of the quality of institutions of higher education
participating in the job training Federal Pell Grant
program under section 401(k), such agency or
association shall, in addition to meeting the other
requirements of this subpart, demonstrate to the
Secretary that, with respect to such eligible job
training program--
``(i) the agency or association's standards
include a process for determining if the
institution has the capability to effectively
provide an eligible job training program; and
``(ii) the agency or association requires a
demonstration that the program--
``(I) has identified each recognized
postsecondary credential offered and
the corresponding industry or sector
partnership that actively recognizes
each credential in the State or local
area in which the job training program
is provided; and
``(II) provides the academic content
and amount of instructional time that
is sufficient to--
``(aa) meet the hiring
requirements of potential
employers; and
``(bb) satisfy any applicable
educational prerequisite
requirement for professional
license or certification, so
that a student who completes
the program and seeks
employment is qualified to take
any licensure or certification
examination needed to practice
or find employment in such
sectors or occupations; and''.
SEC. 4712. ACCREDITING AGENCY RECOGNITION OF INSTITUTIONS ENROLLING
INCARCERATED INDIVIDUALS.
Section 496(a)(4) of the Higher Education Act of 1965 (20 U.S.C.
1099b(a)(4)) is further amended by adding at the end the following:
``(D) if such agency or association accredits or
seeks to accredit institutions of higher education that
seek to award Federal Pell Grants under section 401(n)
to incarcerated individuals for a course of study at
such institution, 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
include a process for determining if the
institution has the capability to effectively
offer such a course of study to incarcerated
individuals; and
``(ii) the agency or association requires a
demonstration that--
``(I) such course of study is taught
by faculty with experience and
credentials comparable to the
experience and credentials of faculty
who teach courses of study available to
non-incarcerated students enrolled at
the institution;
``(II) academic credits earned by
incarcerated individuals for completion
of a course of study are treated by the
institution as the equivalent to
credits earned by non-incarcerated
students for an equivalent course;
``(III) the institution provides
sufficient educational content and
resources to students enrolled in such
a course of study that are, to the
extent practicable, consistent with the
educational content and resources
available to non-incarcerated students;
and
``(IV) the institution has the
capacity, staffing, and expertise to
provide incarcerated individuals with
the support and advising services
necessary to select and successfully
participate in such a course of study
and, to the extent practicable, with
support upon reentry (including career
and academic advising);''.
SEC. 4713. REQUIREMENTS FOR ACCREDITING AGENCY RECOGNITION.
(a) Working Group; Rulemaking.--
(1) Working group.--
(A) In general.--Not later than 1 year after the date
of enactment of the Act, the Secretary of Education
shall establish a working group comprised of
individuals specified in subparagraph (B), to establish
a common glossary of measures (and a definition for
each such measure)--
(i) that, for purposes of section
496(a)(5)(A) of the Higher Education Act of
1965 (20 U.S.C. 1099b(a)(5)(A))--
(I) accrediting agencies or
associations may use to assess each of
the outcomes described in subparagraph
(C);
(II) shall not restrict accrediting
agencies or associations from
establishing, in accordance with such
section 496(a)(5)(A), other measures to
assess such outcomes;
(III) shall not include performance
benchmarks or other thresholds with
respect to such measures; and
(IV) provides accrediting agencies or
associations described in subparagraphs
(A)(i) and (C)(ii) of section 496(a)(2)
(20 U.S.C. 1099b(a)(2)) with enough
flexibility for adequate assessment of
such outcomes; and
(ii) that may include measures (and
definitions for such measures) set forth under
the Integrated Postsecondary Education Data
Survey, the postsecondary data system
established under section 132(l), or a
successor system;
(iii) to which future working groups which
meet the requirements of this paragraph may add
additional measures; and
(iv) that the Secretary of Education shall
not have the authority to approve.
(B) Composition.--The working group established under
subparagraph (A) shall be of sufficient size to ensure
that a full range of relevant accrediting agencies and
institutions are represented on the panel and shall
include, at a minimum, the following members:
(i) Representatives of national, regional,
and specialized accrediting agencies and
associations that shall be nominated for
inclusion on the panel by such representatives.
(ii) Representatives of diverse postsecondary
institutions, which shall include
representation between 2-year and 4-year
institutions of higher education, and from
public, nonprofit, and proprietary institutions
of higher education, including minority-serving
institutions.
(iii) The Commissioner of the National Center
for Education Statistics or the Commissioner's
representative.
(iv) Student advocate representatives
familiar with the accreditation process.
(C) Outcomes.--The outcomes described in this
subparagraph are as follows:
(i) Completion (which may include measures
such as graduation rates and rates of
transfer).
(ii) Progress toward completion (which may
include measures such as retention rates and
credit accumulation).
(iii) Workforce participation (which may
include measures such as rates of licensure and
job placement).
(2) Rulemaking.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Education shall
initiate a negotiated rule-making--
(A) to develop procedures for identifying the
representative member institutions an accrediting
agency or association shall use to demonstrate to the
Secretary, for purposes of the Secretary's review and
evaluation of the performance of such agency or
association under section 496(n)(1) of the Higher
Education Act of 1965 (20 U.S.C. 1099b(n)(1)), as
amended by this section, that such accrediting agency
or association--
(i) consistently applies and enforces
standards; and
(ii) effectively evaluates the quality of
education or training offered by the
institutions of higher education accredited by
such agency or association; and
(B) for purposes of section 496 of the Higher
Education Act of 1965 (20 U.S.C. 1099b), as amended by
this section, to--
(i) establish definitions for the terms
related to sanctions, adverse actions, and any
other action that an accrediting agency or
association may take with respect to an
institution of higher education under such
section (including monitoring, notice, warning,
probation, show cause, denial, withdrawal,
suspension, revocation, accreditation, and
preaccreditation); and
(ii) in a case in which any action defined in
clause (i) is taken by an accrediting agency or
association with respect to an institution of
higher education, establish notice and
disclosure requirements for such agency or
association and institution of higher education
with respect to the public (including
students), as long as such requirements are
consistent with the requirements of subsections
(a)(7) and (c)(7) of section 496 of the Higher
Education Act of 1965 (20 U.S.C. 1099b).
(b) Amendments.--Section 496 of the Higher Education Act of 1965 (20
U.S.C. 1099b) is further amended--
(1) in subsection (a)--
(A) in paragraph (3)(A), by inserting before the
semicolon at the end the following: ``, and any
institution described in clauses (i) through (v) of
subsection (b)(1)(B)'';
(B) in paragraph (5), by striking subparagraphs (A)
through (J) and inserting the following:
``(A) success with respect to student achievement in
relation to the institution's mission (except that the
agencies and associations described in paragraph
(2)(A)(ii) shall not be subject to this subparagraph),
which--
``(i) shall be assessed using at least 1
measure selected by the agency or association
from the glossary of measures established and
defined under section 4713(a)(1) of the College
Affordability Act, or established by the agency
or association, for each of the following
outcomes--
``(I) completion;
``(II) progress toward completion;
and
``(III) workforce participation;
``(ii) may be assessed using different
measures selected or established under clause
(i) for different institutions;
``(iii) for each measure selected or
established under clause (i), shall be assessed
using a single performance benchmark
established by the agency or association,
except that an accrediting agency or
association may establish a different
performance benchmark for such a measure for
each category of educational programs (as
defined in section 435(a)(9)(E)); and
``(iv) in the case of an institution defined
in section 101(a), may include consideration
of--
``(I) the historical significance of
the institution; and
``(II) whether the institution is one
of the only physical locations at which
postsecondary education is provided in
the geographic area;
``(B) student achievement outcomes, disaggregated by
the elements required in the postsecondary student data
system under subclauses (I) through (X) of section
132(l)(2)(C)(ii) to facilitate institutional
improvement and yield statistically reliable
information that does not reveal personally
identifiable information about an individual student;
``(C) credentials, including consideration of the
non-monetary value accruing to students pursuing such
credentials;
``(D) curricula, including--
``(i) other than for the agencies and
associations described in paragraph (2)(A)(ii),
program length;
``(ii) course sequencing; and
``(iii) objectives related to credentialing;
``(E) faculty;
``(F) student support services;
``(G) recruiting and admissions practices, academic
calendars, catalogues, publications, and grading; and
``(H) fiscal and administrative capacity (which shall
include the institution's governance) as appropriate to
the specified scale of operations;'';
(C) by redesignating paragraphs (6) through (8) as
paragraphs (7) through (9), respectively; and
(D) by inserting after paragraph (5) the following:
``(6) such agency or association shall make available on a
publicly accessible website, up-to-date information on--
``(A) the institutions that are subject to the
jurisdiction of such agency or association;
``(B) the measures used to assess each of the
outcomes described in subclauses (I) through (III) of
paragraph (5)(A)(i);
``(C) the performance benchmark established for each
measure selected by the agency or association under
paragraph (5)(A), the rationale for the establishment
of such performance benchmark, and how such benchmarks
are factored into the accreditation process;
``(D) the process such agency or association follows
when an institution subject to the jurisdiction of such
agency or association does not meet an accreditation
standard under section 496(a)(5); and
``(E) any sanction or adverse action taken with
respect to an institution and the reason for such
sanction or adverse action;'';
(E) in paragraph (8), as so redesignated, by striking
``30 days'' and inserting ``10 days'';
(F) by amending paragraph (9), as so redesignated, to
read as follows:
``(9) such agency or association shall--
``(A) make available on its public website, and to
the Secretary, and the State licensing or authorizing
agency, a summary (including the decision and rationale
for such decision) of any review resulting in a final
accrediting decision involving denial, termination, or
suspension of accreditation, together with the comments
of the affected institution; and
``(B) ensure that each institution that is the
subject of a final accrediting decision described in
subparagraph (A) makes available on its public website
the summary described in subparagraph (A) (including
the decision and rationale for such decision) with
respect to such institution and the institution's
comments; and''.
(G) by adding at the end the following:
``(10) such agency or association shall--
``(A) ensure that any substantive change to the
educational mission or a program of an institution
after the agency or association has accredited or
preaccredited the institution does not adversely affect
the capacity of the institution to continue to meet the
standards of such agency or association;
``(B) require such an institution to obtain the
approval of such agency or association with respect to
such substantive change before the agency or
association includes the change in the scope of
accreditation or preaccreditation previously granted to
the institution by such agency or association; and
``(C) make public and report to the Secretary any
decision made under subparagraph (B) and the rationale
of such decision.'';
(2) by striking subsection (b) and inserting the following:
``(b) Separate and Independent Defined.--For the purpose of
subsection (a)(3), the term `separate and independent' means that--
``(1) the members of the postsecondary education governing
body and any other decision-making body of the accrediting
agency or association are not--
``(A) elected or selected by the board or chief
executive officer of any related, associated, or
affiliated trade association or membership
organization; or
``(B) individuals (such as executives and owners of
an institution) who exercise substantial control over
an institution--
``(i) that is required to provide the
Secretary with satisfactory evidence of its
financial responsibility in accordance with
paragraph (3)(A) of section 498(c) because the
institution fails to meet criteria under
paragraphs (1) and (2) of such section, except
that this clause shall not be applicable to an
institution until the Secretary has completed
the rulemaking required under section 4721(b)
of the College Affordability Act;
``(ii) that is on a reimbursement payment
method pursuant to section 487(c)(1)(B);
``(iii) against which the Secretary is
initiating or carrying out an emergency action
in accordance with section 487(c)(1)(G);
``(iv) against which the Secretary is
limiting, suspending, or terminating the
institution's participation in any program
under this title in accordance with section
487(c)(1)(F); or
``(v) that is on probation or show cause, or
that is not accredited by an accrediting agency
or association;
``(2) among the membership of the board of the accrediting
agency or association there shall be 1 public member for each 4
members of the board, with a minimum of 1 such public member,
and guidelines are established for such members to avoid
conflicts of interest, including guidelines ensuring that each
such public member--
``(A) is selected to serve on such board in the same
manner that other board members are selected for such
service;
``(B) has not served on such board as a non-public
member in the preceding 10 years;
``(C) is not (or has not been in the preceding 5-year
period) a full-time employee of, or a member of the
governing board, an owner, or shareholder of, or
consultant to, an institution or program that--
``(i) is accredited or preaccredited by the
agency or association; or
``(ii) has applied for accreditation or
preaccreditation from such agency or
association;
``(D) is not a member of any trade association or
membership organization related to, affiliated with, or
associated with the agency or association or an
institution that is accredited by such agency or
association; and
``(E) is not a spouse, parent, child, or sibling of
an individual identified in subparagraph (C) or (D);
``(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.'';
(3) in subsection (c)--
(A) in paragraph (1), strike ``those regarding
distance education'' and inserting ``regarding distance
education and the history and mission of the
institutions reviewed'';
(B) in paragraph (2)--
(i) by inserting ``and decline'' after ``the
growth''; and
(ii) by inserting before the semicolon at the
end the following: ``or decline''; and
(C) by amending paragraph (3) to read as follows:
``(3) requires an institution to submit for approval to the
accrediting agency or association a teach-out plan (as defined
in section 487(f)(2)) and which shall meet the requirements of
such agency or association) upon the occurrence of any of the
following events:
``(A) the Secretary notifies the agency or
association that the Secretary has determined under
section 498(c) that the institution does not have the
financial responsibility required by this title, except
that this subparagraph shall not be applicable to an
institution until the Secretary has completed the
rulemaking required under section 4721(b) of the
College Affordability Act;
``(B) the Secretary notifies the agency of a
determination by the institution's independent auditor
expressing doubt with the institution's ability to
operate as a going concern or indicating an adverse
opinion or finding of material weakness related to
financial stability, except that this subparagraph
shall not apply with respect to a public institution;
``(C) the agency or association acts to place an
institution on probation, show cause, or equivalent
status; or
``(D) the Secretary notifies the agency that the
institution is participating in title IV under a
provisional program participation agreement;'';
(D) by amending paragraph (6) to read as follows:
``(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, and that such an agreement shall be
required and subject to such approval upon the occurrence of
any of the following events:
``(A) the Secretary notifies the agency or
association that--
``(i) the Secretary has placed the
institution on the reimbursement payment method
pursuant to section 487(c)(1)(B); and
``(ii) the institution fails to meet criteria
prescribed by the Secretary regarding ratios
that demonstrate financial responsibility as
described in section 498(c)(2);
``(B) the Secretary notifies the accrediting agency
or association that the Secretary has initiated--
``(i) an emergency action against the
institution pursuant to section 487(c)(1)(G);
or
``(ii) an action under section 487(c)(1)(F)
to limit, suspend, or terminate the
participation of the institution in any program
under this title;
``(C) the accrediting agency or association acts to
withdraw, terminate, or suspend the accreditation of
the institution;
``(D) the institution notifies the accrediting agency
or association that the institution intends to cease
operations;
``(E) the institution notifies the accrediting agency
or association that the institution intends to close a
location that provides one hundred percent of at least
one program; or
``(F) pursuant to section 495, the State notifies the
accrediting agency or association that an institution's
license or legal authorization to operate within the
State has been or will be revoked;'';
(E) in paragraph (7), by inserting ``not later than
10 days after taking an action described in this
paragraph,'' before ``makes available'';
(F) in paragraph (9), by striking the period at the
end and inserting ``; and''; and
(G) by adding at the end the following:
``(10) responds to complaints received with respect to an
institution during the period which the accrediting agency or
association accredits such institution not later than 30 days
after receiving the complaint (including complaints shared with
the agency or association by the Secretary or a State agency
under section 495), monitors and assesses an institution's
record of student complaints during such period, and submits
the complaints relevant to the Secretary and to the State
agency involved.'';
(4) in subsection (m), by adding at the end the following:
``Nothing in this section shall prohibit the Secretary from
implementing a process of recognition under this section which
differs for the accrediting agencies or associations described
in subsection (a)(2)(A)(ii) for the purposes of participation
in programs (other than the programs under this Act)
administered by the Department or other Federal agencies if
such differentiation would be beneficial to taxpayers and the
performance of such agencies or associations.''; and
(5) in subsection (n)--
(A) in paragraph (1)--
(i) in the second sentence of the matter
preceding subparagraph (A), by inserting before
the period the following: ``, which shall
include information on at least one institution
of higher education representing each of the
sectors subject to the jurisdiction of the
accrediting agency or association (including
public, nonprofit, and proprietary, as
applicable) of the representative member
institutions''; and
(ii) in subparagraph (A), by inserting before
the semicolon the following: ``, and for
purposes of facilitating such third-party
information, the Secretary shall make publicly
available the application of the accrediting
agency or association seeking recognition by
the Secretary upon publishing in the Federal
Register the solicitation for such third-party
information''; and
(B) by adding at the end the following:
``(5) In the case in which an official of the Department (other than
the Secretary) makes a decision on the recognition of an accrediting
agency or association that differs from the recommendation made by the
National Advisory Committee on Institutional Quality and Integrity on
such recognition, without regard to whether any appeals process with
respect to such decision has been concluded, the official shall submit
to the authorizing committees the rationale and evidence for such
decision.
``(6) During the first 90-day period of each fiscal year, the
Secretary shall submit to the authorizing committees the following
information with respect to the preceding fiscal year--
``(A) information about each accrediting agency that the
Secretary reviews and evaluates under this subsection;
``(B) the recommendation of the National Advisory Committee
on Institutional Quality and Integrity about whether to
recognize such accrediting agency or association and the
rationale for such recommendation;
``(C) in the case in which an official of the Department
(other than the Secretary) makes a decision on the recognition
of such accrediting agency or association (without regard to
whether any appeals process with respect to such decision has
been concluded), such decision and the rationale for such
decision; and
``(D) the final decision of the Secretary on the recognition
of such accrediting agency or association and the rationale for
such final decision.''; and
(6) by adding at the end the following:
``(r) Evaluation of Quality and Achievement Measures.--
``(1) In general.--The Secretary shall direct the National
Advisory Committee on Institutional Quality and Integrity to--
``(A) regularly evaluate the effectiveness of the
measures selected and the performance benchmarks
established by accrediting agencies and associations
under subsection (a)(5)(A); and
``(B) compare similarly situated accrediting agencies
or associations, whose similarity may not be determined
solely by the educational sector to which the
institutions being evaluated belong, based on the
measures and performance benchmarks used in subsection
(a)(5)(A) by such agencies and associations.
``(2) Revising performance benchmarks.--The Secretary may
require an accrediting agency or association to review and
revise a performance benchmark established by such agency or
association if the Secretary determines that such performance
benchmark is too low for the measure for which such benchmark
is established.
``(3) Rule of construction.--Nothing in this subsection shall
be construed to give the Secretary that authority to require
the use of a specific performance benchmark by an accrediting
agency or association for purposes of subsection (a)(5)(A).
``(s) Report on Recognized Institutional Accreditors Required.--Not
later than 180 days after the date of the enactment of the College
Affordability Act, and annually thereafter, the Secretary shall publish
a report that includes with respect to each accrediting agency or
association recognized under this section by the Secretary, the
following:
``(1) The number of institutions of higher education
evaluated by such accrediting agency or association in each
educational sector.
``(2) The number of locations of such institutions of higher
education.
``(3) The number of students enrolled at such institutions of
higher education.
``(4) The number of students receiving a Federal Pell Grant
at such institutions of higher education in the preceding year.
``(5) The total amount of Federal student aid received by
students enrolled at such institutions of higher education in
the preceding year.
``(6) The graduation rates of such institutions of higher
education.
``(7) The median earnings of students 10 years after
enrollment.
``(8) The number of institutions placed on a reimbursement
payment method pursuant to section 487(c)(1)(B).
``(t) Rule of Construction.--Nothing in this section shall be
construed to prohibit an institution of higher education from seeking
accreditation, in a manner consistent with the requirements of
subsections (h), (i), and (l)(2), from an accrediting agency or
association that is accrediting a branch campus of such institution in
the State in which the institution is located.''.
Subpart 3--Program Review and Data
SEC. 4721. ELIGIBILITY AND CERTIFICATION PROCEDURES.
(a) Financial Responsibility Standards.--Section 498 of the Higher
Education Act of 1965 (20 U.S.C. 1099c) is amended--
(1) in subsection (b)--
(A) in paragraph (4), by striking ``and'' at the end;
(B) in paragraph (5), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(6) includes an addendum under which an institution of
higher education shall report a change in circumstances
described in subparagraph (A)(ii) or clauses (ii) or (iii) of
subparagraph (B) of subsection (c)(8), not later than 30 days
after the date on which such change in circumstance occurs.'';
(2) in subsection (c)--
(A) in paragraph (1)--
(i) in subparagraph (B), by striking ``and''
at the end;
(ii) in subparagraph (C), by striking the
period at the end and inserting ``; and'' ; and
(iii) by adding at the end the following:
``(D) the institution is not an institution described in
paragraph (7)(B).'';
(B) in paragraph (3)--
(i) by redesignating subparagraphs (C) and
(D) as subparagraphs (D) and (E), respectively;
and
(ii) by inserting after subparagraph (B) the
following:
``(C) such institution has a rating of investment grade or
above from a recognized credit rating agency;''; and
(C) by adding at the end the following:
``(7) Prohibited financial responsibility determinations.--
``(A) In general.--The Secretary may not determine
that an institution has the financial responsibility
required by this title if such institution is an
institution described in subparagraph (B).
``(B) Specified institution.--An institution
described in this subparagraph is--
``(i) a private non-profit institution of
higher education or a proprietary institution
of higher education (as defined in section
102(b)) that--
``(I) is required by the accrediting
agency of such institution to submit a
teach-out plan under section 487(f);
``(II) with respect to the preceding
2 fiscal years, has an adjusted cohort
default rate (as determined under
section 435(m)) of 20 percent or
greater, unless the institution files a
challenge, request for adjustment, or
appeal under section 435(a) with
respect to such rates for one or both
of such fiscal years; or
``(III) is subject to a number of
pending or approved borrower relief
claims under section 493H from
borrowers that equals or exceeds, with
respect to the prior academic year,
half of the enrollment of full-time
equivalent students at such
institution;
``(ii) a proprietary institution of higher
education (as defined in section 102(b)) that--
``(I) is publicly traded; and
``(II)(aa) is sanctioned by the
Securities and Exchange Commission;
``(bb) fails to file a
required annual or quarterly
report with the Securities and
Exchange Commission; or
``(cc) the stock of which is
delisted; or
``(iii) a proprietary institution of higher
education (as defined in section 102(b))--
``(I) that derived, for any award
year beginning on or after July 1,
2022, more than 85 percent of the
revenue of the institution from Federal
education assistance funds; or
``(II) fails to meet criteria
prescribed by the Secretary regarding
ratios that demonstrate financial
responsibility, and has any withdrawal
of owner's equity from the institution
by any means, including by declaring a
dividend.
``(8) Change in circumstances.--
``(A) Required redetermination.--
``(i) In general.--In the case of a private
non-profit institution of higher education or a
proprietary institution of higher education (as
defined in section 102(b)) that submits an
addendum described in clause (ii) or (iii) to
the Secretary, the Secretary shall, not later
than 30 days after such addendum is submitted,
redetermine whether such institution meets the
requirements of this subsection.
``(ii) Specified circumstances.--An
institution of higher education shall submit an
addendum under subsection (b)(6) if, with
respect to such institution of higher
education, one of the following occurs:
``(I) The institution is required to
pay any material debt, as determined by
the Secretary, or incur any material
liability, as determined by the
Secretary, arising from a final
judgment in a judicial proceeding, an
administrative proceeding or
determination, or settlement.
``(II) The institution is involved in
a lawsuit that is brought on or after
the date of the enactment of College
Affordability Act by a Federal or State
authority for financial relief on
claims related to the making of loans
under part D of title IV.
``(III) Such other circumstance the
Secretary determines necessary.
``(iii) Gainful employment determination by
secretary.--An institution of higher education
shall submit an addendum under subsection
(b)(6) if the Secretary makes a determination
that such institution has programs that could
become ineligible under gainful employment (as
defined in section 104) in the next award year.
``(B) Permissible redetermination.--
``(i) Redetermination.--In the case of an
institution that submits an addendum under
clause (ii), the Secretary may, not later than
30 days after such addendum is submitted,
redetermine whether such institution meets the
requirements of this subsection.
``(ii) Specified circumstances.--The
Secretary shall require an institution to
submit an addendum under subsection (b)(6) if
the Secretary makes a determination--
``(I) that the Secretary will likely
receive a significant number of
borrower relief claims under section
493H as the result of a lawsuit,
settlement, or judgement against the
institution; or
``(II) that the institution
experienced one of the following:
``(aa) A significant
fluctuation in enrollments
between consecutive award years
or a period of award years.
``(bb) A citation by a State
licensing or authorizing agency
for failing State or agency
requirements.
``(cc) High annual drop out
rates.
``(dd) Pending borrower
relief claims under section
493H.
``(C) Financial circumstances materials.--If the
institution's financial circumstances materially change
after the institution submits an addendum under
subsection (b)(6), such institution shall submit to the
Secretary such certified financial statements and other
information as the Secretary may require.
``(9) Transparency.--Beginning not later than 90 days after
the date of the enactment of this paragraph, and not less than
once every 120 days thereafter, the Secretary shall make
publicly available on the website of the Department the
following:
``(A) The ratios used to demonstrate financial
responsibility under this section.
``(B) Each reports made to the Secretary under this
section.
``(C) Each audited financial statement submitted to
the Secretary by an institution of higher education
under this section.
``(D) Each certified financial statement submitted to
the Secretary under paragraph (8)(C).''; and
(3) in subsection (i)(2)--
(A) in subparagraph (E), by striking ``or'' at the
end;
(B) in subparagraph (F), by striking the period at
the end and inserting ``; or''; and
(C) by adding at the end the following:
``(G) the transfer of ownership as a result of a court-
ordered receivership.''.
(b) Rulemaking.--Not 1 year after the date of enactment of this Act,
the Secretary of Education shall carry out a negotiated rulemaking to
update the criteria used under section 498(c)(2) of the Higher
Education Act of 1965 (20 U.S.C. 1099c) to make a determination of the
ability of an institution of higher education to meet the standards
under such section in accordance with the amendments made by this
section.
(c) Audits.--Not later than 2 years after the criteria used under
section 498(c)(2) of the Higher Education Act of 1965 (20 U.S.C. 1099c)
is updated under subsection (b), and every 2 years thereafter, the
Inspector General of Department of Education shall conduct audits of
such criteria to ensure that the criteria meets generally accepted
accounting principles.
SEC. 4722. PROGRAM REVIEW AND DATA.
Section 498A of the Higher Education Act of 1965 (20 U.S.C. 1099c-1)
is amended--
(1) in subsection (a)(2), by striking subparagraph (A) and
inserting the following:
``(A) institutions with an adjusted cohort default
rate for loans under part D in excess of 18 percent or
which places such institutions in the highest 25
percent of such institutions;'';
(2) by redesignating subsections (c) through (e) as
subsections (d) through (f), respectively; and
(3) by inserting after subsection (b) the following:
``(c) Undercover Operations.--In carrying out paragraphs (1) and (2)
of subsection (a) and any other relevant provisions of this subpart,
the Secretary--
``(1) shall conduct undercover and secret shopper operations
for the purpose of encouraging the ethical treatment of
students and prospective students and detecting fraud and abuse
in the Federal student aid programs, including--
``(A) violations described in section 487(c)(3);
``(B) violations of section 487(a)(20); and
``(C) violations by any entity with which the
institution has contracted for student recruitment or
admission activity;
``(2) shall develop written guidelines for the conduct of
activities under paragraph (1) in accordance with commonly-
accepted Federal practices for undercover operations and in
consultation with other relevant agencies, including the
Department of Justice, Federal Trade Commission, Consumer
Financial Protection Bureau, and the Department of Education's
Office of Inspector General; and
``(3) shall provide an annual report on the results of
activities under paragraph (1) to the authorizing committees,
and thereafter shall make the report available to the
public.''.
Subpart 4--Strengthening Institutional Quality
SEC. 4731. STRENGTHENING INSTITUTIONAL QUALITY.
Part H of title IV of the Higher Education Act of 1965 (20 U.S.C.
1099a et seq.) is amended by adding at the end the following:
``Subpart 4--Strengthening Institutional Quality
``SEC. 498C. ASSISTANCE TO PROGRESS PERIOD INSTITUTIONS.
``(a) In General.--The Secretary shall provide grants and technical
assistance to covered progress period institutions in accordance with
this section.
``(b) Authorized Activities.--Grants and assistance provided under
this section shall be used to improve student achievement (as described
in section 496(a)(5)(A)) at covered progress period institutions.
``(c) Duration.--Grants and assistance may be provided under this
section for a period of not less than one year and not more than three
years.
``(d) Conditions.--
``(1) Benchmarks.--
``(A) In general.--To continue to receive support
under this section after the first year in which such
support is provided, an institution must show progress,
as determined by the Secretary, toward meeting the
standards for student achievement established by the
relevant accrediting agency or association pursuant to
section 496(a)(5)(A).
``(B) Considerations.--In determining the progress of
an institution under subparagraph (A), the Secretary
may take into consideration extenuating circumstances
that may have contributed to the poor performance of
the institution in the first year of the review period.
``(2) Deadline for compliance.--An institution that does not
achieve an adjusted cohort default rate of less than 10 percent
after receiving support under this section for three
consecutive years shall be ineligible to receive further
support under this section.
``(3) Prohibition.--An institution shall be ineligible to
receive further support under this section if, while the
institution was receiving such support, the total enrollment of
low-income students (as such term is defined in section
419N(b)(7)) at the institution decreased by 10 percent or more.
``(e) Covered Progress Period Institution.--In this section, the term
`covered progress period institution' means--
``(1) a public institution of higher education that is
determined to be in progress period status;
``(2) a part B institution (as defined in section 322) that
is determined to be in progress period status; or
``(3) a private, nonprofit institution of higher education--
``(A) that is determined to be in progress period
status; and
``(B) at which not less than 45 percent of the total
student enrollment consists of low-income students (as
such term is defined in section 419N(b)(7)).
``(f) Funding.--
``(1) In general.--There are authorized to be appropriated,
and there are appropriated, such funds as the Secretary, using
the formula described in paragraph (2), determines necessary to
meet the needs of all eligible institutions under this
subsection, except that such funds shall not exceed
$100,000,000 for fiscal year 2021 and each succeeding fiscal
year. Such funds shall be available until expended.
``(2) Formula.--Not later than 1 year after the date of the
enactment of this section, the Secretary shall establish
through negotiated rulemaking a formula to determine the--
``(A) proportional amount of institutional need under
this section; and
``(B) total amount of institutional need under this
section.
``(3) Special rule.--Such formula must at minimum take into
consideration the severity of the problem, size of the
institution, institutional resources, historical underfunding,
and the number of low-income students (as such term is defined
in section 419N(b)(7)) being served.
``SEC. 498D. RESTRICTIONS ON CERTAIN EXPENDITURES.
``(a) Establishing Definitions.--
``(1) In general.--For purposes of each survey conducted
under the Integrated Postsecondary Education Data System after
the date of enactment of the College Affordability Act and this
Act, the Secretary shall define the following terms:
``(A) Marketing.
``(B) Recruitment.
``(C) Advertising.
``(D) Lobbying.
``(E) Student services.
``(2) Exclusion of certain activities.--In defining the term
`student services' under paragraph (1)(E), the Secretary shall
ensure that such term does not include marketing, recruitment,
advertising, or lobbying.
``(b) Limitation on Expenditures.--In a case in which the Secretary
determines with respect to an institution of higher education
participating in any program under this title that, for any of the 3
most recent institutional fiscal years after the promulgation of
regulations by the Secretary defining the terms in subsection (a)(1)
for which the institution submits to the Secretary disclosures on the
expenditures of the institution on instruction for purposes of section
132(i)(1)(AA), the amount expended by such institution on instruction
for such fiscal year is less than an amount equal to \1/3\ of
institution's revenues derived from tuition and fees--
``(1) for any institutional fiscal year after such
determination is made, the sum of the amount expended by the
institution on marketing, recruitment, advertising, and
lobbying may not exceed the amount of the institution's
revenues derived from sources other than Federal education
assistance funds; and
``(2) in a case in which the institution fails to meet the
requirements of paragraph (1) for 2 consecutive institutional
fiscal years, the institution shall be ineligible to
participate in the programs authorized by this title for a
period of not less than two institutional fiscal years.
``(c) Publication on Website.--The Secretary shall, on an annual
basis, publicly disclose on the Department's website, information with
respect to any institution of higher education that is subject to the
requirements of subsection (b)(1), including--
``(1) the quotient of the amount that the institution expends
on instruction divided by the institution's revenues derived
from tuition and fees, expressed as a percentage;
``(2) the sum of such institution's expenditures on
advertising, recruiting, marketing, and lobbying;
``(3) the amount of such institution's revenues received from
sources outside of Federal education assistance funds; and
``(4) the difference between paragraphs (2) and (3).
``SEC. 498E. INSTITUTIONAL DISCLOSURE SYSTEM.
``(a) Departmental Disclosure.--The Secretary shall make available,
on a publicly accessible website of the Department of Education, a list
of institutions of higher education that--
``(1) have failed to meet the requirements for accreditation
by an agency or association recognized by the Secretary
pursuant to section 496(a); or
``(2) have failed to meet the requirements for participation
in programs under this title.
``(b) Institutional Disclosure.--
``(1) In general.--To be eligible to participate in programs
under this title, an institution of higher education shall,
using the template developed by the Secretary under subsection
(c), disclose the accreditation status of the institution on a
publicly accessible website of the institution.
``(2) Updates.--Any change in the accreditation status of an
institution of higher education shall be disclosed in
accordance with paragraph (1) not later than 30 days after such
change occurs.
``(c) Template.--The Secretary shall develop a template that shall be
used by institutions of higher education to make the disclosures
required under subsection (b). The Secretary shall ensure that the
template--
``(1) clearly identifies the information to be disclosed; and
``(2) is in a format that is easily understood by
consumers.''.
PART I--AMERICA'S COLLEGE PROMISE FEDERAL-STATE PARTNERSHIP
SEC. 4801. PROGRAM AUTHORIZED.
Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.)
is amended by adding at the end the following:
``PART J--AMERICA'S COLLEGE PROMISE FEDERAL-STATE PARTNERSHIP
``Subpart 1--State and Indian Tribe Grants for Community Colleges
``SEC. 499A. IN GENERAL.
``From amounts appropriated under section 499G for any fiscal year,
the Secretary shall award grants to eligible States and Indian tribes
to pay the Federal share of expenditures needed to carry out the
activities and services described in section 499E.
``SEC. 499B. FEDERAL SHARE; NON-FEDERAL SHARE.
``(a) Federal Share.--
``(1) Formula.--Subject to paragraph (2), the Federal share
of a grant under this subpart shall be based on a formula,
determined by the Secretary, that--
``(A) accounts for the State or Indian tribe's share
of eligible students;
``(B) accounts for the ratio between a State or
Indian tribe's funding per full-time equivalent (FTE)
student at public colleges and universities and the
average net price at State public four-year colleges
and universities, in such a way as to reward States
that keep net prices for students low while maintaining
their investment in higher education; and
``(C) provides, for each eligible student in the
State or Indian tribe, a per-student amount that is at
least 75 percent of--
``(i) for the 2021-2022 award year, the
average resident community college tuition and
fees per student in all States for the most
recent year for which data are available; and
``(ii) for each subsequent award year, the
amount determined under this subparagraph for
the preceding award year, increased by the
lesser of--
``(I) a percentage equal to the
estimated percentage increase in the
Consumer Price Index (as determined by
the Secretary) since the date of such
determination; or
``(II) 3 percent.
``(2) Exception for certain indian tribes.--In any case in
which not less than 75 percent of the students at the community
colleges operated or controlled by an Indian tribe are low-
income students, the amount of the Federal share for such
Indian tribe shall be not less than 95 percent of the total
amount needed to waive tuition and fees for all eligible
students enrolled in such community colleges.
``(b) State or Tribal Share.--
``(1) Formula.--
``(A) In general.--The State or tribal share of a
grant under this subpart for each fiscal year shall be
the amount needed to pay 25 percent of the average
community college resident tuition and fees per student
in all States in the 2021-2022 award year for all
eligible students in the State or Indian tribe,
respectively, for such fiscal year, except as provided
in subparagraph (B).
``(B) Exception for certain indian tribes.--In the
case of an Indian tribe described in subsection (a)(2),
the amount of such Indian tribe's tribal share shall
not exceed 5 percent of the total amount needed to
waive tuition and fees for all eligible students
enrolled in such community colleges.
``(2) Need-based aid.--A State or Indian tribe may include,
as part of the State or tribal share, any need-based financial
aid that--
``(A) is provided from State or tribal funds to an
eligible student; and
``(B) may be used by such student to pay costs of
attendance other than tuition and fees.
``(3) No in-kind contributions.--A State or Indian tribe
shall not include in-kind contributions for purposes of the
State or tribal share described in paragraph (1).
``(c) Determining Number of Eligible Students.--
``(1) In general.--The Secretary of Education shall develop
and implement a process for accurately estimating the number of
eligible students in a State or Indian tribe for purposes of
subsection (a) and (b).
``(2) Initial determination.--For the first year for which
grants are awarded under this subpart, the number of eligible
students in a State or Indian tribe shall be considered to be
equal to the number of eligible students that were in the State
or tribe for the preceding school year.
``(d) Adjustment of Grant Amount.--Not later than 180 days after the
date on which a State or Indian tribe receives a grant under this
subpart, the Secretary shall--
``(1) in consultation with the State or tribe concerned,
determine whether the actual number of eligible students in the
State or Tribe for the year covered by the grant is greater
than the estimated number of such students that was used to
determine the amount of the grant; and
``(2) if it is determined under paragraph (1) that the actual
number of eligible students in the State or Tribe is higher
than such estimate, issue a supplementary grant payment to the
State or tribe in an amount that ensures that the total amount
of the grant funds received by the State or tribe under this
subpart for the year covered by the grant accurately reflects
the higher number of eligible students.
``SEC. 499C. APPLICATIONS.
``(a) Submission.--In order to receive a grant under this subpart, a
State or tribe shall submit an application to the Secretary at such
time, in such manner, and containing such information as the Secretary
may require.
``(b) Contents.--Each application under subsection (a) shall include,
at a minimum--
``(1) an estimate of the number of eligible students in the
State or Indian tribe and the cost of waiving community college
resident tuition and fees for all eligible students for each
fiscal year covered by the grant;
``(2) an assurance that all community colleges in the State
or under the jurisdiction of the Indian tribe, respectively,
will waive resident tuition and fees for eligible students in
accordance with section 499D(a);
``(3) a description of the promising and evidence-based
institutional reforms and innovative practices to improve
student outcomes, including transfer and completion rates, that
have been or will be adopted by the participating community
colleges, such as--
``(A) providing comprehensive academic and student
support services, including mentoring and advising,
especially for low-income, first-generation, and adult
students, and other students belonging to racial and
other groups that are underrepresented in higher
education;
``(B) the provision of direct support services such
as--
``(i) childcare, transportation, emergency
financial assistance, and mental health and
substance use disorder treatment;
``(ii) assistance in obtaining health
insurance coverage;
``(iii) assistance securing affordable
housing;
``(iv) efforts to address food insecurity and
campus hunger; and
``(v) efforts to facilitate student
participation in means-tested Federal benefit
programs (as defined in section 479(d));
``(C) providing accelerated learning opportunities,
such as dual or concurrent enrollment programs,
including early college high school programs;
``(D) strengthening and reforming remedial and
developmental education, especially for low-income,
first-generation, and adult students, and other
students belonging to racial and other groups that are
underrepresented in higher education, including through
the use of multiple measures (such as a student's
college entrance examination score, grade point
average, high school course list, or a placement
examination) to identify students in need of remedial
education; or
``(E) utilizing career pathways, including through
building capacity for career and technical education as
defined in section 3(5) of the Carl D. Perkins Career
and Technical Education Act of 2006 (20 U.S.C. 2302(5))
and programs of study as defined in section 3(41) of
such Act (20 U.S.C. 2302(41)), or degree pathways;
``(4) a description of how the State or Indian tribe will
ensure that programs leading to a recognized postsecondary
credential meet the quality criteria established by the State
under section 123(a) of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3153(a)) or other quality criteria
determined appropriate by the State or Indian tribe;
``(5) an assurance that all participating community colleges
in the State or under the authority of the Indian tribe have
entered into program participation agreements under section
487;
``(6) an assurance that the State or Indian tribe will, to
the extent practicable, assist eligible students in obtaining
information about and accessing means-tested Federal benefit
programs (as defined in section 479(d)) for which such students
may be eligible;
``(7) an assurance that, for each year of the grant, the
State or Indian tribe will notify each eligible student of the
student's remaining eligibility for assistance under this
subpart; and
``(8) if the application is submitted by a State--
``(A) an assurance that the State will, to the extent
practicable, consider changes to State law that will
enable more community college students to be eligible
for means-tested Federal benefit programs (as defined
in section 479(d));
``(B) an assurance that the State will meet the
requirements of section 499D(b)(1) relating to the
alignment of secondary and postsecondary education; and
``(C) an assurance that the State will meet the
requirements of section 499D(b)(2) relating to the
improvement of transfer pathways between institutions
of higher education.
``SEC. 499D. PROGRAM REQUIREMENTS.
``(a) General Requirements for States and Indian Tribes.--As a
condition of receiving a grant under this subpart a State or Indian
tribe shall meet the following requirements:
``(1) For each year of the grant the total amount of
community college resident tuition and fees charged to an
eligible student in the State or Indian tribe shall be $0.
``(2) For each year of the grant no amount of financial
assistance for which an eligible student qualifies may be
applied to such tuition or fees.
``(b) State Requirements.--As a condition of receiving a grant under
this subpart a State shall meet the following requirements:
``(1) Alignment of k-12 and higher education.--
``(A) In general.--The State shall--
``(i) submit a plan to align the requirements
for receiving a regular high school diploma
from public high schools in the State with the
requirements for entering credit-bearing
coursework at participating community colleges
in such State; and
``(ii) not later than three years after the
date on which the State first receives a grant
under this subpart, certify to the Secretary
that such alignment has been achieved.
``(B) Failure to certify.-- If a State does not
provide the certification required under subparagraph
(A) by the date specified in such subparagraph, the
State shall submit to the Secretary, at such time and
in such manner as the Secretary may require--
``(i) a written explanation for the delay in
making the certification; and
``(ii) a plan that will enable the State to
make the certification by not later than 5
years after the date on which the State first
received a grant under this subpart.
``(2) Transfer pathways.--
``(A) In general.--The State shall--
``(i) submit a plan, developed in
collaboration with faculty from institutions of
higher education in the State, to improve
transfer pathways between institutions of
higher education in the State, including by
ensuring that associate degrees awarded by
public institutions in the State are fully
transferable to, and credited as, the first 2
years of related baccalaureate programs at
public institutions of higher education in such
State; and
``(ii) not later than 3 years after the date
on which the State first receives a grant under
this subpart, certify to the Secretary that an
associate degree in an academic major in the
arts or sciences that is awarded by a public
institution of higher education in the State on
or after the date that is not later than 3
years after the date on which the State first
receives a grant under this subpart shall be
fully transferrable to, and credited as, the
first 2 years of a related baccalaureate
program at a public institution of higher
education in such State.
``(B) Failure to certify.-- If a State does not
provide the certification required under subparagraph
(A) by the date specified in such subparagraph, the
State shall submit to the Secretary, at such time and
in such manner as the Secretary may require--
``(i) a written explanation for the delay in
making the certification; and
``(ii) a plan that will enable the State to
make the certification by not later than 5
years after the date on which the State first
received a grant under this subpart.
``(3) Applicability.--The Secretary may not apply the
requirements under this subsection to an Indian tribe.
``SEC. 499E. ALLOWABLE USES OF FUNDS.
``(a) In General.--Except as provided in subsection (b), a State or
Indian tribe shall use a grant under this subpart only to provide funds
to participating community colleges to enable such community colleges
to waive resident tuition and fees for eligible students as required
under section 499D(a).
``(b) Additional Uses.--If a State or Indian tribe demonstrates to
the Secretary that it has grant funds remaining after meeting the
demand for activities described in subsection (a), the State or Indian
tribe may use those funds to carry out one or more of the following:
``(1) Enhancing the quality of public higher education to
improve student outcomes, including transfer and completion
rates, which may include investing in the academic workforce.
``(2) Expanding the scope and capacity of high-quality
academic and occupational skills training programs at community
colleges, which may include collaboration with one or more
industry or sector partnership (as defined in section 3 of the
Workforce Innovation and Opportunity Act (29 U.S.C. 3201)).
``(3) Improving postsecondary education readiness in the
State or Indian tribe, including through outreach and early
intervention.
``(4) Expanding access to dual or concurrent enrollment
programs, including early college high school programs.
``(5) Improving affordability at 4-year public institutions
of higher education.
``(c) Use of Funds for Administrative Purposes.--A State or Indian
tribe that receives a grant under this subpart may not use any funds
provided under this subpart for administrative purposes relating to the
grant under this subpart.
``(d) Maintenance of Effort.--A State or Indian tribe receiving a
grant under this subpart is entitled to receive its full allotment of
funds under this subpart for a fiscal year only if, for each year of
the grant, the State or Indian tribe provides--
``(1) financial support for public higher education at a
level equal to or exceeding the average amount provided per
full-time equivalent student for public institutions of higher
education for the three consecutive preceding fiscal years. In
making the calculation under this subsection, the State or
Indian tribe shall--
``(A) exclude capital expenses and research and
development costs; and
``(B) include need-based financial aid for students
who attend public institutions of higher education;
``(2) financial support for operational expenses for public,
four-year colleges and universities at a level equal to or
exceeding the average amount provided for the three consecutive
preceding State or Indian tribe fiscal years; and
``(3) financial support for need-based financial aid at a
level equal to or exceeding the average amount provided for the
three consecutive preceding State or Indian tribe fiscal years.
``(e) Annual Report.--A State or Indian tribe receiving a grant under
this subpart shall submit an annual report to the Secretary describing
the uses of grant funds under this subpart, the progress made in
fulfilling the requirements of the grant, and rates of transfer,
graduation, and attainment of recognized postsecondary credentials at
participating community colleges, including such rates disaggregated by
race, income, and age, and including any other information as the
Secretary may require.
``(f) Reporting by Secretary.--The Secretary annually shall--
``(1) compile and analyze the information described in
subsection (e); and
``(2) prepare and submit a report to the Committee on Health,
Education, Labor, and Pensions of the Senate and the Committee
on Education and Labor of the House of Representatives
containing the analysis described in paragraph (1) and an
identification of State and Indian tribe best practices for
achieving the purpose of this subpart.
``(g) Technical Assistance.--The Secretary shall provide technical
assistance to eligible States and Indian tribes concerning best
practices regarding the promising and evidence-based institutional
reforms and innovative practices to improve student outcomes and shall
disseminate such best practices among the States and Indian tribes.
``(h) Continuation of Funding.--
``(1) In general.--A State or Indian tribe receiving a grant
under this subpart for a fiscal year may continue to receive
funding under this subpart for future fiscal years conditioned
on the availability of budget authority and on meeting the
requirements of the grant, as determined by the Secretary.
``(2) Discontinuation.--The Secretary may discontinue funding
of the Federal share of a grant under this subpart if the State
or Indian tribe has violated the terms of the grant or is not
making adequate progress in implementing the reforms described
in the application submitted under section 499C.
``(i) Supplement, Not Supplant.--Funds made available under this
subpart 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. 499F. DEFINITIONS.
``In this subpart:
``(1) Career pathway.--The term `career pathway' has the
meaning given the term in section 3 of the Workforce Innovation
and Opportunity Act (29 U.S.C. 3102).
``(2) Community college.--The term `community college' means
a public institution of higher education at which the highest
degree that is predominantly awarded to students is an
associate's degree, including 2-year tribally controlled
colleges under section 316 and public 2-year State institutions
of higher education.
``(3) Dual or concurrent enrollment program.--The term `dual
or concurrent enrollment program' has the meaning given the
term in section 8101 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7801).
``(4) Early college high school.--The term `early college
high school' has the meaning given the term in section 8101 of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801).
``(5) Eligible student.--
``(A) Definition.--The term `eligible student' means
a student who--
``(i) attends the community college on not
less than a half-time basis;
``(ii) is maintaining satisfactory progress
(as defined in section 484(c)) in the student's
course of study;
``(iii) is enrolled in an eligible program
(as defined in section 481(b)); and
``(iv) either--
``(I) qualifies for in-State resident
community college tuition, as
determined by the State or Indian
tribe; or
``(II) would qualify for such in-
State resident community college
tuition, but for the immigration status
of such student.
``(B) Special rule.--An otherwise eligible student
shall lose eligibility 3 calendar years after first
receiving benefits under this subpart.
``(6) Indian tribe.--The term `Indian tribe' has the meaning
given the term in section 102 of the Federally Recognized
Indian Tribe List Act of 1994 (25 U.S.C. 479a).
``(7) Institution of higher education.--The term `institution
of higher education' has the meaning given the term in section
101.
``(8) Recognized postsecondary credential.--The term
`recognized postsecondary credential' has the meaning as
described in section 3 of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3102).
``(9) State.--The term `State' has the meaning given the term
in section 103.
``SEC. 499G. APPROPRIATIONS.
``(a) Authorization and Appropriations.--For the purpose of making
grants under this subpart there are authorized to be appropriated, and
there are appropriated--
``(1) $1,569,700,000 for fiscal year 2021;
``(2) $3,472,880,000 for fiscal year 2022;
``(3) $4,431,950,000 for fiscal year 2023;
``(4) $6,204,030,000 for fiscal year 2024;
``(5) $8,119,870,000 for fiscal year 2025;
``(6) $9,297,430,000 for fiscal year 2026;
``(7) $11,708,890,000 for fiscal year 2027;
``(8) $14,971,330,000 for fiscal year 2028;
``(9) $15,619,910,000 for fiscal year 2029; and
``(10) $16,296,080,000 for fiscal year 2030 and each
succeeding fiscal year.
``(b) Availability.--Funds appropriated under subsection (a) shall
remain available to the Secretary until expended.
``(c) Insufficient Funds.--If the amount appropriated under
subsection (a) for a fiscal year is not sufficient to award each
participating State and Indian tribe a grant under this subpart that is
equal to the minimum amount of the Federal share described in section
499B, the Secretary may ratably reduce the amount of each such grant or
take other actions necessary to ensure an equitable distribution of
such amount.''.
SEC. 4802. STUDENT SUCCESS FUND.
Part J of title IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.), as added by section 4801, is further amended by adding
at the end the following:
``Subpart 2--Student Success Fund
``SEC. 499H. IN GENERAL.
``From amounts appropriated under section 499N for any fiscal year,
the Secretary shall carry out a grant program (to be known as the
Student Success Fund) to make grants to eligible entities to carry out
the activities and services described in section 499L.
``SEC. 499I. ALLOCATION.
``(a) Federal Share Allocation.--The Federal share of a grant under
this subpart shall be determined using the formula determined under
section 499B(1).
``(b) Matching Funds.--
``(1) In general.--Except as provided in paragraph (2), an
eligible entity participating in the program under this subpart
shall provide, from non-Federal sources, in cash or in-kind--
``(A) in each of the first, second, third, and fourth
year of participation in the program, an amount equal
to 25 percent of the amount such entity received under
subsection (a) with respect to such year;
``(B) in each of the fifth and sixth year of
participation in the program, an amount equal to 50
percent of the amount such entity received under
subsection (a) with respect to such year;
``(C) in each of the seventh and eighth year of
participation in the program, an amount equal to 75
percent of the amount such entity received under
subsection (a) with respect to such year; and
``(D) in each ninth year and each subsequent year
thereafter of participation in the program, an amount
equal to 100 percent of the amount such entity received
under subsection (a) with respect to such year.
``(2) Exception for certain indian tribes.--The Secretary may
waive the matching fund requirements under paragraph (1) in the
case of an eligible entity that is an Indian tribe if at least
75 percent of the students at the institutions of higher
education operated or controlled by such Indian tribe are low-
income students.
``(3) Reallotment.--If an eligible entity returns to the
Secretary any portion of the sums allocated to such eligible
entity under this section for any fiscal year, the Secretary
shall reallot such excess as part of the available appropriated
amount for the succeeding fiscal year.
``(c) Supplement, Not Supplant.--Grant funds awarded under this
subpart shall be used to supplement, and not supplant, other Federal,
State, and local funds that would otherwise be expended to carry out
activities assisted under this subpart.
``(d) Limitation.--An eligible entity may only participate in the
program under this subpart in a year in which such entity receives a
grant under subpart 1.
``SEC. 499J. APPLICATIONS.
``(a) In General.--To be eligible to participate in the program under
this subpart, an eligible entity shall submit an application to the
Secretary at such time, in such manner, and containing such information
as the Secretary may require, including--
``(1) a plan that includes--
``(A) the amount of funds requested by the eligible
entity under this subpart and the intended use of such
funds;
``(B) how the eligibility entity will use the
requested funds to implement promising and evidence-
based institutional reforms and innovative practices to
improve student outcomes, including those identified by
such entity under section 499C(b)(3), and including
annual implementation benchmarks that the entity will
use to track progress in implementing such reforms and
practices;
``(C) how the eligible entity will meet its matching
fund requirements under section 499I(b);
``(D) if the eligible entity is a State, how such
eligible entity will prioritize spending on the public
institutions of higher education specified in paragraph
(2)(B); and
``(E) the improvements the eligible entity
anticipates in student outcomes, including improvements
in transfer rates or completion rates, or both.
``(2) if the eligible entity is a State, an analysis that
includes--
``(A) with respect to each public institution of
higher education of the eligible entity--
``(i) the total per-student funding;
``(ii) the amount of per-student funding from
State-appropriated funds;
``(iii) the student demographics (including,
data on race, income, disability status, and
remediation); and
``(iv) transfer and completion rates,
including such rates among low-income students,
students of color, students with disabilities,
and students in need of remediation; and
``(B) an analysis of whether, of the public
institutions of higher education of the eligible
entity, the public institutions of higher education
that received less funding on a per-student basis
described in clause (i) or (ii), or both, of
subparagraph (A), are serving disproportionately high
shares of low-income students, students of color,
students with disabilities, or students in need of
remediation.
``(b) Approval.--
``(1) In general.--Not later than 180 days after receiving a
plan under subsection (a), the Secretary shall--
``(A) approve the plan; or
``(B) require revisions to such plan.
``(2) Revisions required.--An eligible entity shall make such
revisions as required by the Secretary under paragraph (1)(B).
``(c) Publication.--The Secretary shall make each plan approved under
subsection (b)(1)(A) and each plan revised under subsection (b)(2)
available to the public on the website of the Department.
``SEC. 499K. PROGRAM REQUIREMENTS.
``(a) General Requirements.--
``(1) Report on demonstrated progress.--For the third year in
which an eligible entity participates in the program under this
subpart, and every 2 years thereafter, the eligible entity
shall submit a report to the Secretary, in such manner and
containing such information as the Secretary may require, that
includes--
``(A) the progress in meeting the annual
implementation benchmarks included in the application
of such eligible entity under section 499J(a)(1)(B);
``(B) the progress in improving the student outcomes
identified by the entity under section 499(J)(a)(1)(E);
and
``(C) with respect to the 2 years after such report
is submitted--
``(i) a plan for the use of funds under this
subpart; and
``(ii) the amount of funds requested by the
eligible entity under this subpart .
``(2) Approval.--Not later than 180 days after receiving a
plan under paragraph (1)(C)(i), the Secretary shall--
``(A) approve the plan; or
``(B) require revisions to such plan.
``(3) Revisions required.--An eligible entity shall make such
revisions as required by the Secretary under paragraph (2)(B).
``(b) Failure to Meet Requirements.-- If an eligible entity does not
meet the annual implementation benchmarks included in the application
of such eligible entity under section 499J(a)(1)(B), as required to be
reported under subsection (a)(1)(A), such eligible entity shall submit
to the Secretary, at such time and in such manner as the Secretary may
require--
``(1) a written explanation for the delay in meeting such
requirements; and
``(2) a plan that will enable such eligible entity to meet
such requirements not later than 1 year after the date on which
the eligible entity submitted the written explanation under
paragraph (1).
``(c) Publication.--The Secretary shall make each plan approved under
subsection (a)(2)(A), each plan revised under subsection (a)(3), and
each plan submitted under subsection (b)(2) available to the public on
the website of the Department.
``SEC. 499L. ALLOWABLE USES OF FUNDS.
``(a) In General.--Except as provided in subsection (b), an eligible
entity shall use a grant under this subpart only to allocate funds in
accordance with the plan submitted for such year under section
499J(a)(1).
``(b) Use of Funds for Administrative Purposes.--An eligible entity
that receives a grant under this subpart may use not more than 10
percent of such grant for administrative purposes relating to the grant
under this subpart.
``SEC. 499M. ELIGIBLE ENTITY DEFINED.
``In this subpart, the term `eligible entity' means a State or Indian
tribe that received a grant under subpart 1 for the fiscal year in
which such State or Indian tribe receives a grant under this subpart.
``SEC. 499N. APPROPRIATIONS.
``(a) Authorization and Appropriations.--For the purpose of making
grants under this subpart there are authorized to be appropriated and
there are appropriated $500,000,000 for fiscal year 2021 and each
succeeding fiscal year.
``(b) Availability.--Funds appropriated under subsection (a) shall
remain available to the Secretary until expended.''.
SEC. 4803. PATHWAYS TO STUDENT SUCCESS FOR HISTORICALLY BLACK COLLEGES
AND UNIVERSITIES, TRIBAL COLLEGES AND UNIVERSITIES,
AND MINORITY-SERVING INSTITUTIONS.
Part J of title IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.), as added and amended by this part, is further amended by
adding at the end the following:
``Subpart 3--Grants to Historically Black Colleges and Universities,
Tribal Colleges and Universities, and Minority-Serving Institutions
``SEC. 499O. PATHWAYS TO STUDENT SUCCESS FOR HISTORICALLY BLACK
COLLEGES AND UNIVERSITIES.
``(a) In General.--From amounts appropriated under section 499S(a)
for any fiscal year, the Secretary shall award grants to participating
4-year historically black colleges or universities that meet the
requirements of subsection (b) to--
``(1) encourage students to enroll and successfully complete
a bachelor's degree at participating institutions;
``(2) provide incentives to community college students to
transfer to participating institutions through strong transfer
pathways to complete a bachelor's degree program; and
``(3) support participating institutions to better serve new
and existing students by engaging in reforms and innovations
designed to improve completion rates and other student
outcomes.
``(b) Eligibility.--To be eligible to receive a grant under the
program under this section, an institution shall be a historically
black college or university that--
``(1) has a student body of which not less than 35 percent
are low-income students;
``(2) commits to maintaining or adopting and implementing
promising and evidence-based institutional reforms and
innovative practices to improve the completion rates and other
student outcomes, such as--
``(A) providing comprehensive academic and student
support services, including mentoring and advising,
especially for low-income, first-generation, and adult
students, and other students belonging to racial and
other groups that are underrepresented in higher
education;
``(B) providing direct support services such as--
``(i) childcare, transportation, emergency
financial assistance, and mental health and
substance use disorder treatment;
``(ii) assistance in obtaining health
insurance coverage;
``(iii) assistance securing affordable
housing;
``(iv) efforts to address food insecurity and
campus hunger; and
``(v) efforts to facilitate student
participation in means-tested Federal benefit
programs (as defined in section 479(d));
``(C) providing accelerated learning opportunities
and degree pathways, such as dual enrollment and
pathways to graduate and professional degree programs;
``(D) partnering with employers, industry, not-for-
profit associations, and other groups to provide
opportunities to advance learning outside the
classroom, including work-based learning opportunities
such as internships or apprenticeships or programs
designed to improve inter-cultural development and
personal growth, such as foreign exchange and study
abroad programs; or
``(E) strengthening remedial education, especially
for low-income, first-generation, and adult students,
and other students belonging to racial and other groups
that are underrepresented in higher education,
including through the use of multiple measures (such as
a student's college entrance examination score, grade
point average, high school course list, or a placement
examination) to identify students in need of remedial
education;
``(3) sets performance goals for improving student outcomes
for the duration of the grant; and
``(4) if receiving a grant for transfer students, has
articulation agreements with community colleges at the
national, State, or local level to ensure that community
college credits can fully transfer to the participating
institution.
``(c) Grant Amount.--
``(1) Initial amount.--For the first year that an eligible
institution participates in the grant program under this
section and subject to paragraph (3), such eligible institution
shall receive a grant in an amount based on the product of--
``(A) the actual cost of tuition and fees at the
eligible institution in such year (referred to in this
section as the per-student rebate); and
``(B) the number of eligible students enrolled in the
eligible institution for the preceding year.
``(2) Subsequent increases.--For each succeeding year after
the first year of the grant program under this section, each
participating eligible institution shall receive a grant in the
amount determined under paragraph (1) for such year, except
that in no case shall the amount of the per-student rebate for
an eligible institution increase by more than 3 percent as
compared to the amount of such rebate for the preceding year.
``(3) Limitations.--
``(A) Maximum per-student rebate.--No eligible
institution participating in the grant program under
this section shall receive a per-student rebate amount
for any year that is greater than the national average
of annual tuition and fees at public 4-year
institutions of higher education for such year, as
determined by the Secretary.
``(B) First-year tuition and fees.--During the first
year of participation in the grant program under this
section, no eligible institution may increase tuition
and fees at a rate greater than any annual increase at
the eligible institution in the previous 5 years.
``(d) Application.--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.
``(e) Use of Funds.--Funds awarded under this section to a
participating eligible institution shall be used to waive or
significantly reduce tuition and fees for eligible students in an
amount of not more than up to the annual per-student rebate amount for
each student, for not more than the first 60 credits an eligible
student enrolls in the participating eligible institution.
``(f) Supplement, Not Supplant.--Funds made available under section
499S to carry out 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. 499P. PATHWAYS TO STUDENT SUCCESS FOR TRIBAL COLLEGES AND
UNIVERSITIES.
``(a) In General.--From amounts appropriated under section 499S(a)
for any fiscal year, the Secretary shall award grants to participating
4-year Tribal Colleges or Universities that meet the requirements of
subsection (b) to--
``(1) encourage students to enroll and successfully complete
a bachelor's degree at participating institutions;
``(2) provide incentives to community college students to
transfer to participating institutions through strong transfer
pathways to complete a bachelor's degree program; and
``(3) support participating institutions to better serve new
and existing students by engaging in reforms and innovations
designed to improve completion rates and other student
outcomes.
``(b) Eligibility.--To be eligible to receive a grant under the
program under this section, an institution shall be a Tribal College or
University that--
``(1) has a student body of which not less than 35 percent
are low-income students;
``(2) commits to maintaining or adopting and implementing
promising and evidence-based institutional reforms and
innovative practices to improve the completion rates and other
student outcomes, such as--
``(A) providing comprehensive academic and student
support services, including mentoring and advising,
especially for low-income, first-generation, and adult
students, and other students belonging to racial and
other groups that are underrepresented in higher
education;
``(B) providing direct support services such as--
``(i) childcare, transportation, emergency
financial assistance, and mental health and
substance use disorder treatment;
``(ii) assistance in obtaining health
insurance coverage;
``(iii) assistance securing affordable
housing;
``(iv) efforts to address food insecurity and
campus hunger; and
``(v) efforts to facilitate student
participation in means-tested Federal benefit
programs (as defined in section 479(d));
``(C) providing accelerated learning opportunities
and degree pathways, such as dual enrollment and
pathways to graduate and professional degree programs;
``(D) partnering with employers, industry, not-for-
profit associations, and other groups to provide
opportunities to advance learning outside the
classroom, including work-based learning opportunities
such as internships or apprenticeships or programs
designed to improve inter-cultural development and
personal growth, such as foreign exchange and study
abroad programs; or
``(E) strengthening remedial education, especially
for low-income, first-generation, and adult students,
and other students belonging to racial and other groups
that are underrepresented in higher education,
including through the use of multiple measures (such as
a student's college entrance examination score, grade
point average, high school course list, or a placement
examination) to identify students in need of remedial
education;
``(3) sets performance goals for improving student outcomes
for the duration of the grant; and
``(4) if receiving a grant for transfer students, has
articulation agreements with community colleges at the
national, State, or local level to ensure that community
college credits can fully transfer to the participating
institution.
``(c) Grant Amount.--
``(1) Initial amount.--For the first year that an eligible
institution participates in the grant program under this
section and subject to paragraph (3), such eligible institution
shall receive a grant in an amount based on the product of--
``(A) the actual cost of tuition and fees at the
eligible institution in such year (referred to in this
section as the per-student rebate); and
``(B) the number of eligible students enrolled in the
eligible institution for the preceding year.
``(2) Subsequent increases.--For each succeeding year after
the first year of the grant program under this section, each
participating eligible institution shall receive a grant in the
amount determined under paragraph (1) for such year, except
that in no case shall the amount of the per-student rebate for
an eligible institution increase by more than 3 percent as
compared to the amount of such rebate for the preceding year.
``(3) Limitations.--
``(A) Maximum per-student rebate.--No eligible
institution participating in the grant program under
this section shall receive a per-student rebate amount
for any year that is greater than the national average
of annual tuition and fees at public 4-year
institutions of higher education for such year, as
determined by the Secretary.
``(B) First-year tuition and fees.--During the first
year of participation in the grant program under this
section, no eligible institution may increase tuition
and fees at a rate greater than any annual increase at
the eligible institution in the previous 5 years.
``(d) Application.--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.
``(e) Use of Funds.--Funds awarded under this section to a
participating eligible institution shall be used to waive or
significantly reduce tuition and fees for eligible students in an
amount of not more than up to the annual per-student rebate amount for
each student, for not more than the first 60 credits an eligible
student enrolls in the participating eligible institution.
``(f) Supplement, Not Supplant.--Funds made available under section
499S to carry out 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. 499Q. PATHWAYS TO STUDENT SUCCESS FOR HISPANIC-SERVING
INSTITUTIONS, ASIAN AMERICAN AND NATIVE AMERICAN
PACIFIC ISLANDER-SERVING INSTITUTIONS, ALASKA
NATIVE-SERVING INSTITUTIONS, NATIVE HAWAIIAN-
SERVING INSTITUTIONS, PREDOMINANTLY BLACK
INSTITUTIONS, AND NATIVE AMERICAN-SERVING NONTRIBAL
INSTITUTIONS.
``(a) In General.--From amounts appropriated under section 499S(a)
for any fiscal year, the Secretary shall award grants to participating
4-year minority-serving institutions to--
``(1) encourage students to enroll and successfully complete
a bachelor's degree at participating institutions;
``(2) provide incentives to community college students to
transfer to participating institutions through strong transfer
pathways to complete a bachelor's degree program; and
``(3) support participating institutions to better serve new
and existing students by engaging in reforms and innovations
designed to improve completion rates and other student
outcomes.
``(b) Institutional Eligibility.--To be eligible to participate and
receive a grant under this section, an institution shall be a minority-
serving institution that--
``(1) has a student body of which not less than 35 percent
are low-income students;
``(2) commits to maintaining or adopting and implementing
promising and evidence-based institutional reforms and
innovative practices to improve the completion rates and other
student outcomes, such as--
``(A) providing comprehensive academic and student
support services, including mentoring and advising,
especially for low-income, first-generation, and adult
students, and other students belonging to racial and
other groups that are historically underrepresented in
higher education;
``(B) providing direct support services such as--
``(i) childcare, transportation, emergency
financial assistance, and mental health and
substance use disorder treatment;
``(ii) assistance in obtaining health
insurance coverage;
``(iii) assistance securing affordable
housing;
``(iv) efforts to address food insecurity and
campus hunger; and
``(v) efforts to facilitate student
participation in means-tested Federal benefit
programs (as defined in section 479(d));
``(C) providing accelerated learning opportunities
and degree pathways, such as dual enrollment and
pathways to graduate and professional degree programs;
``(D) partnering with employers, industry, not-for-
profit associations, and other groups to provide
opportunities to advance learning outside the
classroom, including work-based learning opportunities
such as internships or apprenticeships or programs
designed to improve inter-cultural development and
personal growth, such as foreign exchange and study
abroad programs; or
``(E) strengthening remedial education, especially
for low-income, first-generation, and adult students,
and other students belonging to racial and other groups
that are underrepresented in higher education,
including through the use of multiple measures (such as
a student's college entrance examination score, grade
point average, high school course list, or a placement
examination) to identify students in need of remedial
education;
``(3) sets performance goals for improving student outcomes
for the duration of the grant; and
``(4) if receiving a grant for transfer students, has
articulation agreements with community colleges at the
national, State, or local levels to ensure that community
college credits can fully transfer to the participating
institution.
``(c) Grant Amount.--
``(1) Initial amount.--For the first year that an eligible
institution participates in the grant program under this
section and subject to paragraph (3), such participating
eligible institution shall receive a grant in an amount based
on the product of--
``(A) the actual cost of tuition and fees at the
eligible institution in such year (referred to in this
section as the per-student rebate); and
``(B) the number of eligible students enrolled in the
eligible institution for the preceding year.
``(2) Subsequent increases.--For each succeeding year after
the first year of the grant program under this section, each
participating eligible institution shall receive a grant in the
amount determined under paragraph (1) for such year, except
that in no case shall the amount of the per-student rebate
increase by more than 3 percent as compared to the amount of
such rebate for the preceding year.
``(3) Limitations.--
``(A) Maximum per-student rebate.--No eligible
institution participating in the grant program under
this section shall receive a per-student rebate amount
for a grant year greater than the national average of
public four-year institutional tuition and fees, as
determined by the Secretary.
``(B) First-year tuition and fees.--During the first
year of participation in the grant program under this
section, no eligible institution may increase tuition
and fees at a rate greater than any annual increase
made by the institution in the previous 5 years.
``(d) Application.--An eligible institution shall submit an
application to the Secretary at such time, in such a manner, and
containing such information as determined by the Secretary.
``(e) Use of Funds.--Funds awarded under this section to a
participating eligible institution shall be used to waive or
significantly reduce tuition and fees for eligible students in an
amount of not more than up to the annual per-student rebate amount for
each student, for not more than the first 60 credits an eligible
student enrolls in the participating eligible institution.
``(f) Supplement, Not Supplant.--Funds made available under section
499S to carry out 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. 499R. DEFINITIONS.
``In this subpart:
``(1) Eligible student.--
``(A) Definition.--The term `eligible student' means
a student, regardless of age, who--
``(i)(I) enrolls in a historically black
college or university, Tribal College or
University, or minority-serving institution; or
``(II) transfers from a community college
into a historically black college or
university, Tribal College or University, or
minority-serving institution;
``(ii) attends the historically black college
or university, Tribal College or University, or
minority-serving institution, on at least a
half-time basis;
``(iii) maintains satisfactory academic
progress; and
``(iv) is a low-income student.
``(B) Special rules.--
``(i) First 3 years.--An otherwise eligible
student shall lose eligibility 3 calendar years
after first receiving benefits under this
title.
``(ii) Special rule for certain students.--
Notwithstanding subparagraph (A)(i), an
otherwise eligible student whose parent or
guardian was denied a Federal Direct PLUS loan
under part D after November 1, 2011, and before
March 29, 2015, and who subsequently withdrew
from a historically black college or
university, Tribal College or University, or
minority-serving institution, and has not yet
completed a program of study at such
historically black college or university or
minority-serving institution, shall be eligible
to participate under sections 499O, 499P, or
499Q in order to complete such program of
study, subject to all other requirements of
sections 499O, 499P, or 499Q (as the case may
be).
``(2) Historically black college or university.--The term
`historically black college or university' means a part B
institution described in section 322(2).
``(3) Low-income student.--The term `low-income student'--
``(A) shall include any student eligible for a
Federal Pell Grant under section 401; and
``(B) may include a student ineligible for a Federal
Pell Grant under section 401 who is determined by the
institution to be a low-income student based on an
analysis of the student's ability to afford the cost of
attendance at the institution.
``(4) Minority-serving institution.--The term `minority-
serving institution' means any public or not-for-profit
institution of higher education--
``(A) described in paragraph (2) and paragraphs (4)
through (7) of section 371(a); and
``(B) designated as a minority-serving institution by
the Secretary.
``(5) Tribal college or university.--The term `Tribal College
or University' has the meaning given the term in section 316.
``SEC. 499S. APPROPRIATIONS.
``(a) Authorization and Appropriations for HBCU, TCU, and MSI
Grants.--For the purpose of carrying out sections 499O, 499P, and 499Q
there are authorized to be appropriated, and there are appropriated--
``(1) $63,250,000 for fiscal year 2021;
``(2) $206,990,000 for fiscal year 2022;
``(3) $1,232,760,000 for fiscal year 2023;
``(4) $1,282,210,000 for fiscal year 2024;
``(5) $1,333,950,000 for fiscal year 2025;
``(6) $1,386,850,000 for fiscal year 2026;
``(7) $1,408,700,000 for fiscal year 2027;
``(8) $1,501,850,000 for fiscal year 2028;
``(9) $1,562,800,000 for fiscal year 2029; and
``(10) $1,626,040,000 for fiscal year 2030 and each
succeeding fiscal year.
``(b) Availability.--Funds appropriated under subsection (a) are to
remain available to the Secretary until expended.
``(c) Insufficient Funds.--If the amount appropriated under
subsection (a) for a fiscal year is not sufficient to award each
participating institution in the grant programs under sections 499O,
499P, and 499Q a grant under this part equal to 100 percent of the
grant amount determined under section 499O(c), 499P(c), or 499Q(c), as
appropriate, the Secretary may ratably reduce the amount of each such
grant or take other actions necessary to ensure an equitable
distribution of such amount.''.
SEC. 4804. UNMET NEED FOR FEDERAL PELL GRANT RECIPIENTS.
Part J of title IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.), as added and amended by this part, is further amended by
adding at the end the following:
``Subpart 4--Additional College Affordability Grants
``SEC. 499T. UNMET NEED FOR FEDERAL PELL GRANT RECIPIENTS.
``(a) In General.--
``(1) Grant program.--Subject to paragraph (2), from amounts
appropriated under subsection (f) for any fiscal year, the
Secretary may award grants to eligible States and Indian tribes
described in paragraph (3) to pay the Federal share of
expenditures needed to carry out the activities and services
described in subsection (d).
``(2) Limitation.--The Secretary may not make grants under
paragraph (1) in fiscal year unless all grants eligible to be
made under subpart 1 have been made for such fiscal year.
``(3) Eligibility.--A State or Indian tribe may only be
eligible for a grant under this section in a fiscal year if
such State or Indian tribe received a grant under subpart 1 for
such fiscal year.
``(b) Federal Share; Non-Federal Share.--
``(1) Federal share.--
``(A) Formula.--Subject to paragraph (2), the Federal
share of a grant under this section shall be based on a
formula, determined by the Secretary, that--
``(i) accounts for the State or Indian
tribe's share of Pell Grant recipients;
``(ii) provides, for each Pell Grant
recipient in the State or Indian tribe, a per-
student amount that is at least 75 percent of--
``(I) for the first award year for
which grants are made under this
section, the average unmet need of Pell
Grant recipients in all States for the
most recent year for which data are
available; and
``(II) for each subsequent award
year, the amount determined under this
subparagraph for the preceding award
year, increased by the lesser of--
``(aa) a percentage equal to
the estimated percentage
increase in the Consumer Price
Index (as determined by the
Secretary) since the date of
such determination; or
``(bb) 3 percent.
``(B) Exception for certain indian tribes.--In any
case in which not less than 75 percent of the students
at the institutions of higher education operated or
controlled by an Indian tribe are low-income students,
the amount of the Federal share for such Indian tribe
shall be not less than 95 percent of the total amount
needed to waive tuition and fees for all Pell Grant
recipients enrolled in such institutions of higher
education.
``(2) State or tribal share.--
``(A) Formula.--
``(i) In general.--The State or tribal share
of a grant under this section for each fiscal
year shall be the amount needed to pay 25
percent of the average unmet need of Pell Grant
recipients in all States in the first award
year for which grants are made under this
section for all Pell Grant recipients in the
State or Indian tribe, respectively, for such
fiscal year, except as provided in clause (ii).
``(ii) Exception for certain indian tribes.--
In the case of an Indian tribe described in
paragraph (1)(B), the amount of such Indian
tribe's tribal share shall not exceed 5 percent
of the total amount needed to pay the average
unmet need for all Pell Grant recipients
enrolled in the institutions of higher
education described in such paragraph.
``(B) Need-based aid.--A State or Indian tribe may
include, as part of the State or tribal share, any
need-based financial aid that--
``(i) is provided from State or tribal funds
to a Pell Grant recipient; and
``(ii) may be used by such student to pay
costs of attendance other than tuition and
fees.
``(3) Determining number of pell grant recipients.--
``(A) In general.--The Secretary shall develop and
implement a process for accurately estimating the
number of Pell Grant recipients in a State or Indian
tribe for purposes of paragraphs (1) and (2).
``(B) Initial determination.--For the first year for
which grants are awarded under this section, the number
of Pell Grant recipients in a State or Indian tribe
shall be considered to be equal to the number of Pell
Grant recipients that were in the State or tribe for
the preceding school year.
``(4) Adjustment of grant amount.--Not later than 180 days
after the date on which a State or Indian tribe receives a
grant under this section, the Secretary shall--
``(A) in consultation with the State or tribe
concerned, determine whether the actual number of Pell
Grant recipients in the State or Tribe for the year
covered by the grant is greater than the estimated
number of such students that was used to determine the
amount of the grant; and
``(B) if it is determined under paragraph (1) that
the actual number of Pell Grant recipients in the State
or Tribe is higher than such estimate, issue a
supplementary grant payment to the State or tribe in an
amount that ensures that the total amount of the grant
funds received by the State or tribe under this section
for the year covered by the grant accurately reflects
the higher number of Pell Grant recipients.
``(c) Applications.--In order to receive a grant under this section,
a State or tribe shall submit an application to the Secretary at such
time, in such manner, and containing such information as the Secretary
may require.
``(d) Allowable Uses of Funds.--
``(1) In general.--A State or Indian tribe shall use a grant
under this section only to provide to each Pell Grant recipient
a grant that equals the unmet need of such recipient.
``(2) Annual report.--A State or Indian tribe receiving a
grant under this section shall submit an annual report to the
Secretary describing the uses of grant funds under this
section, the progress made in fulfilling the requirements of
the grant, and rates of transfer, graduation, and attainment of
recognized postsecondary credentials at institutions of higher
education in the State or Indian tribe, including such rates
disaggregated by race, income, and age, and including any other
information as the Secretary may require.
``(3) Reporting by the secretary.--The Secretary annually
shall--
``(A) compile and analyze the information described
in paragraph (2); and
``(B) prepare and submit a report to the Committee on
Health, Education, Labor, and Pensions of the Senate
and the Committee on Education and Labor of the House
of Representatives containing the analysis described in
subparagraph (A) and an identification of State and
Indian tribe best practices for achieving the purpose
of this section.
``(4) Technical assistance.--The Secretary shall provide
technical assistance to eligible States and Indian tribes
concerning best practices regarding the promising and evidence-
based institutional reforms and innovative practices to improve
student outcomes and shall disseminate such best practices
among the States and Indian tribes.
``(5) Continuation of funding.--
``(A) In general.--A State or Indian tribe receiving
a grant under this section for a fiscal year may
continue to receive funding under this section for
future fiscal years conditioned on the availability of
budget authority and on meeting the requirements of the
grant, as determined by the Secretary.
``(B) Discontinuation.--The Secretary may discontinue
funding of the Federal share of a grant under this
section if the State or Indian tribe has violated the
terms of the grant.
``(6) 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.
``(e) Definitions.--In this section:
``(1) Indian tribe.--The term `Indian tribe' has the meaning
given the term in section 102 of the Federally Recognized
Indian Tribe List Act of 1994 (25 U.S.C. 479a).
``(2) Institution of higher education.--The term `institution
of higher education' has the meaning given the term in section
101.
``(3) Pell grant recipient.--
``(A) Definition.--The term `Pell Grant recipient'
means a student who--
``(i) attends a public institution of higher
education on not less than a half-time basis;
``(ii) is a recipient of a Federal Pell Grant
under subpart 1 of part A of title IV of this
Act;
``(iii) is maintaining satisfactory progress
(as defined in section 484(c)) in the student's
course of study;
``(iv) is enrolled in an eligible program (as
defined in section 481(b)); and
``(v) either--
``(I) qualifies for in-State resident
institution of higher education
tuition, as determined by the State or
Indian tribe; or
``(II) would qualify for such in-
State tuition, but for the immigration
status of such student.
``(B) Special rule.--An otherwise Pell Grant
recipient shall lose eligibility under this section--
``(i) after 3 years of receiving benefits
under this section for enrollment at a
community college (as defined in section 499F);
and
``(ii) after 6 years of receiving benefits
under this section for enrollment in a 4-year
institution of higher education.
``(4) Recognized postsecondary credential.--The term
`recognized postsecondary credential' has the meaning as
described in section 3 of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3102).
``(5) State.--The term `State' has the meaning given the term
in section 103.
``(6) Unmet need.--The term `unmet need' means, with respect
to a Pell Grant recipient, the amount determined by calculating
the difference between--
``(A) the institution's cost of attendance (as
defined in section 472) for the year for which the
determination is made; and
``(B) the sum of--
``(i) the total amount of need-based grant
aid and merit-based grant aid, from Federal,
State, and institutional sources, provided to
such Pell Grant recipient for the year for
which the determination is made; and
``(ii) the expected family contribution for
such Pell Grant recipient for the year for
which the determination is made.
``(f) Appropriations.--
``(1) Authorization and appropriations.--For the purpose of
making grants under this section there are authorized to be
appropriated such sums as may be necessary to carry out this
section for fiscal year 2021 and each succeeding fiscal year.
``(2) Availability.--Funds appropriated under paragraph (1)
shall remain available to the Secretary until expended.
``(3) Insufficient funds.--If the amount appropriated under
paragraph (1) for a fiscal year is not sufficient to award each
participating State and Indian tribe a grant under this section
that is equal to the minimum amount of the Federal share
described in subsection (b), the Secretary may ratably reduce
the amount of each such grant or take other actions necessary
to ensure an equitable distribution of such amount.
``(4) Transfer availability.--The Secretary is authorized,
subject to the availability of appropriations, to transfer
amounts authorized to be appropriated to carry out subpart 1
for a fiscal year to make grants under this section if all
grants eligible to be made under such subpart have been made
for such fiscal year.''.
SEC. 4805. UNMET NEED FOR STUDENTS.
Subpart 4 of part J of title IV of the Higher Education Act of 1965
(20 U.S.C. 1070 et seq.), as added and amended by this part, is further
amended by adding at the end the following:
``SEC. 499U. UNMET NEED FOR STUDENTS.
``(a) In General.--
``(1) Grant program.--Subject to paragraph (2), from amounts
appropriated under subsection (f) for any fiscal year, the
Secretary may award grants to eligible States and Indian tribes
described in paragraph (3) to pay the Federal share of
expenditures needed to carry out the activities and services
described in subsection (d).
``(2) Limitation.--The Secretary may not make grants under
paragraph (1) in fiscal year unless--
``(A) all grants eligible to be made under subpart 1
have been made for such fiscal year; and
``(B) all grants eligible to be made under section
499T have been made for such fiscal year.
``(3) Eligibility.--A State or Indian tribe may only be
eligible for a grant under this section in a fiscal year if
such State or Indian tribe received--
``(A) a grant under subpart 1 for such fiscal year;
and
``(B) a grant under 499T for such fiscal year.
``(b) Federal Share; Non-Federal Share.--
``(1) Federal share.--
``(A) Formula.--Subject to paragraph (2), the Federal
share of a grant under this section shall be based on a
formula, determined by the Secretary, that--
``(i) accounts for the State or Indian
tribe's share of eligible students;
``(ii) provides, for each eligible student in
the State or Indian tribe, a per-student amount
that is at least 75 percent of--
``(I) for the first award year for
which grants are made under this
section, the average unmet need of
eligible students in all States for the
most recent year for which data are
available; and
``(II) for each subsequent award
year, the amount determined under this
subparagraph for the preceding award
year, increased by the lesser of--
``(aa) a percentage equal to
the estimated percentage
increase in the Consumer Price
Index (as determined by the
Secretary) since the date of
such determination; or
``(bb) 3 percent.
``(B) Exception for certain indian tribes.--In any
case in which not less than 75 percent of the students
at the institutions of higher education operated or
controlled by an Indian tribe are low-income students,
the amount of the Federal share for such Indian tribe
shall be not less than 95 percent of the total amount
needed to waive tuition and fees for all eligible
students enrolled in such institutions of higher
education.
``(2) State or tribal share.--
``(A) Formula.--
``(i) In general.--The State or tribal share
of a grant under this section for each fiscal
year shall be the amount needed to pay 25
percent of the average unmet need of eligible
students in all States in the first award year
for which grants are made under this section
for all eligible students in the State or
Indian tribe, respectively, for such fiscal
year, except as provided in clause (ii).
``(ii) Exception for certain indian tribes.--
In the case of an Indian tribe described in
paragraph (1)(B), the amount of such Indian
tribe's tribal share shall not exceed 5 percent
of the total amount needed to pay the average
unmet need for all eligible students enrolled
in the institutions of higher education
described in such subparagraph.
``(B) Need-based aid.--A State or Indian tribe may
include, as part of the State or tribal share, any
need-based financial aid that--
``(i) is provided from State or tribal funds
to an eligible student; and
``(ii) may be used by such student to pay
costs of attendance other than tuition and
fees.
``(3) Determining number of eligible students.--
``(A) In general.--The Secretary shall develop and
implement a process for accurately estimating the
number of eligible students in a State or Indian tribe
for purposes of paragraphs (1) and (2).
``(B) Initial determination.--For the first year for
which grants are awarded under this section, the number
of eligible students in a State or Indian tribe shall
be considered to be equal to the number of eligible
students that were in the State or tribe for the
preceding school year.
``(4) Adjustment of grant amount.--Not later than 180 days
after the date on which a State or Indian tribe receives a
grant under this section, the Secretary shall--
``(A) in consultation with the State or tribe
concerned, determine whether the actual number of
eligible students in the State or Tribe for the year
covered by the grant is greater than the estimated
number of such students that was used to determine the
amount of the grant; and
``(B) if it is determined under paragraph (1) that
the actual number of eligible students in the State or
Tribe is higher than such estimate, issue a
supplementary grant payment to the State or tribe in an
amount that ensures that the total amount of the grant
funds received by the State or tribe under this section
for the year covered by the grant accurately reflects
the higher number of eligible students.
``(c) Applications.--In order to receive a grant under this section,
a State or tribe shall submit an application to the Secretary at such
time, in such manner, and containing such information as the Secretary
may require.
``(d) Allowable Uses of Funds.--
``(1) In general.--A State or Indian tribe shall use a grant
under this section only to provide to each eligible student a
grant that equals the unmet need of such recipient.
``(2) Annual report.--A State or Indian tribe receiving a
grant under this section shall submit an annual report to the
Secretary describing the uses of grant funds under this
section, the progress made in fulfilling the requirements of
the grant, and rates of transfer, graduation, and attainment of
recognized postsecondary credentials at institutions of higher
education in the State or Indian tribe, including such rates
disaggregated by race, income, and age, and including any other
information as the Secretary may require.
``(3) Reporting by the secretary.--The Secretary annually
shall--
``(A) compile and analyze the information described
in paragraph (2); and
``(B) prepare and submit a report to the Committee on
Health, Education, Labor, and Pensions of the Senate
and the Committee on Education and Labor of the House
of Representatives containing the analysis described in
subparagraph (A) and an identification of State and
Indian tribe best practices for achieving the purpose
of this section.
``(4) Technical assistance.--The Secretary shall provide
technical assistance to eligible States and Indian tribes
concerning best practices regarding the promising and evidence-
based institutional reforms and innovative practices to improve
student outcomes and shall disseminate such best practices
among the States and Indian tribes.
``(5) Continuation of funding.--
``(A) In general.--A State or Indian tribe receiving
a grant under this section for a fiscal year may
continue to receive funding under this section for
future fiscal years conditioned on the availability of
budget authority and on meeting the requirements of the
grant, as determined by the Secretary.
``(B) Discontinuation.--The Secretary may discontinue
funding of the Federal share of a grant under this
section if the State or Indian tribe has violated the
terms of the grant.
``(6) 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.
``(e) Definitions.--In this section:
``(1) Eligible student.--
``(A) Definition.--The term `eligible student' means
a student who--
``(i) attends a public institution of higher
education on not less than a half-time basis;
``(ii) is not a recipient of a Federal Pell
Grant under subpart 1 of part A of title IV of
this Act;
``(iii) is maintaining satisfactory progress
(as defined in section 484(c)) in the student's
course of study;
``(iv) is enrolled in an eligible program (as
defined in section 481(b)); and
``(v) either--
``(I) qualifies for in-State resident
institution of higher education
tuition, as determined by the State or
Indian tribe; or
``(II) would qualify for such in-
State tuition, but for the immigration
status of such student.
``(B) Special rule.--An otherwise eligible student
shall lose eligibility under this section--
``(i) after 3 years of receiving benefits
under this section for enrollment at a
community college (as defined in section 499F);
and
``(ii) after 6 years of receiving benefits
under this section for enrollment in a 4-year
institution of higher education.
``(2) Indian tribe.--The term `Indian tribe' has the meaning
given the term in section 102 of the Federally Recognized
Indian Tribe List Act of 1994 (25 U.S.C. 479a).
``(3) Institution of higher education.--The term `institution
of higher education' has the meaning given the term in section
101.
``(4) Recognized postsecondary credential.--The term
`recognized postsecondary credential' has the meaning as
described in section 3 of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3102).
``(5) State.--The term `State' has the meaning given the term
in section 103.
``(6) Unmet need.--The term `unmet need' means, with respect
to an eligible student, the amount determined by calculating
the difference between--
``(A) the institution's cost of attendance (as
defined in section 472) for the year for which the
determination is made; and
``(B) the sum of--
``(i) the total amount of need-based grant
aid and merit-based grant aid, from Federal,
State, and institutional sources, provided to
such eligible student for the year for which
the determination is made; and
``(ii) the expected family contribution for
such eligible student for the year for which
the determination is made.
``(f) Appropriations.--
``(1) Authorization and appropriations.--For the purpose of
making grants under this section there are authorized to be
appropriated such sums as may be necessary to carry out this
section for fiscal year 2021 and each succeeding fiscal year.
``(2) Availability.--Funds appropriated under paragraph (1)
shall remain available to the Secretary until expended.
``(3) Insufficient funds.--If the amount appropriated under
paragraph (1) for a fiscal year is not sufficient to award each
participating State and Indian tribe a grant under this section
that is equal to the minimum amount of the Federal share
described in subsection (b), the Secretary may ratably reduce
the amount of each such grant or take other actions necessary
to ensure an equitable distribution of such amount.
``(4) Transfer availability.--The Secretary is authorized,
subject to the availability of appropriations, to transfer
amounts authorized to be appropriated to carry out subpart 1 or
to carry out section 499T for a fiscal year to make grants
under this section if--
``(A) all grants eligible to be made under such
subpart have been made for such fiscal year; and
``(B) all grants eligible to be made under such
section have been made for such fiscal year.''.
SEC. 4806. TUITION WAIVERS.
Subpart 4 of part J of title IV of the Higher Education Act of 1965
(20 U.S.C. 1070 et seq.), as added and amended by this part, is further
amended by adding at the end the following:
``SEC. 499V. TUITION WAIVERS.
``(a) In General.--
``(1) Grant program.--Subject to paragraph (2), from amounts
appropriated under subsection (g) for any fiscal year, the
Secretary may award grants to eligible States and Indian tribes
to pay the Federal share of expenditures needed to carry out
the activities and services described in subsection (d).
``(2) Limitation.--The Secretary may not make grants under
paragraph (1) in fiscal year unless--
``(A) all grants eligible to be made under subpart 1
have been made for such fiscal year;
``(B) all grants eligible to be made under 499T have
been made for such fiscal year; and
``(C) all grants eligible to be made under 499U have
been made for such fiscal year.
``(3) Eligibility.--A State or Indian tribe may only be
eligible for a grant under this section in a fiscal year if
such State or Indian tribe received--
``(A) a grant under subpart 1 for such fiscal year;
``(B) a grant under section 499T for such fiscal
year; and
``(C) a grant under 499U for such fiscal year.
``(b) Federal Share; Non-Federal Share.--
``(1) Federal share.--
``(A) Formula.--Subject to paragraph (2), the Federal
share of a grant under this section shall be based on a
formula, determined by the Secretary, that--
``(i) accounts for the State or Indian
tribe's share of eligible students;
``(ii) provides, for each eligible student in
the State or Indian tribe, a per-student amount
that is at least 75 percent of--
``(I) for the first award year for
which grants are made under this
section, the average resident public 4-
year institutions of higher education
tuition and fees per student in all
States for the most recent year for
which data are available; and
``(II) for each subsequent award
year, the amount determined under this
subparagraph for the preceding award
year, increased by the lesser of--
``(aa) a percentage equal to
the estimated percentage
increase in the Consumer Price
Index (as determined by the
Secretary) since the date of
such determination; or
``(bb) 3 percent.
``(B) Exception for certain indian tribes.--In any
case in which not less than 75 percent of the students
at the institutions of higher education operated or
controlled by an Indian tribe are low-income students,
the amount of the Federal share for such Indian tribe
shall be not less than 95 percent of the total amount
needed to waive tuition and fees for all eligible
students enrolled in such institutions of higher
education.
``(2) State or tribal share.--
``(A) Formula.--
``(i) In general.--The State or tribal share
of a grant under this section for each fiscal
year shall be the amount needed to pay 25
percent of the average resident public 4-year
institutions of higher education tuition and
fees for eligible students in all States in
first award year for which grants are made
under this section for all eligible students in
the State or Indian tribe, respectively, for
such fiscal year, except as provided in clause
(ii).
``(ii) Exception for certain indian tribes.--
In the case of an Indian tribe described in
paragraph (1)(B), the amount of such Indian
tribe's tribal share shall not exceed 5 percent
of the total amount needed to waive tuition and
fees for all eligible students enrolled in the
institutions of higher education described in
such paragraph.
``(B) Need-based aid.--A State or Indian tribe may
include, as part of the State or tribal share, any
need-based financial aid that--
``(i) is provided from State or tribal funds
to an eligible student; and
``(ii) may be used by such student to pay
costs of attendance other than tuition and
fees.
``(3) Determining number of eligible students.--
``(A) In general.--The Secretary shall develop and
implement a process for accurately estimating the
number of eligible students in a State or Indian tribe
for purposes of paragraphs (1) and (2).
``(B) Initial determination.--For the first year for
which grants are awarded under this section, the number
of eligible students in a State or Indian tribe shall
be considered to be equal to the number of eligible
students that were in the State or tribe for the
preceding school year.
``(4) Adjustment of grant amount.--Not later than 180 days
after the date on which a State or Indian tribe receives a
grant under this section, the Secretary shall--
``(A) in consultation with the State or tribe
concerned, determine whether the actual number of
eligible students in the State or Tribe for the year
covered by the grant is greater than the estimated
number of such students that was used to determine the
amount of the grant; and
``(B) if it is determined under paragraph (1) that
the actual number of eligible students in the State or
Tribe is higher than such estimate, issue a
supplementary grant payment to the State or tribe in an
amount that ensures that the total amount of the grant
funds received by the State or tribe under this section
for the year covered by the grant accurately reflects
the higher number of eligible students.
``(c) Applications.--In order to receive a grant under this section,
a State or tribe shall submit an application to the Secretary at such
time, in such manner, and containing such information as the Secretary
may require.
``(d) General Requirements.--As a condition of receiving a grant
under this subpart a State or Indian tribe shall meet the following
requirements:
``(1) For each year of the grant the total amount of public
4-year institution of higher education resident tuition and
fees charged to an eligible student in the State or Indian
tribe shall be $0.
``(2) For each year of the grant no amount of financial
assistance for which an eligible student qualifies may be
applied to such tuition or fees.
``(e) Allowable Uses of Funds.--
``(1) In general.--A State or Indian tribe shall use a grant
under this section only to provide funds to participating
public 4-year institutions to enable such public 4-year
institutions to waive resident tuition and fees for eligible
students as required under subsection (d).
``(2) Annual report.--A State or Indian tribe receiving a
grant under this section shall submit an annual report to the
Secretary describing the uses of grant funds under this
section, the progress made in fulfilling the requirements of
the grant, and rates of transfer, graduation, and attainment of
recognized postsecondary credentials at institutions of higher
education in the State or Indian tribe, including such rates
disaggregated by race, income, and age, and including any other
information as the Secretary may require.
``(3) Reporting by the secretary.--The Secretary annually
shall--
``(A) compile and analyze the information described
in paragraph (2); and
``(B) prepare and submit a report to the Committee on
Health, Education, Labor, and Pensions of the Senate
and the Committee on Education and Labor of the House
of Representatives containing the analysis described in
subparagraph (A) and an identification of State and
Indian tribe best practices for achieving the purpose
of this section.
``(4) Technical assistance.--The Secretary shall provide
technical assistance to eligible States and Indian tribes
concerning best practices regarding the promising and evidence-
based institutional reforms and innovative practices to improve
student outcomes and shall disseminate such best practices
among the States and Indian tribes.
``(5) Continuation of funding.--
``(A) In general.--A State or Indian tribe receiving
a grant under this section for a fiscal year may
continue to receive funding under this section for
future fiscal years conditioned on the availability of
budget authority and on meeting the requirements of the
grant, as determined by the Secretary.
``(B) Discontinuation.--The Secretary may discontinue
funding of the Federal share of a grant under this
section if the State or Indian tribe has violated the
terms of the grant.
``(6) 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.
``(f) Definitions.--In this section:
``(1) Eligible student.--
``(A) Definition.--The term `eligible student' means
a student who--
``(i) attends a public institution of higher
education on not less than a half-time basis;
``(ii) is maintaining satisfactory progress
(as defined in section 484(c)) in the student's
course of study;
``(iii) is enrolled in an eligible program
(as defined in section 481(b)); and
``(iv) either--
``(I) qualifies for in-State resident
institution of higher education
tuition, as determined by the State or
Indian tribe; or
``(II) would qualify for such in-
State tuition, but for the immigration
status of such student.
``(B) Special rule.--An otherwise eligible student
shall lose eligibility under this section after 6 years
of receiving benefits under this section.
``(2) Indian tribe.--The term `Indian tribe' has the meaning
given the term in section 102 of the Federally Recognized
Indian Tribe List Act of 1994 (25 U.S.C. 479a).
``(3) Institution of higher education.--The term `institution
of higher education' has the meaning given the term in section
101.
``(4) Recognized postsecondary credential.--The term
`recognized postsecondary credential' has the meaning as
described in section 3 of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3102).
``(5) State.--The term `State' has the meaning given the term
in section 103.
``(g) Appropriations.--
``(1) Authorization and appropriations.--For the purpose of
making grants under this section there are authorized to be
appropriated such sums as may be necessary to carry out this
section for fiscal year 2021 and each succeeding fiscal year.
``(2) Availability.--Funds appropriated under paragraph (1)
shall remain available to the Secretary until expended.
``(3) Insufficient funds.--If the amount appropriated under
paragraph (1) for a fiscal year is not sufficient to award each
participating State and Indian tribe a grant under this section
that is equal to the minimum amount of the Federal share
described in subsection (b), the Secretary may ratably reduce
the amount of each such grant or take other actions necessary
to ensure an equitable distribution of such amount.
``(4) Transfer availability.--The Secretary is authorized,
subject to the availability of appropriations, to transfer
amounts authorized to be appropriated to carry out subpart 1,
to carry out 499T, and to carry out 499U for a fiscal year to
make grants under this section if--
``(A) all grants eligible to be made under such
subpart have been made for such fiscal year;
``(B) all grants eligible to be made under 499T have
been made for such year; and
``(C) all grants eligible to be made under 499U have
been made for such fiscal year.''.
SEC. 4807. EXPANSION FOR PRIVATE INSTITUTIONS.
Subpart 4 of part J of title IV of the Higher Education Act of 1965
(20 U.S.C. 1070 et seq.), as added and amended by this part, is further
amended by adding at the end the following:
``SEC. 499W. EXPANSION FOR PRIVATE INSTITUTIONS.
``(a) Authority.--The Secretary may establish a program under which--
``(1) a State that participates in section 499T may elect to
carry out the grant programs under such section to students
who--
``(A) meet the requirements under clauses (ii)
through (iv) of subparagraph (A) and subparagraph (B)
of subsection (e)(3) of such section; and
``(B) attend a nonprofit private institution of
higher education in such State on not less than a half
time basis; and
``(2) a State that participates in section 499U may elect to
carry out the grant programs under such section to students
who--
``(A) meet the requirements under clauses (ii)
through (iv) of subparagraph (A) and subparagraph (B)
of subsection (e)(1) of such section; and
``(B) attend a nonprofit private institution of
higher education in such State on not less than a half
time basis.
``(b) Program Requirements.--The Secretary shall set eligibility
standards for nonprofit private institutions of higher education which
shall, at a minimum, include--
``(1) benchmarks for the enrollment of low-income students;
``(2) a requirement that any nonprofit private institution of
higher education that participates in a grant program pursuant
to this section may not reduce the funding for institutional
need-based aid; or
``(3) a requirement that grant amounts for students at such
institutions of higher education shall not exceed grants for
students with similar levels of financial need (as measured by
expected family contribution) at public institutions of higher
education.
``(c) Authorization of Appropriations.--For the purpose of making
grants under this section there are authorized to be appropriated such
sums as may be necessary to carry out this section for fiscal year 2021
and each succeeding fiscal year.''.
TITLE V--DEVELOPING INSTITUTIONS
SEC. 5001. HISPANIC-SERVING INSTITUTIONS.
(a) Authorized Activities.--Section 503(b) of the Higher Education
Act of 1965 (20 U.S.C. 1101b(b)) is amended--
(1) by redesignating paragraph (16) as paragraph (17); and
(2) by inserting after paragraph (15) the following:
``(16) Promoting opportunities for international education,
including through the development of partnerships with
institutions of higher education outside the United States.''.
(b) Endowment Funding Limitations.--Section 503(c) of the Higher
Education Act of 1965 (20 U.S.C. 1101b(c)) is amended--
(1) in paragraph (2)--
(A) by striking ``non-Federal funds'' and inserting
``non-Federal funds (which may include gifts to the
endowment fund restricted for a specific purpose)'';
and
(B) by striking ``equal to or greater than'' and
inserting ``equal to 50 percent of''; and
(2) by inserting after paragraph (3) the following:
``(4) Scholarships.--An eligible institution that uses grant
funds provided under this title to establish or increase an
endowment fund may use the interest proceeds from such
endowment to provide scholarships to students for the purposes
of attending such institution.''.
SEC. 5002. PROMOTING POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC
AMERICANS.
(a) Program Authority.--Section 512 of the Higher Education Act of
1965 (20 U.S.C. 1102a) is amended by adding at the end the following:
``(c) Minimum Grants Awarded.--Of the funds appropriated to carry out
this part for a fiscal year, the Secretary--
``(1) shall--
``(A) use not less than one-third of such funds to
award grants to carry out the activities described in
section 513(b); and
``(B) use not less than one-third of such funds to
award grants to carry out the activities described in
section 513(c); and
``(2) may use any funds remaining (after using the funds in
accordance with paragraph (1)) to award grants to carry out
activities described in subsection (b) or (c) of section
513.''.
(b) Authorized Activities.--Section 513 of the Higher Education Act
of 1965 (20 U.S.C. 1102b) is amended to read as follows:
``SEC. 513. AUTHORIZED ACTIVITIES.
``(a) Requirements.--
``(1) In general.--Grants awarded under this part shall be
used for--
``(A) one or more of the activities described in
subsection (b); or
``(B) one or more of the activities described in
subsection (c).
``(2) Prohibition.--A grant awarded under this part may not
be used for activities under both subsections (b) and (c).
``(b) Promoting Postbaccalaureate Opportunities for Hispanic
Americans Activities.--Grants awarded under this part may be used for
one or more of the following activities promoting postbaccalaureate
opportunities for Hispanic Americans:
``(1) Purchase, rental, or lease of scientific or laboratory
equipment for educational purposes, including instructional and
research purposes.
``(2) Construction, maintenance, renovation, and improvement
of classrooms, libraries, laboratories, and other instructional
facilities, including purchase or rental of telecommunications
technology equipment or services.
``(3) Purchase of library books, periodicals, technical and
other scientific journals, microfilm, microfiche, and other
educational materials, including telecommunications program
materials.
``(4) Support for low-income postbaccalaureate students
including outreach, academic support services, mentoring,
scholarships, fellowships, and other financial assistance to
permit the enrollment of such students in postbaccalaureate
certificate and postbaccalaureate degree granting programs.
``(5) Creating or improving facilities for Internet or other
distance education technologies, including purchase or rental
of telecommunications technology equipment or services.
``(6) Collaboration with other institutions of higher
education to expand postbaccalaureate certificate and
postbaccalaureate degree offerings.
``(7) 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.
``(c) Faculty Development Activities.--Grants awarded under this part
may be used for one or more of the following activities for faculty
development:
``(1) Support of faculty exchanges, faculty development,
faculty research, curriculum development, and academic
instruction.
``(2) Financial support to graduate students planning to
pursue academic careers who desire to become faculty at
Hispanic-serving institutions.
``(3) Career services in preparing for an academic career and
identifying opportunities.
``(4) Developing partnerships between Hispanic-serving
institutions to help graduate students and hiring institutions
connect with each other.
``(5) Faculty recruitment efforts with an emphasis on
graduates from Hispanic-serving institutions and other
minority-serving institutions.
``(6) Recruitment and retention incentives to allow Hispanic-
serving institutions to make competitive offers to potential
faculty, including use of funds for student loan repayment.
``(7) Research support specifically for early career
faculty.''.
SEC. 5003. GENERAL PROVISIONS.
Section 528(a) of the Higher Education Act of 1965 (20 U.S.C.
1103g(a)) is amended--
(1) in paragraph (1), by striking ``$175,000,000'' and
inserting ``$350,000,000'';
(2) in paragraph (2), by striking ``$100,000,000'' and
inserting ``$115,000,000'';
(3) by striking ``2009'' each place it appears and inserting
``2021''; and
(4) by adding at the end the following:
``(3) Reservation for technical assistance.--From the amounts
appropriated under paragraph (1) to carry out part A for a
fiscal year, the Secretary shall reserve 0.75 percent to carry
out technical assistance and administrative training for staff
and faculty at Hispanic-serving institutions under such
part.''.
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
SEC. 6001. INTERNATIONAL EDUCATION.
(a) Graduate and Undergraduate Language and Area Centers and
Programs.--Section 602(b)(2)(B)(ii) of the Higher Education Act of 1965
(20 U.S.C. 1122(b)(2)(B)(ii)) is amended--
(1) in subclause (III), by striking ``or'';
(2) in subclause (IV), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(V) the beginning, intermediate, or
advanced study of a foreign language related to
the area of specialization.''.
(b) International Research and Innovation.--Section 605 of the Higher
Education Act of 1965 (20 U.S.C. 1125) is amended to read as follows:
``SEC. 605. INTERNATIONAL RESEARCH AND INNOVATION.
``(a) Purpose.--It is the purpose of this section to support
essential international and foreign language education research and
innovation projects with the goal of assessing and strengthening
international education capacity, coordination, delivery, and outcomes
to meet national needs.
``(b) Authority.--
``(1) In general.--From the amount provided to carry out this
section, the Secretary shall carry out the following
activities:
``(A) Conduct research and studies that contribute to
the purpose described in subsection (a), which shall
include research to provide a systematic understanding
of the United States' international and foreign
language education capacity, structures, and
effectiveness in meeting growing demands by education,
government, and the private sector (including business
and other professions).
``(B) Create innovative paradigms or enhance or scale
up proven strategies and practices that address
systemic challenges to developing and delivering
international and foreign language education resources
and expertise across educational disciplines,
institutions, employers, and other stakeholders.
``(C) Develop and manage a national standardized
database that--
``(i) includes the strengths, gaps, and
trends in the United States' international and
foreign language education capacity; and
``(ii) documents the outcomes of programs
funded under this title for every grant cycle.
``(2) Grants or contracts.--The Secretary shall carry out
activities to achieve the outcomes described in paragraph (1)--
``(A) directly; or
``(B) through grants awarded under subsection (d) or
(e).
``(c) Eligible Entity Defined.--In this section, the term `eligible
entity' means--
``(1) an institution of higher education;
``(2) a public or private nonprofit library;
``(3) a nonprofit educational organization;
``(4) an entity that--
``(A) received a grant under this title for a
preceding fiscal year; or
``(B) is receiving a grant under this title as of the
date of application for a grant under this section; or
``(5) a partnership of two or more entities described in
paragraphs (1) through (4).
``(d) Research Grants.--
``(1) Program authorized.--For any fiscal year for which the
Secretary carries out activities under subsection (b)(1)
through research grants under this subsection, the Secretary
shall award such grants, on a competitive basis, to eligible
entities.
``(2) Required activities.--An eligible entity that receives
a grant under this subsection shall use the grant funds for the
systematic development, collection, analysis, publication, and
dissemination of data, and other information resources in a
manner that is easily understandable, made publicly available,
and that contributes to achieving the purposes of subsection
(a) and carries out at least one activity under subsection
(b)(1).
``(3) Discretionary activities.--An eligible entity that
receives a grant under this subsection may use the grant to
carry out the following activities:
``(A) Assess and document international and foreign
language education capacity and supply through studies
or surveys that--
``(i) determine the number of foreign
language courses, programs, and enrollments at
all levels of education and in all languages,
including a determination of gaps in those
deemed critical to the national interest;
``(ii) measure the number and types of
degrees or certificates awarded in area
studies, global studies, foreign language
studies, and international business and
professional studies, including identification
of gaps in those deemed critical to the
national interest;
``(iii) measure the number of foreign
language, area or international studies
faculty, including international business
faculty, and elementary school and secondary
school foreign language teachers by language,
degree, and world area; or
``(iv) measure the number of undergraduate
and graduate students engaging in long- or
short-term education or internship abroad
programs as part of their curriculum, including
countries of destination.
``(B) Assess the demands for, and outcomes of,
international and foreign language education and their
alignment, through studies, surveys, and conferences
to--
``(i) determine demands for increased or
improved instruction in foreign language, area
or global studies, or other international
fields, and the demand for employees with such
skills and knowledge in the education,
government, and private sectors (including
business and other professions);
``(ii) assess the employment or utilization
of graduates of programs supported under this
title by educational, governmental, and private
sector organizations (including business and
other professions); or
``(iii) assess standardized outcomes and
effectiveness and benchmarking of programs
supported under this title.
``(C) Develop and publish specialized materials for
use in foreign language, area, global, or other
international studies, including in international
business or other professional education or technical
training, as appropriate.
``(D) Conduct studies or surveys that identify and
document systemic challenges and changes needed in
higher education and elementary school and secondary
school systems to make international and foreign
language education available to all students as part of
the basic curriculum, including challenges in current
evaluation standards, entrance and graduation
requirements, program accreditation, student degree
requirements, or teacher and faculty legal workplace
barriers to education and research abroad.
``(E) With respect to underrepresented institutions
of higher education (including minority-serving
institutions or community colleges), carry out studies
or surveys that identify and document--
``(i) current systemic challenges and changes
incentives, and partnerships needed to
comprehensively and sustainably
internationalize educational programming; or
``(ii) short- and long-term outcomes of
successful internationalization strategies and
funding models.
``(F) Evaluate the extent to which programs assisted
under this title--
``(i) reflect diverse perspectives and a wide
range of views; and
``(ii) generate debate on world regions and
international affairs
``(e) Innovation Grants.--
``(1) Program authorized.--For any fiscal year for which the
Secretary carries out activities to achieve the outcomes
described in subsection (b)(1) through innovation grants under
this subsection, the Secretary shall award such grants, on a
competitive basis, to eligible entities.
``(2) Uses of funds.--An eligible entity that receives an
innovation grant under this subsection shall use the grant
funds to fund projects consistent with this section, which may
include one or more of the following:
``(A) Innovative paradigms to improve communication,
sharing, and delivery of resources that further the
purposes described in subsection (a) including the
following:
``(i) Networking structures and systems to
more effectively match graduates possessing
international and foreign language education
skills with employment needs.
``(ii) Sharing international specialist
expertise across institutions of higher
education or in the workforce to pursue
specialization or learning opportunities not
available at any single institution of higher
education, such as shared courses for studying
less commonly taught languages, world areas or
regions, international business or other
professional areas, or specialized research
topics of national strategic interest.
``(iii) Producing, collecting, organizing,
preserving, and widely disseminating
international and foreign language education
expertise, resources, courses, and other
information through the use of electronic
technologies and other techniques.
``(iv) Collaborative initiatives to identify,
capture, and provide consistent access to, and
creation of, digital global library resources
that are beyond the capacity of any single
eligible entity receiving a grant under this
section or any single institution of higher
education, including the professional
development of library staff.
``(v) Utilization of technology to create
open-source resources in international, area,
global, and foreign language studies that are
adaptable to multiple educational settings and
promote interdisciplinary partnerships between
technologists, curriculum designers,
international and foreign language education
experts, language teachers, and librarians.
``(B) Innovative curriculum, teaching, and learning
strategies, including the following:
``(i) New initiatives for collaborations of
disciplinary programs with foreign language,
area, global, and international studies, and
education abroad programs that address the
internationalization of such disciplinary
studies with the purpose of producing globally
competent graduates.
``(ii) Innovative collaborations between
established centers of international and
foreign language education excellence and
underrepresented institutions and populations
seeking to further their goals for
strengthening international, area, global, and
foreign language studies, including at
minority-serving institutions or community
colleges.
``(iii) Teaching and learning collaborations
among foreign language, area, global, or other
international studies with diaspora
communities, including heritage students.
``(iv) New approaches and methods to teaching
emerging global issues, cross-regional
interactions, and underrepresented regions or
countries, such as project- and team-based
learning.
``(C) Innovative assessment and outcome tools and
techniques that further the purposes described in
subsection (a), including the following:
``(i) International and foreign language
education assessment techniques that are
coupled with outcome-focused training modules,
such as certificates or badges, immersion
learning, or e-portfolio systems.
``(ii) Effective and easily accessible
methods of assessing professionally useful
levels of proficiency in foreign languages or
competencies in area, culture, and global
knowledge or other international fields in
programs under this title, which may include
use of open access online and other cost-
effective tools for students and educators at
all educational levels and in the workplace.
``(f) Application.--Each eligible entity 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 shall
require, including--
``(1) a description of each proposed project the eligible
entity plans to carry out under this section and how such
project meets the purposes described in subsection (a);
``(2) if applicable, a demonstration of why the entity needs
a waiver or reduction of the matching requirement under
subsection (g); and
``(3) an assurance that each such proposed project will be
self-sustainable after the grant term is completed.
``(g) Matching Requirement.--
``(1) In general.--The Federal share of the total cost for
carrying out a project supported by a grant under this section
shall be no more than 66.66 percent of the cost of the project.
``(2) Non-federal share contributions.--The non-Federal share
of such cost may be provided either in-kind or in cash, from
institutional and non-institutional funds, including
contributions from State or private sector corporations,
nonprofits, or foundations.
``(3) Special rule.--The Secretary may waive or reduce the
share required under paragraph (1) for eligible entities that--
``(A) are minority-serving institutions or are
community colleges; or
``(B) demonstrate need in an application for such a
waiver or reduction under subsection (f)(2).
``(h) Database and Reporting.--The Secretary shall directly, or
through grants or contracts with an eligible grant recipient--
``(1) establish, curate, maintain, and update at least every
grant cycle, a publically available website which shall
showcase the results of this section and serve as a user-
friendly repository of the information, resources, and best
practices generated through activities conducted under this
section; and
``(2) prepare, publish, and disseminate to Congress and the
public at least once every 5 years, a report that summarizes
key findings and policy issues from the activities conducted
under this section, including as such activities relate to
international and foreign language education and outcomes.''.
(c) Discontinuation of Foreign Information Access Program.--Part A of
title VI of the Higher Education Act of 1965 (20 U.S.C. 1121 et seq.)
is further amended by striking sections 606 and 610, and redesignating
sections 607, 608, and 609 as sections 606, 607, and 608, respectively.
SEC. 6002. GLOBAL BUSINESS AND PROFESSIONAL EDUCATION PROGRAMS.
(a) Findings; Purpose.--Section 611 of the Higher Education Act of
1965 (20 U.S.C. 1130) is amended--
(1) in subsection (a)--
(A) by amending paragraph (1) to read as follows:
``(1) the future welfare of the United States will depend
substantially on increasing international and global skills in
business, educational, and other professional communities and
creating an awareness among the American public of the
internationalization of our economy and numerous other
professional areas important to the national interest;'';
(B) by amending paragraph (2) to read as follows:
``(2) concerted efforts are necessary to engage business and
other professional education and technical training programs,
language, area, and global study programs, professional
international affairs education programs, public and private
sector organizations, and United States' business community in
a mutually productive relationship which benefits the Nation's
future economic and security interests;'';
(C) in paragraph (3), by striking ``and the
international'' and inserting ``and other professional
fields and the international and global''; and
(D) in paragraph (4)--
(i) by inserting ``, as well as other
professional organizations'' after
``departments of commerce''; and
(ii) by inserting ``or other professions''
after ``business''; and
(2) in subsection (b)--
(A) in paragraph (1)--
(i) by striking ``and economic enterprise''
and inserting ``, economic enterprise, and
security''; and
(ii) by inserting ``and other professional''
before ``personnel''; and
(B) in paragraph (2), by striking ``to prosper in an
international'' and inserting ``and other professional
fields to prosper in a global''.
(b) Professional and Technical Education for Global
Competitiveness.--Section 613 of the Higher Education Act of 1965 (20
U.S.C. 1130a) is amended to read as follows:
``SEC. 613. PROFESSIONAL AND TECHNICAL EDUCATION FOR GLOBAL
COMPETITIVENESS.
``(a) Purpose.--The purpose of this section is to support innovative
strategies that provide undergraduate and graduate students with the
global professional competencies, perspectives, and skills needed to
strengthen and enrich global engagement and competitiveness in a wide
variety of professional and technical fields important to the national
interest.
``(b) Program Authorized.--The Secretary shall make grants to, or
enter into contracts with eligible entities to pay the Federal share of
the cost of programs designed to--
``(1) establish an interdisciplinary global focus in the
undergraduate and graduate curricula of business, science,
technology, engineering, and other professional education and
technical training programs to be determined by the Secretary
based on national needs;
``(2) produce graduates with proficiencies in both the global
aspects of their professional education or technical training
fields and international, cross-cultural, and foreign language
skills; and
``(3) provide appropriate services to or partnerships with
the corporate, government, and nonprofit communities in order
to expand knowledge and capacity for global engagement and
competitiveness and provide internship or employment
opportunities for students and graduates with international
skills.
``(c) Mandatory Activities.--An eligible entity that receives a grant
under this section shall use the grant to carry out the following:
``(1) With respect to undergraduate or graduate professional
education and technical training curricula, incorporating--
``(A) foreign language programs that lead to
proficiency, including immersion opportunities;
``(B) international, area, or global studies
programs;
``(C) education, internships, or other innovative or
technological linkages abroad; and
``(D) global business, economic, and trade studies,
where appropriate.
``(2) Innovating and improving international, global, and
foreign language education curricula to serve the needs of
business and other professional and nonprofit communities,
including development of new programs for nontraditional, mid-
career, or part-time students.
``(3) Establishing education or internship abroad programs,
domestic globally focused internships, or other innovative
approaches to enable undergraduate or graduate students in
professional education or technical training to develop foreign
language skills and knowledge of foreign cultures, societies,
and global dimensions of their professional fields.
``(4) Developing collaborations between institutions of
higher education and corporations or nonprofit organizations in
order to strengthen engagement and competitiveness in global
business, trade, or other global professional activities.
``(d) Discretionary Activities.--An eligible entity that receives a
grant under this section may use the grant to carry out the following:
``(1) Developing specialized teaching materials and courses,
including foreign language and area or global studies
materials, and innovative technological delivery systems
appropriate for professionally oriented students.
``(2) Establishing student fellowships or other innovative
support opportunities, including for underrepresented
populations, first generation college students (defined in
section 402A(h)), and heritage learners, for education and
training in global professional development activities.
``(3) Developing opportunities or fellowships for faculty or
junior faculty of professional education or technical training
(including the faculty of minority-serving institutions or
community colleges) to acquire or strengthen international and
global skills and perspectives.
``(4) Creating institutes that take place over academic
breaks, like the summer, including through technological means,
and cover foreign language, world area, global, or other
international studies in learning areas of global business,
science, technology, engineering, or other professional
education and training fields.
``(5) Internationalizing curricula at minority-serving
institutions or community colleges to further the purposes of
this section.
``(6) Establishing international linkages or partnerships
with institutions of higher education, corporations, or
organizations that contribute to the objectives of this
section.
``(7) Developing programs to inform the public of increasing
global interdependence in professional education and technical
training fields.
``(8) Establishing trade education programs through
agreements with regional, national, global, bilateral, or
multilateral trade centers, councils, or associations.
``(e) Application.--Each eligible entity desiring a grant under this
section shall submit an application to the Secretary at such time, in
such manner, and including such information as the Secretary may
reasonably require, including assurances that--
``(1) each proposed project will be self-sustainable after
the grant term is completed;
``(2) the institution of higher education will use the
assistance provided under this section to supplement and not
supplant activities described in subsection (c) or (d) that are
conducted by the institution of higher education;
``(3) in the case of eligible entities that are consortia of
institutions of higher education, or partnership described in
subsection (g)(1)(C), a copy of their partnership agreement
that demonstrates compliance with subsection (c) will be
provided to the Secretary;
``(4) the activities funded by the grant will reflect diverse
perspectives and a wide range of views of world regions and
international affairs where applicable; and
``(5) if applicable, a demonstration of why the eligible
entity needs a waiver or reduction of the matching requirement
under subsection (f).
``(f) Matching Requirement.--
``(1) In general.--The Federal share of the total cost for
carrying out a program supported by a grant under this section
shall be not more than 50 percent of the total cost of the
project.
``(2) Non-federal share contributions.--The non-Federal share
of such cost may be provided either in-kind or in cash, from
institutional and non-institutional funds, including
contributions from State and private sector corporations,
nonprofits, or foundations.
``(3) Special rule.--The Secretary may waive or reduce the
share required under paragraph (1) for eligible entities that--
``(A) are minority-serving institutions or are
community colleges; or
``(B) have submitted a grant application as required
by subsection (e) that demonstrates a need for such a
waiver or reduction.
``(g) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) an institution of higher education;
``(B) a consortia of such institutions; or
``(C) a partnership between--
``(i) an institution of higher education or a
consortia of such institutions; and
``(ii) at least one corporate or nonprofit
entity.
``(2) Professional education and technical training.--The
term `professional education and technical training' means a
program at an institution of higher education that offers
undergraduate, graduate, or postgraduate level education in a
professional or technical field that is determined by the
Secretary as meeting a national need for global or
international competency (which may include business, science,
technology, engineering, law, health, energy, environment,
agriculture, transportation, or education).
``(h) Funding Rule.--Notwithstanding any other provision of this
title, funds made available to the Secretary for a fiscal year may not
be obligated or expended to carry out this section unless the funds
appropriated for such fiscal year to carry out this title exceeds
$65,103,000.''.
(c) Discontinuation of Certain Authorizations of Appropriations.--
Part B of the Higher Education Act of 1965 (20 U.S.C. 1130 et seq.) is
further amended by striking section 614.
SEC. 6003. REPEAL OF ASSISTANCE PROGRAM FOR INSTITUTE FOR INTERNATIONAL
PUBLIC POLICY.
Part C of title VI of the Higher Education Act of 1965 (20 U.S.C.
1131 et seq.) is repealed.
SEC. 6004. GENERAL PROVISIONS.
(a) Definitions.--Section 631(a) of the Higher Education Act of 1965
(20 U.S.C. 1132(a)) is amended--
(1) in paragraph (9), by striking ``and'' at the end;
(2) in paragraph (10), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(11) the term `community college' has the meaning given the
term `junior or community college' in section 312(f);
``(12) the term `heritage student' means a postsecondary
student who--
``(A) was born in the United States to immigrant
parents or immigrated to the United States at an early
age;
``(B) is proficient in English, but raised in a
family primarily speaking 1 or more languages of the
country of origin; and
``(C) maintains a close affinity with the family's
culture and language of origin; and
``(13) the term `minority-serving institution' means an
institution of higher education that is eligible to receive a
grant under part A or B of title III or title V.''.
(b) Minority-Serving Institutions.--Part D of title VI of the Higher
Education Act of 1965 (20 U.S.C. 1132 et seq.) is amended--
(1) by striking section 637;
(2) by redesignating section 638 as section 637; and
(3) by inserting after section 637, as so redesignated, the
following:
``SEC. 638. PRIORITY TO MINORITY-SERVING INSTITUTIONS.
``(a) Priority.--In seeking applications and awarding grants under
this title, the Secretary, may give priority to--
``(1) minority-serving institutions; or
``(2) institutions of higher education that apply for such
grants that propose significant and sustained collaborative
activities with one or more minority-serving institutions.
``(b) Technical Assistance.--The Secretary shall provide technical
assistance to minority-serving institutions to ensure maximum
distribution of grants to eligible minority-serving institutions and
among each category of such institutions.''.
(c) Authorization of Appropriations.--Part D of title VI of the
Higher Education Act of 1965 (20 U.S.C. 1132 et seq.) is further
amended by adding at the end the following new section:
``SEC. 639. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--Subject to subsection (b), there are authorized to
be appropriated to carry out this title $125,000,000 for fiscal year
2021 and each of the 5 succeeding fiscal years.
``(b) Adjustment for Inflation.--
``(1) In general.--The amount authorized to be appropriated
under subsection (a) for fiscal year 2022 and each of the 4
succeeding fiscal years shall be deemed increased by a
percentage equal to the annual adjustment percentage.
``(2) Definition.--In this subsection, the term `annual
adjustment percentage' as applied to a fiscal year, means 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 fiscal year.''.
TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
SEC. 7001. GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED.
Section 716 of the Higher Education Act of 1965 (20 U.S.C. 1135e) is
amended by striking ``2009'' and inserting ``2021''.
SEC. 7002. GRADUATE EDUCATION PROGRAMS.
(a) HBCU.--Section 723 of the Higher Education Act of 1965 (20 U.S.C.
1136a) is amended--
(1) in subsection (b)(1), by adding at the end the following:
``(S) Each institution not listed under subparagraphs
(A) through (R) that is eligible to receive funds under
part B of title III and that offers a qualified masters
degree program.'';
(2) in subsection (e), by striking ``or 724'' and inserting
``or 724, or subpart 5 or 6 of this part''; and
(3) in subsection (f)(3)--
(A) by striking ``any amount in excess of
$9,000,000'' and inserting ``after the application of
paragraph (2), the remaining amount''; and
(B) by striking ``(R)'' and inserting ``(S)''.
(b) Predominantly Black Institutions.--Section 724 of the Higher
Education Act of 1965 (20 U.S.C. 1136b) is amended--
(1) in subsection (b)(1), by adding at the end the following:
``(F) Each institution not listed in subparagraph (A)
through (E) that is eligible to receive funds under
section 318 and that offers a qualified masters degree
program.'';
(2) in subsection (e), by striking ``or 723'' and inserting
``or 723, or subpart 5 or 6''; and
(3) in subsection (f)(3), in the matter preceding
subparagraph (A)--
(A) by striking ``any amount in excess of
$2,500,000'' and inserting ``after the application of
paragraph (2), any remaining amount''; and
(B) by striking ``(E)'' and inserting ``(F)''.
(c) Enhancing Support for Asian American and Native American Pacific
Islander-serving Institutions and Tribal Colleges and Universities.--
Part A of title VII of the Higher Education Act of 1965 (20 U.S.C. 1134
et seq.) is amended--
(1) in section 731--
(A) by striking ``1 through 4'' each place it appears
(including in the section heading) and inserting ``1
through 6''; and
(B) by striking ``subpart 1, 2, 3, or 4'' and
inserting ``subparts 1 through 6'';
(2) by redesignating subpart 5 as subpart 7;
(3) by redesignating section 731 as section 735; and
(4) by inserting after subpart 4 the following:
``Subpart 5--Graduate Opportunities at Asian American and Native
American Pacific Islander Serving Institutions
``SEC. 726. GRANT PROGRAM ESTABLISHED.
``(a) In General.--Subject to the availability of funds appropriated
to carry out this subpart, the Secretary shall award grants, on a
competitive basis, to eligible institutions to enable the eligible
institutions to carry out the activities described in section 727.
``(b) Award of Grant Funds.--Of the funds appropriated to carry out
this subpart for a fiscal year, the Secretary--
``(1) shall reserve--
``(A) not less than one-third of such funds to award
grants to carry out the activities described in section
727(b); and
``(B) not less than one-third of such funds to award
grants to carry out the activities described in section
727(c); and
``(2) may use the amount of funds remaining after the
reservation required under paragraph (1) to award grants to
carry out the activities described in subsections (b) and (c)
of section 727.
``(c) Duration.--Grants under this subpart shall be awarded for a
period not to exceed five years.
``(d) Limitation on Number of Awards.--The Secretary may not award
more than one grant under this subpart in any fiscal year to any Asian
American and Native American Pacific Islander-serving institutions.
``(e) Application.--Any eligible institution may apply for a grant
under this subpart 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 Asian American
and Native American Pacific Islander and low-income students.
``(f) Interaction With Other Grant Programs.--No institution that is
eligible for and receives an award under section 326, 512, 723, or 724,
or subpart 6 of this part for a fiscal year shall be eligible to apply
for a grant, or receive grant funds, under this subpart for the same
fiscal year.
``(g) Eligible Institution Defined.--For the purposes of this
subpart, an `eligible institution' means an institution of higher
education that--
``(1) is an Asian-American and Native American Pacific
Islander-serving institution (as defined in section 320); and
``(2) offers a postbaccalaureate certificate or
postbaccalaureate degree granting program.
``SEC. 727. USE OF FUNDS.
``(a) In General.--
``(1) Activities.--An eligible institution that receives a
grant under this subpart shall use such funds to carry out--
``(A) one or more of the activities described in
subsection (b); or
``(B) one or more of the activities described in
subsection (c).
``(2) Requirement.--An eligible institution that receives a
grant under this subpart may not use such funds for activities
under both subsections (b) and (c).
``(b) Graduate Program Activities.--Grants awarded under this subpart
may be used for one or more of the following activities promoting
postbaccaulaureate opportunities for Asian American and Native American
Pacific Islander students:
``(1) Purchase, rental, or lease of scientific or laboratory
equipment for educational purposes, including instructional and
research purposes.
``(2) Construction, maintenance, renovation, and improvement
of classrooms, libraries, laboratories, and other instructional
facilities, including purchase or rental of telecommunications
technology equipment or services.
``(3) Purchase of library books, periodicals, technical and
other scientific journals, microfilm, microfiche, and other
educational materials, including telecommunications program
materials.
``(4) Support for low-income postbaccalaureate students
including outreach, academic support services and mentoring,
scholarships, fellowships, and other financial assistance to
permit the enrollment of such students in postbaccalaureate
certificate and postbaccalaureate degree granting programs.
``(5) Creating or improving facilities for Internet or other
distance education technologies, including purchase or rental
of telecommunications technology equipment or services.
``(6) Collaboration with other institutions of higher
education to expand postbaccalaureate certificate and
postbaccalaureate degree offerings.
``(7) Other activities proposed in the application submitted
pursuant to section 726 that--
``(A) contribute to carrying out the purposes of this
subpart; and
``(B) are approved by the Secretary as part of the
review and acceptance of such application.
``(c) Faculty Development Activities.--Grants awarded under this
subpart may be used for one or more of the following activities for
faculty development:
``(1) Support of faculty exchanges, faculty development,
faculty research, curriculum development, and academic
instruction.
``(2) Financial support to graduate students planning to
pursue academic careers who desire to become faculty at Asian
American and Native American Pacific Islander-serving
institutions.
``(3) Career services in preparing for an academic career and
identifying opportunities.
``(4) Developing partnerships between Asian American and
Native American Pacific Islander-serving institutions to
facilitate connections between graduate students and hiring
institutions.
``(5) Faculty recruitment efforts with an emphasis on
graduates from Asian American and Native American Pacific
Islander-serving institutions and other minority-serving
institutions.
``(6) Recruitment and retention incentives to allow Asian
American and Native American Pacific Islander-serving
institutions to make competitive offers to potential faculty,
including use of funds for student loan repayment.
``(7) Research support for early career faculty.
``(8) Other activities proposed in the application submitted
pursuant to section 726 that--
``(A) contribute to carrying out the purposes of this
subpart; and
``(B) are approved by the Secretary as part of the
review and acceptance of such application.
``SEC. 728. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out this subpart
$30,000,000 for fiscal year 2021 and each of the 5 succeeding fiscal
years.
``Subpart 6--Graduate Opportunities at Tribal Colleges and Universities
``SEC. 729. GRANT PROGRAM ESTABLISHED.
``(a) In General.--Subject to the availability of funds appropriated
to carry out this subpart, the Secretary shall award grants, on a
competitive basis, to eligible institutions to enable the eligible
institutions to carry out the activities described in section 730.
``(b) Award of Grant Funds.--Of the funds appropriated to carry out
this subpart for a fiscal year, the Secretary--
``(1) shall reserve--
``(A) not less than one-third of such funds to award
grants to carry out the activities described in section
730(b); and
``(B) not less than one-third of such funds to award
grants to carry out the activities described in section
730(c); and
``(2) may use the amount of funds remaining after the
reservation required under paragraph (1) to award grants to
carry out the activities described in subsections (b) and (c)
of section 730.
``(c) Duration.--Grants under this part shall be awarded for a period
not to exceed five years.
``(d) Limitation on Number of Awards.--The Secretary may not award
more than one grant under this subpart in any fiscal year to any Tribal
College and University.
``(e) Application.--Any eligible institution may apply for a grant
under this subpart 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 American Indian
and Alaska Native students.
``(f) Interaction With Other Grant Programs.--No institution that is
eligible for and receives an award under section 326, 512, 723, or 724,
or subpart 5 of this part for a fiscal year shall be eligible to apply
for a grant, or receive grant funds, under this section for the same
fiscal year.
``(g) Eligible Institution Defined.--For the purposes of this
subpart, an `eligible institution' means an institution of higher
education that--
``(1) is a Tribal College or University (as defined in
section 316); and
``(2) offers a postbaccalaureate certificate or
postbaccalaureate degree granting program.
``SEC. 730. USE OF FUNDS.
``(a) In General.--
``(1) Activities.--An eligible institution that receives a
grant under this subpart shall use such funds to carry out--
``(A) one or more of the activities described in
subsection (b); or
``(B) one or more of the activities described in
subsection (c).
``(2) Requirement.--An eligible institution that receives a
grant under this subpart may not use such funds for activities
under both subsections (b) and (c).
``(b) Graduate Program Activities.--Grants awarded under this subpart
may be used for one or more of the following activities promoting
postbaccalaureate opportunities for American Indian and Alaska Native
students:
``(1) Purchase, rental, or lease of scientific or laboratory
equipment for educational purposes, including instructional and
research purposes.
``(2) Construction, maintenance, renovation, and improvement
of classrooms, libraries, laboratories, and other instructional
facilities, including purchase or rental of telecommunications
technology equipment or services.
``(3) Purchase of library books, periodicals, technical and
other scientific journals, microfilm, microfiche, and other
educational materials, including telecommunications program
materials.
``(4) Support for American Indian and Alaska Native
postbaccalaureate students including outreach, academic support
services and mentoring, scholarships, fellowships, and other
financial assistance to permit the enrollment of such students
in postbaccalaureate certificate and postbaccalaureate degree
granting programs.
``(5) Creating or improving facilities for Internet or other
distance education technologies, including purchase or rental
of telecommunications technology equipment or services.
``(6) Collaboration with other institutions of higher
education to expand postbaccalaureate certificate and
postbaccalaureate degree offerings.
``(7) Other activities proposed in the application submitted
pursuant to section 729 that--
``(A) contribute to carrying out the purposes of this
subpart; and
``(B) are approved by the Secretary as part of the
review and acceptance of such application.
``(c) Faculty Development Activities.--Grants awarded under this
subpart may be used for one or more of the following activities for
faculty development:
``(1) Support of faculty exchanges, faculty development,
faculty research, curriculum development, and academic
instruction.
``(2) Financial support to graduate students planning to
pursue academic careers who desire to become faculty at Tribal
Colleges and Universities.
``(3) Career services in preparing for an academic career and
identifying opportunities.
``(4) Developing partnerships between Tribal Colleges and
Universities to facilitate connections between graduate
students and hiring institutions.
``(5) Faculty recruitment efforts with an emphasis on
graduates from Tribal Colleges and Universities and other
minority-serving institutions.
``(6) Recruitment and retention incentives to allow Tribal
Colleges and Universities to make competitive offers to
potential faculty, including use of funds for student loan
repayment.
``(7) Research support for early career faculty.
``(8) Other activities proposed in the application submitted
pursuant to section 729 that--
``(A) contribute to carrying out the purposes of this
subpart; and
``(B) are approved by the Secretary as part of the
review and acceptance of such application.
``SEC. 731. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out this subpart
$5,000,000 for fiscal year 2021 and each of the 5 succeeding fiscal
years.''.
SEC. 7003. FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION.
Section 745 of the Higher Education Act of 1965 (20 U.S.C. 1138d) is
amended by striking ``2009'' and inserting ``2021''.
SEC. 7004. MINORITY-SERVING INSTITUTIONS INNOVATION FUND.
Title VII of the Higher Education Act of 1965 (20 U.S.C. 1133 et
seq.) is amended by inserting after part B the following:
``PART C--FUNDING INNOVATIONS AT MINORITY-SERVING INSTITUTIONS
``SEC. 751. PURPOSE.
``It is the purpose of this part to assist minority-serving
institutions in planning, developing, implementing, validating, and
replicating innovations that provide solutions to persistent challenges
in enabling economically and educationally disadvantaged students to
enroll in, persist through, and graduate from college, including
innovations designed to--
``(1) increase the successful recruitment at minority-serving
institutions of--
``(A) students from low-income families of all races;
``(B) students who begin college when over 21 years
of age; and
``(C) military-affiliated students;
``(2) increase the rate at which students enrolled in
minority-serving institutions make adequate or accelerated
progress toward graduation, and successfully graduate from such
institutions;
``(3) increase the number of students pursuing and completing
degrees in science, technology, engineering, and mathematics at
minority-serving institutions and pursuing graduate work in
such fields, including through the establishment of innovation
ecosystems on the campuses of such institutions;
``(4) redesign course offerings and other instructional
strategies at minority-serving institutions to improve student
outcomes and reduce postsecondary education costs;
``(5) enhance the quality and number of traditional and
alternative route teacher preparation programs offered by
minority-serving institutions;
``(6) expand the effective use of technology at minority-
serving institutions; and
``(7) strengthen postgraduate employment outcomes for
students enrolled in minority-serving institutions.
``SEC. 752. DEFINITION.
``In this part:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) a minority-serving institution; or
``(B) a consortium of a minority-serving institution
and--
``(i) one or more other institutions of
higher education;
``(ii) a private nonprofit organization;
``(iii) a local educational agency;
``(iv) a high school that--
``(I) receives funding under part A
of title I of the Elementary and
Secondary Education Act of 1965 (20
U.S.C. 6311 et seq.); and
``(II) has been identified for
comprehensive support and improvement
under section 1111(c)(4)(D)(i) of such
Act (20 U.S.C. 6311(c)(4)(D)(i)); or
``(v) any combination of the entities
described in clauses (i) through (iv).
``(2) Minority serving institution.--The term `minority
serving institution' means an institution of higher education
described in paragraph (1), (2), (3), (4), (5), (6), or (7) of
section 371(a).
``SEC. 753. GRANTS AUTHORIZED.
``(a) In General.--Except as provided in subsection (b)(2), with the
funds made available for this part under section 757, the Secretary
shall make planning and implementation grants, as described in
subsections (b) and (c), to eligible entities to enable such entities
to plan for the implementation of, in the case of a planning grant, and
implement, in the case of an implementation grant, innovations
described in section 751 and to support the planning, development,
implementation, validation, scaling up, and replication of such
innovations.
``(b) Planning Grants.--
``(1) In general.--Except as provided in paragraph (2), with
the funds made available under section 757 for a fiscal year,
the Secretary shall use not more than 5 percent or $42,500,000
(whichever is greater) to award planning grants to enable
eligible entities to plan, design, and develop innovations
described in section 751.
``(2) Type of institution.--Planning grants shall be awarded
to minority-serving institutions in proportion to the
allocations made in subparagraphs (A) through (G) of section
757(1).
``(3) Order of consideration.--Subject to paragraph (2) and
the priority described in section 755(a), planning grants shall
be awarded to eligible entities satisfying the application
requirements under section 754 in the order in which received
by the Secretary.
``(4) Duration.--A planning grant authorized under this
subsection shall be for the duration of 1 year.
``(5) Grant amounts.--Each planning grant authorized under
this subsection shall be in an amount that is not more than
$150,000.
``(c) Implementation Grants.--
``(1) In general.--With funds made available for this part
under section 757, the Secretary shall award implementation
grants on a competitive basis to enable eligible entities to
further develop, pilot, field-test, implement, document,
validate, and, as applicable, scale up and replicate,
innovations described in section 751.
``(2) Duration.--An implementation grant authorized under
this subsection shall be for a duration of 5 years, except that
the Secretary may not continue providing funds under the grant
after year 3 of the grant period unless the eligible entity
demonstrates that the entity has achieved satisfactory progress
toward carrying out the educational innovations, activities,
and projects described in their application pursuant to section
754(d), as determined by the Secretary.
``(3) Grant amount.--Each implementation grant authorized
under this subsection shall be in an amount sufficient to
enable the eligible entity to achieve the purposes of its
proposed activities and projects, but shall not exceed
$10,000,000.
``(d) Special Rules for Consortiums.--
``(1) Fiscal agent.--
``(A) In general.--In the case of an eligible entity
applying for a grant under this part as a consortium,
each member of the consortium shall agree on 1 such
member of such eligibility entity to serve as a fiscal
agent of such entity.
``(B) Responsibilities.--The fiscal agent of an
eligible entity, as described in subparagraph (A),
shall act on behalf of such entity in performing the
financial duties of such entity under this part.
``(C) Written agreement.--The agreement described in
subparagraph (A) shall be in writing and signed by each
member of the consortium.
``(2) Subgrants.--In the case of an eligible entity applying
for a grant under this part as a consortium, the fiscal agent
for such entity (as described in paragraph (1)) may use the
funds provided by the grant to make subgrants to members of the
consortium.
``SEC. 754. APPLICATIONS.
``(a) In General.--An eligible entity desiring to receive a grant
under this part shall submit an application to the Secretary at such
time, in such manner, and containing such information as the Secretary
may reasonably require.
``(b) Consortium Entities.--An application under this section which
is submitted by an eligible entity applying as a consortium shall
include the written agreement described in section 753(d)(1)(C).
``(c) Planning Grants.--The Secretary shall ensure that the
application requirements under this section for a planning grant
authorized under section 753(b) include, in addition to the requirement
in subsection (b) (if applicable), only those minimal requirements that
are necessary to review the proposed process of an eligible entity for
the planning, design, and development of one or more of the innovations
described in section 751.
``(d) Implementation Grants.--An application under this section for
an innovation grant authorized under section 753(c) shall include, in
addition to the requirement under subsection (b) (if applicable),
descriptions of--
``(1) each innovation described in section 751 that the
eligible entity would implement using the funds made available
by such grant, including, as applicable, a description of the
evidence base supporting such innovation;
``(2) how each such innovation will address the purpose of
this part, as described in section 751, and how each such
innovation will further the institutional or organizational
mission of the minority-serving institution that is part of the
eligible entity;
``(3) the specific activities that the eligible entity will
carry out with funds made available by such grant, including,
in the case of an eligible entity applying as a consortium, a
description of the activities that each member of the
consortium will carry out and a description of the capacity of
each such member to carry out those activities;
``(4) the performance measures that the eligible entity will
use to track its progress in implementing each such innovation,
including a description of how the entity will implement those
performance measures and use information on performance to make
adjustments and improvements to its implementation activities,
as needed, over the course of the grant period;
``(5) how the eligible entity will provide for an independent
evaluation of the implementation and impact of the projects
funded by such grant, including--
``(A) an interim report (evaluating the progress made
in the first 3 years of the grant); and
``(B) a final report (completed at the end of the
grant period); and
``(6) the plan of the eligible entity for continuing each
proposed innovation after the grant has ended.
``SEC. 755. PRIORITY.
``(a) Planning Grants.--In awarding planning grants under this part,
the Secretary shall give priority to applications that were submitted
with respect to the prior award year, but did not receive a planning
grant due to insufficient funds.
``(b) Implementation Grants.--In awarding implementation grants under
this part, the Secretary shall give--
``(1) first priority to applications for programs at
minority-serving institutions that have not previously received
an implementation grant under this part; and
``(2) second priority to applications that address issues of
major national need, including--
``(A) innovative partnerships between minority-
serving institutions and local educational agencies
that are designed to increase the enrollment of
historically underrepresented populations in higher
education;
``(B) educational innovations designed to increase
the rate of postsecondary degree attainment for
populations within minority groups that have low
relative rates of postsecondary degree attainment;
``(C) educational innovations that support programs
and initiatives at minority-serving institutions to
enhance undergraduate and graduate programs in science,
technology, engineering, and mathematics;
``(D) innovative partnerships between minority-
serving institutions and other organizations to
establish innovation ecosystems in support of economic
development, entrepreneurship, and the
commercialization of technology supported by research
funded through this grant;
``(E) educational innovations that enhance the
quality and number of traditional and alternative route
teacher preparation programs at minority-serving
institutions to enable teachers to be highly effective
in the classroom and to enable such programs to meet
the demands for diversity and accountability in teacher
education; and
``(F) educational innovations that strengthen
postgraduate employment outcomes of minority-serving
institutions through the implementation of
comprehensive and strategic career pathways for
students.
``SEC. 756. USES OF FUNDS.
``(a) Planning Grants.--An eligible entity receiving a planning grant
under section 753(b) shall use funds made available by such grant to
conduct an institutional planning process that includes--
``(1) an assessment of the needs of the minority-serving
institution;
``(2) research on educational innovations described in
section 751 that will meet the needs described in paragraph
(1);
``(3) the selection of one or more such educational
innovations for implementation;
``(4) an assessment of the capacity of the minority-serving
institution to implement such educational innovation; and
``(5) activities to further develop such capacity.
``(b) Implementation Grants.--An eligible entity receiving an
implementation grant under section 753(c) shall use the funds made
available by such grant to further develop, pilot, field-test,
implement, document, validate, and, as applicable, scale up, and
replicate innovations described in section 751, such as innovations
designed to--
``(1) create a college-bound culture at secondary schools
(including efforts targeting high-achieving students from low-
income families) through activities undertaken in partnership
with local educational agencies and nonprofit organizations,
such as--
``(A) activities that promote postsecondary school
awareness, including recruitment, organizing campus
visits, and providing assistance with entrance and
financial aid application completion; and
``(B) postsecondary school preparation efforts such
as--
``(i) aligning high school coursework and
high school graduation requirements with the
requirements for entrance into credit-bearing
coursework at 4-year institutions of higher
education;
``(ii) early identification and support for
students at risk of not graduating from high
school, or at risk of requiring remediation
upon enrolling in postsecondary education; and
``(iii) dual-enrollment programs;
``(2) improve student achievement, such as through activities
designed to increase the number or percentage of students who
successfully complete developmental or remedial coursework
(which may be accomplished through the evidence-based redesign
of such coursework) and pursue and succeed in postsecondary
studies;
``(3) increase the number of minority males who attain a
postsecondary degree, such as through evidence-based
interventions that integrate academic advising with social and
cultural supports and assistance with job placement;
``(4) increase the number or percentage of students who make
satisfactory or accelerated progress toward graduation from
postsecondary school and the number or percentage who graduate
from postsecondary school on time, such as through the
provision of comprehensive academic and nonacademic student
support services.
``(5) activities to promote a positive climate on campuses of
institutions of higher education and to increase the sense of
belonging among eligible students, including through first year
support programs such as mentoring and peer networks and
advisories;
``(6) increase the number or percentage of students,
particularly students who are members of historically
underrepresented populations, who enroll in science,
technology, engineering, and mathematics courses, graduate with
degrees in such fields, and pursue advanced studies in such
fields;
``(7) develop partnerships between minority-serving
institutions and other organizations to establish innovation
ecosystems in support of economic development,
entrepreneurship, and the commercialization of technology
supported by funded research;
``(8) implement evidence-based improvements to courses,
particularly high-enrollment courses, to improve student
outcomes and reduce education costs for students, including
costs of remedial courses;
``(9) enhance the quality and number of traditional and
alternative route teacher and school leader preparation
programs at minority-serving institutions that enable graduates
to be profession-ready and highly effective in the classroom
and to enable such programs to meet the demands for diversity
and accountability in educator preparation;
``(10) expand the effective use of technology in higher
education, such as through collaboration between institutions
on implementing technology-enabled delivery models (including
hybrid models) or through the use of open educational resources
and digital content;
``(11) strengthen postgraduate employment outcomes through
the implementation of comprehensive and strategic career
pathways for students, which may include aligning curricula
with workforce needs, experiential learning, integration of
career services, and developing partnerships with employers and
business organizations; and
``(12) provide a continuum of solutions by incorporating
activities that address multiple objectives described in
paragraphs (1) through (11).
``SEC. 757. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out activities
under this part $850,000,000 for fiscal year 2021 and each of the 5
succeeding fiscal years, to be allocated as follows:
``(1) for institutions described in paragraph (1) of section
371(a), $224,987,083;
``(2) for institutions described in paragraph (2) of section
371(a), $214,446,428;
``(3) for institutions described in paragraph (3) of section
371(a), $78,056,743;
``(4) for institutions described in paragraph (4) of section
371(a), $20,662,079;
``(5) for institutions described in paragraph (5) of section
371(a), $130,859,834;
``(6) for institutions described in paragraph (6) of section
371(a), $122,305,533; and
``(7) for institutions described in paragraph (7) of section
371(a), $58,682,300.''.
SEC. 7005. DEFINITIONS.
Section 760 of the Higher Education Act of 1965 (20 U.S.C. 1140) is
amended to read as follows:
``SEC. 760. DEFINITIONS.
``In this part:
``(1) Comprehensive transition and postsecondary program for
students with intellectual disabilities.--The term
`comprehensive transition and postsecondary program for
students with intellectual disabilities' means a program that
leads to a degree, certificate, or recognized postsecondary
credential issued by an institution of higher education that
meets each of the following requirements:
``(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 and competitive
integrated employment.
``(C) Includes student advising and a program of
study.
``(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 and career
development components and occurring through one or
more of the following activities:
``(i) Regular enrollment in credit-bearing
courses with students without disabilities that
are offered by the institution.
``(ii) Auditing or participating in courses
with students without disabilities that are
offered by the institution and for which the
student does not receive regular academic
credit.
``(iii) Enrollment in noncredit-bearing,
nondegree courses with students without
disabilities.
``(iv) Participation in internships,
registered apprenticeships, or work-based
experiences in competitive integrated settings
for a semester, or multiple semesters.
``(E) Requires students with intellectual
disabilities to be socially and academically integrated
with students without disabilities to the maximum
extent practicable.
``(F) Does not require the work components (ii) to
occur each semester.
``(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) Institution of higher education.--The term `institution
of higher education' has the meaning given such term in section
101.
``(4) Office of accessibility.--The term `Office of
Accessibility' has the meaning given to the office of
disability services of the institution or equivalent office.
``(5) Recognized postsecondary credential.--The term
`recognized postsecondary credential' has the meaning given the
term in section 101 of the Workforce Innovation and Opportunity
Act.
``(6) 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;
``(B) who is currently, or was formerly, eligible for
a free appropriate public education under the
Individuals with Disabilities Education Act (20 U.S.C.
1400 et seq.); and
``(C) or, in the case of a student who has not
currently or formerly been found eligible for a free
appropriate education under the Individuals with
Disabilities Education Act, or a student who has not
previously been found eligible as a student with an
intellectual disability under IDEA, documentation
establishing that the student has an intellectual
disability, such as--
``(i) a documented comprehensive and
individualized psycho-educational evaluation
and diagnosis of an intellectual disability by
a psychologist or other qualified professional;
or
``(ii) a record of the disability from a
local or State educational agency, or
government agency, such as the Social Security
Administration or a vocational rehabilitation
agency, that identifies the intellectual
disability.''.
SEC. 7006. SUPPORTING POSTSECONDARY FACULTY, STAFF, AND ADMINISTRATORS
IN PROVIDING ACCESSIBLE EDUCATION.
(a) Grants.--Section 762 of the Higher Education Act of 1965 (20
U.S.C. 1140b) is amended to read as follows:
``SEC. 762. GRANTS AUTHORIZED.
``(a) Competitive Grants Authorized to Support Postsecondary Faculty,
Staff, and Administrators in Providing an Accessible Education.--
``(1) In general.--From amounts appropriated under section
765C, the Secretary shall award grants, 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 5 grants shall be awarded to
institutions of higher education that provide professional
development and technical assistance in order to improve access
to, and completion of, postsecondary education for students,
including students with disabilities.
``(b) Duration; Activities.--
``(1) Duration.--A grant under this section shall be awarded
for a period of 5 years.
``(2) Authorized activities.--A grant awarded under this
section shall be used to carry out one or more of the following
activities:
``(A) Teaching methods and strategies.--The
development and implementation of training to provide
innovative, effective, and evidence-based 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 (including
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) Implementing accommodations.--The development
and implementation of training to provide postsecondary
faculty, staff, and administrators methods and
strategies of providing appropriate accommodations
consistent with the principles of universal design for
learning for students with disabilities, including
descriptions of legal obligations of the institution of
higher education to provide such accommodations.
``(C) Effective transition practices.--The
development and implementation of innovative,
effective, and evidence-based teaching methods and
strategies to provide postsecondary faculty, staff, and
administrators with the skills and supports necessary
to ensure the successful and smooth transition of
students with disabilities from secondary school to
postsecondary education. The teaching methods and
strategies may include supporting students in the
development of self-advocacy skills to improve
transition to, and completion of, postsecondary
education.
``(D) Distance learning.--The development and
implementation of training to provide innovative,
effective, and evidence-based teaching methods and
strategies to enable postsecondary faculty, staff, and
administrators to provide accessible distance education
programs or classes that would enhance the access of
students (including students with disabilities) to
postsecondary education, including the use of
accessible curricula and electronic communication for
instruction and advising that meet the requirements of
section 508 of the Rehabilitation Act of 1973 (29
U.S.C. 794d).
``(E) Career pathway guidance.--The development and
implementation of effective and evidence-based teaching
methods and strategies to provide postsecondary
faculty, staff, and administrators with the ability to
advise students with disabilities with respect to their
chosen career pathway, which shall include at least one
of the following:
``(i) Supporting internships,
apprenticeships, or work-based learning
opportunities.
``(ii) Counseling on coursework to meet the
recognized educational credential or recognized
postsecondary credential appropriate for the
field chosen.
``(iii) Developing self-advocacy skills to
advocate for appropriate accommodations once in
the workplace.
``(iv) Support with selecting a career
pathway that leads to competitive, integrated
employment.
``(3) Mandatory evaluation and dissemination.--An institution
of higher education awarded a grant under this section shall
evaluate and disseminate to other institutions of higher
education the information obtained through the activities
described in subparagraphs (A) through (E) of paragraph (2).
``(c) Considerations in Making Awards.--In awarding grants,
contracts, or cooperative agreements under this section, 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.
``(d) Reports.--
``(1) Initial report.--Not later than one year after the date
of enactment of the College Affordability Act, the Secretary
shall prepare and submit to the authorizing committees, and
make available to the public, a report on all projects awarded
grants under this part, including a review of the activities
and program performance of such projects based on existing
information as of the date of the report.
``(2) Subsequent report.--Not later than five years after the
date of the first award of a grant under this section after the
date of enactment of the College Affordability 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 projects authorized under subsection (b); and
``(B) provides guidance and recommendations on how
effective projects can be replicated.''.
(b) Applications.--Section 763 of the Higher Education Act of 1965
(20 U.S.C. 1140c) is amended to read as follows:
``SEC. 763. APPLICATIONS.
``Each institution of higher education desiring to receive a grant
under section 762 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
section 762(b) that the institution proposes to carry out, and
how such institution plans to conduct such activities in order
to further the purposes of this subpart;
``(2) a description of how the institution consulted with a
broad range of people including students with disabilities and
individuals with expertise in disability supports or special
education 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 of accessibility; 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. 7007. OFFICE OF ACCESSIBILITY.
Subpart 1 of part D of title VII of the Higher Education Act of 1965
(20 U.S.C. 1140a et seq.) is amended--
(1) by redesignating section 765 as section 765C;
(2) by inserting after section 764 the following:
``SEC. 765A. OFFICE OF ACCESSIBILITY.
``(a) Establishment.--Each institution of higher education shall
establish an office of accessibility to develop and implement policies
to support students who enter postsecondary education with disabilities
and students who acquire a disability while enrolled in an institution
of higher education.
``(b) Duties.--Each office of accessibility shall--
``(1) inform students, during student orientation, about
services provided at the institution of higher education, and
continually update such information through the accessibility
office's website and other communications to improve
accessibility of such services;
``(2) provide information to students regarding
accommodations and modifications provided by the institution of
higher education with respect to internships, practicums, work-
based learning, apprenticeships, or other work-related
environments that--
``(A) the student may engage in through courses; or
``(B) are necessary for completion of a recognized
educational credential or recognized postsecondary
credential;
``(3) provide information to students regarding their legal
rights under the Americans with Disabilities Act (42 U.S.C.
12101 et seq.) and section 504 of the Rehabilitation Act (29
U.S.C. 794); and
``(4) in order to provide appropriate accommodations to
students with disabilities, carry out the following:
``(A) Adopt policies that, at a minimum, make any of
the following documentation submitted by an individual
sufficient to establish that such individual is an
individual with a disability:
``(i) Documentation that the individual has
had an individualized education program (in
this clause referred to as an `IEP') in
accordance with section 614(d) of the
Individuals with Disabilities Education Act (20
U.S.C. 1414(d)), including an IEP that may not
be current on the date of the determination
that the individual has a disability. The
office of accessibility may ask for additional
documentation from an individual who had an IEP
but who was subsequently evaluated and
determined to be ineligible for services under
the Individuals with Disabilities Education Act
(20 U.S.C. 1400 et seq.), including an
individual determined to be ineligible during
elementary school.
``(ii) Documentation describing services or
accommodations provided to the individual
pursuant to section 504 of the Rehabilitation
Act of 1973 (29 U.S.C. 794) (commonly referred
to as a `Section 504 plan').
``(iii) A plan or record of service for the
individual from a private school, a local
educational agency, a State educational agency,
or an institution of higher education provided
in accordance with the Americans with
Disabilities Act of 1990 (42 U.S.C. 12101 et
seq.).
``(iv) A record or evaluation from a relevant
licensed professional finding that the
individual has a disability.
``(v) A plan or record of disability from
another institution of higher education.
``(vi) Documentation of a disability due to
service in the uniformed services, as defined
in section 484C(a).
``(B) Adopt policies that are transparent and
explicit regarding the process by which the institution
determines eligibility for accommodations.
``(C) Disseminate the information described in
subparagraph (B) to students, parents, and faculty--
``(i) in an accessible format;
``(ii) during student orientation; and
``(iii) by making such information readily
available on a public website of the
institution.
``(D) Provide accommodations to students with mental
health disabilities, and students with disabilities
associated with pregnancy.
``(E) Provide outreach and consult with students in
inclusive higher education.
``SEC. 765B. COMPETITIVE GRANT FOR INNOVATION AND ACCESSIBILITY.
``(a) Grants Authorized.--
``(1) In general.--From amounts appropriated under section
765C, the Secretary may award grants on a competitive basis to
institutions of higher education to enable the institutions to
carry out the activities described under subsection (c).
``(2) Duration.--A grant under this section shall be awarded
for a period of 5 years.
``(3) Consideration in making awards.--In awarding grants
under this section, the Secretary shall consider the following:
``(A) Providing an equitable geographic distribution
of such awards.
``(B) Ensuring that the activities to be assisted are
developed for a range of types and sizes of
institutions of higher education.
``(b) Application.--Each institution of higher education desiring to
receive 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
include--
``(1) a description of how the institution will carry out the
activities under subsection (c);
``(2) a description of the consultation the institution has
had with a broad range of people within the institution,
including students with disabilities and individuals with
expertise in disability supports or special education, in
developing the information under paragraph (1);
``(3) a plan for the sustainability of the program after the
end of the grant period; and
``(4) a written business plan for revenue and expenditures to
be provided to the Department under subsection (d).
``(c) Activities.--A grant awarded under this section shall be used
to--
``(1) develop and implement across the institution of higher
education, a universal design for learning framework for course
design and instructional materials to improve campus-wide
accessibility to instruction, materials, and the learning
environment; or
``(2) develop or improve distance education courses
consistent with the principles of universal design for learning
to improve accessibility of instruction and materials.
``(d) Reports.--
``(1) Grant recipient reports.--An institution of higher
education awarded a grant under this section shall evaluate and
disseminate to other institutions of higher education, the
information obtained through the activities described in
subsection (c).
``(2) Initial report by secretary.--Not later than one year
after the date of the enactment of this section, the Secretary
shall prepare and submit to the authorizing committees, and
make available to the public, a report on all projects awarded
grants under this section, including a review of the activities
and program performance of such projects based on existing
information as of the date of the report.
``(3) Final report by secretary.--Not later than 6 years
after the date of the first award of a grant under this
section, 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 projects authorized under this section; and
``(B) provides guidance and recommendations on how
effective projects can be replicated.''; and
(3) by amending section 765C, as so redesignated, by striking
``2009'' and inserting ``2021''.
SEC. 7008. POSTSECONDARY PROGRAMS FOR STUDENTS WITH INTELLECTUAL
DISABILITIES.
(a) Purpose.--Section 766 of the Higher Education Act of 1965 (20
U.S.C. 1140f) is amended to read as follows:
``SEC. 766. PURPOSE.
``It is the purpose of this subpart to support inclusive programs
that promote the successful transition of students with intellectual
disabilities into higher education and the earning of a recognized
educational credential or recognized postsecondary credential issued by
the institution of higher education.''.
(b) Programs for Students With Intellectual Disabilities.--Section
767 of the Higher Education Act of 1965 (20 U.S.C. 1140g) is amended to
read as follows:
``SEC. 767. INCLUSIVE HIGHER EDUCATION PROGRAMS FOR STUDENTS WITH
INTELLECTUAL DISABILITIES.
``(a) Grants Authorized.--
``(1) In general.--From amounts appropriated under section
769(a), the Secretary shall annually award grants, on a
competitive basis, to institutions of higher education (or
consortia of three or more institutions of higher education),
to enable such institutions or consortia to create or expand a
comprehensive transition and postsecondary education program
for students with intellectual disabilities.
``(2) Eligibility and appropriations limits.--
``(A) Relation to other grants.--An institution of
higher education that received a grant under this
section before the date of the enactment of the College
Affordability Act may not receive an additional grant
under this section unless--
``(i) the institution receives a grant as
part of a consortium of three or more
institutions of higher education; or
``(ii) the grant term of such preceding grant
has ended.
``(B) Limitation on amounts.--
``(i) Institution of higher education.--A
grant under this section made to an institution
of higher education may not be in an amount
greater than $300,000.
``(ii) Consortium.--A grant under this
section made to a consortia of institutions of
higher education may not be in an amount
greater than $500,000.
``(3) Administration.--The program under this section shall
be administered by the office in the Department that
administers other postsecondary education programs in
collaboration with the Office of Postsecondary Education and
the Office of Special Education and Rehabilitative Services of
the Department of Education.
``(4) Duration of grants.--A grant under this section shall
be awarded for a period of 5 years.
``(b) Application.--An institution of higher education or a
consortium desiring a grant under this section shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require.
``(c) Award Basis.--In awarding grants under this section, the
Secretary shall--
``(1) provide for an equitable geographic distribution of
such grants;
``(2) to the extent possible, provide for an equitable
distribution of such grants between 4-year institutions of
higher education and 2-year institutions of higher education,
including community colleges;
``(3) provide grant funds for high-quality, inclusive higher
education programs for students with intellectual disabilities,
herein after referred to as inclusive higher education
programs, that will serve areas that are underserved by
programs of this type;
``(4) in the case of an institution of higher education that
provides institutionally owned or operated housing for students
attending the institution, award grants only to such
institutions that integrate students with intellectual
disabilities into the housing offered to students without
disabilities or to institutions that provide such integrated
housing through providing supports to students directly or
through partnerships with other organizations;
``(5) provide grant funds to encourage involvement of
students attending institutions of higher education in the
fields of special education, general education, vocational
rehabilitation, assistive technology, or related fields in the
program;
``(6) select applications that--
``(A) demonstrate an existing comprehensive
transition and postsecondary education program for
students with intellectual disabilities that is title
IV eligible; or
``(B) agree to establish such a program; and
``(7) give preference to applications submitted under
subsection (b) that agree to incorporate into the inclusive
higher education 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) Applications that represent geographically
underserved States.
``(d) Use of Funds; Requirements.--An institution of higher education
or consortium receiving a grant under this section shall--
``(1) use the grant funds to establish an inclusive higher
education program for students with intellectual disabilities
that--
``(A) serves students with intellectual disabilities;
``(B) 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
regular postsecondary program, including access to
health and mental health services, offices of
accessibility, and graduation ceremonies;
``(C) with respect to the students with intellectual
disabilities participating in the program, provides a
focus on--
``(i) academic and career development;
``(ii) socialization and inclusion with the
general student population;
``(iii) independent living skills, including
self-advocacy skills; and
``(iv) integrated work experiences and career
skills that lead to competitive integrated
employment;
``(D) integrates person-centered planning in the
development of the course of study for each student
with an intellectual disability participating in the
program;
``(E) plans for the sustainability of the program
after the end of the grant period, with a written
business plan for revenue and expenditures to be
provided to the Department by the end of year 3; and
``(F) awards a degree, certificate, or recognized
postsecondary credential for students with intellectual
disabilities upon the completion of the program;
``(2) in the case of an institution of higher education that
provides institutionally owned or operated housing for students
attending the institution or integrated housing through
providing supports to students directly or through partnerships
with other organizations, provide for the integration of
students with intellectual disabilities into housing offered to
students without disabilities;
``(3) participate with the coordinating center established
under section 777(b) in the evaluation of the program,
including by regularly submitting data on experiences and
outcomes of individual students participating in the program;
and
``(4) partner with one or more local educational agencies to
support students with intellectual disabilities participating
in the program who are eligible for special education and
related services under the Individuals with Disabilities
Education Act (20 U.S.C. 1400 et seq.), including the use of
funds available under part B of such Act (20 U.S.C. 1411 et
seq.) to support the participation of such students in the
program.
``(e) Matching Requirement.--An institution of higher education (or
consortium) that receives a grant under this section shall provide
matching funds toward the cost of the inclusive higher education
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) Data Collection and Transmission.--
``(1) In general.--An institution or consortium receiving a
grant under this section shall collect and transmit to the
coordinating center established under section 777(b) on an
annual basis for each student who is enrolled in the program,
student-level information related to the experiences and
outcomes of students who participate in the inclusive higher
education program for students with intellectual disabilities.
``(2) Longitudinal data.--Each grantee shall collect
longitudinal outcome data from each student participating in
the program and transmit such data to the coordinating center
established under section 777(b). Such longitudinal data shall
be collected for every student each year for 5 years after the
student graduates from, or otherwise exits, the program.
``(3) Data to be collected.--The program-level information
and data and student-level information and data to be collected
under this subsection shall include--
``(A) the number and type of postsecondary education
courses taken and completed by the student;
``(B) academic outcomes;
``(C) competitive, integrated employment outcomes;
``(D) independent living outcomes; and
``(E) social outcomes, including community
integration.
``(4) Disaggregation.--The information determined under
paragraph (3) shall be disaggregated by race, gender,
socioeconomic status, Federal Pell Grant eligibility status,
status as a first generation college student, and veteran or
active duty status.
``(g) Report.--Not later than 5 years after the date of the first
grant awarded under this section, the Secretary shall prepare and
disseminate a report to the authorizing committees and to the public
that--
``(1) reviews the activities of the inclusive higher
education programs for students with intellectual disabilities
funded under this section; and
``(2) provides guidance and recommendations on how effective
programs can be replicated.''.
(c) Authorization of Appropriations.--Section 769(a) of the Higher
Education Act of 1965 (20 U.S.C. 1140i) is amended by striking ``2009''
and inserting ``2021''.
SEC. 7009. NATIONAL TECHNICAL ASSISTANCE CENTER AND NATIONAL
COORDINATING CENTER FOR INCLUSION OF STUDENTS WITH
INTELLECTUAL DISABILITIES.
(a) In General.--Section 777 of the Higher Education Act of 1965 (20
U.S.C. 1140q) is amended to read as follows:
``SEC. 777. NATIONAL TECHNICAL ASSISTANCE CENTER AND NATIONAL
COORDINATING CENTER FOR INCLUSION OF STUDENTS WITH
INTELLECTUAL DISABILITIES.
``(a) National Technical Assistance Center.--
``(1) In general.--From amounts appropriated under paragraph
(5), 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
Technical Assistance Center. The National Technical Assistance
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 in
consultation with the Office of Special Education and
Rehabilitative Services.
``(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) transitioning students with disabilities from
secondary school to postsecondary education;
``(B) supporting students with disabilities in
postsecondary education;
``(C) technical knowledge necessary for the
dissemination of information in accessible formats; and
``(D) working with diverse types of institutions of
higher education, including community colleges.
``(4) Duties.--The duties of the National Technical
Assistance Center shall include the following:
``(A) Assistance to students and families.--The
National Technical Assistance 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 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 Technical Assistance Center
shall provide information and technical assistance to
faculty, staff, and administrators of institutions of
higher education to improve the services provided to,
the accommodations for, the retention rates of, and the
completion rates of, students with disabilities in
higher education settings, which may include--
``(i) collection and dissemination of best
and promising practices and materials for
accommodating and supporting students with
disabilities, including practices and materials
supported by the grants, contracts, or
cooperative agreements authorized under
subparts 1, 2, and 3;
``(ii) development and provision of training
modules for higher education faculty on
exemplary practices for accommodating and
supporting postsecondary students with
disabilities across a range of academic fields,
which may include universal design for learning
and practices supported by the grants,
contracts, or cooperative agreements authorized
under subparts 1, 2, and 3; and
``(iii) development of technology-based
tutorials for higher education faculty and
staff, including new faculty and graduate
students, on best and promising practices
related to support and retention of students
with disabilities in postsecondary education.
``(C) Information collection and dissemination.--The
National Technical Assistance 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
Technical Assistance 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 Technical
Assistance Center, and every two years thereafter, the
National Technical Assistance 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 Technical Assistance Center, the National
Technical Assistance Center shall consider the
expertise and experience of prospective employees in
providing training and technical assistance to
practitioners.
``(5) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $10,000,000.
``(b) The National Coordinating Center for Inclusion of Students With
Intellectual Disabilities.--
``(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 inclusive higher education
programs for students with intellectual disabilities;
and
``(D) evaluation and technical assistance.
``(2) In general.--From amounts appropriated under paragraph
(7), 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 higher education 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, including
systematic collection of data on the experiences and
outcomes of individuals with intellectual disabilities.
``(3) Administration.--The program under this subsection
shall be administered by the Office of Postsecondary Education,
in collaboration with the Office of Special Education and
Rehabilitative Services.
``(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 inclusive higher education programs and
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) evaluate such programs using qualitative and
quantitative methodologies for measuring program
strengths in the areas of academic access, academic
enrichment, socialization, competitive integrated
employment, attainment of a degree, certificate, or
recognized postsecondary credential, and independent
living;
``(D) evaluate participant progress by creating and
maintaining a database of student-level information and
data related to the experiences and outcomes of youth
who participate in each inclusive higher education
program that receives a grant under this subpart;
``(E) create and maintain a mechanism for continuing
to collect outcome information from students who
participated in inclusive higher education programs
that were developed in previous grant award cycles;
``(F) assist recipients of a grant under this subpart
in efforts to award a degree, certificate, or
recognized postsecondary credential;
``(G) create and maintain a database of student and
program level data reflecting implementation of the
inclusive higher education program that receives a
grant under this subpart;
``(H) create and maintain a mechanism to consolidate
follow up data on student outcomes collected by
inclusive higher education programs funded through
previous grant cycles;
``(I) assist recipients of grants under subpart 2 in
efforts to award a degree, certificate, or recognized
postsecondary credential to students with intellectual
disabilities upon the completion of such programs;
``(J) identify model memoranda of agreement for use
between or among institutions of higher education and
State and local agencies providing funding for such
programs;
``(K) develop recommendations for the necessary
components of such programs, such as--
``(i) academic, career and technical, social,
and independent living skills;
``(ii) evaluation of student progress;
``(iii) program administration and
evaluation;
``(iv) student eligibility;
``(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; and
``(vi) access to student housing for students
participating in the inclusive higher education
programs, including accommodations and services
that support independent living;
``(L) review and analyze--
``(i) the impact of State and Federal policy
on inclusive higher education legislation; and
``(ii) funding streams for such programs;
``(M) provide recommendations regarding the funding
streams described in paragraph (H)(ii);
``(N) develop mechanisms for regular communication,
outreach and dissemination of information about
inclusive higher education programs for students with
intellectual disabilities under subpart 2 between or
among such programs and to families and prospective
students;
``(O) host a meeting of all recipients of grants
under subpart 2 not less often than once each year; and
``(P) convene a work group to continue the
development of and recommendations for model criteria,
standards, and components of inclusive higher education
programs and comprehensive transition and postsecondary
programs for students with intellectual disabilities,
that are appropriate for the development of
accreditation standards--
``(i) which work group shall include--
``(I) an expert in community college
education;
``(II) an expert in career technical
education;
``(III) an expert in 4-year
institutions of higher education;
``(IV) an expert in special
education;
``(V) a disability organization that
represents students with intellectual
disabilities;
``(VI) a representative from the
National Advisory Committee on
Institutional Quality and Integrity;
and
``(VII) a representative of a
regional or national accreditation
agency or association; and
``(ii) the work group will carry out the
following activities--
``(I) conduct outreach to accrediting
agencies;
``(II) develop a technical guidance
document to support implementation of
the model standards;
``(III) develop and conduct a
protocol for implementing the model
standards; and
``(IV) update recommendations for the
model standards, criteria, and
components of such programs, as
applicable.
``(6) Report.--Not later than 5 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 activities described
in paragraph (5).
``(7) Authorization of appropriations.--There are authorized
to be appropriated to carry out this subsection such sums as
may be necessary for fiscal year 2021 and each of the five
succeeding fiscal years.''.
(b) Authorization of Appropriations.--Section 778 of the Higher
Education Act of 1965 (20 U.S.C. 1140r) is repealed.
SEC. 7010. FORMULA GRANTS TO STATES TO IMPROVE HIGHER EDUCATION
OPPORTUNITIES FOR FOSTER YOUTH AND HOMELESS YOUTH.
Title VII of the Higher Education Act of 1965 (20 U.S.C. 1133 et
seq.) is further amended by adding at the end the following new part:
``PART F--GRANTS FOR IMPROVING ACCESS TO AND SUCCESS IN HIGHER
EDUCATION FOR FOSTER YOUTH AND HOMELESS YOUTH
``SEC. 791. DEFINITIONS.
``In this part:
``(1) Foster youth.--The term `foster youth'--
``(A) means an individual whose care and placement is
the responsibility of the State or tribal agency that
administers a State or tribal plan under part B or E of
title IV of the Social Security Act (42 U.S.C. 621 et
seq.; 670 et seq.), without regard to whether foster
care maintenance payments are made under section 472 of
such Act (42 U.S.C. 672) on behalf of the individual;
and
``(B) includes any individual--
``(i) whose care and placement was the
responsibility of such a State or tribal agency
when, or at any time after, the individual
attained 13 years of age, without regard to
whether foster care maintenance payments were
made under section 472 of such Act (42 U.S.C.
672) on behalf of the individual; and
``(ii) who is no longer under the care and
responsibility of such a State or tribal
agency, without regard to any subsequent
adoption, guardianship arrangement, or other
form of permanency option.
``(2) Homeless youth.--The term `homeless youth' has the
meaning given the term `homeless children and youths' in
section 725 of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11434a).
``(3) Indian tribe; tribal organization.--The terms `Indian
Tribe' and `tribal organization' have the meanings given the
terms in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 5304).
``(4) Institution of higher education.--The term `institution
of higher education' has the meaning given the term in section
101.
``(5) State.--The term `State' means each of the several
States and the District of Columbia.
``(6) Territory.--The term `territory' means Puerto Rico,
United States Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands, the Republic of
the Marshall Islands, the Federated States of Micronesia, and
the Republic of Palau.
``SEC. 792. FORMULA GRANTS TO STATES TO IMPROVE ACCESS TO AND SUCCESS
IN HIGHER EDUCATION FOR FOSTER YOUTH AND HOMELESS
YOUTH.
``(a) Grant Program Established.--From the amount appropriated under
subsection (h), the Secretary shall make allotments under subsection
(b), to States having applications approved under subsection (c), to
enable each State to--
``(1) carry out the Statewide transition initiative described
in subsection (d); and
``(2) make subgrants described in subsection (e).
``(b) Allocations.--
``(1) Formula.--
``(A) Reservation for indian tribes and
territories.--
``(i) In general.--From the amount
appropriated under subsection (h) for a fiscal
year and subject to clause (ii), the Secretary
shall reserve--
``(I) not more than 3 percent for
grants to Indian Tribes, consortia of
Indian Tribes, or Tribal organizations;
and
``(II) not more than 2 percent for
grants to territories.
``(ii) Requirements.--In awarding grants
under this subparagraph, the Secretary--
``(I) shall not award a grant under
subclause (I) or (II) of clause (i) for
a fiscal year for which no Indian Tribe
(or consortium of Indian Tribes) or
Tribal organization, or territory,
respectively, submits a satisfactory
application for a grant under such
subclause;
``(II) shall require that any Indian
Tribe, consortium, Tribal organization,
or territory that receives a grant
under this subparagraph provide an
assurance of a partnership among
relevant education, child welfare, and
homeless agencies or organizations; and
``(III) may determine any other
requirements with respect to such
grants (including the allocation,
application, and use of fund
requirements), which to the extent
possible, shall be consistent with the
requirements for States under this
part, except that appropriate
adjustments shall be made based on the
needs and size of populations served by
the Indian Tribe, consortium, Tribal
organization, or territory applying for
the grant.
``(B) Reservation for department activities.--From
the amount appropriated under subsection (h) for a
fiscal year, the Secretary may reserve--
``(i) not more than 7 percent to--
``(I) provide technical assistance,
in consultation with Secretary of
Health and Human Services, to States
carrying out activities under this
section; and
``(II) complete the evaluations
required by subsection (g)(1); and
``(ii) not more than 3 percent for
administrative expenses.
``(C) Allocations.--From the amount appropriated
under subsection (h) for a fiscal year and remaining
after the Secretary reserves funds under subparagraphs
(A) and (B), the Secretary shall allocate to each State
the greater of--
``(i) $500,000; or
``(ii) the amount that bears the same
proportion to the remaining appropriated amount
for such fiscal year as the number of foster
youth and homeless youth in the State bears to
the number of foster youth and homeless youth
in all States.
``(D) Ratable reduction.--If the amount appropriated
under subsection (h) for a fiscal year and remaining
after the Secretary reserves funds under subparagraphs
(A) and (B) is less than the amount required to be
allocated to States under subparagraph (C), then the
amount of the allocation to each State shall be ratably
reduced.
``(2) State reservation.--From the amounts awarded a State
under paragraph (1)(C) for a fiscal year, the State may reserve
not more than 5 percent for administrative expenses.
``(3) Temporary ineligibility for subsequent payments.--
``(A) In general.--The Secretary shall determine a
State to be temporarily ineligible to receive a grant
payment under this subsection for a fiscal year if--
``(i) the State fails to submit an annual
report under subsection (f) for the preceding
fiscal year; or
``(ii) the Secretary determines, based on
information in such annual report, that the
State is not effectively--
``(I) meeting the outcomes described
in the application of such State under
subsection (c)(2)(C), and does not have
a plan to improve the outcomes;
``(II) monitoring and evaluating the
activities under subsections (d) and
(e); or
``(III) using funds as required under
subsections (d) and (e).
``(B) Reinstatement.--If the Secretary determines
that a State is ineligible under subparagraph (A), the
Secretary may enter into an agreement with the State
setting forth the terms and conditions under which the
State may regain eligibility to receive payments under
this section.
``(c) Applications.--
``(1) In general.--For each fiscal year for which a State
desires an allotment under subsection (b), the State shall
submit an application to the Secretary at such time, in such
manner, and containing the information described in paragraph
(2).
``(2) Information required.--An application submitted under
paragraph (1) shall include the following:
``(A) A plan for how the State will carry out the
activities under subsections (d) and (e).
``(B) A description of the State's capacity to carry
out such activities.
``(C) A description of intended outcomes for such
activities.
``(D) A plan for how the State will monitor and
evaluate such activities, including how the State will
use data to continually update and improve such
activities.
``(E) A description of how students will be
identified and recruited for participation in the
Statewide transition initiative under subsection (d).
``(F) An estimate of the number and characteristics
of the populations targeted for participation in the
Statewide transition initiative under subsection (d)
with attention to the diverse needs of homeless youth
and foster youth in the State.
``(G) A description of how the State will coordinate
services provided under the grant with services
provided to foster youth and homeless youth under the
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301
et seq.), the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6301 et seq.), the Runaway and Homeless
Youth Act (42 U.S.C. 5701 et seq.), and other services
provided to foster youth and homeless youth by the
State.
``(H) An assurance that the State will comply with
subtitle B of title VII of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11431 et seq.).
``(I) An assurance that the State will partner with
State educational agencies, local educational agencies,
institutions of higher education, State and local child
welfare authorities, and other relevant organizations
that serve foster youth or homeless youth.
``(J) An assurance that the State will submit the
annual report required under subsection (f).
``(K) A budgetary analysis of the use of funds
awarded under this section.
``(L) Such other information as the Secretary may
require.
``(d) Statewide Transition Initiative.--
``(1) Use of funds.--Subject to subsection (b)(2), and in
consultation and coordination with the entities described in
paragraph (2) of this subsection, a State receiving a grant
award under this section shall use not less than 25 percent of
the funds to--
``(A) provide intensive outreach and support to
foster youth and homeless youth to--
``(i) improve the understanding and
preparation of such youth for enrollment in
institutions of higher education;
``(ii) increase the number of applications to
institutions of higher education submitted by
such youth; and
``(iii) increase the number of enrollments at
institutions of higher education;
``(B) provide education to foster youth and homeless
youth with respect to--
``(i) the benefits and opportunities of
postsecondary education;
``(ii) planning for postsecondary education;
``(iii) financial aid opportunities that
assist youth with covering the cost of
attendance of an institution of higher
education;
``(iv) the Federal and State services and
benefits available to foster youth and homeless
youth while enrolled at an institution of
higher education, including health and mental
health services;
``(v) career exploration; and
``(vi) financial literacy training, including
security from identity theft;
``(C) assist foster youth and homeless youth with
submitting applications for--
``(i) enrollment at an institution of higher
education;
``(ii) financial aid for such enrollment; and
``(iii) scholarships available for such
students, including under a State educational
and training voucher program referred to in
section 477(i) of the Social Security Act; and
``(D) provide free programming, which may include
free transportation to and from such programming, for
foster youth and homeless youth to prepare such
individuals socially and academically for the rigors of
postsecondary education during the summer before such
individuals first attend an institution of higher
education.
``(2) Required consultation and coordination.--In carrying
out the activities described in paragraph (1), a State shall
consult and coordinate with State educational agencies, local
educational agencies, institutions of higher education, State
and local child welfare authorities, and other relevant
organizations that serve foster youth or homeless youth.
``(e) Subgrants To Create Institutions of Excellence.--
``(1) In general.--Subject to the subsection (b)(2), a State
receiving a grant under this section shall, acting through the
administering State agency, use not less than 70 percent of the
funds to award, on a competitive basis, subgrants to eligible
institutions to enable such institutions to become institutions
of excellence by improving college access, retention, and
completion rates for foster and homeless youth as described in
paragraph (3).
``(2) Application.--
``(A) In general.--An eligible institution desiring a
subgrant under this subsection shall submit an
application to the State in which such eligible
institution is located, at such time, in such manner,
and containing such information as the State may
require.
``(B) Technical assistance.--States shall provide
outreach and technical assistance to eligible
institutions with respect to applications for subgrants
under this subsection.
``(3) Activities.--An eligible institution that receives a
grant under this subsection shall use the grant funds to carry
out the following activities with respect to homeless youth and
foster youth:
``(A) Provide flexibility and assistance in
completing the application process to enroll at such
institution.
``(B) Coordinate programs with relevant on- and off-
campus stakeholders to increase the enrollment of such
youth at the institution and align services at the
institution for such youth.
``(C) Adjust the cost of attendance for such youth at
such eligible institution to include the cost of
housing during periods of non-enrollment.
``(D) Provide institutional aid to such students to
meet the cost of attendance that is not covered by
other Federal or State educational grants.
``(E) Provide outreach to such students to ensure
that such youth are aware of housing resources
available during periods of non-enrollment.
``(F) Subsidize any fees for such students associated
with orientation and offer free transportation to
college orientation or move-in week.
``(G) Hire and provide training for at least one
full-time staff at the eligible institution to serve as
a point of contact to provide case management services
and monthly face-to-face meetings with students who are
foster youth or homeless youth. Such individual shall
have an advanced degree and at least two years of
relevant experience.
``(H) Establish or enhance campus support programs to
provide such students with a wide-range of on-campus
services including--
``(i) assistance with financial aid;
``(ii) career advice; and
``(iii) leadership development.
``(I) Ensure the availability of robust student
health services (physical and mental) that meet the
specific needs of foster youth and homeless youth.
``(J) Establish or expand early alert systems to
identify and support such students who may be
struggling academically.
``(K) For each such student with reasonable,
unanticipated expenses that would not be covered by the
institutional aid provided under subparagraph (D) and
that would be necessary for the student to persist in
college during an academic year, provide the student
with access to an emergency grant to help cover such
expenses.
``(L) Collect, review, and monitor data for program
improvement.
``(4) Reliance on institutional aid.--Any institutional aid
provided to a student under paragraph (3)(D) by an eligible
institution during the grant period of the institution's grant
under this section shall continue to be provided during the
student's continuous enrollment at the institution, without
regard to whether the grant period ends during such enrollment.
``(5) Definitions.--In this subsection:
``(A) Administering state agency.--The term
`administering State agency' means a State agency--
``(i) designated by the Governor or executive
of the State to administer the subgrants under
this subsection; and
``(ii) that, with respect to such State, has
jurisdiction over--
``(I) foster youth;
``(II) homeless youth;
``(III) elementary and secondary
education; or
``(IV) higher education.
``(B) Eligible institution.--The term `eligible
institution' means an institution of higher education--
``(i) that is in partnership with--
``(I) the State child welfare agency
that is responsible for the
administration of the State plan under
part B or E of title IV of the Social
Security Act (42 U.S.C. 621 et seq.;
670 et seq.); and
``(II) an organization that serves
homeless youth (such as a youth shelter
or outreach program); and
``(ii) that may partner with any other
provider, agency, official, or entity that
serves foster youth and homeless youth, or
former foster youth and homeless youth.
``(f) State Reports.--For each year in which a State receives an
allotment under subsection (b), the State shall prepare and submit a
report to the Secretary that includes--
``(1) each activity or service that was carried out under
this section;
``(2) the cost of providing each such activity or service;
``(3) the number of students who received each activity or
service disaggregated by each subgroup of students described in
subclauses (I) through (VI) of section 1111(b)(2)(B)(xi) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6311(b)(2)(B)(xi));
``(4) using qualitative and quantitative analysis, how the
State--
``(A) improved access to higher education for foster
youth and homeless youth; and
``(B) measured youth satisfaction with activities
carried out under this part;
``(5) an analysis of the implementation and progress of the
Statewide transition initiative under subsection (d), including
challenges and changes made to the initiative throughout the
preceding year;
``(6) if, based on the analysis under paragraph (5), the
State determines that the program is not on track to meet the
intended outcomes described in the application of the State
under subsection (c)(2)(C), a description of how the State
plans to meet such intended outcomes; and
``(7) information on the eligible institutions receiving
subgrants, including how such institutions used subgrant funds
to carry out the activities described in subsection (e)(3).
``(g) Department Activities.--
``(1) Evaluations.--Beginning on the date on which funds are
first allotted under subsection (b), and annually thereafter,
the Secretary shall evaluate recipients of allotments and
subgrants under this section. The results of such evaluations
shall be made publicly available on the website of the
Department.
``(2) Report to congress.--Not later than 1 year after the
date on which funds are first allocated under subsection (b),
and annually thereafter, the Secretary shall submit a report to
Congress that includes--
``(A) the amount of each allotment under subsection
(b);
``(B) the amount of each subgrant under subsection
(e); and
``(C) with respect to the year for which such report
is made, the results of the evaluations under paragraph
(1).
``(h) Authorization of Appropriations.--
``(1) In general.--Subject to paragraph (2), there are
authorized to be appropriated to carry out this part
$150,000,000 for fiscal year 2021 and each of the 5 succeeding
fiscal years.
``(2) Adjustment for inflation.--
``(A) In general.--The amount authorized to be
appropriated under paragraph (1) for fiscal year 2022
and each of the 4 succeeding fiscal years shall be
deemed increased by the annual adjustment percentage.
``(B) Definition.--In this paragraph, the term
`annual adjustment percentage', as applied to a fiscal
year, means 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 before the beginning of
that fiscal year.''.
TITLE VIII--ADDITIONAL PROGRAMS
SEC. 8001. REPEALS.
Title VIII of the Higher Education Act of 1965 (20 U.S.C. 1161a et
seq.) is amended by repealing the following:
(1) Part A (20 U.S.C. 1161a).
(2) Parts C through E (20 U.S.C. 1161c et seq.).
(3) Parts H and I (20 U.S.C. 1161h et seq.).
(4) Parts K through P (20 U.S.C. 1161k et seq.).
(5) Part R (20 U.S.C. 1161r).
(6) Parts X through Z (20 U.S.C. 1161x et seq.).
SEC. 8002. RONALD V. DELLUMS MEMORIAL STEAM SCHOLARS PROGRAM.
Part B of title VIII of the Higher Education Act of 1965 (20 U.S.C.
1161b)--
(1) is redesignated as part A of such title; and
(2) is amended to read as follows:
``PART A--RONALD V. DELLUMS MEMORIAL STEAM SCHOLARS
``SEC. 801. RONALD V. DELLUMS MEMORIAL STEAM SCHOLARS PROGRAM.
``(a) Program Authorized.--
``(1) Grants for scholarships.--The Secretary shall award
grants under this section to institutions of higher education
(as defined in section 101) to provide scholarships to eligible
students for the purpose of enabling such students to enter
into the STEAM workforce and increasing the number of
underrepresented students in STEAM fields.
``(2) Eligible students.--A student is eligible for a
scholarship under this section if the student--
``(A) meets the requirements of section 484(a);
``(B) is an at least half-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 at the
institution with a major in a STEAM 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 Secretary shall set a
priority for awarding scholarships under this section for
students agreeing to work after graduation in a STEAM field.
``(4) Students from minority-serving institutions and
historically black colleges and universities.--The Secretary
shall ensure that not fewer than 50 percent of the scholarships
awarded under this section are awarded to eligible students who
attend historically Black colleges and universities and other
minority-serving institutions, including Hispanic-serving
institutions, Asian American and Native American Pacific
Islander-serving institutions, American Indian Tribally
controlled colleges and universities, Alaska Native and Native
Hawaiian-serving institutions, Predominantly Black
Institutions, and Native American-serving, Nontribal
institutions.
``(5) Amount and duration of scholarship.--Scholarship
amounts awarded under this section shall not exceed--
``(A) $10,000 per student for an academic year; and
``(B) $40,000 per student in the aggregate.
``(b) Matching Requirement.--In order to receive a grant under this
section, an institution of higher education shall provide matching
funds for the scholarships awarded under this section in an amount
equal to 25 percent of the Federal funds received.
``(c) Application.--An 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. Each application shall include a description of how the
institution will meet the matching requirement of subsection (b).
``(d) Reports.--Not later than 2 years after the date on which the
first scholarship is awarded under this section, and each academic year
thereafter, the Secretary shall submit to the Congress a report
containing--
``(1) a description and analysis of the demographic
information of students who receive scholarships under this
section, including information with respect to such students
regarding--
``(A) race;
``(B) ethnicity;
``(C) gender; and
``(D) eligibility to receive a Pell Grant;
``(2) the total number of underrepresented students in STEAM
fields who obtain a degree with scholarship funds each year;
and
``(3) an analysis of the effects of the program on the goals
of increasing the number of underrepresented students in STEAM
fields and the number of such students who enter into the STEAM
workforce.
``(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $5,000,000 for fiscal year 2021
and each of the five succeeding fiscal years.
``(f) Definitions.--For purposes of this section:
``(1) The term `minority-serving institution' means an
institution eligible to receive assistance under title III or
V.
``(2) The term `STEAM' means science, technology,
engineering, arts, and mathematics.
``(3) The term `underrepresented student in STEAM fields'
means a student who is a member of a minority group for which
the number of individuals in such group who annually receive
bachelor's degrees in the STEAM fields per 10,000 individuals
in such group is substantially less than the number of white,
non-Hispanic individuals who annually receive bachelor's
degrees in the STEAM fields per 10,000 such individuals.''.
SEC. 8003. TEACH FOR AMERICA.
(a) Reauthorization.--Subparagraph (C) of section 806(f)(1) of the
Higher Education Act of 1965 (20 U.S.C. 1161f(f)(1)) is amended to read
as follows:
``(C) $30,000,000 for fiscal year 2021 and each of
the 5 succeeding fiscal years.''.
(b) Redesignation.--Part F of title VIII of the Higher Education Act
of 1965 (20 U.S.C. 1161f) is redesignated as part B of such title.
SEC. 8004. PATSY T. MINK FELLOWSHIP PROGRAM.
(a) Reauthorization.--Subsection (f) of section 807 of the Higher
Education Act of 1965 (20 U.S.C. 1161g) is amended to read as follows:
``(f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000 for fiscal year 2021
and each of the 5 succeeding fiscal years.''.
(b) Redesignations.--
(1) Part.--Part G of title VIII of the Higher Education Act
of 1965 (20 U.S.C. 1161g) is redesignated as part C of such
title.
(2) Section.--Section 807 of the Higher Education Act of 1965
(20 U.S.C. 1161g), as amended by subsection (a), is
redesignated as section 811.
SEC. 8005. IMPROVING SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS
EDUCATION WITH A FOCUS ON AMERICAN INDIAN, ALASKA
NATIVE, AND NATIVE HAWAIIAN STUDENTS.
(a) In General.--Section 819 of the Higher Education Act of 1965 (20
U.S.C. 1161j) is amended--
(1) in the section heading, by striking ``alaska native and
native hawaiian'' and inserting ``native american'';
(2) in subsection (a)(2), by striking ``Alaska Natives and
Native Hawaiians'' and inserting ``American Indians, Alaska
Natives, Native Hawaiians and other Native American Pacific
Islanders to enable them to succeed in these fields'';
(3) in subsection (b)--
(A) by redesignating paragraphs (1), (2), (3), and
(4), as paragraphs (2), (4), (5), and (6),
respectively;
(B) by inserting before paragraph (2), as
redesignated by subparagraph (A), the following:
``(1) Native american.--The term `Native American' includes
Alaska Natives, American Indians, Native Hawaiians and Native
American Pacific Islanders.''; and
(C) by inserting after paragraph (2), as redesignated
by subparagraph (A), the following:
``(3) American indian.--The term `American Indian' has the
meaning given the term `Indian' in section 202 of the Indian
Land Consolidation Act (25 U.S.C. 2201).'';
(4) in subsection (c)--
(A) by inserting ``create or'' after ``to enable the
eligible partnership to'';
(B) by inserting ``Native American'' after ``the
development of''; and
(C) by striking ``, including existing programs for
Alaska Native and Native Hawaiian students'';
(5) in subsection (d)--
(A) in paragraph (1), by striking ``Alaska Native or
Native Hawaiian students'' and inserting ``programs
that serve Native American students'';
(B) in paragraph (2), by striking ``Alaska Native and
Native Hawaiian students'' and inserting ``programs
that serve Native American students''; and
(C) in paragraph (3), by striking ``Alaska Native or
Native Hawaiian students'' and inserting ``Native
American students'';
(6) in subsection (f), by striking ``30 percent or more of
the program participants are Alaska Native or Native Hawaiian''
and inserting ``30 percent or more of the program participants
are Native American''; and
(7) in subsection (i), by striking ``to carry out this
section such sums as may be necessary for fiscal year 2009 and
each of the five succeeding fiscal years'' and inserting
``$5,000,000 for fiscal year 2021 and each of the 5 succeeding
fiscal years''.
(b) Redesignations.--
(1) Part.--Part J of title VIII of the Higher Education Act
of 1965 (20 U.S.C. 1161j) is redesignated as part D of such
title.
(2) Section.--Section 819 of the Higher Education Act of 1965
(20 U.S.C. 1161j), as amended by subsection (a), is
redesignated as section 816.
SEC. 8006. GRANTS FOR RURAL-SERVING INSTITUTIONS OF HIGHER EDUCATION.
(a) Reauthorization.--Subsection (g) of section 861 of the Higher
Education Act of 1965 (20 U.S.C. 1161q) is amended to read as follows:
``(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $20,000,000 for fiscal year 2021
and each of the 5 succeeding fiscal years.''.
(b) Redesignations.--
(1) Part.--Part Q of title VIII of the Higher Education Act
of 1965 (20 U.S.C. 1161q) is redesignated as part E of such
title.
(2) Section.--Section 861 of the Higher Education Act of 1965
(20 U.S.C. 1161q), as amended by subsection (a), is
redesignated as section 821.
SEC. 8007. TRAINING FOR REALTIME WRITERS TO PROVIDE CLOSED CAPTIONING
AND COURT REPORTING SERVICES.
(a) Reauthorization.--Section 872(e) of the Higher Education Act of
1965 (20 U.S.C. 1161s(e)) is amended by striking ``2009'' and inserting
``2021''.
(b) Redesignations.--
(1) Part.--Part S of title VIII of the Higher Education Act
of 1965 (20 U.S.C. 1161s) is redesignated as part F of such
title.
(2) Section.--Section 872 of the Higher Education Act of 1965
(20 U.S.C. 1161s), as amended by subsection (a), is
redesignated as section 826.
SEC. 8008. GRANT PROGRAM TO ESTABLISH, MAINTAIN, AND IMPROVE VETERAN
STUDENT CENTERS.
(a) In General.--Part T of title VIII of the Higher Education Act of
1965 (20 U.S.C. 1161t)--
(1) is redesignated as part G of such title; and
(2) is amended to read as follows:
``PART G--GRANTS FOR VETERAN STUDENT CENTERS
``SEC. 831. GRANTS FOR VETERAN STUDENT CENTERS.
``(a) Grants Authorized.--Subject to the availability of
appropriations under subsection (i), the Secretary shall award grants
to institutions of higher education or consortia of institutions of
higher education to assist in the establishment, maintenance,
improvement, and operation of Veteran Student Centers. The Secretary
shall award not more than 30 grants in a fiscal year under this
section.
``(b) Eligibility.--
``(1) Application.--An institution or consortium seeking a
grant under subsection (a) shall submit to the Secretary an
application at such time, in such manner, and containing such
information as the Secretary may require.
``(2) Criteria.--The Secretary may award a grant under
subsection (a) to an institution or a consortium if the
institution or consortium meets each of the following criteria:
``(A) The institution or consortium enrolls in
undergraduate or graduate courses--
``(i) a significant number of veteran
students, members of the Armed Forces serving
on active duty, and members of a reserve
component of the Armed Forces; or
``(ii) a significant percentage of veteran
students, as measured by comparing the overall
enrollment of the institution or consortium to
the number, for the most recent academic year
for which data are available, of veteran
students, members of the Armed Forces serving
on active duty, and members of a reserve
component of the Armed Forces who are enrolled
in undergraduate or graduate courses at the
institution or consortium.
``(B) The institution or consortium presents a
sustainability plan to demonstrate that the Veteran
Student Center of such institution or consortium will
be maintained and will continue operations upon
conclusion of the grant period under subsection (a).
``(3) Additional criteria.--
``(A) Mandatory considerations.--In awarding grants
under subsection (a), the Secretary shall consider
institutions or consortia representing a broad spectrum
of sectors and sizes, including institutions or
consortia from urban, suburban, and rural regions of
the United States.
``(B) Discretionary criteria.--In awarding grants
under subsection (a), the Secretary may provide
consideration to institutions or consortia that meet
one or more of the following criteria:
``(i) The institution or consortium is
located in a region or community that has a
significant population of veterans.
``(ii) The institution or consortium carries
out programs or activities that assist veterans
in the local community and the spouses of
veteran students.
``(iii) The institution or consortium
partners in its veteran-specific programming
with nonprofit veteran service organizations,
local workforce development organizations, or
institutions of higher education.
``(iv) The institution or consortium commits
to hiring staff at the Veteran Student Center
that includes veterans (including veteran
student volunteers and veteran students
participating in a Federal work-study program
under part C of title IV, a work-study program
administered by the Secretary of Veteran
Affairs, or a State work-study program).
``(v) The institution or consortium commits
to using a portion of the grant received under
this section to develop and implement an early-
warning veteran student retention program
designed to alert staff at the Veteran Student
Center that a veteran student may be facing
difficulties that could lead to the non-
completion of the course of study of such
veteran.
``(vi) The institution or consortium commits
to providing mental health counseling to its
veteran students and their spouses.
``(vii) The institution or consortium carries
out programs or activities that assist
individuals pursuing a course of education
using educational assistance under chapter 31
of title 38, United States Code.
``(c) Use of Funds.--
``(1) In general.--An institution or consortium that is
awarded a grant under subsection (a) shall use such grant to
establish, maintain, improve, or operate a Veteran Student
Center.
``(2) Other allowable uses.--An institution or consortium
receiving a grant under subsection (a) may use a portion of
such funds to carry out supportive instruction services for
student veterans, including--
``(A) assistance with special admissions and transfer
of credit from previous postsecondary education or
experience; and
``(B) any other support services the institution or
consortium determines to be necessary to ensure the
success of veterans on campus in achieving education
and career goals.
``(d) Amounts Awarded.--
``(1) Duration.--Each grant awarded under subsection (a)
shall be for a 4-year period.
``(2) Total amount of grant and schedule.--Each grant awarded
under subsection (a) may not exceed a total of $500,000. The
Secretary shall disburse to an institution or consortium the
amounts awarded under the grant in such amounts and at such
times during the grant period as the Secretary determines
appropriate.
``(e) Report.--From the amounts appropriated to carry out this
section, and not later than 3 years after the date on which the first
grant is awarded under subsection (a), the Secretary shall submit to
Congress a report on the grant program established under subsection
(a), including--
``(1) the number of grants awarded;
``(2) the institutions of higher education and consortia that
have received grants;
``(3) with respect to each such institution of higher
education and consortium--
``(A) the amounts awarded;
``(B) how such institution or consortium used such
amounts;
``(C) a description of the students to whom services
were offered as a result of the award; and
``(D) data enumerating whether the use of the amounts
awarded helped veteran students at the institution or
consortium toward completion of a degree, certificate,
or credential;
``(4) best practices for veteran student success, identified
by reviewing data provided by institutions and consortia that
received a grant under this section; and
``(5) a determination by the Secretary with respect to
whether the grant program under this section should be extended
or expanded.
``(f) Termination.--The authority of the Secretary to carry out the
grant program established under subsection (a) shall terminate on the
date that is 4 years after the date on which the first grant is awarded
under subsection (a).
``(g) Department of Education Best Practices Website.--Subject to the
availability of appropriations under subsection (i) and not later than
3 years after the date on which the first grant is awarded under
subsection (a), the Secretary shall develop and implement a website for
veteran student services at institutions of higher education, which
details best practices for serving veteran students at institutions of
higher education.
``(h) Definitions.--In this section:
``(1) Institution of higher education.--The term `institution
of higher education' has the meaning given the term in section
101.
``(2) Veteran student center.--The term `Veteran Student
Center' means a dedicated space on a campus of an institution
of higher education that provides students who are veterans or
members of the Armed Forces with the following:
``(A) A lounge or meeting space for such veteran
students, their spouses or partners, and veterans in
the community.
``(B) A centralized office for veteran services
that--
``(i) is a single point of contact to
coordinate comprehensive support services for
veteran students;
``(ii) is staffed by trained employees and
volunteers, which includes veterans and at
least one full-time employee or volunteer who
is trained as a veterans' benefits counselor;
``(iii) provides veteran students with
assistance relating to--
``(I) transitioning from the military
to student life;
``(II) transitioning from the
military to the civilian workforce;
``(III) networking with other veteran
students and veterans in the community;
``(IV) understanding and obtaining
benefits provided by the institution of
higher education, Federal Government,
and State for which such students may
be eligible;
``(V) understanding how to succeed in
the institution of higher education,
including by understanding academic
policies, the course selection process,
and institutional policies and
practices related to the transfer of
academic credits; and
``(VI) understanding their
disability-related rights and
protections under the Americans with
Disabilities Act of 1990 (42 U.S.C.
12101 et seq.) and section 504 of the
Rehabilitation Act of 1973 (29 U.S.C.
794); and
``(iv) provides comprehensive academic and
tutoring services for veteran students,
including peer-to-peer tutoring and academic
mentorship.
``(i) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this part $15,000,000 for fiscal year 2021
and each of the 5 succeeding fiscal years.''.
(b) Continuation of Awards.--An institution of higher education that
received a grant under section 873 of the Higher Education Act of 1965
(20 U.S.C. 1161t) before the date of enactment of this Act, as such
section 873 (20 U.S.C. 1161t) was in effect on the day before the date
of enactment of this Act, shall continue to receive funds in accordance
with the terms and conditions of such grant.
SEC. 8009. UNIVERSITY SUSTAINABILITY PROGRAM AMENDMENTS.
(a) In General.--Section 881 of the Higher Education Act of 1965 (20
U.S.C. 1161u) is amended--
(1) in subsection (a)--
(A) by striking paragraph (1) and inserting:
``(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 the teaching and practice of
sustainability, including in the areas of staff and faculty
professional development, energy management, greenhouse gas
emissions reductions, green building, waste management,
transportation, resilience, green workforce, and other aspects
of sustainability that integrate the local community with
multidisciplinary academic programs and are applicable to the
private and Government sectors.''; and
(B) by striking paragraph (3)(B) and inserting:
``(B) a nonprofit consortium, association, alliance,
or collaboration operating in partnership with more
than one institution of higher education.'';
(2) in subsection (c)--
(A) in paragraph (1)--
(i) by inserting ``in alignment with local
community needs'' after ``following purposes'';
(ii) in subparagraph (D)--
(I) by striking ``establish'' and
inserting ``scale established'';
(II) by striking ``purchasing, toxics
management,''; and
(III) by inserting ``resilience,
green workforce,'' after
``transportation,''; and
(iii) in subparagraph (G), by inserting
``economics, law, political science,'' after
``business,''; and
(B) in paragraph (2)--
(i) in subparagraph (A), by striking ``of''
and inserting ``relating to''; and
(ii) in subparagraph (C), by inserting ``city
and State governments,'' after ``business,'';
(3) in subsection (e), by striking ``$250,000 or more than
$2,000,000'' and inserting ``$200,000 or more than $500,000'';
and
(4) in subsection (f), by striking ``2009'' and inserting
``2021''.
(b) Redesignations.--
(1) Part.--Part U of title VIII of the Higher Education Act
of 1965 (20 U.S.C. 1161u) is redesignated as part H of such
title.
(2) Section.--Section 881 of the Higher Education Act of 1965
(20 U.S.C. 1161u), as amended by subsection (a), is
redesignated as section 836.
SEC. 8010. MODELING AND SIMULATION.
(a) Reauthorization.--Subsection (e) of section 891 of the Higher
Education Act of 1965 (20 U.S.C. 1161v) is amended, in the matter
preceding paragraph (1), by striking the first sentence and inserting
the following: ``There is authorized to be appropriated to carry out
this section $75,000,000 for fiscal year 2021 and each of the 5
succeeding fiscal years.''.
(b) Redesignations.--
(1) Part.--Part V of title VIII of the Higher Education Act
of 1965 (20 U.S.C. 1161v) is redesignated as part I of such
title.
(2) Section.--Section 891 of the Higher Education Act of 1965
(20 U.S.C. 1161v), as amended by subsection (a), is
redesignated as section 841.
SEC. 8011. PATH TO SUCCESS.
(a) Reauthorization.--Section 892(g) of the Higher Education Act of
1965 (20 U.S.C. 1161w(g)) is amended by striking ``2009'' and inserting
``2021''.
(b) Redesignations.--
(1) Part.--Part W of title VIII of the Higher Education Act
of 1965 (20 U.S.C. 1161w) is redesignated as part J of such
title.
(2) Section.--Section 892 of the Higher Education Act of 1965
(20 U.S.C. 1161w), as amended by subsection (a), is
redesignated as section 846.
SEC. 8012. MANDATORY FUNDING FOR MASTERS AND POSTBACCALAUREATE
PROGRAMS.
(a) Masters Degree Programs.--Section 897 of the Higher Education Act
of 1965 (20 U.S.C. 1161aa) is amended by striking ``$11,500,000 for
fiscal year 2009 and for each of the five succeeding fiscal years'' and
inserting ``$13,500,000 for fiscal year 2021 and each succeeding fiscal
year''.
(b) Postbaccalaureate Programs.--Section 898 of the Higher Education
Act of 1965 (20 U.S.C. 1161aa-1) is amended--
(1) by striking ``In addition'' and inserting ``(a)
Additional Appropriations for Part B of Title V.--In
addition'';
(2) by striking ``$11,500,000 for fiscal year 2009 and for
each of the five succeeding fiscal years'' and inserting
``$21,000,000 for fiscal year 2021 and each succeeding fiscal
year''; and
(3) by adding at the end the following:
``(b) Additional Appropriations for Part A of Title VII.--In addition
to any amounts appropriated under subpart 5 of part A of title VII,
there are authorized to be appropriated, and there are appropriated,
out of any funds in the Treasury not otherwise appropriated,
$13,000,000 for fiscal year 2021 and each of the 5 succeeding fiscal
years to carry out subpart 5 of part A of title VII.''.
(c) Redesignations.--
(1) Part.--Part AA of title VIII of the Higher Education Act
of 1965 (20 U.S.C. 1161aa) is redesignated as part K of such
title.
(2) Sections.--Sections 897 and 898 of the Higher Education
Act of 1965 (20 U.S.C. 1161aa et seq.), as amended by
subsection (a), are redesignated as sections 851 and 852,
respectively.
SEC. 8013. FUNDS FOR ACCESS TO OPEN EDUCATIONAL RESOURCES.
Title VIII (20 U.S.C. 1161a et seq.) of the Higher Education Act of
1965, as amended by the preceding provisions of this title, is further
amended by adding at the end the following:
``PART L--ACCESS TO OPEN EDUCATIONAL RESOURCES
``SEC. 856. AFFORDABLE COLLEGE TEXTBOOKS.
``(a) Grant Program.--
``(1) Grants authorized.--From the amounts appropriated under
paragraph (8), the Secretary shall make grants, on a
competitive basis, to eligible entities to support projects
that expand the use of high-quality open textbooks in order to
achieve savings for students while improving instruction and
student learning outcomes.
``(2) Applications.--
``(A) In general.--Each eligible entity desiring a
grant under this subsection, after consultation with
relevant faculty, shall submit an application to the
Secretary at such time, in such manner, and containing
such information as the Secretary may reasonably
require.
``(B) Contents.--Each application submitted under
subparagraph (A) shall include--
``(i) a description of the proposed project
to be completed with grant funds;
``(ii) a plan for promoting and tracking the
use of open textbooks in postsecondary courses
offered by the eligible entity, including an
estimate of the projected savings that will be
achieved for students through the use of such
textbooks;
``(iii) a description of how the eligible
entity will evaluate whether existing open
educational resources could be used or adapted
into open educational resources before creating
new open educational resources;
``(iv) a plan for quality review (including
peer review), review of accuracy, and review of
accessibility of any open educational resources
created or adapted through the grant;
``(v) a plan for assessing the impact of open
textbooks on instruction and student learning
outcomes at the eligible entity;
``(vi) a plan for disseminating information
about the results of the project to
institutions of higher education outside of the
eligible entity, including promoting the
adoption of any open textbooks created or
adapted through the grant;
``(vii) a statement on consultation with
relevant faculty, including those engaged in
the creation of open educational resources, in
the development of the application; and
``(viii) an assurance that open educational
resources utilized, developed, or researched
will be available in accessible formats, which
may include braille, audio books, closed
captioning, and audio descriptions.
``(3) Special consideration.--In awarding grants under this
section, the Secretary shall give special consideration to
applications that demonstrate the greatest potential to--
``(A) achieve the highest level of savings for
students through sustainable expanded use of high-
quality open textbooks in postsecondary courses offered
by the eligible entity;
``(B) achieve improvements in student learning and
student outcomes;
``(C) expand the use of open textbooks at
institutions of higher education outside of the
eligible entity; and
``(D) produce--
``(i) the highest quality and most accessible
open textbooks;
``(ii) open textbooks that can be most easily
utilized and adapted by faculty members at
institutions of higher education;
``(iii) open textbooks that correspond to the
highest enrollment courses at institutions of
higher education;
``(iv) open textbooks created or adapted in
partnership with entities, including campus
bookstores, that will assist in marketing and
distribution of the open textbook; and
``(v) open textbooks that conform to
accessibility standards under section 508 of
the Rehabilitation Act of 1973 (29 U.S.C.
794d).
``(4) Use of funds.--
``(A) Mandatory uses of funds.--An eligible entity
that receives a grant under this section shall use the
grant funds to carry out the following activities to
expand the use of open textbooks:
``(i) Professional development for any
faculty and staff members at institutions of
higher education, including the search for and
review of open textbooks.
``(ii) Creation or adaptation of high-quality
open educational resources that conform to
accessibility standards under section 508 of
the Rehabilitation Act of 1973 (29 U.S.C.
794d), especially open textbooks, and the
quality assurance of such open educational
resources.
``(iii) Development or improvement of tools
and informational resources that support the
use of open textbooks, including improving
accessible instructional materials for students
with disabilities that conform to accessibility
standards under section 508 of the
Rehabilitation Act of 1973 (29 U.S.C. 794d).
``(iv) Research evaluating the efficacy of
the use of open textbooks for achieving savings
for students and the impact on instruction and
student learning outcomes.
``(B) Discretionary use of funds.--An eligible entity
that receives a grant under this section may use grant
funds to purchase or maintain electronic equipment
necessary for the operation or use of digital open
educational resources, including mobile computer
devices and accompanying hardware, software
applications, computer systems and platforms, and other
digital and online services and support.
``(5) Open licensing requirement.--
``(A) Copyright.--An eligible entity receiving a
grant under this section may, with prior approval from
the Secretary, assert a copyright in a copyrightable
work first produced under the grant.
``(B) Open license requirement.--
``(i) Requirement.--With respect to each
copyrightable work first produced under the
grant, except as provided in clause (ii), an
eligible entity that asserts a copyright under
subparagraph (A) shall provide to the public a
non-exclusive, royalty-free, perpetual,
irrevocable, worldwide license to carry out
each exclusive right provided to that eligible
entity under section 106 of title 17, United
States Code.
``(ii) Exception.--With respect to a
copyrightable work first produced under the
grant that employs preexisting material, the
requirement described under such subparagraph
shall apply to such work to the extent that--
``(I) no copyright subsists in such
preexisting material; or
``(II) the eligible entity is
authorized to license such material in
the manner described under such
subparagraph.
``(C) Rule of construction.--Nothing in this
subsection may be construed as affecting the
application of the requirements of chapter 18 of title
35, United States Code (commonly known as the `Bayh-
Dole Act').
``(D) Copyrightable work defined.--In this
subsection, the term `copyrightable work' means a work
subject to protection under title 17, United States
Code, but does not include a work that may be
patentable or otherwise protectable under title 35,
United States Code.
``(6) Access and distribution.--The full and complete digital
content of each educational resource created or adapted under
paragraph (5) shall be made available free of charge to the
public--
``(A) on an easily accessible and interoperable
website, which shall be identified to the Secretary by
the eligible entity;
``(B) in a machine readable, digital format that
anyone can directly download, edit with attribution,
and redistribute; and
``(C) in a fully accessible format in compliance with
the Americans with Disabilities Act of 1990 (42 U.S.C.
12101 et seq.) and section 508 of the Rehabilitation
Act of 1973 (29 U.S.C. 794d).
``(7) Report.--Upon an eligible entity's completion of a
project for which the eligible entity received a grant under
this section, the eligible entity shall prepare and submit a
report to the Secretary regarding--
``(A) the effectiveness of the project in expanding
the use of high-quality open textbooks and in achieving
savings for students;
``(B) the impact of the project on expanding the use
of open textbooks at institutions of higher education
outside of the eligible entity;
``(C) educational resources created or adapted under
the grant, including instructions on where the public
can access each educational resource under the terms of
paragraphs (5) and (6);
``(D) information about the quality review process
that was used to ensure quality and accuracy;
``(E) the impact of the project on instruction and
student learning outcomes; and
``(F) all project costs, including the value of any
volunteer labor and institutional capital used for the
project.
``(8) Authorization of appropriations.--There are authorized
to be appropriated to carry out this section $5,000,000 for
fiscal year 2021 and each of the 5 succeeding fiscal years.
``(b) Report to Congress.--Not later than 2 years after the date of
enactment of College Affordability Act, the Secretary shall prepare and
submit a report to authorizing committees detailing--
``(1) the high-quality open textbooks created or adapted
under this section;
``(2) the adoption of such open textbooks;
``(3) the savings generated for students, States,
territories, and the Federal Government through the use of open
textbooks; and
``(4) the impact of open textbooks on instruction and student
learning outcomes.
``(c) GAO Report.--Not later than 3 years after the date of enactment
of College Affordability Act, the Comptroller General of the United
States shall prepare and submit a report to the authorizing committees
on the cost of textbooks to students at institutions of higher
education. The report shall include--
``(1) the change of the cost of textbooks between the date of
the enactment of the College Affordability Act and the date of
such report;
``(2) the factors that have contributed to such change in the
cost of textbooks, including the impact of open textbooks on
the cost;
``(3) the extent to which open textbooks are used at
institutions of higher education compared to the use of open
textbooks before the date of the enactment of this subsection;
``(4) how institutions are tracking the impact of open
textbooks on instruction and student learning outcomes;
``(5) the availability of accessible forms of open textbooks
and the barriers faced by students with disabilities in
accessing accessible forms of open educational resources
compared to the barriers faced in accessing traditional
educational materials; and
``(6) the barriers faced by other student populations,
including low-income students, in accessing high-quality open
educational resources compared to the barriers faced in
accessing traditional educational materials.
``(d) Definitions.--In this section:
``(1) Educational resource.--The term `educational resource'
means a print or digital educational material that can be used
in postsecondary instruction, including textbooks and other
written or audiovisual works.
``(2) Eligible entity.--The term `eligible entity' means an
institution of higher education or a consortia of such
institutions of higher education.
``(3) Institution of higher education.--The term `institution
of higher education' has the meaning given the term in section
101.
``(4) Open educational resource.--The term `open educational
resource' means a print or digital educational resource that
either resides in the public domain or has been released under
an intellectual property license that permits its free use,
reuse, modification, and sharing with others.
``(5) Open textbook.--The term `open textbook' means an open
educational resource or set of open educational resources that
either is a textbook or can be used in place of a textbook for
a postsecondary course at an institution of higher education.
``(6) Relevant faculty.--The term `relevant faculty' means
both tenure track and contingent faculty members who may be
involved in the creation of open educational resources or the
use of open educational resources created as part of the grant
application.''.
SEC. 8014. ENCOURAGING CAMPUS COMPREHENSIVE MENTAL HEALTH AND SUICIDE
PREVENTION PLANS.
Title VIII (20 U.S.C. 1161a et seq.) of the Higher Education Act of
1965, as amended by the preceding provisions of this title, is further
amended by adding at the end the following:
``PART M--MENTAL HEALTH AND SUICIDE PREVENTION
``SEC. 861. ENCOURAGING CAMPUS COMPREHENSIVE MENTAL HEALTH AND SUICIDE
PREVENTION PLANS.
``(a) In General.--The Secretary shall make efforts to encourage
institutions of higher education to develop and implement comprehensive
campus mental health and suicide prevention plans. Such efforts--
``(1) shall be conducted in coordination with the Secretary
of Health and Human Services (acting through the Administrator
of the Substance Abuse and Mental Health Services
Administration);
``(2) shall align with--
``(A) the efforts of the Suicide Prevention Resource
Center, specifically the Center's model of nine
strategies that form a comprehensive approach to
suicide prevention;
``(B) the 21st Century Cures Act (42 U.S.C. 201
note); and
``(C) the programs authorized under the Garrett Lee
Smith Memorial Act (42 U.S.C. 201 note; Public Law 108-
355);
``(3) shall take into consideration existing State efforts to
address mental health and suicide prevention at institutions of
higher education; and
``(4) may be carried out in collaboration with nonprofit
organizations and other experts and stakeholders in the field
of campus mental health and suicide prevention.
``(b) Reports.--The Secretary, or a designee of the Secretary, shall
report to Congress on the efforts of the Secretary carried out under
this section--
``(1) not later than one year after the date of enactment of
the College Affordability Act; and
``(2) three years after the date of enactment of such Act.
``(c) Construction.--Nothing in this section shall be construed as
creating new statutory requirements for institutions of higher
education or granting the Secretary new regulatory authority.''.
TITLE IX--DIRECTIVES TO THE SECRETARY OF EDUCATION
SEC. 9001. PROVIDING THAT THE SECRETARY OF EDUCATION MAY NOT ISSUE OR
ENFORCE CERTAIN RULES THAT WEAKEN THE ENFORCEMENT
OF THE PROHIBITION OF SEX DISCRIMINATION APPLICABLE
UNDER TITLE IX OF THE EDUCATION AMENDMENTS OF 1972.
The Secretary of Education may not--
(1) take any action to implement, enforce, or otherwise give
effect to the proposed amendments to regulations relating to
the enforcement of title IX of the Education Amendments of
1972, published on November 29, 2018, under the heading
``Nondiscrimination on the Basis of Sex in Education Programs
or Activities Receiving Federal Financial Assistance'' (83 Fed.
Reg. 61462); or
(2) propose or issue any rule that is in substantially the
same form or substantially the same as any of such proposed
amendments.
SEC. 9002. STUDY AND REPORT ON SINGLE CERTIFICATION FORM.
(a) Study.--Not later than 1 year after the date of the enactment of
this Act, the Secretary of Education shall conduct a study on the
feasibility of developing a single certification form that borrowers
may use to electronically submit information with respect to--
(1) TEACH Grants under subpart 9 of part A of title IV of the
Higher Education Act of 1965 (20 U.S.C. 1070g et seq.);
(2) loan forgiveness under section 428J of the Higher
Education Act of 1965 (20 U.S.C. 1078-10);
(3) loan cancellation under section 460 of the Higher
Education Act of 1965 (20 U.S.C. 1087j); and
(4) public service loan forgiveness under section 455(m) of
the Higher Education Act of 1965 (20 U.S.C. 1087e(m)).
(b) Report.--Not later than 1 year after the date of the enactment of
this Act, the Secretary of Education shall submit a report to Congress
that includes--
(1) the results of the study required under subsection (a);
and
(2) recommendations with respect to using a single
certification form that borrowers may use to electronically
submit information with respect to the programs specified in
paragraphs (1) through (4) of such subsection.
SEC. 9003. LONGITUDINAL STUDY ON THE EFFECTIVENESS OF STUDENT LOAN
COUNSELING.
(a) In General.--Not later than 1 year after the date of enactment of
this Act, the Secretary of Education, acting through the Director of
the Institute of Education Sciences, shall begin conducting a rigorous,
longitudinal study of the impact and effectiveness of the student loan
counseling--
(1) provided under subsections (b), (l), and (n) of section
485 of the Higher Education Act of 1965 (20 U.S.C. 1092), as
amended by this Act; and
(2) provided through such other means as the Secretary of
Education may determine.
(b) Contents.--
(1) Borrower information.--The longitudinal study carried out
under subsection (a) shall include borrower information, in the
aggregate and disaggregated by race, ethnicity, gender, income,
status as an individual with a disability, and status as a
first generation college student (defined in section
402A(h)(3)), on--
(A) student persistence;
(B) degree attainment;
(C) program completion;
(D) successful entry into student loan repayment;
(E) cumulative borrowing levels; and
(F) such other factors as the Secretary of Education
may determine.
(2) Exception.--The disaggregation under paragraph (1) shall
not be required in a case in which the number of borrowers in a
category is insufficient to yield statistically reliable
information or the results would reveal personally identifiable
information about an individual borrower.
(c) Interim Reports.--Not later than 18 months after the commencement
of the study under subsection (a), and annually thereafter, the
Secretary of Education shall evaluate the progress of the study and
report any short-term findings to the appropriate committees of
Congress.
SEC. 9004. STUDY AND PROCEDURES ON DETERMINING FAMILY SIZE.
(a) In General.--Not later than 1 year after the date of enactment of
this Act, the Secretary of Education shall--
(1) conduct, in consultation with the Secretary of the
Treasury, a study which meets the specifications described in
subsection (b), on the effect of using data from the Internal
Revenue Service on the deduction for personal exemptions
provided by section 151 of the Internal Revenue Code of 1986
for a proxy for family size in an income-driven repayment plan,
and publish such study in the Federal Register;
(2) use the results of the study conducted under paragraph
(1) to develop procedures for determining family size for the
automatic recertification of income for an income-driven
repayment plan in a manner that minimizes burdens and
unintended harm to borrowers;
(3) publish the procedures developed under paragraph (2) in
the Federal Register; and
(4) after a notice and comment period on such procedures, use
such comments to finalize the procedures.
(b) Specifications.--The study conducted under subsection (a)(1)
shall--
(1) determine how closely such personal exemptions match the
family size that borrowers report on their income-driven
repayment plan request form;
(2) compare the borrower's actual monthly payment amount with
the monthly payment amount borrowers would have using family
size information derived from tax returns; and
(3) use data from more than one year, where possible, to
analyze how much family size changes over time.
(c) Definition.--The term ``the income-driven repayment plan'' means
a plan described in subparagraph (D) or (E) of section 455(d)(1) of the
Higher Education Act of 1965 (20 U.S.C. 1087e(d)(1)) and the income-
based repayment plan under section 493C(f) of such Act (20 U.S.C.
1098e(f)), as added by section 4631(c) of this Act.
SEC. 9005. UNIVERSAL UNIQUE NUMERIC DATA IDENTIFIER.
(a) Assignment of Unique Numeric Identifier Required.--Not later than
18 months after the date of the enactment of this Act, the Secretary of
Education shall assign a unique numeric identifier to at least each
campus of each institution of higher education that participates in a
program under title IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.) to be used for reporting and disaggregating data for the
purposes of the following:
(1) Surveys conducted as a part of the Integrated
Postsecondary Education Data System (IPEDS) or any other
Federal postsecondary institution data collection effort, as
completed in accordance with section 487(a)(17) of the Higher
Education Act of 1965 (20 U.S.C. 1094(a)(17)).
(2) Reports required to be filed under section 485(f) of the
Higher Education Act of 1965 (20 U.S.C. 1092(f)).
(3) The electronic exchange of data under section 485B of the
Higher Education Act of 1965 (20 U.S.C. 1092b).
(4) Determinations under section 496 of the Higher Education
Act of 1965 (20 U.S.C. 1099b).
(5) Reports filed on the College Scorecard website of the
Department of Education (or any successor website).
(6) Reports filed on the College Navigator website (as
defined in section 132 of the Higher Education Act of 1965 (20
U.S.C. 1015a)).
(7) Data submitted to the postsecondary student data system
established under section 132(l) of the Higher Education Act of
1965 (20 U.S.C. 1015a(l)), as added by section 1022 of this
Act.
(8) To the extent determined to be appropriate by the
Secretary, any other data systems of the Department of
Education that include information on institutions of higher
education.
(b) Considerations.--In carrying out subsection (a), the Secretary of
Education shall--
(1) consider the ability to use the unique numeric identifier
assigned under such subsection to--
(A) disaggregate institutions of higher education by
corporate ownership;
(B) identify an institution of higher education with
more than one campus; and
(C) in the case of institutions of higher education
described in subparagraph (B), distinguish between a
campus with a specific location and a distance
education program;
(2) account for interactions of the unique numeric identifier
with requirements under title IV of the Higher Education Act
(20 U.S.C. 1070 et seq.), including by preventing institutional
attempts to evade such requirements by changing the unique
numeric identifiers associated with the campuses of the
institution;
(3) to the extent practicable, minimize the paperwork burden
on institutions of higher education;
(4) create and make public a crosswalk indicating changes in
the unique numeric identifiers assigned by the Secretary to
each campus under subsection (a) and the numeric identifiers
used by the Department of Education prior to the date on which
the Secretary assigns each campus a unique numeric identifier;
and
(5) annually create and make public an updated crosswalk
indicating changes in unique numeric identifiers assigned to
campuses, including changes that result from the establishment
of new locations, the closing of campuses, and changes in
ownership and affiliation.
SEC. 9006. QUESTIONS ON FOOD AND HOUSING INSECURITY IN NATIONAL
POSTSECONDARY STUDENT AID STUDY.
For purposes of each National Postsecondary Student Aid Study
conducted after the date of enactment of this Act, the Secretary of
Education shall include questions that measure rates of food and
housing insecurity in the National Postsecondary Student Aid Study.
SEC. 9007. DISAGGREGATION OF DATA USING RACIAL GROUPS.
(a) Study Required.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of Education shall carry out a
study on the feasibility of disaggregating data reported under the
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) to the Secretary
of Education using the racial groups identified by the American
Community Survey of the Bureau of the Census.
(b) Elements.--The study required by subsection (a) shall, with
respect to the data described in such subsection--
(1) survey each method by which such data reported to the
Secretary of Education is disaggregated by race;
(2) survey each method by which the Secretary of Education
disaggregates such data by race; and
(3) in the case of such data that are reported to the
Secretary of Education and are not disaggregated by race using
the racial groups identified by the American Community Survey
of the Bureau of the Census, examine the feasibility of
disaggregating such data using such racial groups while
protecting student privacy.
(c) Best Practices.--Not later than 6 months after the completion of
the study required under subsection (a), the Secretary of Education
shall issue best practices with respect to disaggregating data reported
to the Secretary of Education using the racial groups identified by the
American Community Survey of the Bureau of the Census.
SEC. 9008. DISAGGREGATION OF DATA BY SEXUAL ORIENTATION AND GENDER
IDENTITY.
(a) Study Required.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of Education shall carry out a
study on the options for disaggregating data reported under the Higher
Education Act of 1965 (20 U.S.C. 1001 et seq.) to the Secretary of
Education by sexual orientation and gender identity.
(b) Elements.--The study required by subsection (a) shall--
(1) survey the methods by which institutions of higher
education (as defined in section 102 of the Higher Education
Act of 1965 (20 U.S.C. 1002) collect, report, and use data on
sexual orientation and gender identity;
(2) survey each method by which the Secretary of Education
disaggregates data by sexual orientation and gender identity;
(3) survey the methods by which the Secretary of Education
disaggregates data for other similarly-sized populations; and
(4) identify options for disaggregating data reported under
the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) by
sexual orientation and gender identity while protecting student
privacy.
(c) Best Practices.--Not later than 6 months after the completion of
the study required under subsection (a), the Secretary of Education
shall issue best practices with respect to disaggregating data reported
to the Secretary of Education by sexual orientation and gender
identity.
SEC. 9009. ACCESSIBLE INSTRUCTIONAL MATERIALS AND TECHNOLOGY.
(a) Establishment of Commission.--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 guidelines for accessible
postsecondary electronic instructional materials and related
technologies in order--
(1) to ensure students with disabilities are afforded the
same educational benefits provided to students without
disabilities through the use of electronic instructional
materials and related technologies;
(2) to improve the selection and use of such materials and
technologies at institutions of higher education; and
(3) to encourage entities that produce such materials and
technologies to make accessible versions more readily available
in the market.
(b) Review.--In carrying out subsection (a), the commission shall--
(1) review applicable information technology accessibility
standards; and
(2) compile and annotate such accessibility standards as an
additional information resource for institutions of higher
education and companies that service the higher education
market.
(c) Membership.--
(1) Stakeholder groups.--The commission shall be composed of
representatives from the following categories:
(A) 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.
(B) Higher education leadership, including
institution of higher education presidents, provosts,
deans, vice presidents or deans of libraries, chief
information officers, and other senior institutional
executives.
(C) Developers of postsecondary electronic
instructional materials and manufacturers of related
technologies.
(2) Appointment of members.--The commission members shall be
appointed as follows:
(A) 6 members, 2 from each category described in
paragraph (1), 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.
(B) 6 members, 2 from each category described in
paragraph (1), 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.
(C) 3 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. 1 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.
(3) Eligibility to serve as a member.--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.
(d) Authority and Administration.--
(1) 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.
(2) Administration.--
(A) Staffing.--There shall be no permanent staffing
for the commission.
(B) Leadership.--Commission members shall elect a
chairperson from among the appointees to the
commission.
(C) 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.
(e) Duties.--
(1) Guidelines.--Not later than 18 months after the date of
enactment of this Act, subject to a 6-month extension that it
may exercise at its discretion, the commission shall--
(A) develop and issue guidelines for accessible
postsecondary electronic instructional materials, and
related technologies; and
(B) in developing the guidelines, the commission
shall--
(i) establish a technical panel pursuant to
paragraph (4) to support the commission in
developing the guidelines;
(ii) develop criteria for determining which
materials and technologies constitute
postsecondary electronic instructional
materials and related technologies;
(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 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 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 guidelines; and
(ix) provide that where electronic
instructional materials, or related
technologies, that comply fully with the
guidelines are not commercially available, or
where such compliance is not technically
feasible, the institution may select the
product that best meets the guidelines
consistent with the institution's business and
pedagogical needs.
(2) Annotated list of information technology standards.--Not
later than 18 months after the date of the enactment of this
Act, subject to a 6-month extension that it may exercise at its
discretion, the commission established in section 2 shall, with
the assistance of the technical panel established under
paragraph (4), develop and issue an annotated list of
information technology standards.
(3) Approval.--Issuance of the guidelines and annotated list
of information technology standards shall require approval of
at least 75 percent of the members of the commission.
(4) Technical panel.--Not later than 1 month after first
meeting, the Commission 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.
(f) Review of Guidelines.--Not later than 5 years after issuance of
the guidelines and annotated list of information technology standards
described in subsections (a) and (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 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 then submit a report and recommendation
to Congress regarding whether the Commission should be reconstituted.
(g) Rule of Application.--
(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 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.), nothing in this Act 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.
(h) Definitions.--In this section:
(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 or registration systems, annotated by
the commission established pursuant to this section. 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) 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.
(3) 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.
(4) 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 (e)(4), which will
assist the commission in the development of the guidelines and
annotated list of information technology standards authorized
under this section.
SEC. 9010. SERVING AND SUPPORTING STUDENTS WITH MENTAL HEALTH
DISABILITIES IN INSTITUTIONS OF HIGHER EDUCATION.
(a) Findings and Purposes.--
(1) Findings.--Congress finds the following:
(A) More than 75 percent of mental health conditions
begin before the age of 24.
(B) More than 25 percent of students between the ages
of 18 and 24 reported a mental health concern.
(C) More than 50 percent of students between the ages
of 18 and 24 reported having a severe psychological
problem.
(D) More than 50 percent of students between the ages
of 18 and 24 reported feelings of hopelessness.
(E) Higher education counseling centers are devoting
more time to rapid-response treatment with more than 25
percent of students who sought help reporting they had
intentionally hurt themselves.
(F) Over a 5-year period, counseling center
utilization increased by an average of 30 to 40
percent, while enrollment increased by only 5 percent,
forcing institutions to stretch mental health services
to more students without increasing resources.
(2) Purposes.--The purposes of this section are the
following:
(A) To ensure States and institutions of higher
education are provided with accurate information on the
mental health concerns facing students.
(B) To provide detailed recommendations that
institutions of higher education, States, and the
Federal Government can take to improve the mental
health services available to students and properly
treat the rising number of students with mental health
issues.
(b) Advisory Commission on Serving and Supporting Students With
Mental Health Disabilities in Institutions of Higher Education.--
(1) In general.--The Secretary of Education shall establish a
commission to be known as the Advisory Commission on Serving
and Supporting Students with Mental Health Disabilities in
Institutions of Higher Education (referred to in this section
as the ``Commission'').
(2) Membership.--
(A) Total number of members.--The Commission shall
include not more than 20 members, who shall be
appointed by the Secretary of Education in accordance
with subparagraphs (B) and (C).
(B) Members of the commission.--The Commission shall
include 1 representative from each of the following:
(i) The Office of Postsecondary Education of
the Department of Education.
(ii) The Office of Special Education and
Rehabilitation Services of the Department of
Education.
(iii) The Office of Civil Rights of the
Department of Education.
(iv) The Office of Civil Rights of the
Department of Justice.
(v) The National Council on Disability.
(vi) A membership association for
administrative and personnel professionals
focused on creating an inclusive higher
education environment for individuals with
disabilities, as determined by the Secretary.
(vii) An organization that represents the
Protection and Advocacy for Individuals with
Mental Illness program, as determined by the
Secretary.
(viii) An organization operated by and
representing secondary and postsecondary
education students with mental health
disabilities advocating for mental health
services and suicide prevention.
(ix) An organization representing college and
university counseling directors.
(C) Additional members of the commission.--In
addition to the members included under subparagraph
(B), the Commission shall include the following:
(i) Four members from leadership of
institutions of higher education who have
demonstrated experience in successfully
supporting the retention and graduation of
students with mental health disabilities,
including from counseling and psychiatric
services staff. With respect to such 4 members,
1 member shall be a staff member of a 2-year
degree-granting institution of higher
education, 1 member shall be a staff member
from a 4-year degree-granting institution of
higher education, 1 member shall be a member of
campus law enforcement, and 1 member shall
serve as a general counsel. Such 4 members
shall represent institutions of differing
sizes.
(ii) Three members from family members of
individuals who are--
(I) enrolled in an institution of
higher education on the date such
family member is appointed to the
Commission; or
(II) former students with a mental
health disability.
(iii) Four members from individuals with
mental health disabilities, including not less
than 2 individuals enrolled in an institution
of higher education on the date of appointment
to the Commission. Any remaining member shall
be an individual with a mental health
disability who has attended an institution of
higher education.
(D) Timing.--The Secretary of Education shall
establish the Commission and appoint the members of the
Commission not later than 60 days after the date of
enactment of this Act.
(3) Chairperson and vice chairperson.--The Commission shall
select a chairperson and vice chairperson from among the
members of the Commission. Either the chairperson or the vice
chairperson shall be a student or former student with a mental
health disability.
(4) Meetings.--
(A) In general.--The Commission shall meet at the
call of the chairperson, but not less often than 8
times.
(B) First meeting.--Not later than 60 days after the
appointment of the members of the Commission under
paragraph (2), the Commission shall hold the
Commission's first meeting.
(5) Duties.--The Commission shall conduct a study, using the
highest quality and most representative data and research
available, and prepare a report for the Secretary of Education
that includes the following:
(A) Findings from stakeholders, including through
solicitation of public testimony, related to the
challenges faced by students with mental health
disabilities in institutions of higher education,
including--
(i) the services available to students with
mental health disabilities in institutions of
higher education and their effectiveness in
supporting these students;
(ii) the impact of policies and procedures
that help or hinder the goal of providing equal
opportunity for students with mental health
disabilities, such as reasonable accommodation
policies, mandatory and voluntary leave
policies, and disciplinary policies;
(iii) the use of protected health information
of students with mental health disabilities by
institutions of higher education, including the
extent to which campus-based mental health
providers share this information with college
or university officials without student
consent; and
(iv) the impact of providing mental health
services on a student's academic performance,
well-being, and ability to complete college.
(B) Conclusions on the major challenges facing
students with mental health disabilities in
institutions of higher education.
(C) Recommendations to improve the overall education,
and retention and graduation rates, of students with
mental health disabilities in institutions of higher
education, with the goal of helping these students
access educational opportunities equal to those of
their peers without disabilities.
(6) Commission personnel matters.--
(A) Travel expenses.--The members of the Commission
shall not receive compensation for the performance of
services for the Commission, but shall be allowed
reasonable travel expenses, including per diem in lieu
of subsistence, at rates authorized for employees of
agencies under subchapter I of chapter 57 of title 5,
United States Code, while away from their homes or
regular places of business in the performance of
services for the Commission. Notwithstanding section
1342 of title 31, United States Code, the Secretary of
Education may accept the voluntary and uncompensated
services of members of the Commission.
(B) Staff.--The Secretary of Education may designate
such personnel as may be necessary to enable the
Commission to perform its duties.
(C) Detail of government employees.--Any Federal
Government employee, with the approval of the head of
the appropriate Federal agency, may be detailed to the
Commission without reimbursement, and such detail shall
be without interruption of loss of civil service status
or privilege.
(D) Facilities, equipment, and services.--The
Secretary of Education shall make available to the
Commission, under such arrangements as may be
appropriate, necessary equipment, supplies, and
services.
(7) Reports.--
(A) Interim and final reports.--The Commission shall
prepare and submit to the Secretary of Education, as
well as the Committee on Health, Education, Labor, and
Pensions of the Senate and the Committee on Education
and Labor of the House of Representatives--
(i) an interim report that summarizes the
progress of the Commission, along with any
interim findings, conclusions, and
recommendations as described in paragraph (5);
and
(ii) a final report that states final
findings, conclusions, and recommendations as
described in such paragraph.
(B) Preparation and submission.--The reports
described in subparagraph (A) shall be prepared and
submitted--
(i) in the case of the interim report, not
later than 1 year after the date on which all
the members of the Commission are appointed;
and
(ii) in the case of the final report, not
later than 2 years after the date on which all
the members of the Commission are appointed.
(8) Termination.--The Commission shall terminate on the day
after the date on which the Commission submits the final report
under paragraph (7).
(c) GAO Study.--The Comptroller General of the United States shall
submit to Congress a report that examines the challenges faced by
students with mental health disabilities in institutions of higher
education, including--
(1) the services available to students with mental health
disabilities in institutions of higher education and what is
known about their effectiveness in supporting these students;
(2) the impact of policies and procedures that help or hinder
the goal of providing equal opportunity for students with
mental health disabilities, such as reasonable accommodation
policies, mandatory and voluntary leave policies, and
disciplinary policies;
(3) the use of protected health information of students with
mental health disabilities by institutions of higher education,
including campus-based mental health providers sharing this
information with college or university officials without
student consent;
(4) the impact of providing mental health services on a
student's academic performance, well-being, and ability to
complete college;
(5) information on the major challenges facing students with
mental health disabilities in institutions of higher education;
and
(6) recommendations to improve the overall education, and
retention and graduation rates, of students with mental health
disabilities in institutions of higher education, with the goal
of helping these students access educational opportunities
equal to those of their peers without disabilities.
SEC. 9011. FEDERAL STUDENT LOAN CANCELLATION COMMISSION.
(a) Purpose.--The purpose of this section is to establish a
commission to study--
(1) the impact of Federal student loan debt on the short- and
long-term socioeconomic outcomes of--
(A) individual borrowers; and
(B) regional and national economies;
(2) the feasibility of canceling Federal student loan debt;
and
(3) the benefits of any such cancellation.
(b) Establishment.--There is established the Commission on Federal
Student Loan Cancellation (hereinafter in this section referred to as
the ``Commission'').
(c) Duties.--The Commission shall perform the following duties:
(1) Study the decline in State investment in, and the
attendant rise in debt financing for, higher education from
1965 to the date of enactment of this Act.
(2) Identify, compile, and synthesize the relevant corpus of
evidentiary documentation on Federal student loans and the
impact of those loans on borrowers, disaggregated by--
(A) Pell Grant recipient status;
(B) race or ethnicity (in accordance with section
153(a)(3)(B) of the Education Sciences Reform Act (20
U.S.C. 9543(a)(3)(B)), as amended by section 10401 of
this Act);
(C) completion and non-completion of each category of
educational programs (as defined in section
435(a)(9)(E) of the Higher Education Act of 1965, as
added by section 4110(a)(1)(B) of this Act); and
(D) post-graduation employment information.
(3) Analyze evidentiary data on the following relationships:
(A) The macroeconomic impacts of partial and total
student debt cancellation.
(B) The impact of student loan default on long-term
financial success and security.
(C) The impact of partial and total student debt
cancellation on income inequality, including the racial
wealth gap.
(D) The impact of the income inequality and the
racial wealth gap on student debt repayment.
(4) Study proposals to cancel Federal student loan debt in
consideration of the Commission's findings under paragraph (3).
(5) Study the feasibility of establishing a Federal student
loan cancellation program.
(d) Report.--
(1) In general.--Not later than 24 months after the date on
which the last member of the Commission is appointed, the
Commission shall submit to the Congress a report containing the
data collected and analyzed under paragraphs (1) through (3) of
subsection (c) and recommendations to create a Federal student
loan cancellation program in consideration of the Commission's
findings under subsection (c)(3).
(2) Specific questions.--In making recommendations under
paragraph (1), the Commission shall address, among other
issues, the following:
(A) Whether any borrowers should be prioritized in
loan cancellation and a rationale for any such
prioritization.
(B) How such recommendations and the proposed loan
cancellation program take into consideration the wealth
disparities faced by racial groups.
(C) How the proposed cancellation program interacts
with existing student loan cancellation programs and
policies.
(D) How the proposed cancellation program protects
future students from facing the same debt burden.
(E) How the proposed cancellation program should be
funded and implemented.
(e) Membership.--
(1) Number and appointment.--The Commission shall be composed
of 13 members, who shall be appointed, not later 180 days after
the date of enactment of this Act, as follows:
(A) One member shall be appointed by the President.
(B) Four members shall be appointed by the Speaker of
the House of Representatives.
(C) Four members shall be appointed by the President
pro tempore of the Senate.
(D) Four members shall be appointed by the Secretary
of Education.
(2) Composition.--All members of the Commission shall be
individuals who are qualified to serve on the Commission by
virtue of their expertise in Federal student aid and student
loan debt. The Commission shall be composed, at a minimum, of
Department of Education officials, academic researchers,
consumer advocates, and an impacted individual.
(f) Terms.--The term of office for members shall be for the life of
the Commission. A vacancy in the Commission shall not affect the powers
of the Commission and shall be filled in the same manner in which the
original appointment was made.
(g) Chair and Vice Chair.--The Commission shall elect a Chair and
Vice Chair from among its members. The term of office of each shall be
for the life of the Commission.
(h) Compensation.--Each member of the Commission shall serve without
compensation. All members of the Commission shall be reimbursed for
travel, subsistence, and other necessary expenses incurred by them in
the performance of their duties to the extent authorized by chapter 57
of title 5, United States Code.
(i) Powers of the Commission.--
(1) Hearings and sessions.--The Commission may, for the
purpose of carrying out the provisions of this section, hold
such hearings and sit and act at such times and at such places
in the United States, and request the attendance and testimony
of such witnesses and the production of such books, records,
correspondence, memoranda, papers, and documents, as the
Commission considers appropriate.
(2) Powers of subcommittees and members.--Any subcommittee or
member of the Commission may, if authorized by the Commission,
take any action which the Commission is authorized to take by
this section.
(3) Obtaining official data.--The Commission may acquire
directly from the Secretary of Education available information
which the Commission considers useful in the discharge of its
duties. The Secretary of Education shall cooperate with the
Commission with respect to such information and shall furnish
all information requested by the Commission to the extent
permitted by law.
(j) Termination.--The Commission shall terminate 90 days after the
date on which the Commission submits its report to the Congress under
subsection (d).
SEC. 9012. DISTRIBUTION OF RESOURCES TO PREVENT INCIDENTS OF BIAS ON
CAMPUS.
Not later that 1 year after the date of enactment of this Act and
every 2 years thereafter, the Secretary of Education shall, in
consultation with the Attorney General, disseminate to institutions of
higher education resources (including best practices information) about
preventing and responding to incidents of bias, including bias based on
actual or perceived race, color, religion, national origin, sex
(including sexual orientation, gender identity, pregnancy, childbirth,
a medical condition related to pregnancy or childbirth, and sex
stereotype), or disability, at institutions of higher education
(including elements of institutional policies that have proven
successful).
SEC. 9013. GAO STUDY ON RACIAL AND SOCIOECONOMIC EQUITY GAPS AT PUBLIC
4-YEAR INSTITUTIONS.
(a) Report.--The Comptroller General shall prepare and submit a
report to the authorizing committees that examines--
(1) racial and socioeconomic equity gaps among racial and
income groups in enrollment, degree attainment, and Federal
student loan repayment rates, and other outcomes at public 4-
year degree granting institutions of higher education,
disaggregated by State;
(2) the extent to which the rates and other outcomes
described in paragraph (1) have changed over time;
(3) the factors that may contribute to differences in the
rates and other outcomes described in paragraph (1) among
racial and income groups (such as State spending on public, 4-
year institutions of higher education, the availability of
Federal and State financial aid, and FAFSA filing rates);
(4) efforts by States and institutions of higher education to
attempt to close racial and income gaps in the rates and other
outcomes described in paragraph (1);
(5) the racial breakdown of faculty and staff at public 4-
year institutions of higher education and how retention rates
for minority faculty and staff compare to non-minority faculty
and staff; and
(6) efforts by States and institutions of higher education to
attempt to improve inclusion for students belonging to racial
and income groups that are historically underrepresented in
higher education.
(b) Definitions.--In this section--
(1) Institution of higher education.--The term ``institution
of higher education'' has the meaning given the term in section
101 of the Higher Education Act of 1965 (20 U.S.C. 1001).
(2) Authorizing committees; states.--The terms ``authorizing
committees'' and ``State'' have the meanings given the terms in
section 103 of the Higher Education Act of 1965 (20 U.S.C.
1003).
SEC. 9014. GAO STUDY ON LICENSE REVOCATIONS RELATED TO STUDENT LOAN
DEFAULTS.
(a) In General.--The Comptroller General of the United States shall
conduct a study on State practices related to the denial, suspension,
or revocation of an individual's professional or driver's license as a
penalty for student loan default.
(b) Contents.--The study shall include a review of--
(1) State laws related to the denial, suspension, or
revocation of a professional or driver's license as a penalty
for student loan default, and the types of licenses included in
such laws;
(2) the extent to which student loan borrowers are affected
by such license denials, suspensions, or revocations; and
(3) the actual and potential consequences of such actions on
Federal student loan borrowers.
(c) Report.--The Comptroller General shall submit a report to the
Committee on Education and Labor of the House of Representatives and
the Committee on Health, Education, Labor, and Pensions of the Senate
containing the results of the study, together with any recommendations
the Comptroller General determines appropriate.
(d) Outreach.--In conducting the study, the Comptroller General shall
seek information from State or local licensing boards and other
entities administering State laws pertaining to the denial, suspension,
or revocation of a professional or driver's license as a penalty for
student loan default, and other nonprofit entities that have researched
issues pertaining to State licensure.
TITLE X--AMENDMENTS TO OTHER LAWS
PART A--EDUCATION OF THE DEAF ACT OF 1986
SEC. 10001. COMPOSITION OF 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) by striking ``twenty-one'' and inserting ``twenty-
three'';
(2) in subparagraph (A)--
(A) by striking ``three'' and inserting ``four''; and
(B) in clause (i)--
(i) by striking ``one'' and inserting
``two''; and
(ii) by striking ``Senator'' and inserting
``Senators''; and
(3) in subparagraph (B), by striking ``eighteen'' and
inserting ``nineteen''.
SEC. 10002. ADMINISTRATIVE REQUIREMENTS OF 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 the University 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).''.
SEC. 10003. FEDERAL ENDOWMENT PROGRAMS FOR GALLAUDET UNIVERSITY AND THE
NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.
Section 207 of the Education of the Deaf Act of 1986 (20 U.S.C. 4357)
is amended--
(1) in subsection (e), by striking ``(and its non-Federal
match)''; and
(2) in subsection (g)(1), by striking ``amounts contributed
to the fund from non-Federal sources, and'' and inserting ``and
the related''.
PART B--TRIBALLY CONTROLLED COLLEGES AND UNIVERSITIES ASSISTANCE ACT OF
1978
SEC. 10101. 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 (4), by striking ``or has been
formally'' and inserting ``and has been formally'';
(B) in paragraph (7), by adding ``and'' at the end;
(C) in paragraph (8), by striking ``; and'' and
inserting a period; and
(D) 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'';
(C) in paragraph (4)--
(i) by striking ``students'' and inserting
``individuals 16 years of age or older''; and
(ii) by striking ``credit hours.'' and
inserting ``credit hours, except that the
provisions of paragraphs (1) and (3) shall not
apply to any determination under this
paragraph.'';
(D) in paragraph (5)--
(i) in subparagraph (A)--
(I) by inserting ``hour'' after
``credit'';
(II) by striking ``in the case of an
institution on a quarter system, or 15
contact hours in the case of an
institution on a semester system,'';
and
(III) by striking ``and'' at the end;
(ii) by redesignating subparagraph (B) as
subparagraph (C); and
(iii) by inserting after subparagraph (A) the
following:
``(B) shall be determined as one academic credit hour
for every three continuing education program credits
earned in the case of an institution on a semester
system (which may be adjusted by the Secretary, if
necessary, for institutions using academic periods
other than semesters, such as trimesters or quarters);
and''; and
(E) by inserting after paragraph (5), the following:
``(6) Enrollment data from the prior-prior academic year
shall be used.''.
(b) Authorization of Appropriations.--
(1) In general.--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:
``authorization of appropriations
``Sec. 3. (a)(1) There are authorized to be appropriated to carry
out sections 105, 107, 112(b), and 113 such sums as may be necessary
for fiscal year 2021 and each of the five succeeding fiscal years.
``(2) Funds appropriated pursuant to the authorization under
paragraph (1) shall be transferred by the Secretary of the Treasury
through the most expeditious method available, with each of the
tribally controlled colleges or universities being designated as its
own certifying agency.
``(b) There are authorized to be appropriated to carry out title III
such sums as may be necessary for fiscal year 2021 and each of the five
succeeding fiscal years. Any funds appropriated pursuant to this
subsection are authorized to remain available until expended.
``(c) There are authorized to be appropriated to carry out titles IV
and V such sums as may be necessary for fiscal year 2021 and each of
the five succeeding fiscal years.
``(d)(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).''.
(2) Conforming amendments.--
(A) Section 110 of the Tribally Controlled Colleges
and Universities Assistance Act of 1978 (25 U.S.C.
1810) is repealed.
(B) Section 111 of the Tribally Controlled Colleges
and Universities Assistance Act of 1978 (25 U.S.C.
1811) is amended by striking ``110(a)(2)'' and
inserting ``3(a)(2)''.
(C) Section 306 of the Tribally Controlled Colleges
and Universities Assistance Act of 1978 (25 U.S.C.
1836) is repealed.
(D) Title III of the Tribally Controlled Colleges and
Universities Assistance Act of 1978 (25 U.S.C. 1831 et
seq.) is amended by striking ``section 306'' each place
it appears and inserting ``section 3(b)''
(E) Section 403 of the Tribally Controlled Colleges
and Universities Assistance Act of 1978 (25 U.S.C.
1852) is repealed.
(F) Section 502 of the Tribally Controlled Colleges
and Universities Assistance Act of 1978 (25 U.S.C.
1862) is amended--
(i) in subsection (a), by striking ``Subject
to the availability of appropriations, for
fiscal year 2009 and each fiscal year
thereafter,'' and inserting ``From the amount
made available under section 3(c) for each
fiscal year,''; and
(ii) in subsection (d)(1), by striking ``For
fiscal year 2009 and each fiscal year
thereafter, of amounts made available pursuant
to section 504,'' and inserting ``From the
amount made available under section 3(c) for
each fiscal year,''.
(G) Section 504 of the Tribally Controlled Colleges
and Universities Assistance Act of 1978 (25 U.S.C.
1864) is repealed.
(c) Annual Report on Emerging Tribal Colleges.--Section 104 of the
Tribally Controlled Colleges and Universities Assistance Act of 1978
(25 U.S.C. 1804a) is amended to read as follows:
``annual report on emerging tribal colleges
``Sec. 104. Not later than December 31 of each year, the Secretary
shall submit a report to the Senate Committee on Indian Affairs, the
Senate Committee on Health, Education, Labor and Pensions, the House
Committee on Natural Resources, the House Committee on Education and
Labor, the Senate Appropriations Subcommittee on the Interior, and the
House Appropriations Subcommittee on the Interior on developing and
emerging tribally controlled colleges or universities. Such report
shall include information on--
``(1) inquiries received by the Secretary from federally
recognized Indian Tribes and tribal organizations regarding the
process for establishing a tribally controlled college or
university;
``(2) the status of ongoing efforts to establish tribally
controlled colleges or universities;
``(3) the geographic location, current and projected size,
and anticipated application time frame of each reported
institution; and
``(4) such other data as the Secretary may deem relevant.''.
(d) Eligibility Studies.--Section 106 of the Tribally Controlled
Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1806) is
amended--
(1) in subsection (b), by striking ``for the fiscal year
succeeding'' and inserting ``for the second fiscal year
succeeding''; and
(2) in subsection (c), by striking ``drawn from'' and all
that follows through the period at the end and inserting
``drawn from the general administrative appropriations to the
Secretary.''
(e) Grants to Tribally Controlled Colleges or Universities.--Section
107 of the Tribally Controlled Colleges and Universities Assistance Act
of 1978 (25 U.S.C. 1807) is amended--
(1) in subsection (c), by striking ``given to institutions''
and all that follows through the period at the end and
inserting ``given to institutions which received payments under
this title in fiscal year 2019 or were affiliated with an
institution which received payments under this title in fiscal
year 2019.''; and
(2) in subsection (d), by inserting ``higher education''
after ``national Indian''.
(f) Amount of Grants.--Section 108 of the Tribally Controlled
Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1808) is
amended--
(1) by striking subsection (a)(2) and inserting the
following:
``(2) Exceptions.--
``(A) If the sum appropriated for any fiscal year for
payments under this section is not sufficient to pay in
full the total amount that approved applicants are
eligible to receive under this section for such fiscal
year, the Secretary shall first allocate to each such
applicant that received funds under this part for the
preceding fiscal year an amount equal to 100 percent of
the product of the per capita payment for the preceding
fiscal year and such applicant's Indian student count
for the current program year, plus an amount equal to
the actual cost of any increase to the per capita
figure resulting from inflationary increases to
necessary costs beyond the institution's control.
``(B) 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.''; and
(2) in subsection (b)(1)--
(A) 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
(B) by striking ``January 1'' and inserting
``September 30''.
(g) Report on Facilities.--Section 112 of the Tribally Controlled
Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1812) is
amended to read as follows:
``report on facilities
``Sec. 112. (a) The Secretary shall provide for the conduct of a
study on the condition of tribally controlled college or university
facilities, which, for purposes of this section, shall include the
facilities of a Tribal College or University, as defined in section
316(b) of the Higher Education Act of 1965 (20 U.S.C. 1059c(b)). Such
study shall identify the need for new construction, renovation, and
infrastructure enhancements of tribally controlled college or
university facilities.
``(b) The study required in subsection (a) may be conducted directly
by the Secretary or by contract.
``(c) A report on the results of the study required in subsection (a)
shall be submitted to the Senate Committee on Indian Affairs, the
Senate Committee on Health, Education, Labor and Pensions, the House
Committee on Natural Resources, the House Committee on Education and
Labor, the Senate Appropriations Subcommittee on the Interior, and the
House Appropriations Subcommittee on the Interior not later than 18
months after the date of the enactment of the College Affordability
Act.''.
(h) Modification of Facilities Program.--Section 113 of the Tribally
Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C.
1813) is amended--
(1) in subsection (a), by striking ``of the Administrator of
General Services under section 112(a) of this Act'' and
inserting ``under section 112(c)'';
(2) in subsection (b), by striking ``a tribally controlled
college or university--'' and all that follows through the
period at the end and inserting ``a tribally controlled college
or university shall be a Tribal College or University, as
defined in section 316(b) of the Higher Education Act of 1965
(20 U.S.C. 1059c(b)).'';
(3) by redesignating subsections (d) through (f) as
subsections (e) through (g), respectively; and
(4) by inserting after subsection (c) the following:
``(d) Activities eligible for a grant under this section shall be
activities that address a wide variety of facilities and infrastructure
needs including--
``(1) building of new facilities;
``(2) renovating or expanding existing or acquired
facilities;
``(3) providing new and existing facilities with equipment
and infrastructure, including laboratory equipment, computer
infrastructure and equipment, broadband infrastructure and
equipment, library books, and furniture; and
``(4) property acquisition.''.
(i) Conforming Amendment for the Navajo Tribe.--Section 114(a) of the
Tribally Controlled Colleges and Universities Assistance Act of 1978
(25 U.S.C. 1814(a)) is amended striking ``The Navajo'' and inserting
``Except as provided in sections 112 and 113, the Navajo''.
(j) Rules and Regulations.--Section 115 of the Tribally Controlled
Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1815) is
repealed.
(k) Endowment Grants.--Section 302 of the Tribally Controlled
Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1832) is
amended by adding at the end the following:
``(c) The period of a grant under this section shall be not more than
20 years. During the grant period, an institution may withdraw and
expend interest income generated by the endowment for any operating or
academic purpose. An institution may not withdraw or expend any of the
endowment fund corpus. After the termination of the grant period, an
institution may use the endowment fund corpus for any operating or
academic purpose.
``(d)(1) If at any time during the grant period an institution
withdraws part of the endowment fund corpus, the institution shall
repay to the Secretary an amount equal to 150 percent of the withdrawn
amount. The Secretary may use up to 75 percent of such repaid funds to
make additional endowment grants to, or to increase existing endowment
grants at, other eligible institutions.
``(2) Notwithstanding subsection (c) and paragraph(1), the Secretary
may allow an institution to expend part of the endowment fund corpus if
the institution demonstrates such an expenditure is necessary because
of--
``(A) a financial emergency, such as a pending insolvency or
temporary liquidity problem;
``(B) a life-threatening situation occasioned by a natural
disaster or arson; or
``(C) any other unusual occurrence or exigent
circumstance.''.
(l) Participation of Tribally Controlled Postsecondary Career and
Technical Institutions Under Other Titles.--Section 503(a) of the
Tribally Controlled Colleges and Universities Assistance Act of 1978
(25 U.S.C. 1863(a)) is amended to read as follows:
``(a) Participation of Tribally Controlled Postsecondary Career and
Technical Institutions Under Other Titles.--For purposes of the
preceding titles of this Act, a tribally controlled postsecondary
career and technical institution shall not be considered to be a
tribally controlled college or university except as follows:
``(1) For purposes of section 105(a)(1), the Secretary shall
provide, upon request from a tribally controlled postsecondary
career and technical institution, technical assistance either
directly or through contract.
``(2) For purposes of section 113, title III, and title IV, a
tribally controlled postsecondary career and technical
institution shall be considered to be a tribally controlled
college or university.''.
(m) Clerical Amendments.--The Tribally Controlled Colleges and
Universities Assistance Act of 1978 (25 U.S.C. 1801 et seq.), as
amended by the preceding provisions of this section, 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''; and
(3) in section 109 (25 U.S.C. 1809), by redesignating the
second subsection (c) as subsection (d).
PART C--STRENGTHENING PROGRAM ALIGNMENT FOR POSTSECONDARY PERKINS
CAREER AND TECHNICAL EDUCATION PROGRAMS
SEC. 10201. STRENGTHENING PROGRAM ALIGNMENT FOR POSTSECONDARY PERKINS
CAREER AND TECHNICAL EDUCATION PROGRAMS.
(a) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
carry out this section $181,000,000 for fiscal year 2021 and
each of the 5 succeeding fiscal years.
(2) Outlying areas.--In addition to the amounts authorized to
be appropriated under paragraph (1), there are authorized to be
appropriated $1,520,000 for fiscal year 2021 and each of the 5
succeeding fiscal years, for the purpose of awarding funds to
carry out this section to the outlying areas described in
section 115(a) of the Carl D. Perkins Career and Technical
Education Act of 2006 (20 U.S.C. 2325(a)).
(3) Tribally controlled postsecondary career and technical
institutions.--In addition to the amounts authorized to be
appropriated under paragraphs (1) and (2), there are authorized
to be appropriated $10,469,000 for fiscal year 2021 and each of
the 5 succeeding fiscal years, for the purpose of awarding
funds to carry out this section to tribally controlled
postsecondary career and technical institutions described in
section 117(a) of the Carl D. Perkins Career and Technical
Education Act of 2006 (20 U.S.C. 2327(a)).
(b) Allotment and Allocation.--
(1) State allotment.--
(A) In general.--From the amount appropriated under
subsection (a)(1) for each fiscal year, the Secretary
of Education shall allot funds to States in the same
manner as allotments are made to States under 111(a)(2)
of the Carl D. Perkins Career and Technical Education
Act of 2006 (20 U.S.C. 2321(a)(2)), except that such
section 111(a)(2) shall be applied by substituting
``From the amount appropriated under subsection
(a)(1),'' for ``From the remainder of the amount
appropriated under section 9 and not reserved under
paragraph (1) for a fiscal year,''.
(B) Reallotment.--If for any fiscal year the amount
appropriated for allotments under this paragraph is
insufficient to satisfy the provisions of subparagraph
(A), the payments to all States under such subparagraph
shall be ratably reduced.
(2) Requirements for state allotment.--From the amount
allotted to each State under paragraph (1) for a fiscal year,
the eligible agency shall use such funds in the same manner and
in the same amounts as described in paragraphs (2) and (3) of
section 112(a) of the Carl D. Perkins Career and Technical
Education Act of 2006 (20 U.S.C. 2321(a)).
(3) Eligible recipient allocation.--
(A) In general.--From the amount allotted to each
State under paragraph (1) and not used under paragraph
(2) for a fiscal year, the eligible agency shall
allocate funds to each eligible recipient within the
State in the same manner that funds are allocated to
eligible institutions or consortium of eligible
institutions under section 132(a)(2) of the Carl D.
Perkins Career and Technical Education Act of 2006 (20
U.S.C. 2352(a)(2)), except that such section 132(a)(2)
shall be applied by substituting ``the amount allotted
to the State under paragraph (1) and not used under
paragraph (2)'' for ``the portion of funds made
available under section 112(a)(1) to carry out this
section''.
(B) Requirements for allocation.--To receive an
allocation under subparagraph (A), an eligible
recipient shall meet the following requirements:
(i) Provide a description to the Secretary,
at such time and in such manner, as may be
required by the Secretary of how the eligible
recipient will use the allocation to support
and coordinate with--
(I) any funds received by such
eligible recipient under title I of the
Carl D. Perkins Career and Technical
Education Act of 2006 (20 U.S.C. 2321
et seq.); and
(II) the activities described in the
State plan of the eligible agency that
distributes funds under such title to
such eligible recipient, and local
application of such eligible recipient
under such title.
(ii) Establish partnerships with each of the
following:
(I) A local educational agency or a
consortia of local educational
agencies.
(II) An area career and technical
education school, in a case in which
such a school is located in the State
or local area of the eligible
recipient.
(III) A State or local workforce
development system.
(IV) A 4-year institution of higher
education.
(4) Allotments to outlying areas.--From funds appropriated
under subsection (a)(2), the Secretary shall--
(A) make a grant in the amount of $660,000 to Guam;
(B) make a grant in the amount of $350,000 to each of
the Commonwealth of the Northern Mariana Islands and
American Samoa; and
(C) make a grant in the amount of $160,000 to the
Republic of Palau.
(c) Uses of Funds.--
(1) In general.--Each eligible recipient that receives an
allocation under subsection (b)(2) shall use such allocation to
carry out a career and technical education program of study
that shall--
(A) include alignment to career pathways, the use of
articulation agreements, and career guidance and
academic counseling;
(B) combine a minimum of 2 years of secondary
education (as determined under State law) with a
minimum of 2 years of postsecondary education in a
nonduplicative, sequential course of study;
(C) include work-based learning or apprenticeship
programs;
(D) be aligned with--
(i) the workforce development system; and
(ii) institutions of higher education
offering baccalaureate or advanced degree
programs;
(E) offer education and training in high-skill, high-
wage, or in-demand industry sectors and occupations to
meet the regional needs and support the priorities
described in the most recent comprehensive local needs
assessment conducted by the eligible recipient under
section 134(c) of the Carl D. Perkins Career and
Technical Education Act (20 U.S.C. 2354(c)); and
(F) carry out the requirements of subparagraph (A),
(B), (C), (D), or (E) of paragraph (2).
(2) Requirements.--Each career and technical education
program of study described in paragraph (1) shall carry out at
least one of the following:
(A) Supporting the development, delivery, or
implementation of a statewide effort to scale such
program of study and career pathways.
(B) Establishing industry or sector partnerships
inside or outside the State.
(C) Providing equal access to, and supports for,
successful completion of the career and technical
education program of study to individuals who are
members of special populations, including the
development of services appropriate to the needs of
special populations.
(D) Improving career guidance, academic counseling,
and career exploration activities for prospective or
participating students through the development and
implementation of graduation and career plans aligned
to career pathways.
(E) Developing curriculum and supports for effective
transitions between the following:
(i) The transition from a secondary career
and technical education program to a
postsecondary career and technical education
program.
(ii) The transition from postsecondary career
and technical education programs to an
institution of higher education offering a
baccalaureate or an advanced degree program.
(iii) The transition from a workforce
development system to a postsecondary career
and technical education program.
(iv) The transition from a postsecondary
career and technical education program to
employment.
(v) The transition from a career and
technical education program to an
apprenticeship program or from an
apprenticeship program to an institution of
higher education or employment.
(3) Restriction on uses of funds.--Each eligible recipient
that receives an allocation under subsection (b)(2) shall not
use more than 5 percent of such allocation for costs associated
with the administration of activities.
(d) Definitions.--In this section:
(1) Apprenticeship program.--The term ``apprenticeship
program'' means an apprenticeship 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.).
(2) Eligible recipient.--The term ``eligible recipient'' has
the meaning given the term in section 3(21)(B) of the Carl D.
Perkins Career and Technical Education Act of 1965 (20 U.S.C.
2302(21)(B)).
(3) Institution of higher education.--The term ``institution
of higher education'' has the meaning given such term in
section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001).
(4) Local educational agency.--The term ``local educational
agency'' has the meaning given such term in section 8101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801).
(5) Perkins cte terms.--The terms ``articulation agreement'',
``area career and technical education school'', ``career and
technical education'', ``eligible agency'', ``program of
study'', ``special population'', and ``work-based learning''
have the meanings given the terms in section 3 of the Carl D.
Perkins Career and Technical Education Act of 2006 (20 U.S.C.
2302).
(6) State.--The term ``State'' has the meaning given the term
in section 111(d) of the Carl D. Perkins Career and Technical
Education Act of 2006.
(7) WIOA terms.--The terms ``career pathway'', ``workforce
development system'', ``in-demand industry sector or
occupation'', and ``industry or sector partnership'' have the
meanings given the terms in section 3 of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3201).
PART D--GENERAL EDUCATION PROVISIONS ACT
SEC. 10301. 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.''.
PART E--EDUCATION SCIENCES REFORM ACT OF 2002
SEC. 10401. INCLUSION OF RACIAL SUBGROUPS IN IPEDS DATA.
Section 153(a)(3) of the Education Sciences Reform Act of 2002 (20
U.S.C. 9543(a)(3)) is amended--
(1) by striking ``feasible, information'' and inserting the
following: ``feasible--
``(A) information'';
(2) by inserting ``and'' after the semicolon; and
(3) by adding at the end the following:
``(B) information from the Integrated Postsecondary
Education Data Survey, the postsecondary student data
system established under section 132(l), or a successor
system (whichever includes the most recent data), that
is disaggregated by race in a manner that captures all
the racial groups specified in the American Community
Survey of the Bureau of the Census;''.
PART F--U.S. INSTITUTE OF PEACE
SEC. 10501. REAUTHORIZATION OF THE U.S. INSTITUTE OF PEACE.
Section 1710 of the United States Institute of Peace Act (22 U.S.C.
4609) is amended in subsection (a)(1) by striking ``fiscal years 2009
through 2014'' and inserting ``fiscal year 2021 and each of the 5
succeeding fiscal years''.
Purpose and Summary
The purpose of H.R. 4674, the College Affordability Act, is
to improve higher education in the United States through
reauthorization of the Higher Education Act of 1965 (HEA). H.R.
4674 lowers the cost of colleges for students and families,
holds colleges accountable for student success, and gives a new
generation the opportunity to graduate on-time and transition
to a successful career.
H.R. 4674 addresses the rising cost of a college education
by ensuring that federal and state resources are available to
help students afford higher education and to contain higher
education costs generally. It creates a federal-state
partnership to direct federal funding to states that make
community college tuition-free for all students and provides
mechanisms to create debt-free college pathways. The bill
includes the largest increase in the amount of the maximum Pell
Grant in history, enhancing support for low-income students. It
expands access to dual enrollment programs, so that students
can earn free college credits while still in high school. H.R.
4674 reforms the federal student loan system, making student
loans cheaper to take out, simpler to understand, and easier to
pay off. The Act also simplifies the Free Application for
Federal Student Aid (FAFSA) removing potential barriers
students face when trying to finance their education.
H.R. 4674 improves the quality of higher education by
holding all schools accountable for student success. It
empowers accreditors to create meaningful standards for student
success by evaluating student outcomes. The bill gives states
the tools to protect students from the fallout of abrupt school
closures. H.R. 4674 reinstates consumer protections that help
defrauded students get back on their feet and prevents low-
quality training programs from accessing taxpayer dollars. It
protects students, especially student veterans, from predatory
for-profit institutions of higher education (institutions) by
strengthening the provision that prevents for-profit
institutions from overreliance on federal dollars. H.R. 4674
blocks access to federal student aid for institutions with high
percentages of students who default on their loans or fail to
repay their loans on-time, as well as those that spend
excessive amounts of money on marketing and lobbying and not
enough money educating students. The Act also promotes student
success by improving provisions on campus climate and the
safety of students.
H.R. 4674 also advances equity and expands opportunity for
students from all backgrounds. The bill provides flexible
college options and stronger supports for the students of
today. It increases funding for wraparound services, including
campus-based child care, academic and career advising, and
small emergency grants to support completion. It improves
access for students with disabilities, foster youth, students
who struggle with homelessness, undocumented students, and
student veterans. It also expands access to high-quality short-
term programs that can help individuals quickly build their
skills in high-demand jobs and move into the workforce. H.R.
4674 also increases and permanently reauthorizes mandatory
funding for Historically Black Colleges and Universities
(HBCUs), Tribally Controlled Colleges and Universities (TCCUs),
and other Minority-Serving Institutions (MSIs).
Committee Action
111TH CONGRESS
First Session
On May 21, 2009, the Committee held a hearing entitled
``Increasing Student Aid through Loan Reform.'' The hearing
focused on examining Administration proposals to increase
federal student aid funding and reform student loan programs,
including the federal Direct Loan program and the Federal
Family Education Loan (FFEL) program. The Committee heard
testimony from Christopher Chapman, President and Chief
Executive Officer at the Access Group; Rene Drouin, President
and Chief Executive Officer at the New Hampshire Higher
Education Assistance Foundation; Anna M. Griswold, Assistant
Vice President of Undergraduate Education and Executive
Director for Student Aid at Pennsylvania State University; Dr.
Charles Reed, Chancellor at the California State University;
John F. Remondi, Vice Chairman and Chief Financial Officer at
Sallie Mae; Robert Shireman, Deputy Under Secretary of the U.S.
Department of Education (Department); and Dr. Richard Vedder,
Professor of Economics at Ohio University.
On July 21, 2009, the Committee held a markup of H.R. 3221,
the Student Aid and Fiscal Responsibility Act of 2009 (SAFRA),
estimated to generate almost $100 billion in savings over 10
years. The savings were used to boost Pell Grants, keep
interest rates on federal loans affordable, safeguard access to
federal student loans, extend mandatory funding for existing
programs for HBCUs, TCUs, and other MSIs, and enact President
Obama's key education priorities. SAFRA was reported favorably
to the House with an amendment in the nature of a substitute.
The Chairman was authorized to transmit the bill with an
amendment in the nature of a substitute to the Committee on
Budget in compliance with Section 310 of the Congressional
Budget Act of 1974 as the first part of this committee's
recommendations, pursuant to the reconciliation instruction in
S. Con. Res. 13 by a vote of 30 to 17. SAFRA was incorporated
into H.R. 4872 the Health Care and Education Reconciliation Act
of 2010 (HCERA) as Title II, Part A. On March 21, 2010, HCERA
passed the House of Representatives by a vote of 220 to 211. On
March 25, 2010, HCERA passed the Senate by a vote of 56 to 43.
On March 30, 2010, President Barack Obama signed HCERA into law
(P.L. 111-152).
On September 18, 2009, the Subcommittee on Early Childhood,
Elementary and Secondary Education held a field hearing in
Flint, Michigan entitled ``High School/College Dual Enrollment
Programs.'' The hearing focused on examining dual enrollment
and early college access programs in Genesee County, Michigan.
The Committee heard testimony from Thomas Svitkovich,
Superintendent of Genesee Intermediate School District; Dr.
Vahid Lotfi, Interim Provost and Vice Chancellor of Academic
Affairs at the University of Michigan-Flint; Dr. M. Richard
Shaink, President of Mott Community College; John Brooks, a
student at Mott Community College; Stephen Skorcz, President
and Chief Executive Officer at Greater Flint Health Coalition;
and Dr. Michale Webb, Associate Vice President of Early College
Initiative at Jobs for the Future.
On October 14, 2009, the Subcommittee on Higher Education,
Lifelong Learning, and Competitiveness held a hearing entitled
``Ensuring Student Eligibility Requirements for Federal Aid.''
In light of concerns about fraud and abuse, the hearing
reviewed eligibility requirements for federal student aid
programs. The Committee heard testimony from George A. Scott,
Director of Education, Workforce, and Income Security at the
Government Accountability Office (GAO); Robert Shireman, Deputy
Under Secretary at the Department; the Honorable Mary
Mitchelson, Acting Inspector General at the Department; and
Harris N. Miller, President and Chief Executive Officer at
Career College Association.
Second Session
On May 27, 2010, the Committee held a hearing entitled
``Examining GAO's Findings on Efforts to Improve Oversight of
Low-Income and Minority Serving Institutions.'' The hearing
examined findings and recommendations of GAO's recent report on
efficacy of Departmental oversight of grant assistance to
institutions that provide low-income and minority students with
access to higher education. The Committee heard testimony from
George A. Scott, Director of Education, Workforce, and Income
Security at the GAO and Robert Shireman, Deputy Under Secretary
at the Department.
On June 17, 2010, the Committee held a hearing entitled
``The Department of Education Inspector General's Review of
Standards for Program Length in Higher Education.'' The hearing
examined the efficacy of higher education accrediting agencies
standards and practices, focusing on potential federal student
aid allocation and expenditure implications of inconsistent
higher education credit hour and degree length standards. The
Committee heard testimony from Sylvia Manning, President of the
Higher Learning Commission of the North Central Association;
Michale S. McComis, Executive Director of Accrediting
Commission of Career Schools and Colleges; and the Honorable
Kathleen Tighe, Inspector General at the Department.
112TH CONGRESS
First Session
On March 11, 2011, the Subcommittee on Higher Education and
Workforce Training held a hearing entitled ``Education
Regulations: Federal Overreach into Academic Affairs.'' The
hearing focused on examining the impact of federal higher
education regulations on college and university programs. The
Committee heard testimony from John Ebersole, President of
Excelsior College; Dr. G. Blair Dowden, President of Huntington
University; the Honorable Kathleen Tighe, Inspector General of
the Department; and Ralph Wolff, President of the Western
Association of Schools and Colleges.
On March 17, 2011, the Committee held a hearing entitled
``Education Regulations: Roadblocks to Student Choice in Higher
Education.'' The hearing examined the potential impact of the
Department's rule defining ``gainful employment'' under the
HEA. The Committee heard testimony from Catherine Barreto,
graduate of Monroe College; Tavis Jennings, Electrical
Supervisor of the Manufacturing Launch Systems Group at Orbital
Sciences Corporation; Dr. Arnold Mitchem, President of the
Council for Opportunity in Education; and Jeanne Herrmann,
Chief Operating Officer at the Globe University/Minnesota
School of Business.
On March 21st and 22nd of 2011, the Committee held two
field hearings: one in Wilkes-Barre, Pennsylvania and another
in Utica, New York. Both hearings were entitled ``Reviving our
Economy: The Role of Higher Education in Job Growth and
Development.'' The hearings examined efforts and strategies to
improve higher education and reviewed the role of higher
education in job growth and development. In the first hearing,
the Committee heard testimony from James Perry, President of
the Hazelton City Council; Jeffrey Alesson, Vice President of
Strategic Planning and Quality Assurance at Diamond
Manufacturing; Dr. Reynold Verret, Provost at Wilkes
University; Raymond Angeli, President of Lackawanna College;
Joan Seaman, Executive Director of Empire Beauty School; and
Thomas P. Leary, President of Luzerne County Community College.
In the second hearing, the Committee heard testimony from
Anthony J. Picente, Jr., County Executive of Oneida County;
Dave Mathis, Director of Oneida County Workforce Development;
Dr. John Bay, Vice President and Chief Scientist at Assured
Information Security; Dr. Bjong Wolf Yeigh, President of the
State University of New York Institute of Technology; Dr. Ann
Marie Murray, President of Herkimer County Community College;
Dr. Judith Kirkpatrick, Provost at Utica College; and Phil
Williams, President of Utica School of Commerce, The Business
College.
On April 21, 2011, the Subcommittee on Higher Education and
Workforce Training held a field hearing in Columbia, Tennessee
entitled ``Reviving our Economy: The Role of Higher Education
in Job Growth and Development.'' The hearing focused on
examining efforts and strategies to improve higher education,
and to review the role of higher education in job growth and
development. The Committee heard from Dr. Janet Smith,
President of Columbia State Community College; Dr. Ted Brown,
President of Martin-Methodist College; Jim Coakley, President
of Auto-Diesel College; the Honorable Dean Dickey, Mayor of the
City of Columbia; Susan Marlow, President and Chief Executive
Officer at Smart Data Strategies; Jan McKeel, Executive
Director of the South Central Tennessee Workforce Board; and
Margaret Prater, Executive Director of Northwest Tennessee
Workforce Board.
On July 8, 2011, the Subcommittee on Higher Education and
Workforce Training alongside the Committee on Oversight and
Government Reform Subcommittee on Regulatory Affairs, Stimulus
Oversight, and Government Spending held a hearing entitled
``The Gainful Employment Regulation: Limiting Job Growth and
Student Choice.'' The hearing focused on examining the
potential impact on educational institutions, employers, and
students of the new Department rule defining ``gainful
employment'' under the HEA. The Committee heard from Dr. Dario
A. Cortes, President of Berkeley College; Dr. Anthony P.
Carnevale, Director at Georgetown University Center on
Education and the Workforce; Karla Carpenter, graduate of
Herzing University and Program Manager at Quest Software; and
Harry C. Alford, President and Chief Executive Officer at the
National Black Chamber of Commerce.
On August 16, 2011, the Subcommittee on Higher Education
and Workforce Training held a field hearing in Greenville,
South Carolina entitled ``Reviving Our Economy: The Role of
Higher Education in Job Growth and Development.'' The hearing
focused on improving higher education, and reviewed the role of
higher education in job growth and development. The Committee
heard from the Honorable Knox White, Mayor of the City of
Greenville; Werner Eikenbusch, Section Manager of Associate
Development and Training at BMW Manufacturing Co.; Ms. Laura
Harmon, Project Director at Greenville Works; Dr. Brenda
Thames, Vice President of Academic Development at Greenville
Health System; Mr. James F. Barker, President of Clemson
University; Dr. Thomas F. Moore, Chancellor of the University
of South Carolina Upstate; Dr. Keith Miller, President of
Greenville Technical College; and Amy Hickman, Campus President
of ECPI College of Technology.
On October 25, 2011, the Subcommittee on Higher Education
and Workforce Training held a hearing entitled ``Government-Run
Student Loans: Ensuring the Direct Loan Program is Accountable
to Students and Taxpayers.'' The hearing focused on examining
federal Direct Loan program oversight and accountability. The
Committee heard from James W. Runcie, Chief Operating Officer
of the Department's Office of Federal Student Aid; Ron H. Day,
Director of Financial Aid at Kennesaw State University; Ms.
Nancy Hoover, Director of Financial Aid at Denison University;
and Mark A. Bandre, Vice President for Enrollment Management
and Student Affairs at Baker University.
On November 30, 2011, the Subcommittee on Higher Education
and Workforce Training held a hearing entitled ``Keeping
College Within Reach: Discussing Ways Institutions Can
Streamline Costs and Reduce Tuition.'' The hearing focused on
examining increases in college tuition and fees over the past
decade. The Committee heard from Jane V. Wellman, Executive
Director at Delta Project on Postsecondary Costs, Productivity,
and Accountability; Dr. Ronald E. Manahan, President of Grace
College and Seminary; Jamie P. Merisotis, President and Chief
Executive Officer at Lumina Foundation for Education; and Tim
Foster, President of Colorado Mesa University.
Second Session
On July 18, 2012, the Subcommittee on Higher Education and
Workforce Training held a hearing entitled ``Keeping College
Within Reach: Exploring State Efforts to Curb Costs.'' The
hearing focused on examining state-led initiatives to address
rising college costs. The Committee heard from Scott Pattison,
Executive Director at National Association of State Budget
Officers; Teresa Lubbers, Commissioner for Higher Education for
the State of Indiana; Stan Jones, President of Complete College
America; and Dr. Joe May, President of Louisiana Community and
Technical College System.
On September 20, 2012, the Subcommittee on Higher Education
and Workforce Training held a hearing entitled ``Assessing
College Data: Helping to Provide Valuable Information to
Students, Institutions, and taxpayers.'' The hearing examined
higher education data collected by the federal government and
reviewed the usefulness of the data to students, institutions,
and taxpayers. The Committee heard from Dr. Mark Schneider,
Vice President of American Institutes for Research; Dr. James
Hallmark, Vice Chancellor for Academic Affairs at Texas A&M
System; Dr. Jose Cruz, Vice President for Higher Education
Policy and Practice at The Education Trust; and Dr. Tracy
Fitzsimmons, President of Shenandoah University.
113TH CONGRESS
First Session
On March 13, 2013, the Committee held a hearing entitled
``Keeping College Within Reach: Examining Opportunities to
Strengthen Federal Student Loan Programs.'' The hearing
examined proposals to reform the federal student loan program.
The Committee heard testimony from Dr. Deborah J. Lucas, Sloan
Distinguished Professor of Finance of the Massachusetts
Institute of Technology; Jason Delisle, Director, Federal
Education Budget Project of the New America Foundation; Justin
Draeger, President and Chief Executive Officer of the National
Association of Student Financial Aid Administrators; and Dr.
Charmaine Mercer, Vice President of Policy of the Alliance for
Excellent Education.
On April 9, 2013, the Subcommittee on Higher Education and
Workforce Training held a field hearing in Monroe, Michigan
entitled ``Reviving Our Economy: The Role of Higher Education
in Job Growth and Development.'' The hearing focused on the
role of higher education in job growth and economic
development. The Committee heard testimony from Henry Lievens,
Commissioner of Monroe County, Michigan; Lynette Dowler, Plant
Director, Fossil Generation of DTE Energy; Susan Smith,
Executive Director of the Economic Development Partnership of
Hillsdale County, Jonesville, Michigan; Dan Fairbanks, United
Auto Workers International Representative, UAW--GM Skill
Development and Training Department; Dr. David E. Nixon,
President of Monroe County Community College; Sister Peg
Albert, OP, Ph.D., President of Siena Heights University; Dr.
Michelle Shields, Career Coach and Workforce Development
Director of Jackson Community College; and Douglas A. Levy,
Director of Financial Aid of Macomb Community College.
On April 16, 2013, the Subcommittee on Higher Education and
Workforce Training held a hearing entitled ``Keeping College
Within Reach: The Role of Federal Student Aid Programs.'' The
hearing focused on the role of federal student aid programs in
postsecondary education. The Committee heard testimony from
Terry W. Hartle, Senior Vice President of the Division of
Government and Public Affairs of the American Council on
Education; Moriah Miles, State Chair of the Minnesota State
University Student Association; Patricia McGuire, President of
Trinity Washington University; and Dan Madzelan, former
employee (retired) of the Department.
On April 24, 2013, the Subcommittee on Higher Education and
Workforce Training held a hearing entitled ``Keeping College
Within Reach: Enhancing Transparency for Students, Families,
and Taxpayers.'' The hearing focused on transparency in higher
education. The Committee heard testimony from Dr. Donald E.
Heller, Dean of the College of Education of Michigan State
University; Alex Garrido, Student at Keiser University; Dr.
Nicole Farmer Hurd, Founder and Executive Director of the
National College Advising Corps; and Travis Reindl, Program
Director of Postsecondary Education of the National Governors
Association Center for Best Practices.
On June 13, 2013, the Subcommittee on Higher Education and
Workforce Training held a hearing entitled ``Keeping College
Within Reach: Discussing Program Quality through
Accreditation.'' The hearing focused on the role of
accreditation. The Committee heard testimony from Dr. Elizabeth
H. Sibolski, President of Middle States Commission on Higher
Education; Dr. Michale McComis, Executive Director of
Accrediting Commission of Career Schools and Colleges; Anne D.
Neal, President of the American Council of Trustees and Alumni;
and Kevin Carey, Director of the Education Policy Program of
the New America Foundation.
On July 9, 2013, the Committee held a hearing entitled
``Keeping College Within Reach: Improving Higher Education
through Innovation.'' The hearing focused on innovation in
higher education. The Committee heard testimony from Scott
Jenkins, Director of External Relations of Western Governors
University; Dr. Pamela J. Tate, President and Chief Executive
Officer of the Council for Adult and Experiential Learning; Dr.
Joann A. Boughman, Senior Vice Chancellor for Academic Affairs
of the University System of Maryland; and Burck Smith, Chief
Executive Officer and Founder of StraighterLine.
On September 11, 2013, the Subcommittee on Higher Education
and Workforce Training held a hearing entitled ``Keeping
College Within Reach: Supporting Higher Education Opportunities
for America's Servicemembers and Veterans.'' The hearing
focused on how to best serve servicemembers and veterans in
higher education. The Committee heard testimony from Kimrey W.
Rhinehardt, Vice President for Federal and Military Affairs of
the University of North Carolina, Chapel Hill; Dr. Arthur F.
Kirk, Jr., President of Saint Leo University; Dr. Russell S.
Kitchner, Vice President for Regulatory and Governmental
Relations of the American Public University System; and Dr. Ken
Sauer, Senior Associate Commissioner for Research and Academic
Affairs of the Indiana Commission for Higher Education.
On September 18, 2013, the Subcommittee on Higher Education
and Workforce Training held a hearing entitled ``Keeping
College Within Reach: Improving Access and Affordability
through Innovative Partnerships.'' The hearing focused on ways
to reduce the cost of college through non-traditional
partnerships. The Committee heard testimony from Dr. Jeffrey
Docking, President of Adrian College; Paula R. Singer,
President and Chief Executive Officer of Laureate Global
Products and Services; Dr. Rich Baraniuk, Professor of Rice
University and Founder of Connexions; and Dr. Charles Lee
Isbell, Jr., Professor and Senior Associate Dean, College of
Computing of the Georgia Institute of Technology.
On November 13, 2013, the Committee held a hearing entitled
``Keeping College Within Reach: Simplifying Federal Student
Aid.'' The hearing focused on simplifications to federal
student aid. The Committee heard from Kristin D. Conklin,
Founding Partner of HCM Strategies, LLC; Dr. Sandy Baum,
Research Professor of Education Policy at George Washington
University Graduate School of Education and Human Development
and Senior Fellow at the Urban Institute; Jennifer Mishory,
Deputy Director of Young Invincibles; and Jason Delisle,
Director of the Federal Education Budget Project of the New
America Foundation.
On December 3, 2013, the Subcommittee on Higher Education
and Workforce Training held a hearing entitled ``Keeping
College Within Reach: Strengthening Pell Grants for Future
Generations.'' The hearing focused on reforms to the Pell Grant
program. The Committee heard testimony from Justin Draeger,
President and Chief Executive Officer of the National
Association of Student Financial Aid Administrators; Dr. Jenna
Ashley Robinson, Director of Outreach of the John W. Pope
Center for Higher Education Policy; Michael Dannenberg,
Director of Higher Education and Education Finance Policy of
The Education Trust; and Richard C. Heath, Director of Student
Financial Services of Anne Arundel Community College.
Second Session
On January 28, 2014, the Subcommittee on Higher Education
and Workforce Training held a hearing entitled ``Keeping
College Within Reach: Sharing Best Practices for Serving Low-
Income and First Generation Students.'' The hearing focused on
how institutions can best serve low-income and first-generation
students. The Committee heard testimony from Dr. James
Anderson, Chancellor of Fayetteville State University; Mary
Beth Del Balzo, Senior Executive Vice President and Chief
Executive Officer of The College of Westchester; Josse Alex
Garrido, graduate student at the University of Texas-Pan
American; and Rev. Dennis H. Holtschneider, President of DePaul
University.
On February 27, 2014, the Subcommittee on Early Childhood,
Elementary, and Secondary Education and the Subcommittee on
Higher Education and Workforce Training held a joint hearing
entitled ``Exploring Efforts to Strengthen the Teaching
Profession.'' The hearing focused on teacher preparation
programs. The Committee heard testimony from Dr. Deborah A.
Gist, Commissioner of the Rhode Island Department of Elementary
and Secondary Education of the Rhode Island Department of
Elementary and Secondary Education; Dr. Marcy Singer-Gabella of
Vanderbilt University, Professor of the Practice of Education;
Dr. Heather Peske, Associate Commissioner for Educator Quality
of Massachusetts Department of Elementary and Secondary
Education; and Christina Hall, Co-Founder and Co-Director of
the Urban Teacher Center.
On March 12, 2014, the Subcommittee on Higher Education and
Workforce Training held a hearing entitled ``Examining the
Mismanagement of the Student Loan Rehabilitation Process.'' The
hearing focused on the Department's efforts to help borrowers
in loan rehabilitation. The Committee heard testimony from
Melissa Emrey-Arras, Director of Education, Workforce, and
Income Security Issues at GAO; the Honorable Kathleen Tighe,
Inspector General of the Department; James Runcie, Chief
Operating Officer of the Department's Office of Federal Student
Aid; and Peg Julius, Executive Director of Enrollment
Management at Kirkwood Community College.
On March 20, 2014, the Committee held a field hearing in
Mesa, Arizona entitled ``Reviving our Economy: Supporting a
21st Century Workforce.'' The hearing focused on the
relationship between institutions and workforce development.
The Committee heard testimony from the Honorable Rick Heumann,
Vice Mayor of the City of Chandler, Arizona; Cathleen Barton,
Education Manager of Intel Corporate Affairs of Southwestern
United States of the Intel Corporation; Lee D. Lambert,
Chancellor of Pima Community College; Dr. William Pepicello,
President of the University of Phoenix; Dr. Michael Crow,
President of the Arizona State University; Dr. Ann Weaver Hart,
President of the University of Arizona; Dr. Ernest A. Lara,
President of Estrella Mountain Community College; and Christy
Farley, Vice President of Government Affairs and Business
Partnerships of Northern Arizona University.
On April 2, 2014, the Committee held a hearing entitled
``Keeping College Within Reach: Meeting the Needs of
Contemporary Students.'' The hearing focused on issues
regarding accessibility and affordability in higher education.
The Committee heard testimony from Dr. George A. Pruitt,
President of Thomas Edison State College; Dr. Kevin Gilligan,
Chairman and Chief Executive Officer of Capella Education
Company; David Moldoff, Chief Executive Officer and Founder of
AcademyOne, Inc.; Dr. Joann A. Boughman, Senior Vice Chancellor
for Academic Affairs of the University System of Maryland; Stan
Jones, President of Complete College America; and Dr. Brooks A.
Keel, President of Georgia Southern University.
Legislative Action
On May 16, 2013, the Committee considered H.R. 1911, the
Smarter Solutions for Students Act. The bill set the annual
interest rate on all federal student loans (except Perkins
loans) at the rate on high-yield 10-year Treasury notes. 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 July 24, 2013, the Committee considered H.R. 2637, the
Supporting Academic Freedom through Regulatory Relief Act. The
bill, which included the text of H.R. 2117, the Protecting
Academic Freedom in Higher Education Act, repealed the
requirement that institutions be authorized by the State in
which they offer a curriculum, the regulatory definition of
credit hour and prohibits the Department from promulgating any
future rules that define a credit hour, and gainful employment
regulations. 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.
On July 10, 2014, the Committee considered H.R. 3136, the
Advancing Competency-Based Education Demonstration Project Act
of 2013; H.R. 4983, the Strengthening Transparency in Higher
Education Act; and H.R. 4984 the Empowering Students through
Enhanced Financial Counseling Act. H.R. 3136 promoted
innovation in higher education by directing the Secretary to
implement competency-based education demonstration projects.
H.R. 4983 required the Secretary to create the College
Dashboard website with publicly available information regarding
institutions. H.R. 4984 directed the Secretary to maintain and
disseminate a consumer-tested, online counseling tool
institutions could use to provide annual loan counseling, exit
counseling, and annual Pell Grant counseling to students. The
Committee considered H.R. 3136, H.R. 4983, and H.R. 4984 in
legislative session and reported the bills favorably, as
amended, to the House of Representatives by a voice vote.
114TH CONGRESS
First Session
On February 4, 2015, the Committee held a hearing entitled
``Expanding Opportunity in America's Schools and Workplaces.''
The hearing focused on improvements to both early, elementary,
and secondary education and higher education. The Committee
heard testimony from Dr. Michael Amiridis, Provost and
Executive Vice President for Academic Affairs of the University
of South Carolina; Drew Greenblatt, President and CEO of Marlin
Steel Wire Products; Dr. Lawrence Mishel, President of the
Economic Policy Institute; and the Honorable Mike Pence,
Governor of Indiana.
On March 17, 2015, the Subcommittee on Higher Education and
Workforce Training held a hearing entitled ``Strengthening
America's Higher Education System.'' The hearing focused on
improvements to the higher education system. The Subcommittee
heard testimony from Willis Goldsmith, Partner of Jones Day,
testifying on behalf of the U.S. Chamber of Commerce; Stan
Soloway, President and CEO of Professional Services Council;
Angela Styles, Partner of Crowell & Moring LLP; Karla Walter,
Associate Director of the American Worker Project at the Center
for American Progress.
On April 30, 2015, the Subcommittee on Higher Education and
Workforce Training held a hearing entitled ``Improving College
Access and Completion for Low-Income and First-Generation
Students.'' The hearing focused on institutional efforts to
improve access to higher education for low-income and first-
generation students. The Committee heard testimony from Dr.
Michelle Asha Cooper of the Institute for Higher Education
Policy, Dr. Laura Perna, James S. Riepe Professor and Executive
Director of the Alliance for Higher Education and Democracy;
Dr. Charles J. Alexander, Associate Vice Provost for Student
Diversity, Director, Academic Advancement Program and Associate
Adjunct Professor, University of California, Los Angeles; and
Dr. Joe D. May, Chancellor of the Dallas County Community
College District.
On September 10, 2015, the Subcommittee on Higher Education
and Workforce Training held a hearing entitled ``Preventing and
Responding to Sexual Assault on College Campuses.'' The hearing
focused on policies that help institutions prevent and respond
to sexual assault on campus. The Committee heard testimony from
Dana Scaduto, General Counsel of Dickinson College; Dr. Penny
Rue, Vice President for Campus Life at Wake Forest University;
Lisa M. Maatz, M.A., Vice President for Government Relations at
the American Association of University Women; and Joseph Cohn,
Legislative and Policy Director of the Foundation for
Individual Rights in Education.
On November 18, 2015, the Subcommittee on Higher Education
and Workforce Training and the Committee on Oversight and
Government Reform's Subcommittee on Government Operations held
a joint hearing entitled ``Federal Student Aid: Performance-
Based Organization Review.'' The hearing focused on the
Department's Office of Federal Student Aid. The Committee heard
testimony from James Runcie, Chief Operating Officer of the
Department's Office of Federal Student Aid; Melissa Emrey-
Arras, Director, Education Workforce, and Income Security of
the GAO; the Honorable Kathleen Tighe, Inspector General of the
Department; Ben Miller, Senior Director of Postsecondary
Education at the Center for American Progress; and Justin
Draeger, President of the National Association of Student
Financial Aid Administrators.
Legislative Action
On June 22, 2016, the Committee considered H.R. 5529, the
Accessing Higher Education Opportunities Act; H.R. 5530, HBCU
Capital Financing Improvement Act; H.R. 5528, the Simplifying
the Application for Student Aid Act; H.R. 3179, the Empowering
Students Through Enhanced Financial Counseling Act; and H.R.
3178, the Strengthening Transparency in Higher Education Act.
H.R. 5529 amended title V of the HEA to expand grant activities
under the Hispanic Serving Institutions program. H.R. 5530
amended title III of the HEA to modify the HBCU Capital
Financing Program. H.R. 5528 amended title IV of the HEA to
require the Department to use tax information on the second
preceding tax year to determine a student's financial aid
eligibility. H.R. 3179 amended title IV of the HEA to modify
loan counseling requirements for IHEs that participates in
federal student aid programs. H.R. 3178 amended title I of the
HEA to modify consumer information disclosure requirements
related to college costs and student characteristics. The
Committee considered these five bipartisan bills in legislative
session and reported the bills favorably, as amended, to the
House of Representatives by voice vote.
115TH CONGRESS
First Session
On February 7, 2017, the Committee held a hearing entitled
``Challenges and Opportunities in Higher Education.'' The
hearing focused on reforms and challenges facing the higher
education system. The Committee heard testimony from Dr. Beth
Akers, Senior Fellow at the Manhattan Institute; Dr. William
English ``Brit'' Kirwan, Co-Chair of the Task Force on the
Federal Regulation of Higher Education; Dr. Jose Luis Cruz,
President of Lehman College; and Kevin Gilligan of the Capella
Education Company.
On March 21, 2017, the Committee held a hearing entitled
``Improving Federal Student Aid to Better Meet the Needs of
Students.'' The hearing focused on how to simplify federal
student aid. The Committee heard testimony from JoEllen
Soucier, Executive Director of Financial Aid at the Houston
Community College System; Kristin Conklin, Partner of HCM
Strategists; Youlonda Copeland-Morgan, Vice Provost of
Enrollment Management at the University of California, Los
Angeles; Dr. Matt Chingos, Senior Fellow at the Urban
Institute.
On April 27, 2017, the Committee held a hearing entitled
``Strengthening Accreditation to Better Protect Students and
Taxpayers.'' The hearing focused on improvements to
accreditation in higher education. The Committee heard
testimony from Dr. Mary Ellen Petrisko, President of the
Western Association of Schools and Colleges, Senior College and
University Commission; Dr. George A. Pruitt, President of
Thomas Edison State University; Ben Miller, Senior Director for
Postsecondary Education at the Center for American Progress;
and Dr. Michale S. McComis, Executive Director of the
Accrediting Commission of Career Schools and Colleges.
On May 24, 2017, Reps. Jared Polis and Adriano Espaillat,
both Committee Members, hosted a panel entitled ``Pathways to
College Completion.'' Panelists included Dr. Vanessa Anderson,
Executive Director of the Bard Early College at the Harlem
Children's Zone Promise Academy; Adam Lowe, Executive Director
of the National Alliance of Concurrent Enrollment Partnerships;
Amy Laitinen, Director for Higher Education at New America; Jon
Bellum, Vice President and Provost of Colorado State
University--Global Campus; and Paul Fain, News Editor of Inside
Higher Ed.
On May 24, 2017, the Subcommittee on Higher Education and
Workforce Development held a hearing entitled ``Empowering
Students and Families to Make Informed Decisions on Higher
Education.'' The hearing focused on how to help students and
families make informed decisions and how to ensure transparency
and accountability in higher education. The Committee heard
testimony from Dr. Mark Schneider, Vice President at the
American Institutes for Research; Jason Delisle, Resident
Fellow at the American Enterprise Institute; Mamie Voight, Vice
President of Policy Research at the Institute for Higher
Education Policy; and Andrew Benton, President and Chief
Executive Officer of Pepperdine University.
Second Session
On September 26, 2018, the Committee held a hearing
entitled ``Examining First Amendment Rights on Campus.'' The
hearing focused on free speech issues on college and university
campuses. The Committee heard testimony from Suzanne Nossel,
Chief Executive Officer of PEN America; Zachary R. Wood, Author
of ``Uncensored;'' Joseph Cohn, Legislative and Policy Director
of the Foundation for Individual Rights in Education; and Ken
Paulson, President of the First Amendment Center.
Legislative Action
On December 12, 2017, the Committee considered H.R. 4508,
the Promoting Real Opportunity, Success, and Prosperity through
Education Reform Act (PROSPER) in legislative session, and
reported the bill favorably, as amended, to the House of
Representatives by a partisan vote of 23-17. Committee
Democrats responded to the introduction of the PROSPER Act and
introduced the H.R. 6543, the Aim Higher Act, with 86
cosponsors on July 26, 2018. In contrast to the PROSPER Act,
which cut more than $15 billion from federal student aid, the
Aim Higher Act made higher education more accessible by
creating a federal-state partnership that incentivized states
to reinvest in their systems of higher education, investing
billions of dollars into federal student aid, and either
creating or strengthening programs that help traditionally
underrepresented students enroll in and complete college.
116TH CONGRESS
This Congress, the Committee held five bipartisan
legislative hearings to inform H.R. 4674:
On March 13, 2019, the Committee held the first hearing of
the series entitled ``The Cost of College: Student Centered
Reforms to Bring Higher Education Within Reach.'' The Committee
heard from researchers, administrators, and students who
described the causes and consequences of rising college costs
and presented recommendations on reforms to the system that
make college more affordable. The Committee heard testimony
from Dr. Douglas Webber, Professor at Temple University; Dr.
Alison Morrison-Shetlar, Interim Chancellor at Western Carolina
University; Jenae Parker, student at Franklin University; Dr.
Elizabeth Akers, senior fellow at the Manhattan Institute; and
James Kvaal, President of The Institute for College Access and
Success.
On April 3, 2019, the Subcommittee on Higher Education and
Workforce Investment held the second bipartisan hearing of the
series entitled ``Strengthening Accountability in Higher
Education to Better Protect Students and Taxpayers.'' The
hearing focused on the role of states, accreditors, and the
federal government to hold colleges accountable and needed
improvements to the accountability system. The Committee heard
from Dr. Nicholas Hillman, Associate Professor at the
University of Wisconsin-Madison; Melissa Emrey-Arras, Director
at the U.S. Government Accountability Office; Noe Ortega,
Commissioner of Postsecondary and Higher Education for the
Pennsylvania Department of Education; and Dr. Barbara E.
Brittingham, President of the New England Commission of Higher
Education.
On May 9, 2019, the Subcommittee on Higher Education and
Workforce Investment held the third bipartisan hearing of the
series entitled ``The Cost of Non-Completion: Improving Student
Outcomes in Higher Education.'' The Committee heard from
witnesses about the reasons for and consequences of non-
completion on students and society, differences in non-
completion across sectors, and successful strategies to improve
completion. The Committee heard from Dr. Susan Dynarski,
Professor at the University of Michigan; Dr. David Rudd,
President of the University of Memphis; Dr. Pam Eddinger,
President of Bunker Hill Community College; and Kyle Ethelbah,
Director of TRIO programs at the University of Utah.
On May 22, 2019, the Subcommittee on Higher Education and
Workforce Investment held the fourth bipartisan hearing of the
series entitled ``Engines of Economic Mobility: The Critical
Role of Community Colleges, Historically Black Colleges and
Universities, and Minority-Serving Institutions in Preparing
Students for Success.'' The hearing focused on public and non-
profit colleges that enroll a substantial percentage of
students of color and low-income students and policies the
federal government could adopt to better support these
institutions. The Committee heard testimony from Dr. Reynold
Verret, President of Xavier University of Louisiana; Dr.
Patricia Alvarez McHatton, Executive Vice President for
Academic Affairs at the University of Texas Rio Grande Valley;
Dr. Glenn DuBois, Chancellor of the Virginia Community College
System; and Dr. Sandra Boham, President of Salish Kootenai
College.
On June 19, 2019, the Committee held the fifth bipartisan
hearing of the series entitled ``Innovation to Improve Equity:
Exploring High-Quality Pathways to a College Degree.'' The
hearing highlighted existing innovative programs that offer on-
ramps to higher education including proven approaches such as
dual enrollment programs and wraparound supports, as well as
newer approaches such as competency-based education. The
Committee heard testimony from Dr. Judith Marwick, Provost at
William Rainey Harper College; Dr. Tomikia LeGrande, Vice
Provost for Strategic Enrollment Management at Virginia
Commonwealth University; Charla Long, Executive Director of the
Competency-Based Education Network; and Sameer Gadkaree, Senior
Program Officer at the Joyce Foundation.
Beyond the five bipartisan hearings, the Subcommittee on
Higher Education and Workforce Investment held several related
hearings that informed the development of H.R. 4674:
On April 24, 2019, the Subcommittee on Higher Education and
Workforce Investment held a joint field hearing with the
Committee on Veterans Affairs Economic Opportunity Subcommittee
in El Cajon, California entitled ``Protecting Those Who Protect
Us: Ensuring the Success of our Student Veterans.'' The hearing
examined why and how student veterans are heavily recruited by
for-profit colleges and explored legislative recommendations to
better protect student veterans from unscrupulous practices at
these institutions. The Subcommittee heard testimony from
Robert Muth, Academic Director of the Veterans Legal Clinic at
the University of San Diego; Eloy Oakley, Chancellor of the
California Community Colleges; Kristyl Rodriguez, a student
veteran at Bellus Academy; and Robert Shireman, Senior Fellow
at The Century Foundation.
On July 17, 2019, the Subcommittee on Higher Education and
Workforce Investment held a hearing entitled ``Educating Our
Educators: How Federal Policy Can Better Support Teachers and
School Leaders.'' The hearing focused on investments in teacher
preparation and strategies to promote effective school
leadership. The Subommittee heard testimony from Michael
Brosnan, Teacher and Early Leadership Institute Coach of
Bridgeport Public Schools; Tricia McManus, Assistant
Superintendent for Leadership, Professional Development and
School Transformation of Hillsborough County Public Schools;
John White, Louisiana State Superintendent of Education; and
Dr. Andrew Daire, Dean of the School of Education of Virginia
Commonwealth University.
On September 19, 2019, the Subcommittee on Higher Education
and Workforce Investment held an oversight hearing entitled,
``Broken Promises: Examining the Failed Implementation of the
Public Service Loan Forgiveness Program.'' This oversight
hearing examined the problematic implementation of public
service loan forgiveness (PSLF) that resulted in a 99 percent
application rejection rate. The Subcommittee heard testimony
from Kelly Finlaw, a New York City teacher and PSLF applicant;
Dr. Matthew Chingos, Vice President for Education Data and
Policy of the Urban Institute; Yael Shavit, J.D., Assistant
Attorney General of the Office of the Massachusetts Attorney
General; Melissa Emery-Arras, Director of Education, Workforce,
and Income Security at GAO; and Jeff Appel, Director of Policy
Liaison and Implementation of the Department's Office of
Federal Student Aid.
On October 29, 2019 the Committee began consideration of
H.R. 4674 in legislative session, and reported the bill
favorably, as amended, to the House of Representatives by a
vote of 28-22 on October 31, 2019. The Committee considered and
adopted the following amendments to H.R. 4674:
Rep. Susan Davis (D-CA) offered an Amendment
in the Nature of a Substitute (ANS) which made several
improvements to H.R. 4674, including:
Clarifying that an institution
attempting a conversion from a proprietary
institution to a non-profit institution will be
considered a proprietary institution under all
aspects of HEA during the transition period;
Increasing the maximum Pell
Grant award by $625 rather than $500;
Adding a new section to allow
borrowers to automatically receive a closed
school discharge if they have not re-enrolled
in an institution after two years of closure;
Adding two new subsections to
provide graduate and professional students
attending public and non-profit institutions
with access to subsidized loans at the same
interest rate available to these students for
unsubsidized loans;
Adding a prohibition on interest
capitalizing after forbearance for Federal
Direct PLUS loans, Federal Direct Unsubsidized
Loans, and Federal Direct Consolidation Loans
subsequent to enactment of this Act;
Increasing auto-zero EFC
threshold to $37,000 rather than $34,000;
Amending the definition of part-
time faculty to allow faculty members or
instructors who teach a minimum of two courses
and are not employed full-time anywhere else to
be eligible for Public Service Loan
Forgiveness;
Capping collection fees charged
to defaulted borrowers;
Adding a requirement that the
Secretary of Education (Secretary) must resolve
borrower defense claims within 12 months from
when the claim was received. The Secretary must
also resolve pending claims that were submitted
prior to enactment of this Act within 12 months
of enactment;
Adding a rule of construction to
clarify that the Secretary cannot require
accreditors to use a specific performance
benchmark;
Clarifying that states and
tribes participating in America's College
Promise may use funds that remain after tuition
waivers are paid for to invest in the academic
workforce; They may also use allocations under
the Student Success Fund to support the
implementation of promising and evidence-based
institutional reforms and innovative practices
to improve student outcomes at both two- and
four-year public institutions.
Adding a new section directing
the Secretary to encourage institutions to
implement comprehensive plans to address mental
health and prevent suicide among students; and
Adding a new section directing
the Secretary to create a commission to examine
the experience of students with mental health
disabilities.
Ranking Member Rep. Virginia Foxx (R-NC) offered a
substitute amendment to the Davis ANS, the minority substitute
for H.R. 4674. The Foxx amendment was defeated by a recorded
vote of 21-27. The Davis ANS was adopted by voice vote.
Rep. Susan Bonamici (D-OR) offered an
amendment to assist students participating in the
Federal Work Study program to access federal nutrition
benefits for which they are eligible. The amendment was
adopted by voice vote.
Rep. Lucy McBath (D-GA) offered an amendment
to allow states that receive America's College Promise
funds to expand the scope and capacity of high-quality
skills training programs at community colleges to do so
in collaboration with one or more industry or sector
partnership. The amendment was adopted by a recorded
vote of 46-0.
Rep. Ilhan Omar (D-MN) offered an amendment
to establish a commission to study the impact of
federal student loan debt and provide recommendations
to Congress. The amendment was adopted by a recorded
vote of 27-19.
Rep. Donald Norcross (D-NJ) offered an
amendment to allow CCAMPIS (Child Care Access Means
Parents in School) funds to be used for evening and
summer services along with other improvements to the
program. The amendment was adopted by voice vote.
Rep. Lori Trahan (D-MA) offered an amendment
in conjunction with Rep. Brett Guthrie (R-KY) to make
improvements to the Net Price Calculator system. The
amendment was adopted by a recorded vote of 45-0.
Committee Chairman Rep. Robert C. ``Bobby''
Scott (D-VA) offered an amendment to direct the
Secretary, in consultation with the Attorney General,
to disseminate best practices on how to respond to
incidents of bias. The amendment was adopted by voice
vote.
Rep. Donna Shalala (D-FL) offered an
amendment to move the 85/15 requirement to the
definition of ``institutional eligibility'' and to
allow for a phasing in of new 85/15 requirements. The
amendment was adopted by a recorded vote of 28-17.
Rep. Pramila Jayapal (D-WA) offered an
amendment to direct the GAO to study racial and
socioeconomic equity gaps in outcomes at four-year
institutions. Rep. Frederica Wilson (D-FL) offered an
amendment to the Jayapal amendment to require the study
in the underlying amendment examine administration of
climate surveys and other issues affecting campus
climate. The Wilson amendment was adopted by voice
vote, and the Jayapal amendment was then adopted by
voice vote.
Rep. Mark DeSaulnier (D-CA) offered an
amendment to five competitive priority to applications
for funds under part B of Title II to entities that
recruit teacher candidates who have community service
experience. The amendment was adopted by voice vote.
Rep. Shalala offered an amendment to require
a GAO study of state licensing restrictions related to
federal student loan defaults. The amendment was
adopted by a recorded vote of 45-0.
Rep. Glenn ``GT'' Thompson (R-PA) offered an
amendment to support capacity building for career and
technical education programs. Rep. Haley Stevens (D-MI)
offered an amendment to the Thompson amendment to align
the activities authorized in the underlying amendment
with the Carl D. Perkins Career and Technical Education
Act of 2006. The Stevens amendment was adopted by voice
vote, and the Thompson amendment was then adopted by a
recorded vote of 45-0.
Rep. James Comer (R-KY) offered an amendment
to require institutions to disclose campus policies
regarding required background checks for employees and
volunteers, and to require campuses to conduct
background checks for employees and volunteers working
with athletes, children, and youth. Rep. Bonamici
offered an amendment to the Comer amendment to align
the requirements of the underlying amendment with Clery
Act disclosure requirements. The Bonamici amendment was
adopted by a recorded vote of 26-22, and the underlying
Comer amendment was adopted by voice vote.
Rep. Greg Murphy (R-NC) offered an amendment
to require institutions to disclose when non-
instructional spending increases by more than 5 percent
year-over-year. The amendment was adopted by a recorded
vote of 47-0.
Rep. Bradley Byrne (R-AL) offered an
amendment to enable Title III funds to be spent on dual
enrollment, pay for success initiatives, and other uses
to further student career success. Committee Vice-
Chairman Rep. Andy Levin (D-MI) offered an amendment to
the Byrne amendment to strike pay for success as an
allowable use from the underlying amendment, and to
align the remaining authorized uses in the underlying
amendment with the Carl D. Perkins Career and Technical
Education Act of 2006. The Levin amendment was adopted
by voice vote, and the underlying Byrne amendment was
also adopted by voice vote.
The Committee also considered the following amendments:
Rep. Lloyd Smucker (R-PA) offered an
amendment to restrict eligibility for tuition-free
community college based on income. The amendment was
defeated by a recorded vote of 18-28.
Rep. Smucker offered an amendment to limit
the newly required quick reference box in financial
offers. The amendment was defeated by a recorded vote
of 18-28.
Rep. Smucker offered an amendment to
prohibit registered lobbyists from accessing Public
Service Loan Forgiveness. The amendment was defeated by
a recorded vote of 18-28.
Rep. Smucker offered an amendment to strike
the increase in the set aside for and evaluation of the
GEAR UP (Gaining Early Awareness and Readiness for
Undergraduate Programs) program. The amendment was
defeated by a recorded vote of 18-28.
Rep. Guthrie offered an amendment to make
several changes to the Federal Work Study program
including: lowering the Federal Work-Study match for
institutions; removing the requirement that campuses
use certain percentages of funds for work-based
learning; and adding to the Job Location and
Development fund an allowable use for registered and
non-registered apprenticeships. The amendment was
defeated by a recorded vote of 18-28.
Rep. Phil Roe (R-TN) offered an amendment to
prevent the bill from taking effect until the Institute
for Education Sciences certifies that such
implementation shall not increase the cost of
attendance. The amendment was defeated by a recorded
vote of 17-28.
Rep. Roe offered an amendment to expand
Sense of Congress language on free speech and to
require institutions to disclose existing free speech
policies to students to receive any funds under the
Act. The amendment was defeated by a recorded vote of
17-28.
Rep. Roe offered an amendment to prevent
students from being treated as employees for collective
bargaining purposes. The amendment was defeated by a
recorded vote of 17-28.
Rep. Tim Walberg (R-MI) offered an amendment
to prohibit any government entity from taking any
adverse action against an institution for acts or
omissions that are in furtherance of its religious
mission. The amendment was defeated by a recorded vote
of 17-28.
Rep. Walberg offered an amendment to require
a GAO study of the impact of student participation in
collective bargaining on cost of attendance. The
amendment was defeated by a recorded vote of 17-28.
Rep. Glenn Grothman (R-WI) offered an
amendment to strike the bill's competency-based
education (CBE) pilot and to make all CBE programs
eligible for Title IV funds. The amendment was defeated
by a recorded vote of 17-28.
Rep. Grothman offered an amendment to
specify that a student in legal guardianship who
continues to receive financial support from their
parents is considered dependent for the purposes of the
Free Application for Federal Student Aid (FAFSA). The
amendment was defeated by a recorded vote of 17-28.
Ranking Member Foxx offered an amendment to
repeal the section of the Act prohibiting the Secretary
from implementing proposed Title IX regulations. The
amendment was defeated by voice vote.
Ranking Member Foxx offered an amendment to
require all programs at all institutions meet the high
school earnings requirement that is applied under the
Act to Job Training short-term Pell Grant programs. The
amendment was withdrawn.
Rep. Thompson offered an amendment to allow
for-profit institutions to participate in the short-
term Pell program. The amendment was defeated by a
recorded vote of 20-25.
Rep. Jim Banks (R-IN) offered an amendment
to prevent the bill from taking effect until the
Secretary of Education certifies that it will not
negatively impact military recruitment and limit
veterans' access to education. The amendment was
defeated by a recorded vote of 20-26.
Rep. Grothman offered an amendment
restricting eligibility for participation of certain
academic programs under Title VI of the Act. The
amendment was defeated by a recorded vote of 20-26.
Rep. Grothman offered an amendment to
provide discretion to financial aid administrators to
lower student loan limits. The amendment was defeated
by a recorded vote of 21-26.
Rep. Grothman offered an amendment to strike
requirements for grantees to provide students
information on Supplemental Nutrition Assistance
Program (SNAP) eligibility. The amendment was defeated
by a recorded vote of 21-26.
Rep. Rick Allen (R-GA) offered an amendment
to a state receiving a partnership grant under
America's College Promise to certify that neither the
state, nor its cities and counties limit cooperation
with federal immigration authorities to protect
undocumented individuals. The amendment was defeated by
a recorded vote of 21-25.
Rep. Allen offered an amendment to prohibit
a school from offering in-state tuition or a reduced
fee rate to a person not lawfully present in the United
States. The amendment was defeated by a recorded vote
of 19-26.
Rep. Elise Stefanik (R-NY) offered an
amendment to replace the Public Service Loan
Forgiveness program with a State Workforce Incentive
program. The amendment was defeated by a recorded vote
of 22-26.
Rep. Comer offered an amendment to prohibit
borrowers who commit crimes against children, as
determined by the Secretary from receiving certain Loan
Forgiveness. The amendment was defeated by a recorded
vote of 20-24.
Rep. Comer offered an amendment to strike
the requirement for institutions seeking religious
exemptions to Title IX make disclosures to students.
The amendment was defeated by a recorded vote of 22-26.
Rep. Dusty Johnson (R-SD) offered an
amendment to require that accrediting accounting boards
to include at least one public member who represents
business. The amendment was defeated by a recorded vote
of 23-25.
Rep. Johnson offered an amendment to add an
opt-in requirement to the Postsecondary Student Data
System for students not receiving any federal funds The
amendment was defeated by voice vote.
Rep. Johnson offered an amendment to require
institutions to certify that any health care
practitioner at a healthcare facility affiliated with
the institution will provide medical care to any infant
born alive at such facility. The amendment was defeated
by a recorded vote of 22-26.
Rep. Russ Fulcher (R-ID) offered an
amendment to strike the gainful employment provisions
in the bill. The amendment was defeated by a recorded
vote of 22-25.
Rep. Mark Walker (R-NC) offered an amendment
to exclude 529 college savings plans from needs
analysis under the FAFSA. The amendment was defeated by
a recorded vote of 22-26.
Rep. Walker offered an amendment to require
institutions to comply with state laws pertaining to
student athletes' rights to their name, image, and
likenesses. The amendment was withdrawn.
Rep. Ben Cline (R-VA) offered an amendment
to apply the newly created adjusted cohort default rate
at the academic program level. The amendment was
defeated by a recorded vote of 22-24.
Rep. Cline offered an amendment to strike
changes to the federal student loan program and insert
the text of H.R. 4098, the Higher Education Reform and
Opportunity (HERO) Act. The amendment was defeated by a
recorded vote of 9-37.
Rep. Steve Watkins (R-KS) offered an
amendment to strike the requirement that accreditors
have specific student outcome benchmarks. The amendment
was defeated by a recorded vote of 22-26.
Rep. Dan Meuser (R-PA) offered an amendment
to eliminate the requirement that the Secretary enter a
memorandum of understanding with the Private Education
Loan Ombudsman at the Consumer Financial Protection
Bureau. The amendment was defeated by a recorded vote
of 22-26.
Rep. Meuser offered an amendment to provide
a two-year transition exception to the adjusted cohort
default rate benchmark for all institutions, rather
than only public institutions, HBCUs, and private
institutions with a Pell enrollment of at least 45
percent. The amendment was defeated by a recorded vote
of 22-24.
Rep. Fred Keller (R-PA) offered an amendment
to strike the proposed 85/15 rule from the substitute
and underlying law. The amendment was defeated by a
recorded vote of 22-26.
Mr. Keller offered an amendment to allow
institutions to outsource up to 100 percent of
education programs to ineligible entities. The
amendment was defeated by a recorded vote of 22-26.
Mr. Murphy offered an amendment to add a
``sense of Congress'' that professors should remove
their political biases from the classroom. The
amendment was defeated by a recorded vote of 22-26.
Mr. Murphy offered an amendment to eliminate
the $5 administration fee granted to institutions per
Pell recipient they enroll. The amendment was defeated
by voice vote.
Committee Views
Congress originally passed the HEA in 1965 as part of a
broader effort by President Lyndon B. Johnson to fight poverty
and racial inequality through groundbreaking federal laws.\1\
President Lyndon Johnson, when signing HEA into law at his alma
mater Southwest Texas State College remarked that the law 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 HEA specifically aimed to remove monetary
barriers to postsecondary education, giving low- and middle-
income students the opportunity to pursue the same
postsecondary degrees already available to high-income
students.\3\
---------------------------------------------------------------------------
\1\See Robin L. Capt, Analysis of the Higher Education Act
Reauthorizations: Financial Aid Policy Influencing College Access and
Choice, 3 Admin. Issues J. Educ., Prac., & Rsch, 4 (2013).
\2\Remarks at Southwest Texas State College Upon Signing the Higher
Education Act of 1965, (Nov. 8, 1965).
\3\See John Groutt, Milestones of TRIO History, Part I, Opportunity
Outlook 2 (Jan. 2003) (``As part of that Act [HEA] a large amount of
money would soon be appropriated to students in the form of new
Educational Opportunity Grants (EOG). This was the first time ever that
Federal scholarship monies would be distributed based on low-income
status.'').
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Since the enactment of the HEA, the law has only been
reauthorized eight times. The last reauthorization was in
2008--more than a decade ago. Since then, there have been
several changes in the higher education landscape that must be
addressed in any meaningful reauthorization of HEA.
First, the finance structure of higher education
fundamentally shifted since 1965 in many important aspects. The
most impactful change has been the wave of state disinvestment
in higher education which predated, but was crystallized after,
the Great Recession. In the 1970s, states funded approximately
70 percent of higher education costs (with 30 percent left to
be financed by the federal government and the student).\4\ Over
the last four decades this breakdown has inverted, slowly at
first, and then rapidly after the 2008 crisis and subsequent
recession.\5\ Many states are just returning to higher
education spending levels in line with expenditures before the
recession over 12 years ago, which were still historically
low.\6\ The result has left students paying nearly half of the
cost of operating public higher education, with many of
students left no other choice but to debt finance their higher
education via the federal student aid system.\7\ Additionally,
over the last 30 years, tuition cost increases have far
outpaced inflation. In-state tuition at public four-year
colleges has tripled since 1988 while tuition costs have more
than doubled in other sectors, even after adjusting for
inflation.\8\
---------------------------------------------------------------------------
\4\Ass'n of Pub. Land Grant Univs., College Costs: Answers to the
most frequently asked questions about public higher education, 4.
(2013), https://www.aplu.org/library/fact-sheet-college-costs/File.
\5\Pew Charitable Trusts, Federal and State Funding of Higher
Education: A Changing Landscape, 3 (2015) https://www.pewtrusts.org/en/
research-and-analysis/issue-briefs/2015/06/federal-and-state-funding-
of-higher-education.
\6\Michael Mitchel et al., Ctr. for Budg. & Pol'y Priorities, State
Higher Education Funding Cuts HavePushed Costs to Students, Worsened
Inequality 1 (2019) https://www.cbpp.org/research/state-budget-and-tax/
state-higher-education-funding-cuts-have-pushed-costs-to-students.
\7\Sophia Laderman & Dustin Weeden, State Higher Educ. Exec.
Officers Ass'n, State Higher EducationFinance FY 2019, 28 (2020)
https://shef.sheeo.org/wp-content/uploads/2020/04/
SHEEO_SHEF_FY19_Report.pdf.
\8\Jennifer Ma et al., The College Board, Trends in College Pricing
2018, 13 (2018).
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The federal government's response to these financial
pressures has been to modify federal loan eligibility
requirements, create new loan programs, and establish loan
repayment plans that ease monthly payments for borrowers.
Repayment plans have been introduced in full reauthorizations,
in partial amendments to the law, and via administrative
authority.\9\ While well intentioned, these plans have resulted
in a patchwork of programs that have made repaying loans too
complex.
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\9\See College Cost Reduction and Access Act, Pub. L. No. 110-84,
121 Stat. 784 (2007); Higher Education Opportunity Act, Pub. L. No.
110-315, 122 Stat. 3078 (2008); Pay As You Earn, 34 C.F.R. Sec.
685.209 (2012); Revised Pay As You Earn, 34 C.F.R Sec. 685.209 (2012).
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Recognizing that state disinvestment and inflation of
college costs are both existential threats to the higher
education system in the United States, H.R. 4674 seeks to
provide programs to both contain costs and incentivize states
to maintain their investment in higher education. The bill also
simplifies the student loan repayment system by eliminating
current repayment plans and creating one fixed repayment plan
and an income-based repayment (IBR) plan that is more generous
than current law.
Second, the demographics of the college student population
have changed considerably. HEA was originally written at a time
when mostly white, mostly male students entered higher
education studying full-time at a residential university
directly after high school.\10\ Every one of these paradigms
has shifted. Women students now outnumber men,\11\ and students
rightfully expect their schools to recognize and respect their
sexual orientations and gender identities. Students of color
are now participating in higher rates in higher education than
ever before, resulting in a more racially, ethnically and
financially diverse student body.\12\ The majority of students
do not enter higher education directly after high school, and
are often working at least 30 hours a week while pursuing their
degree part-time, commuting to school and often raising a
family.\13\ Each one of these demographic shifts has
implications on both campuses and the federal programs not
originally designed to serve this population of students. H.R.
4674 recognizes these shifts and many of its reforms are
designed to better serve the ``traditional'' student of
today.\14\
---------------------------------------------------------------------------
\10\Paul Taylor et al., Pew Charitable Trusts, Women See Value and
Benefits of College; Men Lag on Both Fronts, Survey Finds 9, (2011)
https://www.pewresearch.org/wp-content/uploads/sites/3/2011/08/Gender-
and-higher-ed-FNL-RPT.pdf.
\11\Jennifer Ma, et al., The College Board, Education Pays: The
Benefits of Higher Education for Individuals and Society, 11 (2020)
https://research.collegeboard.org/pdf/education-pays-2019-full-
report.pdf.
\12\Id. at 10.
\13\Anthony P. Carnevale, Nicole Smith, Geo. Ctr. on Educ. &
Workforce, Balancing Work and Learning: Implications for Low-Income
Students, 6 (2018) https://1gyhoq479ufd3yna29x7ubjn-wpengine.netdna-
ssl.com/wp-content/uploads/Low-Income-Working-Learners-FR.pdf.
\14\Cf. Innovation to Improve Equity: Exploring High-Quality
Pathways to a College Degree Before the H. Comm. On Educ. & Lab. (2019)
(Statement of Ranking Member Virginia Foxx) (``For too long, we've
believed in the stereotype of college students as being young, bright-
eyed youth, fresh out of high school, lounging in their dorms before
heading to class in the quad. While true for some, this traditional
image of postsecondary education is no longer the case for the majority
of American students. . . . . And yet the federal government and the
higher education sector too often continue to cater to an outdated
vision of postsecondary education.'')https://republicans-
edlabor.house.gov/news/documentsingle.aspx?DocumentID=406455.
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Additionally, many new actors have entered in the service
delivery of higher education, most notably large, publicly
traded for-profit systems of higher education. The last two
decades saw a rise in large corporations opening chains of
institutions across the country.\15\ These larger publicly
traded firms in particular have a fiduciary duty to their
shareholders to increase profits as their primary duty.\16\
Since the last reauthorization of HEA, we have seen growth of
these large for-profit chains and with them, increased cases of
widespread fraud and abuse of the federal student aid
system.\17\ When these cases come to light, they often
precipitate abrupt closures of institutions, leaving students
with outstanding debt, and limited options on how to continue
their education.\18\ In the most egregious cases, some of these
large for-profit entities have exploited gaps in the system of
higher education oversight.\19\ H.R. 4674 attempts to
strengthen existing guardrails on federal dollars to prevent
their abuse, and provides new processes to ensure that
institutions cannot escape meaningful oversight.
---------------------------------------------------------------------------
\15\For Profit Higher Education: The Failure to Safeguard the
Federal Investment and Ensure Student Success, Report of the S. Comm.
On Health, Educ, Lab. & Pensions, S. Rep. No. 112-37, VOL. 1 AT 20,
(2012).
\16\See e.g., Robert J. Rhee, ``A Legal Theory of Shareholder
Primacy'', 102 Minn. L. Rev. 1951 (May, 2018).
\17\Danielle Douglas-Gabriel, ITT Technical Institutes Shut Down
After 50 Years in Operation, Wash. Post (Sept. 6, 2016, 10:24AM),
https://www.washingtonpost.com/news/grade-point/wp/2016/09/06/itt-
technical-institutes-shut-down-after-50-years-in-operations/; John B.
King, Jr., A Message from the Secretary of Education to ITT
Students,U.S. Dep't of Educ. Blog (Sept. 6, 2016), https://blog.ed.gov/
2016/09/message-secretary-education-itt-students/; Richard Perez-Pena,
College Group Run for Profit Looks to Close or Sell Schools, N.Y. Times
(July 4, 2014), https://www.nytimes.com/2014/07/05/education/
corinthian-colleges-to-largely-shut-down.html; Press Release, U.S.
Dep't of Educ., U.S. Department of Education Accepts Plan from
Corinthian Colleges Inc. (July 3, 2014), https://www.ed.gov/news/press-
releases/us-department-education-accepts-operating-plan-corinthian-
colleges-inc; Press Release, FTC, FTC Obtains Record $191 Million
Settlement from University of Phoenix to Resolve FTC Charges It Used
Deceptive Advertising to Attract Prospective Students (Dec. 10, 2019),
https://www.ftc.gov/news-events/press-releases/2019/12/ftc-obtains-
record-191-million-settlement-university-phoenix; Press Release, FTC,
DeVry University Agrees to $100 Million Settlement with FTC (Dec. 15,
2016), https://www.ftc.gov/news-events/press-releases/2016/12/devry-
university-agrees-100-million-settlement-ftc.
\18\Cf. Adam Looney & Yannellis Constantine, Brookings Institution,
A Crisis in Student Loans? How Changes in the Characteristics of
Borrowers in the Institutions they Attend Contributed to RisingLoan
Defaults 3-4 (2015), https://www.brookings.edu/wp-content/uploads/2015/
09/LooneyTextFall15BPEA.pdf. (``In addition to being more numerous and
in their earliest years of loan repayment after the recession, recent
nontraditional borrowers appear to be a particularly high-risk
population. They tend to be older when they first enroll, to be from
lower-income families, and to live in poorer neighborhoods. They are
more likely to be first-generation borrowers. They attend programs they
are less likely to complete and, after enrollment, are more likely to
live in or near poverty and to experience weak labor market outcomes,
outcomes that worsened disproportionately during the recession. And
their loan burdens, though smaller on average both in absolute terms
and relative to their earnings, have tended to increase faster over
time. All these factors contributed to high default rates among
nontraditional borrowers.'').
\19\For Profit Higher Education:, supra note 15, at 122.
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Other changes in the higher education field necessitated
attention in this comprehensive HEA reauthorization. For
example, since the 2008 reauthorization the research on
effective teacher preparation--the subject of the HEA's title
II--has evolved and illuminated clear practices that produce
results for student achievement and help retain teachers in the
profession. Further, we are just now experiencing the impact of
the implementation of policies established in the last
reauthorization. There is also an emphasis on shortening the
length of higher educational programs either by allowing
students to take college credit courses while in secondary
school or designing shorter programs of study to provide skills
necessary to immediately enter an in-demand high paying job
shortly after completion.
Given all these changes, a comprehensive reauthorization of
the HEA is long overdue. H.R. 4674 represents an overhaul of
higher education in the United States. The Act addresses
critical issues of college affordability, accountability, and
opportunity by making substantial and permanent investments in
our higher education system to ensure a new generation of
students can access and complete a postsecondary degree or
credential.
H.R. 4674 Makes College More Affordable
A college education remains the most successful force for
upward economic mobility in America.\20\ Yet, the rising cost
of a college education has kept it out of reach for many
individuals. An important cause of this rising cost has been
state disinvestment in higher education.\21\ Average state
appropriation per full-time equivalent (FTE) student fell by 26
percent during the Great Recession and is only slowly
recovering.\22\
---------------------------------------------------------------------------
\20\Cf. Ron Haskins, Brookings Institution, Education and Economic
Mobility 6 (2016), https://www.brookings.edu/wp-content/uploads/2016/
07/02_economic_mobility_sawhill_ch8.pdf. (``Despite the fact that
family background helps adult children get ahead or stay ahead, high
educational attainment can make a difference by boosting the fortunes
of poor children and allowing them both to earn more than their parents
and even to surpass the income of many of their peers from wealthier
families.'').
\21\The Cost of College: Student-Centered Reforms to Bring Higher
Education Within Reach Before the H. Comm. on Educ. & Labor, 116th
Cong. (2019) (Testimony of Douglas Webber, Associate Professor and
Director of Graduate Studies Economics Department, Temple University).
\22\Jennifer Ma et al., The College Board, Trends in College
Pricing 2018 24 (2018).
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The Committee strongly believes that a comprehensive
federal policy solution is necessary to reverse the trend in
state disinvestment that has shifted the burden of funding
higher education onto America's working families in a time of
stagnant wages.
Federal-State Partnership
H.R. 4674 creates a federal-state partnership known as
America's College Promise (ACP)--a grant program that makes a
historic mandatory investment in states that agree to make
college more affordable and invest in public higher education.
The Act draws on and builds upon H.R. 4212, the America's
College Promise Act as introduced by Rep. Andy Levin (D-MI) in
the 116th Congress. This program was first proposed by
President Obama in his 2015 State of the Union address and
introduced by Committee Chairman Robert C. ``Bobby'' Scott (D-
VA) in the 114th and 115th Congresses. ACP guarantees two years
of community college tuition- and fee-free to students in
participating states, funded by a mix of state and federal
dollars. To access federal grant funds, states must commit to
sustained investments in public colleges and state aid
programs, creating a powerful incentive to slow state
disinvestment and contain college costs. ACP also provides
grant aid directly to low-income students who attend
Historically Black Colleges and Universities (HBCUs), Tribally
Controlled Colleges and Universities (TCCUs), and other
Minority-Serving Institutions (MSIs) for up to sixty credits,
allowing students who transfer from a community college to an
HBCU, TCCU, or MSI to earn a bachelor's degree with little to
no tuition cost. ACP further invests in student success and
provides the infrastructure for future expansions into debt-
free four-year college.
ACP includes four key policy components: a federal-state
partnership providing first-dollar tuition waivers at community
colleges; a dedicated student success fund; a grant program for
low-income students at HBCUs, TCCUs, and other MSIs; and a set
of authorizations for expanded affordability guarantees.
Under the first component of ACP, students in states that
choose to participate in the federal-state partnership will
have access to first dollar tuition and fee waivers at any
state community college. The first dollar nature of ACP allows
students to use other aid, including federal Pell Grants, to
offset other costs of college attendance beyond tuition and
fees. Participating states are allocated an amount of funding
based on a formula that provides, at a minimum, federal funds
sufficient to cover 75 of the tuition and fee waivers based on
the average cost of tuition and fees at community colleges
nationwide. States must provide a match to cover the remaining
25 percent. However, actual federal grant amounts will be
influenced by the level of available funding (with specified
levels of mandatory funds provided each year) and the number of
participating states. Additionally, many states have already
made significant progress in reducing or waiving community
college tuition. As a result, states that fund community
college tuition may receive more funds than are necessary to
cover the cost of the tuition waivers, in which case states are
authorized to use remaining funds to support the quality and
affordability of all public institutions, and to improve
college readiness, expand dual enrollment, and enhance the
capacity of high-quality programs at two-year institutions. The
Committee intends ACP to increase college success as well as
access, so it is imperative that participating states use
excess funds for the development and expansion of high-quality
postsecondary pathways. For example, states using excess funds
for dual enrollment programs should seek to adopt quality
standards similar to those laid out in the Jumpstart on College
grant program authorized in H.R. 4674.\23\
---------------------------------------------------------------------------
\23\See infra, Dual Enrollment.
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Regardless of how state matching funds are used, under ACP
they must supplement, and not supplant, existing state
investments. States participating in the federal-state
partnership are also subject to maintenance of effort
provisions that ensure states maintain a baseline investment in
public higher education. States are separately required to
maintain baseline spending on operational expenses at public,
four-year colleges and on state need-based aid programs. As
states dedicate new dollars to meet ACP's matching
requirements, the baseline level at which they are required to
maintain funding will rise, meaning that states will be
increasing investments in public higher education over time.
The protection for operational expenses at four-year public
colleges means that new funding or community colleges cannot
come at the expense of the four-year sector, while the
protection for state need-based aid programs ensures low-income
students throughout participating states--including those
attending public four-year institutions and private non-profit
institutions--will continue to have access to vital state-
supported grant aid.
Under the second component of ACP, states that join the
federal-state partnership have access to a dedicated student
success fund to support the adoption and expansion of evidence-
based reforms and practices at all public institutions. These
practices are already at work in many states. For example,
Georgia State University has famously made significant progress
in improving student outcomes through the expansion of academic
and career counseling services that are bolstered by the use of
data analytics. There is also an increasing recognition across
higher education that improving student outcomes, particularly
for low-income students, requires a focus on basic needs, which
has led institutions like Bunker Hill Community College and the
California State University System to offer comprehensive
wraparound services to ensure that students have access to
essentials like food, housing, transportation, and child care.
As designed, the state match increases the longer states draw
down federal dollars from the student success fund. Again,
since state matching funds must supplement, and not supplant,
existing state investments, as a result of this increased state
investment, the baseline levels at which states are required to
maintain funding will continue to rise, ensuring robust
investment.
The third component of America's College Promise creates
three Pathways to Student Success programs that provide grant
aid directly to low-income students who attend HBCUs, TCCUs,
and MSIs for up to 60 credits. This would greatly reduce costs
for low-income students who start at these institutions for the
equivalent of the first two years of, while also allowing
students who transfer from a community college to an HBCU,
TCCU, or MSI to earn a bachelor's degree while paying little to
no tuition cost. Like the community college tuition and fee
waivers, benefits under the Pathways to Student Success
programs are provided on a first-dollar basis, meaning eligible
students can use Pell Grants or other aid to pay for non-
tuition expenses. Public and private not-for-profit four-year
HBCUs, TCCUs, and MSIs are all eligible to participate in this
program. These institutions serve a vital role as engines of
economic mobility for low-income students and students of
color, making it all the more important to include them in ACP
and to ensure that the tuition-free community college guarantee
does not undercut their ability to attract price-sensitive
students. The Pathways to Student Success programs are
supported with dedicated mandatory funds that are separate from
the funds used for the federal-state partnership.
Lastly, the federal-state partnership establishes the
structures necessary to support future investments in four-year
debt-free and tuition-free college. If funding is sufficient to
support the primary components of ACP, the Secretary of
Education (Secretary) can expand the partnership to provide
additional affordability guarantees. Using a so-called
`waterfall' approach, H.R. 4674 authorizes expanded guarantees
providing debt-free college at two- and four-year institutions
(first for Pell Grant recipients, then for all students) and
tuition-free college at public four-year institutions. The
Secretary is also granted authority to expand tuition
guarantees to private non-profit institutions in participating
states.
ACP addresses issues of college affordability in a variety
of ways. First and foremost, it makes straightforward,
reliable, and powerful promises to students about the cost of a
college degree through the provision of tuition waivers and
direct grant aid. The program covers the cost of tuition and
fees on a first-dollar basis provides a clear message to
students that college is affordable and accessible, while
allowing low-income students to use Pell Grants and other
financial aid to pay for non-tuition expenses like books,
transportation, and housing. By focusing a substantial
investment on community colleges, HBCUs, TCCUs, and MSIs, ACP
ensures that limited federal dollars are focused on
historically underserved students and under-resourced
institutions enrolling large shares of low-income students and
students of color, two of the fastest growing demographic
groups in higher education.
Aside from the sustained promise of federal funding, ACP
addresses tuition growth resulting from state disinvestment by
requiring states to reinvest in higher education and setting
robust maintenance of effort requirements going forward. We
know cost of college has increased, in large part, due to state
disinvestment in postsecondary education. Faced with steep
decreases in state funding, colleges and universities have
turned to other sources to make up for lost revenue, including
higher tuition costs for students and their families. A
rigorous study found that decreased state funding accounts for
41 percent of the rise in tuition costs since 2008.\24\ By
providing sustained public investment via a federal-state
partnership that is not subject to discretionary annual
appropriations, ACP will incentivize states to reinvest in
higher education and slow growth in college costs, thereby
making higher education more affordable in the future.
---------------------------------------------------------------------------
\24\Douglas A. Webber, State Divestment and Tuition at Public
Institutions, 60 econ. of Educ. Rev. 1, 1-4 (2017).
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ACP additionally establishes requirements for the adoption
of promising and evidence-based institutional reforms and
innovative practices at the state level to improve student
outcomes and supports states in meeting these requirements
through the creation of a dedicated student success fund. In
addition to controlling costs, the Committee believes the
America's College Promise program will help reduce time to
completion and ensure that more students earn high-quality
credentials that provide a substantial return on investment,
another key issue in addressing college affordability.
The Pell Grant
The Pell Grant is the cornerstone of federal student aid.
Federal grant aid targeted at low-income students and families
has been an essential tool in expanding access to higher
education since 1965.\25\ While Democrats successfully
championed historic increases in the Pell Grant through the
American Reinvestment and Recovery Act of 2009 (ARRA) and the
Student Aid and Fiscal Responsibility Act of 2010 (SAFRA),
those investments have not kept pace with rising costs.\26\ In
1975, the maximum Pell Grant covered nearly 80 percent of the
cost of attendance at a public four-year school.\27\ The
maximum Pell Grant award in 2018-19 ($5,920) covers just 29
percent of average tuition, fees, room and board at an in-
state, four-year public university; and only 13 percent in a
private nonprofit institution.\28\ To close this gap, Pell
Grant recipients are more than twice as likely to borrow
federal dollars as their peers.\29\ The Committee believes
restoring the purchasing power of the Pell Grant is necessary
to elevate the purpose of the Pell Grant program, and is a key
pillar of any comprehensive HEA reauthorization.
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\25\Higher Education Act of 1965, 20 U.S.C. Sec. 1094(a);
Education Amendments of 1972, Pub. L. No. 92-318, 86 Stat. 235 (Title
IV--Part A, Subpart 1--Basic Education Opportunity Grants); Education
Amendments of 1980 Pub. L. No. 96-374, 94 Stat. 1367 (Title IV--Part
A--Pell Grants).
\26\In the ARRA, Pub. L. No. 111-5, 123 Stat. 115, 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 the
SAFRA, Pub. L. No. 111-152, 124 Stat. 1071 (part of Health Care and
Education Reconciliation Act of 2010), the maximum was increased to
$5,500 with increases indexed to inflation through 2018.
\27\Spiros Protopsaltis & Sharon Parrott, Pell Grants--a Key Tool
for Expanding College Access and Economic Opportunity--Need
Strengthening, Not Cuts, Ctr. for Budg. & Pol'y Priorities (July 27,
2017), https://www.cbpp.org/research/federal-budget/pell-grants-a-key-
tool-for-expanding-college-access-and-economic-opportunity.
\28\Jennifer Ma et al., supra note 22, at 27 (2018).
\29\The Institute for College Access and Success, Pell Grants Help
Keep College Affordable for Millions of Americans 1 (2016), https://
ticas.org/wp-content/uploads/2020/05/Pell-Grants-Help-Keep-College-
Affordable-for-Millions-of-Americans-logo.pdf.
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H.R. 4674 raises the maximum Pell Grant award by $625--the
largest year-over-year increase in the program's history--and
permanently indexes the award to inflation. The latter policy
was adopted from H.R. 4639, the Pell Grant Sustainability Act,
which was introduced by Rep. Sean Casten (D-IL). The combined
result of these two investments is that the grant will cover a
larger share of tuition and expenses today, but it will also
maintain the purchasing power of the grant for future students.
H.R. 4674 additionally incorporates H.R. 4216, Rep. Antonio
Delgado's (D-NY) Strengthening Financial Aid for Students Act,
which would increase income protection allowances for working
students and expand lifetime Pell eligibility from 12 to 14
semesters, and H.R. 3334, Rep. Ann Kuster's (D-NH) Expanding
Access to Graduate Education Act of 2019, which would
incentivize on-time graduation and expand the talent pipeline
by allowing students to exhaust full Pell eligibility on
graduate studies following completion of a bachelor's degree.
Taken together, these changes mean that Pell students who
complete their undergraduate program in 8 semesters would have
an additional 6 semesters of Pell eligibility to dedicate to
graduate study. Both H.R. 4216 and H.R. 3334 had Republican
cosponsors, demonstrating the bipartisan support for these
essential improvements to the Pell Grant program.
H.R. 4674 additionally incorporates H.R. 4073 the
bipartisan Expanding Educational Opportunities for Justice-
Impacted Communities Act, led by Committee member Rep. David
Trone (D-MD), which repeals the counterproductive ban on the
receipt of Pell Grants among incarcerated individuals. While
limited, research shows us that education programs for
incarcerated individuals reduce recidivism, and often save more
money in terms of criminal justice expenditures in the future
than they cost. The bill also ensures these students have
access to the information they need about postsecondary
opportunities and prevents risky and unscrupulous providers
from monopolizing prison education programs. Expanding access
to quality postsecondary education among incarcerated students
will not only improve reentry and post-release outcomes,
resulting in significant return-on-investment and contributing
to safer communities across America, it will improve the
climate and safety inside prisons, benefitting all incarcerated
individuals as well as the staff within correctional
facilities.
H.R. 4674 further allows Pell Grants to be used for high-
quality, short-term programs that can launch graduates into
successful careers, while also giving them a path to a two- or
four-year degree. Building on H.R. 3497, the bipartisan
Jumpstart Our Businesses by Supporting Students Act, introduced
by Reps. Cedric Richmond (D-LA) and Anthony Gonzalez (R-OH),
H.R. 4674 ensures that before gaining Pell Grant eligibility
participating institutions must collaborate with state or local
industry or sector partnerships to confirm the value of short-
term credentials in the labor market. Students will be able to
use Pell Grants for short-term programs that meet the
requirements of the Act, including satisfying earnings
benchmarks and demonstrating alignment with state or local
labor market needs, career pathways (including by providing
counseling for students to support their educational and career
goals), and longer-term certificate and degree programs. The
latter alignment may be achieved within the institution's own
programs or in collaboration with partner institutions.
Provisions limiting eligibility to public and non-profit
institutions that have not been subject to adverse actions or
negative actions by accrediting agencies or associations, State
or Federal enforcement agencies, or the Secretary over the past
five years are included to protect students from being funneled
into high-risk and low-quality programs. Institutions must also
be on the Eligible Training Provider List maintained by the
state under section 122(d) of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3512(d)) in order to participate.
As part of the program approval process for short-term
programs seeking Pell eligibility under H.R. 4674, institutions
must provide an ``expected earnings'' benchmark that is
determined by a related industry or sector partnership and will
be used to evaluate the outcomes of completers. The Secretary
must then validate the expected earnings of the program. The
Committee anticipates that industry and sector partnerships,
convened by or acting in partnership with a State or local
workforce board, are likely to rely on information available
through such boards--to determine expected earnings. This may
include information such as state unemployment insurance
records; state, regional, and local economic conditions;
current job postings; and historical earnings data. But other
data collected through State agencies and federal mechanisms
could also prove useful in making these determinations.
Examples of these other sources include data collected by State
community college systems on the earnings of actual credential
holders and the U.S. Census Bureau's Post-Secondary Employment
Outcomes data. The Committee further expects that, where the
aforementioned sources exist and can be determined to be valid
and reliable for this purpose, the Secretary will utilize such
data as part of the validation process for eligibility of
short-term programs for Pell.
Campus-Based Aid
The Federal Work-Study Program (FWS), the Federal
Supplemental Education Opportunity Grant (FSEOG), and the
Perkins Loan program all provide critical need-based aid to
students, administered directly by financial aid officials on
college campuses. However, the formulas that allocate funds
among schools participating in these programs are not well
targeted. As such, the amount of money a participating
institution receives under a campus-based aid program now is
largely based on how long it has been participating in the
program, and not on either the number of students served, or
those students level of need. H.R. 4674 phases out the current
allocation formulas for these campus-based aid programs,
replacing them with formulas based on the level of unmet need
at institutions and the percentage of low-income students
present on campus. To ensure that institutions have time to
adjust to the new formula allocations, H.R. 4674 includes a
five-year phase-in period and also increases authorization
levels for the campus-based aid programs. The Committee
believes the changes to these programs highlight the vital role
financial aid administrators make in our current higher
education funding system, while recognizing that any new
federal investments in higher education must be targeted and
equitable.
In addition to modernizing the formula for campus based-
aid, H.R. 4674 also makes significant changes to each of the
campus-based aid programs. First, the bill amends the FWS
program to better align students jobs with their intended
careers. Additionally, to reward participating institutions
that are serving low-income students well, H.R. 4674 includes a
bonus allocation for campuses in the top 20 percent of
institutions that are enrolling and graduating students
receiving Pell Grants. The bill also preserves graduate student
participation in the program, providing critical funds to low-
income students to access a graduate degree.
Aside from changes to the allocation formulas, H.R. 4674
improves FSEOG by increasing authorization levels for the
program. Given that 19% of students in academic year 2015-2016
who received a Pell Grant also received FSEOG,\30\ by
increasing the authorization levels, the Committee intends to
direct more grant aid to low income students and reduce the
portion of their need financed by loans. The bill also creates
a new competitive grant program for campuses participating in
FSEOG to administer emergency grant aid to students outside of
the standard financial aid award. James Kvaal, in his testimony
before the Committee this Congress on college affordability,
stated that, ``Low-income students share the complex realities
of other low-income Americans, such as the need to support
children and other family members, unstable low-wage jobs, and
unexpected expenses like car repairs. The underfunded, blunt
instrument of our financial aid system has little flexibility
to help students meet extra needs or absorb unexpected
financial blows.''\31\
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\30\Cong. Rsch. Serv., Federal Student Aid Tables (e-mail on file
with the Committee).
\31\The Cost of College: Student Centered Reforms to Bring Higher
Education Within Reach Before the H. Comm. on Educ. & Labor, 116th
Cong. (2019) (testimony of James Kvaal, President, The Institute for
College Access and Success at 4).
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The Committee believes the emergency grant aid program
gives institutions that needed flexibility to help students
manage financial emergencies. A flat tire, food insecurity, or
loss of housing should not prevent students from obtaining
their degrees, and the Committee hopes this program will
provide results to be expanded upon in future reauthorizations.
And finally, H.R. 4674 revives the Perkins Loan program. In
2015 with the passage of H.R. 3594, the Federal Perkins Loan
Program Extension Act of 2015,\32\ Congress extended the
Perkins loan program for an additional year, but authority to
make new loans expired in 2017.\33\ Recognizing the need for an
additional campus-based loan program to provide flexibility to
financial aid administrators, H.R. 4674 restores Perkins by
dedicating a sizable portion of loan volume from the Direct
Loan program to be administered at the campus level. The major
difference between these loans and Direct Loans, however, is
that administrators could provide needed extra capital to
undergraduates and graduates at a fixed five percent interest
rate. The new Direct Perkins Loan program maintains the
critical elements of the previous program--the fixed interest
rate and ability of campus administrators to package Perkins as
part of a student's financial aid package--while ensuring that
students can easily benefit from the existing protections of
the Direct Loan Program such as accessing PSLF and IBR. Prior
to the introduction of H.R. 4674, the Committee worked with
Rep. Suzanne Bonamici (D-OR) and Rep. Derek Kilmer (D-WA) to
incorporate H.R. 792 the Opportunities for Success Act of 2019
and H.R. 4876 the Earning Experience Act of 2019 and with Rep.
Joseph Morelle (D-NY) and Rep. Katie Hill (D-CA) to incorporate
H.R. 4308 the bipartisan CAMPUS Act to introduce standalone
bills including these changes to the campus-based aid programs.
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\32\Pub. L. No. 114-105, 139 Stat. 2219.
\33\The Federal Perkins Loan Program Provided Money for College or
Career School for Students with Financial Need., U.S. Dep't of Educ.,
https://studentaid.gov/understand-aid/types/loans/perkins.
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Dual Enrollment
Since the last reauthorization of HEA, there has been a
marked increase in the utilization of programs that allow
students to receive college credit before they get to college.
Dual enrollment and early college high school programs allow
students to earn college credits at little to no cost to the
student while still in high school. Particularly for low-income
students, these opportunities promote a college-going culture
and allow students to earn college credits at little to no
cost, improving the affordability of a college degree. Research
suggests that dual enrollment and concurrent enrollment
programs increase students' likelihood of enrolling in and
completing a postsecondary degree, and that these impacts are
stronger for disadvantaged groups.\34\ Multiple rigorous
studies have shown that early college high schools increase
postsecondary enrollment and associate's degree attainment.\35\
Other studies examining a range of less-intensive dual
enrollment and dual-credit models report similar impacts on
enrollment and degree attainment in two-year colleges, but
results on their effect on four-year college-going are more
mixed.\36\ Across studies, outcomes are generally stronger and
more positive for underrepresented students of color, first-
generation, and lower-income students,\37\ suggesting that
early college programs may go far in reducing gaps in
postsecondary enrollment and attainment. As such, the Committee
strongly believes a reauthorization of HEA should include
policies both to support existing dual enrollment models and to
incentivize their replication.
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\34\Andrea Berger et al., American Institutes for Research, Early
College, Continued Success: Early College High School Initiative Impact
Study v (2014), https://www.air.org/sites/default/files/downloads/
report/AIR%20ECHSI%20Impact%20Study%20Report%
20NSC%20Update%2001-14-14.pdf.
\35\E.g., Id. at iv-v; Julie A. Edmunds et al., Smoothing the
Transition to Postsecondary Education: The Impact of the Early College
Model, 10 J. of Rsch. on Educ. Effectiveness 297, 312 (2017).
\36\James Cowan & Dan Goldhaber, How Much of a ``Running Start'' Do
Dual Enrollment Programs Provide Students?, 38 Rev. of Higher Educ.
425, 426 (2015); Edmunds et al., supra note 36 at 300; Matthew Giani et
al., Exploring Variation in the Impact of Dual-Credit Coursework on
Postsecondary Outcomes: A Quasi-Experimental Analysis of Texas
Students, 97 High Sch. J. 200, 211 (2014).
\37\See, e.g., Edmunds et al., supra note 36 at 316; Berger et al.,
supra note 35, at 15; Brian P. An, The Impact of Dual Enrollment on
College Degree Attainment: Do Low-SES Students Benefit? 35 Educ. Eval.
& Pol'y Anal. 57, 58 (2013); C. Kirabo Jackson, Do college-prep
programs improve long-term outcomes? 4 (Nat'l Bureau of Econ. Rsch.,
Working Paper No. 17589, 2012).
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While dual enrollment and college in high school programs
show promise in helping students access college, reducing the
cost, and decreasing time-to-degree, the impact of these
programs is hampered by pervasive inequities in our K-12
system, which result in many low-income students and students
of color being denied opportunities to participate in high-
quality programs. To ensure that low-income students have
access to programs that work, H.R. 4674 creates the Jumpstart
to College program. This program targets grants to low-income
school districts to create college in high school programs. The
bill also provides states with funding to increase student
access to early credit pathways, including dual enrollment,
early college high schools, and Advanced Placement and
International Baccalaureate programs. Prior to introduction,
Committee worked with Rep. Antonio Espaillat (D-NY) to
introduce H.R. 4108, the Jumpstart on College Act, standalone
legislation including these provisions.
TEACH Grants
Our nation is currently facing a teacher shortage that is
preventing schools from providing the best possible education
for our children. More than 100,000 classrooms in elementary,
middle, and high schools across the country are impacted by
this teacher shortage. These classrooms are currently occupied
by individuals who lack the education and skills to effectively
teach and prepare children to enter the workforce and become
productive members of our society.\38\
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\38\Desiree Carver-Thomas & Linda Darling-Hammond, Learning Policy
Institute, Teacher Turnover: Why It Matters and What We Can Do About It
34 (2017), https://learningpolicyinstitute.org/sites/default/files/
product-files/Teacher_Turnover_REPORT.pdf.
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To serve as an incentive for individuals to pursue
teaching, the Teacher Education Assistance for College and
Higher Education (TEACH) Grants were authorized in 2007 to
attract individuals into the teaching field and place those
teachers in high-need school districts teaching high-need
subject areas.\39\ If teachers receiving grants failed to meet
the service requirements of the program, the upfront grant aid
they received would be converted to unsubsidized loans. In
2018, the Department released a review of the program that
revealed that thousands of individuals had their grants
converted to loans despite meeting the service requirements of
the program, often due to issues with paperwork.\40\ While the
Committee appreciates the steps the Department has taken to
address the issues raised about the program, it believes more
should and could be done. H.R. 4674 makes significant
improvements to the TEACH Grant program with the goal of
further reducing the number of recipients who could potentially
see their grants wrongly converted to loans.
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\39\College Cost Reduction and Access Act, Pub. L. No. 110-84, 121
Stat. 784, 786 (2007).
\40\Elizabeth Barkowski et al., U.S. Dep't of Educ., Study of the
Teacher Education Assistance for College and Higher Education (TEACH)
Grant Program 51 (2018), https://www2.ed.gov/rschstat/eval/highered/
teach-grant/final-report.pdf.
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H.R. 4674 makes reforms to the TEACH Grant program to help
ensure that only individuals that did not meet the service
requirements see their grants converted to loans. First, the
bill changes the annual grant amount from up to $4,000 a year
by backloading the grant and allowing only juniors and seniors
to receive up to $8,000 each year. This change ensures that
only students committed to being teachers receive the grant
aid. Further, it is Committee's belief that backloading the
grant would allow for individuals to use TEACH Grant funding to
offset teacher licensure and credentialing costs. Second, H.R.
4674 requires servicers to be in better contact with grantees
about when paperwork is due and requires that grants cannot be
converted to loans until an individual cannot mathematically
meet their four-year service requirement, as opposed to any
initial interruption of service that theoretically could be
made up in time. Third, H.R. 4674 provides flexibility for
grantees if they have made a good faith effort to meet the
requirements of the grant but their school, teacher duties, or
subject area no longer meet the initial terms. Fourth, H.R.
4674 directs the Secretary to explore how to streamline the
various applications for grants and loan forgiveness available
to teachers.
And in a final reform, H.R. 4674 opens up the TEACH grant
to individuals pursing an associate's degree in early childhood
education. In 2015, the National Academies of Science concluded
that a college education should become the norm for early
childhood teachers.\41\ Currently, only half of teachers in
early childhood centers and a third of teachers in home-based
settings have either an associate's or bachelor's degree.\42\
The Committee believes that the TEACH grants could become an
invaluable tool to bring well-educated workers into early
childhood settings to ensure a strong start for our nation's
youngest children. Prior to introduction of H.R. 4674, the
Committee worked with Rep. Frederica Wilson (D-FL), Rep. Mark
Takano (D-CA) and Rep. Jahana Hayes (D-CT) to introduce H.R.
4578, the BETTER TEACH Grants Act of 2019 and with Rep. Abby
Finkenauer (D-IA) and Rep. Wilson to introduce H.R. 4342, the
Reducing Extra Teaching Authentication Impacting New Teachers
Act.
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\41\Inst. of Med. and Nat'l Rsch. of the Nat'l Academies., Study of
the Teacher Education Assistance for College and Higher Education
(TEACH) Grant Program 365-410 (2015), https://www.nap.edu/catalog/
19401/transforming-the-workforce-for-children-birth-through-age-8-a.
\42\Ctr. for of the Study of Child Care Emp. Inst. for Rsch. on
Labor and Emp., Early Childhood Workforce Index 7 (2016), https://
cscce.berkeley.edu/files/2016/Early-Childhood-Workforce-Index-2016.pdf.
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Federal Student Loans
H.R. 4674 makes substantial changes to the federal student
loan program to increase affordability by ensuring borrowers
can repay their loans without struggling financially. Since the
last reauthorization of HEA, the student loan volume has
increased as more students have had to borrow, and the average
loan amount has grown.\43\ These drivers of loan volume are
themselves due to the combination of state disinvestment and a
more socioeconomically diverse student body enrolling in
college. Between 2000 and 2016, the share of public college
bachelor's degree recipients with federal or private student
loan debt increased from 60 percent to 66 percent.\44\ In
constant dollars, the average student now borrows $27,050 in
federal loans to complete a four-year degree--$10,5250 more
than in 1999. Students who borrow and complete two-year degrees
borrow an average of $18,060 in federal student loans--$9,220
more than in 1999.\45\ While federal loans provided these
borrowers with the means to enroll in college, families across
the nation feel squeezed by the financial pressure of repaying
a degree that once cost less. To promote the top level goal of
college affordability, H.R. 4674 makes student loan repayment
simpler to understand, less expensive, and easier to pay off.
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\43\CBO, The Volume and Repayment of Federal Student Loans: 1995 to
2017 4 (2020), https://www.cbo.gov/system/files/2020-11/56706-student-
loans.pdf.
\44\The Cost of College: Student Centered Reforms to Bring Higher
Education Within Reach Before the H. Comm. on Educ. & Labor, 116th
Cong. (2019) (testimony of James Kvaal, President, The Institute for
College Access and Success).
\45\National Center for Education Statistics, Digest, Table 331.95
(see note 12).
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Simpler to Understand
Even without a comprehensive HEA reauthorization, the
federal student loan system has undergone major changes in the
last decade. In order to better protect borrowers while
reducing costs to the government, Congress ended the private,
federally guaranteed loan program (Federal Family Education
Loan or FFEL) and transitioned into Direct Loans in 2010.\46\
To help borrowers manage their debt, Congress and the Obama
Administration established several new income-driven repayment
plans.\47\ The array of income-driven repayment plans, in
addition to the three non-income-driven repayment plans, make
it difficult for borrowers to navigate and determine the best
plan for their financial situation.
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\46\Health Care and Education Reconciliation Act of 2010, Pub. L.
No. 111-152, 124 Stat. 1071 (2010).
\47\Jennifer Ma et al., supra note 22, at 13 (2018).
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H.R. 4674 streamlines the nine current federal repayment
plans to just two: a fixed repayment plan and an IBR plan.
Under the fixed repayment plan, borrowers repay their loans at
a set payment for a set amount of time based on their original
loan balance. To improve financial stability for low- and
middle-income borrowers, the new IBR plan uses more generous
and better targeted repayment terms than current repayment
plans. The IBR plan caps monthly payments at 10 percent of a
borrower's discretionary income, defined as the portion of
their adjusted gross income (AGI) above 250 percent of the
poverty line for a single borrower earning less than $80,000 or
a married borrower earning less than $160,000. This means that
borrowers who earn 250 percent of the poverty line or less
($31,900 for a single person, $41,100 for a borrower in a
household of two) pay $0 per month until their earnings reach
that threshold. After 20 years of repayment, the IBR plan
forgives any remaining undergraduate and graduate debt. These
are the only two plans available for new borrowers. Current
borrowers have the choice to stay in their current repayment
plan but would be encouraged to switch to one of the two new
repayment plans. This simplification draws on and builds upon
H.R. 4670, the Simplifying Student Loans Act, introduced by
Rep. Susan Wild (D-PA).
Another problem borrowers face navigating the current
repayment system is income verification--the process by which
an IBR payment is initially determined. Because a failure to
complete income verification can stop borrowers from enrolling
in IBR, H.R. 4674 makes enrolling and staying in IBR easier.
First introduced in H.R. 4658, the Empowering Student Borrowers
Act, introduced by Rep. Stephanie Murphy (D-FL), H.R. 4674
allows for verbal, secure IBR enrollment. H.R. 4674 also draws
on the information-data sharing system between the Department
of Education and the U.S. Treasury established in the
bipartisan bill entitled the Streamlining Income-driven,
Manageable Payments on Loans for Education (SIMPLE) Act, H.R.
3833, introduced by Reps. Bonamici, Paul Mitchell (R-MI), Seth
Moulton (D-MA), and Brian Fitzpatrick (R-PA) to allow for
automatic recertification of income and family size required
under IBR plans. The Committee's intent is to reduce the number
of borrowers who fall out of IBR and enter delinquency when
faced with a fixed payment they cannot afford.
These changes to simplify repayment will also affect other
federal student loan programs. For example, changes to
repayment will make the PSLF program easier to understand and
participate. PSLF was intended to allow teachers, health care
professionals, servicemembers, and others working in public and
private, nonprofit jobs to benefit from loan forgiveness after
10 years of eligible payments. This benefit was intended for
Direct Loan borrowers making payments under both the standard
repayment plan and the income-driven repayment plans.
Unfortunately, the eligibility requirements were poorly
marketed and individuals who were in the wrong repayment plan
(i.e. extended or graduated repayment plans) found themselves
inexplicably ineligible for forgiveness at the end of the 10
years. A 2018 GAO report on PSLF identified a breakdown in
communication between the Department, loan servicers, and
student borrowers.\48\ The authors found that only 96 of 28,000
applicants received their promised loan forgiveness when the
first wave of eligible borrowers applied in 2017--a 99.6
percent denial rate.\49\ In response to high denial rates and
widespread confusion among borrowers, Congress established the
Temporary Expanded PSLF (TEPSLF) program in 2018 to allow
borrowers who were in the wrong repayment plan to be eligible.
A second GAO report found that, yet again, the Department
denied 99 percent of the new TEPSLF applicants.\50\ GAO
recommended the Department make critical reforms to the
program. While the Department agreed with all the
recommendations in both reports, at the time of the filing of
this report, it has yet to fully implement the
recommendations.\51\
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\48\U.S. Gov't Accountability Off., GAO-18-547, Public Loan
Forgiveness: Education Needs to Provide Better Information for the Loan
Servicer and Borrowers 16-24 (2018) https://www.gao.gov/assets/700/
694304.pdf.
\49\Id.
\50\U.S. Gov't Accountability Off., GAO-19-595, Public Loan
Forgiveness: Improving the Temporary Expanded Process Could Help Reduce
Borrower Confusion 11 (2019). https://www.gao.gov/assets/710/
701157.pdf.
\51\GAO-18-547, at 25-26 (2018); GAO-19-595 at 22 (2019).
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The Committee regrets that Department displeasure with the
PSLF program has contributed to poor management of the program,
and it hopes these new reforms will ensure the Department will
work in good faith with public service employees to ensure that
paperwork complications and miscommunication by the Department
or loan servicers do not prohibit public servants from
accessing loan forgiveness.
To that end, H.R. 4674 allows individuals who were
previously in the wrong repayment plan to count monthly
payments made under those plans as eligible PSLF payments once
they opt in to the newly created IBR plan. The Act also
simplifies PSLF by allowing FFEL borrowers to consolidate into
a Direct Loan without losing their prior payments, making
participation in PSLF more equitable for these borrowers.
Additionally, given the changes made to how prepayments are
considered, it is the Committee's intent that ``pay-ahead''
status will no longer interfere with payment counts under PSLF.
H.R. 4674 also expands the PSLF program to allow
individuals who work for certain Veteran Service
Organizations--such as the American Legion and Veterans of
Foreign Wars--and farmers to be eligible for the program. The
Act clarifies that a physician working at a non-profit hospital
or other health care facility in a state that prohibits the
direct hiring of physicians, such as California and Texas, is
also eligible to participate in PSLF. Further, the Act allows
teachers to count teacher loan payments toward the teacher loan
forgiveness program at the same time as PSLF. This change
allows teacher borrowers to get their loans forgiven through
PSLF faster. H.R. 4674 also makes other reforms recommended by
GAO that improve the implementation of the program in order to
reduce borrower confusion. The PSLF provisions in the Act draw
broadly on H.R. 4391, the PSLF Modernization Act, introduced by
Reps. Jimmy Panetta (D-CA) and Marcia Fudge (D-OH), and H.R.
2441, the What You Can Do For Your Country Act, introduced by
Reps. Paul Sarbanes (D-MD) and Mark DeSaulnier (D-CA). It also
includes H.R. 3232, the bipartisan Young Farmer Success Act,
introduced by Reps. Joe Courtney (D-CT) and Glenn Thompson (R-
PA) and H.R. 4607, the bipartisan Stopping Doctor Shortages
Act, introduced by Reps. Josh Harder (D-CA), Paul Cook (R-CA),
Joaquin Castro (D-TX), Dan Crenshaw (R-TX), and Karen Bass (D-
CA).
To improve servicing specifically, H.R. 4674 makes changes
to the Federal Student Aid (FSA) office to better serve
borrowers. The FSA office manages a student loan portfolio that
affects one out of every six adult Americans and one-third of
young adults. Despite its importance, little has been done
legislatively to improve FSA operations over the last 20 years.
The bill updates FSA's performance goals to ensure students and
borrowers are better served. It also transforms FSA's ombudsman
into a borrower advocate to provide borrowers with an
individual at the Department who can assist in addressing their
complaints and concerns. These provisions are from H.R. 4596,
the Student Loan Advocacy Act, and H.R. 4627, the Student
Borrower Advocate Act, introduced by Reps. Mary Gay Scanlon (D-
PA) and Ilhan Omar (D-MN).
Additionally, H.R. 4674 directs the Secretary to produce a
common manual for loan servicing to ensure quality of practice
and better borrower satisfaction. This provision is from H.R.
3519, the Better Service to Borrowers Act of 2019 introduced by
Reps. Kim Schrier (D-WA), Colin Allred (D-TX), Casten, and
Kendra Horn (D-OK). Collectively, the Committee expects these
changes will make it easier for borrowers to understand
repayment and will make it simpler for the Department and loan
servicers to implement.
Less Expensive
Aside from containing costs, disincentivizing state
disinvestment, and lowering dependence on loans, H.R. 4674 also
reduces other hidden costs in higher education borrowing. For
example, provisions of H.R. 4674 allow current borrowers to
take advantage of lower interest rates by giving them a chance
to refinance their old debt at the same rates offered to new
borrowers. Interest rates on Subsidized Direct Loans are lower
now (2.75 percent) than they have been at any point in the last
ten years. The Act also allows private student loan borrowers
to refinance their private loans into the Direct Loan program
at today's interest rates. These provisions come from H.R.
1707, the Bank on Students Emergency Loan Refinancing Act,
introduced by Rep. Courtney (D-CT).
Additionally, borrowers are currently forced to pay an
origination fee each time they borrow money from the
government. The fee is a percent of the total loan and the
percent differs based on the type of loan. Subsidized and
unsubsidized Direct Loan borrowers pay 1.057 percent of their
loan amount and graduate students and parent borrowers who
borrow PLUS loans pay 4.228 percent of their loan amount.\52\
From 2012-17, the federal government charged borrowers more
than $8.3 billion in origination fees.\53\ Additionally,
because interest accrues on the full loan amount--including on
the origination fee even though the borrower never receives
that money--this provision adds essentially hidden, unnecessary
costs to the borrower. H.R. 4674 makes borrowing less expensive
by eliminating the origination fees on all federal student
loans, a longtime bipartisan policy found in H.R. 3674, the
Eliminating the Hidden Student Loan Tax Act introduced by Reps.
Susan Davis (D-CA), Lloyd Smucker (R-PA), and Sharice Davids
(D-KS).
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\52\Origination fees change yearly. The origination fees listed at
time of this report are those for loans disbursed on or after 10/1/2020
and before 10/1/2021.
\53\Nat'l Ass'n of Student Fin. Aid Adm'rs Issue Brief: Origination
Fees (2019), https://www.nasfaa.org/issue_brief_origination_fees.
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H.R. 4674 also removes interest capitalization penalties
that currently accrue when a borrower leaves forbearance and
certain deferments. The Committee believes that borrowers who
face a financial hardship so great that they must pause their
student loan payments should not be penalized with additional
debt for taking this action. Individuals who defer their loans
due to unemployment or financial hardship would be spared from
having the interest capitalized on their loans under H.R. 4674.
Borrowers who receive deferments for graduate fellowships and
Fulbright Grants would also be spared from interest
capitalization. These provisions build on H.R. 4590, the End
Capitalization for Struggling Borrowers Act, H.R. 4590,
introduced by Reps. Danny Davis (D-IL), Casten, and Abigail
Spanberger (D-VA).
After the Great Recession, higher education experienced an
influx of students, in turn driving up the costs to administer
the Pell Grant Program. To generate savings and stabilize the
Pell Grant program, subsidized loans for graduate students were
eliminated and time limits for subsidized loans were
established. While these changes helped defray costs to the
government, it also made federal student loans more costly for
students. H.R. 4674 overturns these two changes. It allows
graduate students to qualify for subsidized loans at the same
interest rates available for undergraduate borrowers taking out
unsubsidized loans. This provision builds upon H.R. 3418, the
Protecting Our Students by Terminating Graduate Rates that Add
to Debt (POST GRAD) Act, introduced by Rep. Judy Chu (D-CA).
H.R. 4674 also eliminates the provision that bars students from
borrowing subsidized loans after being enrolled in a program
for more than 150 percent of the length of the academic
program. The elimination of this provision, which is commonly
referred to as the Subsidized Usage Limit Applies (SULA) flag,
is from H.R. 4502, the Giving Relief and Dollars to
Undergraduates for Adequate Time for Education Act, introduced
by Reps. Casten, Debra Haaland (D-NM), Raja Krishnamoorthi (D-
IL) and Sylvia Garcia (D-TX).
Additionally, H.R. 4674 removes interest capitalization
after a borrower leaves forbearance and certain deferments.
This means individuals who defer their loans due to
unemployment or financial hardship would be spared from having
the interest capitalized on their loans. Borrowers who receive
deferments for graduate fellowships and Fulbright Grants would
also be spared from interest capitalization. These provisions
build on the End Capitalization for Struggling Borrowers Act,
H.R. 4590, introduced by Reps. Danny Davis, Casten, and
Spanberger.
Easier to Pay Off
Finally, to increase affordability, H.R. 4674 includes
further programmatic changes to the federal student loan
program to make the act of paying loans simpler for the
borrower. While data show that most borrowers do pay off their
loans, there are certain borrowers who are at higher risk of
defaulting. Research shows that Black bachelor's degree
graduates default at five times the rate of white graduates (21
versus 4 percent), and are more likely to default than white
dropouts.\54\ Other research shows that when compared to other
racial groups Black Americans have substantially less familial
wealth to fall back on in the event of a job loss or other
economic stressor.\55\ Familial wealth notwithstanding, the
chance of default for all borrower increases significantly if
they attend a for-profit institution. Students attending for-
profit colleges are at particularly high risk of default--more
than two-thirds of Black dropouts who ever attended a for-
profit college default within twelve years.\56\ In fact all
students who do not graduate are also more likely to default
than their peers.\57\
---------------------------------------------------------------------------
\54\Judith Scott-Clayton, The Looming Student Loan Default Crisis
Is Worse than We Thought, 2 Evidence Speaks Reps. #34, 2 (2018) https:/
/www.brookings.edu/wp-content/uploads/2018/01/scott-clayton-report.pdf.
\55\See, e.g., Kriston McIntosh et al., Examining the Black-white
wealth gap, Brookings (Feb. 27, 2020) https://www.brookings.edu/blog/
up-front/2020/02/27/examining-the-black-white-wealth-gap/ (``Wealth is
a safety net that keeps a life from being derailed by temporary
setbacks and the loss of income.'').
\56\Scott-Clayton, supra note 54, at 9.
\57\Lindsay Ahlman, Casualties of College Debt: What Data Show and
Experts Say About Who Defaults and Why 4 The Inst. for Coll. Access &
Success, (Jun. 14, 2019) https://ticas.org/wp-content/uploads/legacy-
files/pub_files/casualties_of_college_debt_0.pdf.
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Defaulting on student loans is among the worst outcomes for
students. Over one million borrowers default a year, suffering
punitive consequences that can follow them for a lifetime.\58\
The Committee firmly believes it is in the best interest of
both the federal government and borrowers to make every effort
to keep borrowers who are trying to repay their loans out of
default. To protect struggling borrowers from the severe
consequences of default, H.R. 4674 automatically places
borrowers who are more than 120 days delinquent into the newly
formed IBR plan. This change will hopefully prevent borrowers
who have a financial impediment from defaulting by modifying
their payment to match their income. H.R. 4674 also removes the
existing burdensome paperwork requirements for loan discharge
of borrowers who are totally and permanently disabled by
requiring the Secretary of Education to establish procedures to
obtain income information during the three-year monitoring
period currently required by HEA without further borrower
action. These provisions are based on H.R. 3833, the bipartisan
SIMPLE Act, referenced earlier.
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\58\Neha Dalal & Jessica Thompson, The Inst. For Coll. Access &
Success, The Self Defeating Consequences of Student Loan Default 1
(2018) https://ticas.org/wp-content/uploads/legacy-files/pub_files/
ticas_default_issue_brief.pdf.
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H.R. 4674 improves the process for borrowers attempting to
rehabilitate defaulted loans. It allows previously defaulted
borrowers who have made nine payments required under current
law to rehabilitate their loan to be automatically placed into
IBR to help them smoothly transition from rehabilitation to
repayment. Further, the bill allows a servicer to remove
default from borrowers credit reports after they have
consolidated their loans or paid them off in full. This is
currently only available to borrowers that rehabilitate their
loans. These provisions are from H.R. 4395, the Clean Slate
through Consolidation Act, introduced by Reps. Haley Stevens
(D-MI) and Debbie Mucarsel-Powell (D-FL) and H.R. 4396, the
Clean Slate through Repayment Act, introduced by Mucarsel-
Powell.
Current law penalizes some borrowers due to life
circumstances unrelated to loan repayment, like divorce. H.R.
4674 allows individuals who previously consolidated their
student loan debt with their spouse's debt to separate their
remaining balance and only be held liable for their share.
These provisions are from the bipartisan bill entitled the
Joint Consolidation Loan Separation Act, H.R. 2728, introduced
by Reps. David Price (D-NC), Bradley Byrne (R-AL), and Stevens.
H.R. 4674 also helps parents who have taken out loans to
support their children's college education to more easily pay
off debt. Under current law, Parent PLUS borrowers are
ineligible to make payments on those loans based on their
income. The Act allows both Parent PLUS loans and consolidation
loans that repay Parent PLUS loans to be eligible for IBR. This
provision is from the H.R. 3353, the Parent PLUS Loan
Improvement Act of 2019, introduced by Rep. Fudge.
Additionally, H.R. 4674 extends total and permanent disability
forgiveness to Parent PLUS loan holders if their student
sustains a total and permanent disability. This provision is
based on H.R. 2180, Domenic and Ed's Law, introduced by Rep.
James Langevin (D-RI).
Simplifying the FAFSA and Providing Better Financial Aid Information
Each year, thousands of eligible students fail to apply for
financial aid, causing them to leave money on the table and, in
many cases, delay or abandon postsecondary enrollment. H.R.
4674 takes a number of steps to simplify the FAFSA,
particularly for the lowest income students for whom FAFSA
completion represents a significant barrier. Prior to the
introduction of H.R. 4674, the Committee worked with Reps.
Lauren Underwood (D-IL), Lucy McBath (D-GA), Gregorio Kilili
Camacho Sablan (D-MP), and Lloyd Doggett (D-TX) to introduce
standalone versions of these provisions.
H.R. 4674 reduces the number of questions on the FAFSA by
placing the applicant into one of three pathways based on the
complexity of a student's finances. Importantly, students who
have benefited from, or whose families have benefited from, a
means-tested federal benefit during the two years prior to
application will automatically be determined to have no
expected family contribution (EFC), thereby maximizing their
federal eligibility without requiring them to provide any
additional information. The Act also increases the income
threshold for qualifying for the so-called automatic zero EFC
to $37,000 and requires dependent and independent students who
receive Pell Grants to file the FAFSA only one time. The bill
also makes necessary changes to conform with changes in federal
tax forms resulting from the Tax Cuts and Jobs Act (PL 115-97).
H.R. 4674 increases support for working students and
provides the FAFSA in multiple languages, among other
improvements. It also extends a current-law benefit for the
dependents of police officers and active duty members of the
military who are killed in the line of duty to the spouses of
those individuals. Individuals who meet the qualifications of
the section are deemed to have a zero EFC, allowing them to
maximize their eligibility for federal student aid.
Students who successfully complete the FAFSA often face
further confusion due to wide variation in the structure,
quality, and accuracy of financial aid offers, also known as
award letters. To remedy this problem, H.R. 4674 incorporates
language from the bipartisan FACT Act offered by Reps. Lori
Trahan (D-MA) and Smucker, which requires the Secretary of
Education to establish requirements for standardizing financial
aid offers based on extensive consumer testing and stakeholder
input. Under the Act, each financial aid offer will also
include a standardized quick reference box which will provide
the most important information for comparing aid offers from
multiple institutions. H.R. 4674 additionally incorporates
provisions from H.R. 1915, the bipartisan Net Price Calculator
Improvement Act introduced by Reps. Elijah Cummings (D-MD) and
Brett Guthrie (R-KY) to make improvements to the Net Price
Calculator system, so that prospective students may have a more
accurate understanding of the true cost of college.
In order to ensure that students receive accurate estimates
of college costs and to enhance the reliability of the federal
aid system, H.R. 4674 sets requirements for the calculation of
estimates of off-campus room and board. Under current law,
institutions have complete discretion over how to determine
these estimates. Research has uncovered significant variation
in housing cost estimates among institutions located in the
same city or region, raising concerns about the accuracy and
reliability of the cost of attendance figure.\59\ Under- and
over-estimates of cost of attendance can both have major
consequences for students. For example, underestimating living
costs can make an institution's total cost of attendance look
artificially low while limiting a student's access to financial
aid and ultimately make it harder for them to afford and
persist in college. Overestimating cost of attendance can
result in an institution capturing a disproportionate amount of
funds through campus-based aid programs because allocation
formulas for such programs rely on levels of unmet need, which
in turn are based on cost of attendance and expected family
contribution. Furthermore, debt-free college models rely
heavily on an accurate estimate of total cost of attendance, so
ensuring the validity and reliability of the off-campus living
cost component will be essential to ongoing policy development
in that area.
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\59\Robert Kelchen, et al., The Costs of College Attendance:
Examining Variation and Consistency in Institutional Living Cost
Allowances, 88 J. of Higher Educ. 966-67, (Mar. 2017).
---------------------------------------------------------------------------
Recognizing these issues and the need to provide more
accurate information to students on college costs, H.R. 4674
requires the Secretary to prescribe at least one methodology
for institutions to use in determining the cost of room and
board for students living off campus for the purpose of
calculating the projected cost of attendance. These provisions
are designed to ensure the accuracy of off-campus living
estimates while leaving institutions the discretion necessary
to accurately reflect contextual variations and nuances of
different student populations. The Committee realized the
unique geography of an institution and the surrounding area
might mean that a single, federally-proscribed methodology is
not appropriate. Standard guidelines that are county-level, for
example, may not be appropriate for a school, if the costs of
off-campus housing that is convenient to the school or where
most students live deviates from county-averages. Availability
of public transportation also affects where students are able
to live and therefore, their costs. In recognition of these
facts, the Act explicitly allows the Department to offer
multiple methodologies and provides a waiver for institutions
that opt out of using the methodology or methodologies
developed by the Department. The requirements of H.R. 4674 are
not intended to require total consistency within regions but
are instead designed to ensure accurate cost estimates upon
which students, families, and policymakers can rely.
H.R. 4674 Improves the Quality of Higher Education
Over the last decade many large for-profit college
companies have collapsed abruptly, leaving tens of thousands of
students with no degree, high debt loads, and few options. To
protect students from predatory actors and better address
school closures, H.R. 4674 strengthens the role of each entity
responsible for oversight in higher education--accreditors,
states, and the federal government. It further provides
institutions with necessary support to meet standards and
reinstates critical consumer protections that were abandoned by
the Trump Administration.
90/10 Rule
The federal government has a crucial role in ensuring
appropriate administration of federal student aid funds and
evaluating institutional eligibility to participate in federal
student aid programs under title IV of the HEA. H.R. 4674 takes
several steps to strengthen federal oversight to protect
students and taxpayers.
For-profit institutions have, by definition, a fiduciary
duty to shareholders to maximize profits. This duty creates a
set of goals for for-profit colleges that simply do not exist
for non-profit institutions. For for-profit institutions,
success is determined by how much tuition money is brought in
and not solely by the quality of education provided to
students. Due to this incentive, the for-profit sector has been
riddled with fraud and abuse for decades, dating back to the
expansion of federally funded educational aid to students for
college, beginning with the original G.I. Bill.\60\
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\60\Six years after the passage of the Serviceman's readjustment
Act (which included the G.I. Bill of Rights), the 81st Congress
established the House Select Committee to Investigate Educational,
Training, and Loan Guaranty Programs Under the GI Bill. Continued into
the 82nd Congress, the Select Committee eventually established
investigatory case files on over 258 different for-profit and non-
profit institutions.
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The incentives of for-profit colleges often result in high
costs and poor outcomes. In the 2018-19 year, average tuition
and fees at a two-year for-profit college was nearly five times
that of a two-year public institution ($15,360 vs. $3,313
respectively).\61\ Considering costs to both students and
taxpayers, research shows that the cost to society of for-
profit college is roughly $15,600 more per student per year
than for students in community college.\62\ Further, research
on the sector shows that the costs to students and society are
much higher in for-profits relative to other sectors and that
the outcomes of students attending for-profit colleges are
worse on nearly every measure, including debt, default, and
earnings, even after controlling for differences in student
background characteristics.\63\
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\61\Institute of Education Sciences, Digest of Education
Statistics, Table 330.10, (2019) https://nces.ed.gov/programs/digest/
d19/tables/dt19_330.10.asp.
\62\Stephanie Riegg Cellini, For-Profit Higher Education: An
Assessment of Cost and Benefits, 65 Nat'l Tax J. 153 (2012).
\63\See Stephanie Riegg Cellini & Nicholas Turner, Gainfully
Employed? Assessing the Employment and Earnings of For-Profit College
Students Using Administrative Data, 54 J. of Hum. Res. 342, 356-58
(2019); see generally Stephanie Riegg Cellini, & Cory Koedel, The Case
for Limiting Federal Student Aid to For-Profit Colleges, 36 J. Pol'y
Analysis & Mgmt: Point/Counterpoint 934, 936-37 (Fall 2017) (review of
research literature on this topic).
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Some members of the Committee have claimed that costs in
higher education are linked to an increase in available federal
aid, so that when the federal government provides more aid,
schools raise their costs to capture more of it. Research
demonstrates that this hypothesis only applies to the for-
profit sector, which is the only sector of higher education
where institutions have been shown to raise tuition to attract
more federal student aid dollars rather than provide a higher-
quality education. In one study, aid-eligible for-profit
colleges charged tuition that was 78 percent higher than
similar for-profits that did not receive aid.\64\ In light of
this, the Committee believes it is critical to have safeguards
are in place for institutions that present the highest level of
risk to students and taxpayers--especially those that rely on
federal dollars to pay shareholders and generate profit.
---------------------------------------------------------------------------
\64\Stephanie Riegg Cellini & Claudia Goldin, Does Federal Student
Aid Raise Tuition? New Evidence on For-Profit Colleges, 6 Am. Econ. J.:
Econ. Pol'y, 174, 201 (2014).
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To ensure that for-profit colleges offer high-quality
programs, Congress implemented what is now known as the 90/10
rule. Under this statutory requirement, each for-profit
institution must derive at least 10 percent of its revenue from
non-title IV dollars. This provision is meant to serve as a
market-based consumer check on programs; if the for-profit
school was offering high-quality programs, the institution
should be able to attract at least 10 percent of its revenue
from sources outside of the federal government.\65\ The HEA
originally required for-profit institutions to derive at least
15 percent of its revenue from non-title IV funds, but Congress
lowered this threshold to 10 percent in 1998.\66\ Congress
further weakened this metric in 2008, by allowing institutions
to continue to participate in title IV even after failing to
derive funds from non-title IV funds. An institution who fails
the metric twice loses access to title IV.\67\
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\65\Shannon M. Mahan, Cong. Rsch. Serv., Examination of the 90/10
Rule and Its Legislative and Regulatory History 7 (2011) [hereinafter
CRS 90/10 Memo] (on file with Committee).
\66\CRS 90/10 Memo at 6.
\67\CRS 90/10 Memo at 2.
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The current 90/10 metric also has large loopholes that are
exploited by the for-profit sector: GI Bill funding and other
federal funding are not counted as federal aid in the 90
percent. The rule therefore creates a perverse and powerful
incentive for for-profit institutions to aggressively recruit
student veterans. The result is that an institution can
effectively generate 100 percent of its revenue from taxpayer
dollars rendering the market-based check on quality
ineffective. Further, many for-profit institutions have looked
to avoid the 90/10 rule and other sector-specific
accountability requirements in HEA by converting to non-profit
institutions.
H.R. 4674 closes these critical loopholes in the current
90/10 rule by counting veterans' benefits and all other federal
benefits in addition to funds under title IV of HEA in the
federal share, ensuring that 90/10 is a meaningful measure of a
for-profit institutions' financial viability and risk to
taxpayers. It also restores the proportion back to 85/15 and
makes the requirement a portion of the definition of
institutional eligibility. The Committee believes this will
strengthen the market-based test of value and restore the
efficacy of this longstanding metric, as originally intended by
Congress. To ensure that institutions have time to come into
compliance, H.R. 4674 phases in these changes, requiring
institutions to meet the new requirements of 85/15 starting in
July 1, 2022 and eliminates the two-year provisional
participation for failure, starting on July 1, 2023. H.R. 4674
also includes provisions that require the Sercretary to create
a transparent process for for-profit institutions applying to
convert to non-profits and requires that such institutions
applying to convert to non-profits and requires that such
institutions abide by all rules and regulations that apply to
for-profit institutions for the first five years after
conversion. These provisions were included in H.R. 4725, the
Students Not Profits Act, introduced by Rep. Pramila Jayapal
(D-WA).
Gainful Employment and Borrower Defense
H.R. 4674 reverses decisions by the Trump Administration to
rollback consumer protections in higher education. Notably,
H.R. 4674 reinstates both the Gainful Employment rule and the
Borrower Defense to Repayment regulation put in place by the
Obama Administration and subsequently rescinded by the Trump
Administration.
The Gainful Employment rule is designed to hold career
programs at both for-profit and private non-profit institutions
accountable for student outcomes. Research on this sector is
clear: students leaving for-profit colleges have lower earnings
and higher debt than similar students in the public sector,
even after controlling for differences in student demographics.
In the most comprehensive study on the topic, students in for-
profit certificate programs had annual earnings that were
$2,100 lower and debt that was $5,000 higher than similar
students in similar public sector programs.\68\ In light of
these differences, it is not surprising that for-profit student
borrowers are more likely to default on their student loans.
Among all new students entering the for-profit sector in 2004,
nearly half had defaulted within 12 years (47 percent)--a
default rate nearly four times the rate seen in other
sectors.\69\ H.R. 4674 ensures that students in career programs
and for-profit colleges are not left with insurmountable debt.
---------------------------------------------------------------------------
\68\Cellini & Nicholas Turner, supra note 63 at 342, 352, 356.
\69\Judith Scott-Clayton, The Looming Student Loan Default Crisis
Is Worse than We Thought, 2 Evidence Speaks Reps. #34, 2 (2018) https:/
/www.brookings.edu/wp-content/uploads/2018/01/scott-clayton-report.pdf.
---------------------------------------------------------------------------
The original 1965 HEA did not allow for-profit colleges or
non-degree training programs in other sectors to access federal
student aid.\70\ Changes in 1968 and 1972 allowed these
colleges and programs to access title IV under the condition
that they ``prepare students for gainful employment in a
recognized occupation''\71\ but the term ``gainful employment''
was left undefined.\72\ Without a definition of gainful
employment, these programs received unfettered access to
taxpayer dollars with no accountability for student outcomes.
In 2014, the Obama Administration established a definition of
gainful employment based on a graduates' debt and earnings.
H.R. 4674 requires the Secretary of Education to reestablish a
compliance standard for gainful employment that includes a
debt-to-earnings metric similar to the thresholds established
in the 2016 rule. This metric will ensure that for-profit
programs cannot leave students with more debt than they can
repay. Additionally, H.R. 4674 requires programs that abide by
the Gainful Employment rule to disclose certain information to
students. Given the incidents of programs burying the
disclosures on websites, it is the Committee's intent that the
institutions find clear and conspicuous ways to disclose the
information to its students via its website.
---------------------------------------------------------------------------
\70\See Bob Shireman, The Century Foundation, The Policies That
Work--and Don't Work--to Stop Predatory For-Profit Colleges 10 (2019)
https://production-tcf.imgix.net/app/uploads/2019/05/20105707/
Shireman_9policies_FinalPDF1.pdf.
\71\See Ass'n of Proprietary Colls. v. Duncan,No. 1-14-cv-08838 at
7-8 (S.D.N.Y. May 27, 2015).
\72\Interview by Yan Cao with Bob Shireman ``Betsy Devos's Shameful
Repeal of the Gainful Employment Rule,'' The Century Foundation (July
1, 2019) https://tcf.org/content/commentary/betsy-devoss-shameful-
repeal-gainful-employment-rule/#easy-footnote-bottom-2.
---------------------------------------------------------------------------
The Committee recognizes that the gainful employment metric
plays a critical role in protecting students and incentivizing
institutions to reduce tuition and close low-performing
programs. In the first round of data released under Gainful
Employment in 2017, 29,000 programs across all sectors were
subject to the rule. More than 800 programs failed the Gainful
Employment metric, 98 percent of them were offered by for-
profits.\73\ The evidence also shows that the 2014 rule also
prompted many institutions to either close the worst performing
programs or improve program quality.\74\ Even former Rep. Steve
Gunderson (R-WI), the recently-retired president of the Career
Education Colleges and Universities (CECU), the trade
association representing for-profit colleges, admitted to the
New York Times that the Gainful Employment rule had made for-
profit institutions more affordable and responsive to the labor
market.\75\ Finally, new research also shows that restricting
title IV eligibility from low-performing for-profit
institutions shifts students to higher-performing public
institutions, potentially lowering debt and default.\76\
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\73\Andrew Kreighbaum, Overburdened with Debt, Inside Higher Ed,
Jan. 10, 2017 https://www.insidehighered.com/news/2017/01/10/federal-
data-show-hundreds-vocational-programs-fail-meet-new-gainful-
employment.
\74\Kevin Carey, DeVos Is Discarding College Policies That New
Evidence Shows Are Effective, N.Y. Times (June 30, 2017) https://
www.nytimes.com/2017/06/30/upshot/new-evidence-shows-devos-is-
discarding-college-policies-that-are-effective.html.
\75\Erica Green, DeVos Ends Obama-Era Safeguards Aimed at Abuses by
For-Profit Colleges, N.Y. Times A1 (Aug. 11, 2018) https://
www.nytimes.com/2018/08/10/us/politics/betsy-devos-for-profit-
colleges.html.
\76\Stephanie R. Cellini et al., Where Do Students Go When For-
Profit Colleges Lose Federal Aid? 4 (Nat'l Bureau of Econ. Rsch.,
Working Paper No. 22967, 2016).
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In addition to Gainful Employment, H.R. 4674 also
reinstates the Borrower Defense of Repayment rules promulgated
in 2016. Borrower Defense is a key consumer protection--
allowing student loans to be discharged for students who were
defrauded by their institution. HEA allows students to assert a
defense to repayment of a federal student loan and allows the
Secretary to define under what circumstances students have a
right to relief. Although the Borrower Defense provision has
been in law since 1995, it provided little detail on the
process borrowers could use to receive a loan discharge and the
Department's process to adjudicate claims.
Given the abrupt closure of Corinthian Colleges in 2015
that left thousands of students without many options to finish
their degrees and with high student loan debt, the Obama
Administration rewrote the Borrower Defense regulations to
standardize the processing of submitting and reviewing
claims.\77\
---------------------------------------------------------------------------
\77\Borrowers Defense Final Regulation, 81 Fed. Reg. 75,926 (Nov.
1, 2016) https://www.federalregister.gov/documents/2016/11/01/2016-
25448/student-assistance-general-provisions-federal-perkins-loan-
program-federal-family-education-loan.
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There have been numerous high-profile closures of national
for-profit college chains since 2015 with ITT Technical
Institutes closing in 2016, Education Corporation of America
shutting down in 2018, Vatterott College also closing in 2018,
and most recently Dream Center owned schools Argosy and the Art
Institutes closing in 2019. These closures have left thousands
of students without many options to continue their education
and with high amounts of debt. As of September 2019 the
Department had discharged hundreds of millions in debt of
students impacted by these closures, but there are still
thousands of students waiting for relief.\78\
---------------------------------------------------------------------------
\78\See Press Release, U.S. Dep't of Educ., American Career
Institute Borrowers to Receive Automatic Group Relief for Federal
Student Loans (Jan.13, 2017) https://www.ed.gov/news/press-releases/
american-career-institute-borrowers-receive-automatic-group-relief-
federal-student-loans.
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Despite these continued abrupt closures, the Trump
Administration not only weakened Borrower Defense, making it
more difficult for borrowers to qualify, but has altogether
stopped processing student claims. The Trump Administration
refused to process a single claim for more than two years,
allowing the backlog to grow to more than 200,000 borrower
defense claims waiting to be processed.\79\ Secretary DeVos and
the Department were found in contempt of court and ordered to
pay a $100,000 fine for violating an order to stop collecting
on loans owed by Corinthian College students.\80\ When the
Department finally started to process claims in December 2019,
it implemented a flawed ``partial relief'' methodology that
provided less relief than the Department had originally
recommended for defrauded students.\81\ Students who were
defrauded by predatory institutions are entitled to have their
loan discharged under the law--and discharged quickly. The
borrower defense provision in H.R. 4674 reestablishes the Obama
Administrations processes, including the establishment of a
timeline for the fair and expeditious resolution of claims, so
that future administrations cannot continue to delay processing
while students suffer.
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\79\U.S. Dep't of Educ., Borrower Defense Quarterly report, June
2019. https://studentaid.ed.gov/sa/about/data-center/student/loan-
forgiveness/borrower-defense-data.
\80\Erica L. Green & Stacy Cowley, Betsy DeVos Is Held in Contempt
Over Judge's Order on Loan Collection, N.Y. Times A18 (Oct. 24, 2019)
https://www.nytimes.com/2019/10/24/us/politics/education-dept-loan-
repayments-corinthian.html.
\81\Press Release, U.S. Dep't of Educ., Secretary DeVos Approves
New Methodology for Providing Student Loan relief to Borrower Defense
Applicants (Dec. 10, 2019) https://www.ed.gov/news/press-releases/
secretary-devos-approves-new-methodology-providing-student-loan-relief-
borrower-defense-applicants.
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Accountability for All Institutions
In addition to reinstating important Obama-era consumer
protections, H.R. 4674 further strengthens the federal
government's ability to hold institutions accountable for
student outcomes and taxpayer dollars under title IV of HEA.
Improving Accountability Metrics
One of the most important tools for title IV accountability
has traditionally been the Cohort Default Rate (CDR), which is
the percentage of a school's borrowers that default on their
loans within three years. Colleges may lose access to title IV
if CDRs exceed certain thresholds. In fulfillment of GAO
recommendations,\82\ H.R. 4674 improves the CDR metric by
adjusting for the share of borrowers at an institution and the
number of borrowers who are in long-term forbearance.
Additionally, instead of allowing institutions to remain under
a certain threshold without requiring them to improve further,
the bill establishes multiple thresholds and requires
institutions to improve. Public and non-profit institutions
with a large share of low-income students and a high adjusted
CDR can receive technical and financial support from the
Department to improve student outcomes.
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\82\U.S. Gov't Accountability Off., GAO-18-163, FEDERAL STUDENT
LOANS: Actions Needed to Improve Oversight of Schools' Default Rates 32
(2018) https://www.gao.gov/assets/700/691520.pdf.
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The GAO also recommended the development of an additional
loan repayment metric for title IV eligibility.\83\ Although
default is the worst outcome for a borrower, that measure alone
may be insufficient for assessing institutional quality. This
is particularly true as the Committee anticipates changes to
HEA made by H.R. 4674 will result in more student borrowers
participating in income-driven repayment plans, significantly
reducing the likelihood of default and rendering the CDR less
useful for institutional accountability.
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\83\Id.
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H.R. 4674 establishes a new on-time loan repayment metric
for accountability. The metric is based on the percentage of
students who have paid at least 90 percent of their monthly
payments over three years of repayment. Students with a zero
balance (including those with a zero-dollar monthly payment
under income-driven repayment plans) or in certain types of
forbearance and deferments (including educational and military
deferment) are considered paid. As this is a new metric, the
bill allows for three years of data collection and for the
Secretary to determine appropriate timelines and thresholds to
ensure that a significant percentage of students in each
institution meet the 90 percent on-time repayment metric.
Institutions failing the new on-time repayment rate metric
would be subject to loss of title IV eligibility, unless they
can demonstrate substantial investments in instruction and
student services.
The on-time repayment metric has several important
components to ensure accountability. First, it is a student-
based metric, rather than a dollar-based metric, meaning that
it treats all borrowers from an institution equally and ensures
that the poor outcomes of students who dropout do not get
masked by a small number of successful completers.\84\ Second,
in contrast to ``balance-based metrics'' or ``paydown tests,''
where repayment is based on the amount of principal repaid, the
on-time repayment rate does not disproportionately penalize
institutions with a large number of borrowers in income-driven
repayment (IDR) plans or students who attend multiple
institutions. Research demonstrates that balance-based metrics
are not well-aligned with the goals or structure of IDR plans
and may not capture progress in repayment outside of the first
few months, even for standard plans.\85\ Students in IDR plans
may be meeting the terms of their repayment plan, but may
nevertheless have monthly payments that are not large enough to
fully cover interest, resulting in a failure under a paydown
test. Balance-based repayment metrics may further penalize
institutions for students who attend and accrue debt from other
institutions, by attributing lack of repayment on the total
loan balance as a lack of repayment for each institution.\86\
The on-time repayment rate circumvents this problem by focusing
on the proportion of payments made on time and by allowing time
spent in other institutions to count as paid.
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\84\Reauthorizing the Higher Education Act: Accountability and Risk
to Taxpayers Before the S. Comm. On Health, Educ., Lab. & Pensions,
115th Cong. (2018) (statement of Ben Miller, Sr. Dir. for Postsecondary
Educ., Ctr. for Am. Prog.) https://www.help.senate.gov/imo/media/doc/
Miller16.pdf.
\85\Johnathan G. Conzelmann, et al., Another Day Another Dollar
Metric: An Event History Analysis of Student Loan Repayment, Educ. Fin.
& Pol'y 627, 641-42 (2018). https://www.researchgate.net/publication/
325519977_Another_Day_Another_Dollar_Metric_An_Event_
History_Analysis_of_Student_Loan_Repayment (23-24).
\86\Ben Miller, The Value of an On-Time Repayment Rate, Ctr. For
Am. Prog. (October 24, 2019, 9:03 am) https://www.americanprogress.org/
issues/ education-postsecondary/news/2019/10/24/476318/ value-time-
repayment-rate/.
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Third, by measuring on-time repayment over the full three
years rather than simply at the end of a three-year period, the
metric rewards institutions whose students demonstrate
consistent repayment success over time, rather than simply
reflecting their status (or creating incentives for repayment)
at an arbitrary point in time. And, like other repayment rates,
the on-time repayment rate generates clear incentives for
institutions to help reduce debt (i.e. by lowering tuition) and
provide high-quality education to ensure that students develop
the tools and skills they need for a successful career that
enables them to meet the terms of their repayment plan.
Incentive Compensation
H.R. 4674 improves the enforcement of the incentive
compensation ban to protect students from harmful and predatory
recruitment tactics. An investigation by the GAO documented
misleading and deceptive recruiting practices at each of
fifteen campuses they visited.\87\ In 2019 Career Education
Corporation (CEC), a large multi-state for-profit college
chain, settled two separate cases amidst evidence that the
schools engaged in misleading and deceptive recruiting
practices. One case brought by 49 Attorneys General alleges CEC
used ``emotionally charged language emphasizing the pain in
prospective students'' lives to pressure them into enrolling,''
misrepresented how school credits could be transferred to other
schools and told admissions counselors to withhold important
information about tuition costs.\88\
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\87\U.S. Gov't Accountability Off., GAO-10-948T, FOR PROFIT
COLLEGES: Undercover Testing Finds Colleges Encouraged Fraud and
Engaged in Deceptive and Questionable Marketing Practices 1 (2010)
https://www.gao.gov/assets/130/125197.pdf.
\88\Ian Stewart, Nearly 180,000 Students Won't Have To Repay Loans
From For-Profit Higher Ed Company, Nat'l Pub. Radio (Jan. 3, 2019)
https://www.npr.org/2019/01/03/682057881/nearly-180-000-students-wont-
have-to-repay-loans-from-for-profit-higher-ed-compa.
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Furthermore, some institutions participating in title IV
currently have arrangements to pay a separate entity a
percentage of tuition revenue if the entity is involved with
both recruitment of students and the provision of other
services to the institution. It is the Committee's view that
these arrangements are trying to find a loophole in HEA where
none exists and are in violation of the intent of the law's
prohibition on incentive compensation.
H.R. 4674 creates a new undercover monitoring program to
effectively enforce existing provisions to ensure that schools
are deterred from deceptive and misleading recruiting
practices. This is a carefully constructed program that is
designed to meet and address a well-documented problem. The
Committee believes these provisions will create an effective
deterrent to misconduct, while doing so in a way that
incorporates best practices and important safeguards.
Financial Responsibility
The financial responsibility composite score is an
important tool for the Department to effectively identify
institutions at risk of closing in order to effectively protect
students. However, as Melissa Emrey-Arras of the GAO stated in
her testimony during the Committee's bipartisan hearing on
accountability, ``the limitations of Education's financial
composite score hamper its effectiveness at identifying at-risk
schools.''\89\ Further, GAO found that ``the composite score's
inconsistent performance in identifying at-risk schools is due
in part to limitations of the underlying formula and the fact
that it has remained unchanged for more than 20 years.''\90\
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\89\Strengthening Accountability in Higher Education to Better
Serve Students and Taxpayers: Hearing Before the Subcomm. on Higher
Educ. & Workforce Inv. of the H. Comm. on Educ. & the Workforce, 116th
Cong. 10 (Written testimony of Melissa Emrey-Arras, Dir., Educ.,
Workforce, & Income Sec. U.S. Gov't Accountability Off.).
\90\Id.
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H.R. 4674 requires the Department to undertake a negotiated
rulemaking process to reform the composite score calculation
methodology in coordination with finance and accounting
professionals and further instructs the Inspector General to
conduct audits of the composite score every two years to ensure
the composite score is accurately reflecting robust and
accepted accounting principles. To ensure the Department can
better focus on financially risky institutions,H.R. 4674
provides a pathway for high-performing colleges and
universities which have received an investment grade rating
from a recognized credit rating agency using existing robust
industry and professional standards to bypass portions of this
scheme, recognizing independent verification of their financial
strength. The Committee further expects the Department to
follow more closely existing statutory requirements to ensure
that the financial responsibility of an institution is
accurately reflected.
H.R. 4674 also includes certain automatic, mandatory, and
discretionary triggering events that would allow the Secretary
to re-revaluate an institution's financial circumstances in
order to collect financial guarantees from institutions at risk
of closure, better protecting students and taxpayers.
Advertising
H.R. 4674 makes further improvements to federal oversight
of title IV by ensuring that institutions that do not make
significant investments in student learning cannot use taxpayer
dollars on marketing and advertising. A 2010 GAO report\91\ and
a subsequent investigation by the Senate HELP Committee,\92\
drew the Committee's attention to the aggressive and deceptive
recruitment practices of for-profit colleges. With industry
reports of advertising spending in higher education reaching
all-time highs,\93\ and numerous allegations of false
advertising and misrepresentations by for-profit colleges in
recent years,\94\ the Committee believes enhanced federal
oversight in this area is long overdue.
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\91\GAO, supra note 89.
\92\For Profit Higher Education:, supra note 15.
\93\Cf. Bob Brock, Educational Marketing Group, College Advertising
at All-Time High, n.1 (2017) https://emgonline.com/2017/10/college-
advertising-at-all-time-high/#fn1 (``Based on ad tracking data from
Kantar Media and EMG estimates for online advertising. Data reflects
estimated spends in traditional advertising based on placements tracked
in 230 DMA's [direct market areas] across the U.S. in cable/TV, radio,
print, and out-of-home platforms and in online paid ads on the top
7,000 public websites, as compiled by Kantar Media. Paid ads in Search,
social media, Pandora, mobile apps, and display ads on networks outside
the top 7,000 U.S. sites have been estimated by EMG. Ad investments are
estimated should be considered approximate and directional only.'').
\94\Press Release, FTC, DeVry University Agrees to $100 Million
Settlement with FTC (Dec. 15, 2016), https://www.ftc.gov/news-events/
press-releases/2016/12/devry-university-agrees-100-million-settlement-
ftc.
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Currently, the federal government does not require
institutions to report expenditures on marketing, recruitment,
advertising, or lobbying and title IV funding can be used
unrestricted for these activities. In fact, the Integrated
Postsecondary Education Data System (IPEDS), the core
postsecondary education data collection program at the
Department, allows institutions to report these expenses under
the category of ``student services.'' For this reason, data on
advertising are difficult to obtain, but a recent report on
online advertising reveals substantial investments by some
colleges on advertising--particularly for-profit colleges--
while they simultaneously spend very little on instruction.\95\
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\95\Stephanie Hall, The Century Found., How Much Education are
Students Getting for Their Tuition Dollar? (2019) https://tcf.org/
content/report/much-education-students-getting-tuition-dollar/.
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To address this concern and limit the use of taxpayer funds
for marketing activities by predatory institutions, H.R. 4674
makes two key changes. First, it requires all institutions to
separately report expenditures on marketing, recruitment,
advertising, and lobbying. Second, if an institution spends
less than one-third of its revenue from tuition and fees on
instruction, the institution shall be subject to a limitation
on these expenditures. For these institutions, total
expenditures on marketing, recruitment, advertising, and
lobbying may not exceed the amount of revenue the institution
receives from sources other than federal financial aid
(including the GI Bill and other federal funds). This metric
provides enforceability, allowing no taxpayer money to be used
on advertising and lobbying for institutions that do not make
student learning a priority. Institutions in violation of the
limitation for two consecutive years will lose access to title
IV for at least two years.
The creation of the one-third instructional spending screen
in H.R. 4674 is designed to assess the extent to which the
revenue from tuition and fees collected by a college from
students is actually invested in student learning. Examining
how institutions spend their tuition revenue can provide
reasonable insight into the priorities of the institution. The
Committee views the percentage of tuition and fee revenue spent
on instruction as a reasonable metric for assessing whether a
school is invested in student learning and success. In deriving
the metric, the Committee considered various alternative
formulations of an instructional spending screen. Specifically,
the Committee considered adding student services and other
categories of spending that indirectly support student success
to the numerator. This approach was ultimately rejected, in
light of ambiguities in the current definitions of student
services (e.g., advertising and marketing is included), as well
as a lack of data to explore implications and thresholds under
a new definition.
The Committee also considered adding estimated percentages
of state and local revenues devoted to instruction, but
estimating such a percentage was imprecise given current data
and overly complicated.\96\ Ultimately, given current data
limitations and a desire for clarity, the Committee settled on
the simplest instructional spending metric. The one-third
threshold was chosen as a reasonable and attainable lower bound
on expectations of spending on instruction. Analyses of
historic IPEDS data suggests that over the last three years,
roughly 1,460 institutions did not spend at least one-third of
their revenue on instruction. Over 85 percent of these
institutions are for-profit colleges. Notably, while these
institutions would be subject to the marketing limitation, most
public and non-profit institutions have sufficient revenue from
non-title IV sources to still allow reasonable expenditures on
the limited activities. Prior to introduction, the Committee
worked with Rep. Tom Malinowski (D-NJ) to introduce H.R. 4475,
the Higher Education Student Protection Act, standalone
legislation that include these provisions.
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\96\John J. Cheslock, Examining Instructional Spending for
Accountability and Consumer Information Purposes, n. 1, (2019) https://
tcf.org/content/report/examining-instructional-spending-accountability-
consumer-information-purposes/#easy-footnote-bottom-1.
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Short-term Program Accountability
Beyond institution-level accountability, H.R. 4674 further
strengthens accountability for short-term programs receiving
loans. Under current law, short-term programs lasting between
300 and 600 clock hours must meet only minimal requirements for
initial eligibility--a 70 percent completion rate and 70
percent job placement rate--and this is verified only once at
the time of the initial eligibility determination. Moreover,
job placement rates can be easily manipulated by institutions,
as the law offers no consistent definition and there is
currently no way to verify such rates.\97\ In fact, job
placement rates reported by for-profit colleges have been found
to have been inaccurate or misleading on multiple occasions.
For example, a Department investigation in 2015 found that
Corinthian Colleges misled tens of thousands of students by
systematically misrepresenting programs' job placement
rates\98\ and the for-profit Career Education Corporation
recently settled with state attorneys generals in 48 states and
the District of Columbia over allegations of inaccurate job
placement data.\99\
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\97\The Institute for College Access and Success, of Metrics and
Markets: Measuring Post-College Employment Success 4 2018, https://
ticas.org/wp-content/uploads/legacy-files/pub_files/
of_metrics_markets.pdf.
\98\Press Release, Department of Education and Attorney General
Kamala Harris Announce Findings from Investigation of Wyotech and
Everest Programs (Nov. 17, 2015), https://www.ed.gov/news/press-
releases/department-education-and-attorney-general-kamala-harris-
announce-findings-investigation-wyotech-and-everest-programs.
\99\Paul Fain, Career Education Corp. Settles with States, Forgives
Student Debt, Inside Higher Ed. (Jan. 4, 2019) https://
www.insidehighered.com/quicktakes/2019/01/04/career-education-corp-
settles-states-forgives-student-debt.
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To strengthen the current requirements, H.R. 4674 adds a
new benchmark earnings metric for these short-term career
programs in addition to current law requirements. It requires
that program completers have earnings higher than students with
only a high school diploma. The Committee believes that any
postsecondary vocational programs should be able to show labor
market value beyond what an individual would earn without any
postsecondary education. To adjust for geographic variation in
earnings, the bill allows programs to use local and state-level
average high school earnings as benchmarks rather than U.S.
averages. To ensure the ongoing success of graduates, the new
earnings metric and completion rate requirement will be applied
annually. H.R. 4674 further requires these short-term career
programs to meet gainful employment requirements.
Accreditation
For too long, accreditors, the private entities that
evaluate institutional quality and fitness for title IV aid,
have focused on institutional inputs and largely ignored
student outputs. This has resulted in several institutions
limping along with lackluster outcomes or abruptly closing
while still being accredited at the time of closure (e.g.
Corinthian College, ITT Tech, and Argosy University). In 2014,
the GAO found that accreditors terminated the accreditation of
less than one percent of member schools and that accreditors
were no more likely to sanction schools with weaker student
outcomes than those with stronger outcomes.\100\ GAO also found
that the Department did not systematically use information on
accreditor sanctions to oversee schools and accrediting
agencies.\101\ In 2018, the Center for American Progress found
that while most accreditors do collect valuable outcome
information, these data are rarely used to hold institutions
accountable for poor performance.\102\
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\100\U.S. Gov't Accountability Off., GAO-15-59, HIGHER EDUCATION:
Education Should Strengthen Oversight of Schools and Accreditors22-30
(2014).
\101\Id. at 30-40.
\102\E.g., Antoinette Flores, Ctr. for Am. Prog., How College
Accreditors Miss the Mark on Student Outcomes 2, (2018) https://
cdn.americanprogress.org/content/uploads/2018/04/07135202/
StudentOutcomeStandards-report2.pdf.
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H.R. 4674 requires accreditors to focus on two important
student achievement outcomes--completion and workforce
participation--and makes the accreditation process more
transparent. The Act encourages accreditors to use common
terminology established by a working group of accreditors and
other stakeholders to measure success with student achievement
outcomes. Accreditors must set benchmarks for each measure
used, and the Secretary has the authority to reject the
accreditor-set performance benchmarks she deems to be too low.
The Committee intends these outcome metrics to support
institutions in improving student outcomes. Additionally, the
Act requires the National Advisory Committee on Institutional
Quality and Integrity (NACIQI) to regularly evaluate the
effectiveness of the measures and the performance benchmarks
set by each accreditor. H.R. 4674 also requires disclosures
that make the accreditation process and institutions'
accreditation status more transparent, so that students and
parents can make informed decisions about where to enroll. The
Act draws from and builds on H.R. 4579, the Quality Higher
Education Act, introduced by Rep. Wilson.
H.R. 4674 also strengthens requirements for who can serve
on an accreditation agency's governing board to reduce
conflicts of interests. These provisions are from H.R. 4653,
the Protecting Undergraduates with Board Limitations from
Influence and Conflicts Act, introduced by Rep. Susie Lee (D-
NV). The Act also establishes triggers that would require
teach-out plans and agreements. These provisions are from the
bipartisan bill H.R. 4615, the Stop College Closures Act,
introduced by Reps. Donna Shalala (D-FL), Peter King (R-NY),
Casten, Fitzpatrick, Moulton, and Alexandria Ocasio-Cortez (D-
NY).
State Authorization
States have long had the authority to regulate any entity
doing business within a state's boundaries. Since its
inception, the HEA has required institutions to obtain state
approval to be eligible to participate in title IV. However,
there were no regulations that clarified this statutory
requirement, which meant that some states had virtually no
requirements for institutions serving residents in their state.
For example, in some states, a business license was all that
was required for an IHE to receive state authorization.
Fraudulent institutions raced to the bottom to operate in
states that provided very little oversight, moving operations
if regulations tightened in that state.
H.R. 4674 heightens state authorizers' role in ensuring
accountability. It assigns some oversight duties from the
accreditors to the states, including ensuring the quality of
facilities and meeting occupational licensing standards when
applicable. H.R. 4674 also improves information sharing among
the triad of the federal government, accreditors, and state
authorizers, tasking states with ensuring that student
complaints are funneled to appropriate stakeholder to ensure
such complaints are appropriately addressed.
The abrupt closures of several large institutions mentioned
earlier in the report have revealed substantial gaps in
consumer protections. Importantly, the bill requires states to
have processes in place to address such school closures. State
processes must include the establishment of a tuition recovery
fund or equivalent alternative, maintenance of student contact
information, and maintained student access to transcripts. And
in recognition of the fact that states have the right to enact,
regulate, and enforce consumer protection laws that protect
their residents, H.R. 4674 does not amend current law to remove
or upset that state authority. H.R. 4674 maintains state
authority to protect consumers. The Committee worked with Rep.
Mike Levin (D-CA) to introduce H.R. 5148, the Higher Education
Standards Improvement Act, as standalone legislation that
include these provisions.
Improving Postsecondary Data
The existing federal postsecondary data infrastructure is
messy, duplicative, inefficient, and incomplete.\103\ H.R. 4674
strikes the ``student unit record'' ban--a provision that
prohibits the Secretary from collecting student-level data--and
requires the development of a secure postsecondary student data
system that uses student-level data to evaluate postsecondary
outcomes including transfer, employment, and earnings. These
provisions are from the bipartisan bill H.R. 1766, the College
Transparency Act, introduced by Reps. Mitchell and
Krishnamoorthi, which has attracted over 200 co-sponsors in the
House. Collecting data at a student level reduces institutional
reporting burden while producing better, more complete
information to help students, institutions, and policymakers
make informed decisions. In order to lessen administrative
burden and avoid duplicative reporting, H.R. 4674 allows the
Secretary to utilize the new postsecondary student data system
to fulfil other reporting requirements under the HEA. H.R. 4674
protects student privacy by, among other things, placing strict
limits on the disclosure of data, prohibiting data from being
sold or used for law enforcement purposes, safeguarding
personally identifiable information, and establishing penalties
for the misuse of student data. The Act also requires
disaggregation of postsecondary data by race as measured by the
American Community Survey (ACS) to fully capture the diverse
experiences of students from different racial and ethnic
groups, including subgroups within the Asian American and
Pacific Islander community.
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\103\See e.g., Wesley Whistle, Third Way, How Higher Education Data
Reporting is Both Burdensome and Inadequate (2017), http://
www.thirdway.org/report/how-higher-education-data-reporting-is-both-
burdensome-and-inadequate; Amy O'hara, Postsecondary Data
Infrastructure: What is Possible Today (2019), http://www.ihep.org/
sites/default/files/uploads/docs/pubs/
ihep_privacy_brief_data_sharing_v2.pdf.
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The new postsecondary student data system will give
students, families, and policymakers access to more extensive
and accurate data on institutional outcomes than those
currently provided through the Integrated Postsecondary
Educational Data System (IPEDS). This is especially important
for accurately capturing the quality of institutions that serve
large shares of students who transfer between institutions,
enroll part-time, or follow non-traditional postsecondary
pathways. For example, it is well-established that, on average,
community college students take longer to complete degree
programs than students in other sectors, and they often do so
after transferring to a four-year institution.\104\ However,
existing graduation rate measures often count students who
transfer before attaining a credential as non-completers. The
Committee expects the Department to use the new postsecondary
student data system to accurately capture the success of
students who take different paths to meet their educational
goals. In developing the public-facing consumer tool required
by H.R. 4674, the Committee further urges the Department to
explore the use of extended completion measures, including a
completion rate reflecting the share of students who graduate
or transfer within 300 percent of normal time. Completion
measures should also accurately reflect the success of students
in longer than standard (e.g. five-year undergraduate) programs
and ensure that institutions are given clear credit for
contributing to the success of transfer students.
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\104\Doug Shapiro, et al., Nat'l Stud. Clearinghouse, Time to
Degree: A National View of the Time Enrolled and Elapsed for Associate
and Bachelor's Degree Earners 24, 2016, https://nscresearchcenter.org/
signaturereport11/.
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In addition to making groundbreaking improvements in the
federal postsecondary data infrastructure, H.R. 4674 ensures
that institutions that offer dual enrollment programs aren't
penalized when calculating the share of students who receive
Pell Grants and extends a provision from the FY2019 spending
bill which allows institutions to share information from a
student's FAFSA with scholarship-granting organizations if the
student provides explicit written permission.
Strengthening Educator Preparation
Since its inception HEA has included provisions to help
prepare the next generation of classroom educators. In the last
authorization, Congress created the Teacher Quality Partnership
grant program (TQP), designed to support reforming the
preparation of profession-ready educators at undergraduate and
graduate institutions. Based on lessons learned from the last
decade of implementation of the TQP, H.R. 4674 addresses the
nation's critical teacher shortage by strengthening and scaling
up TQP through a robust re-authorization, recognizing more
clearly the role of the state in tackling their respective
shortages, increasing the requirements and capacity for
effective oversight and intervention for at-risk and low-
performing educator preparation programs to ensure program
improvement, and authorizing funding for competitive grant
programs that will diversify the workforce and close shortage
gaps in the highest-needs subject areas.
Teacher demand is on the rise due to changes in student
enrollment and high levels of teacher attrition.\105\ Reducing
attrition by half could virtually eliminate teacher shortages,
so the Committee believes federal policy must address why
teachers leave the profession. Less than one-third of teachers
who leave each year leave due to retirement. Rather, nearly
half of beginning teachers are leaving the profession before
their fifth year.\106\ Teachers with little preparation, such
as those with alternative certification, leave at rates that
are two to three times higher than the rate at which teachers
with comprehensive preparation leave the profession in the
first year.\107\ Alternatively-certified teachers also self-
report feeling less prepared than those traditionally prepared
at an institution.\108\
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\105\Lieb Sutcher, et al. Learning Pol'y Inst., A coming crisis in
teaching? Teacher supply, demand, and shortages in the u.s. 37 (2016),
https://learningpolicyinstitute.org/sites/default/files/product-files/
A_Coming_Crisis_in_Teaching_REPORT.pdf.
\106\National Education Association, Research Spotlight on
Recruiting & Retaining Highly Qualified Teachers (last accessed: Dec.
22, 2020, 7:56 p.m.) http://ftp.arizonaea.org/tools/17054.htm.
\107\Christopher Redding & Thomas M. Smith, Easy in, Easy Out: Are
Alternatively Certified Teachers Turning Over at Increased Rates?, 53
Am. Educ. Rsch. J., (2016) 1086, 1090-1091 (2016), https://
journals.sagepub.com/doi/pdf/10.3102/0002831216653206; Learning Pol'y
Inst., What's the Cost of Teacher Turnover?, https://
learningpolicyinstitute.org/product/the-cost-of-teacher-turnover.
\108\Ayana N. Kee, Feelings of Preparedness Among Alternatively
Certified Teachers: What is the Role of Program Features, 63 J. of
Teacher Educ. 23, 24, (2012), https://journals.sagepub.com/doi/pdf/
10.1177/0022487111421933.
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Teacher preparation research has arrived at a consensus
that a residency model, in which teacher candidates receive
extended clinical in-classroom experiences under the guidance
of an experienced teacher mentor, both effectively prepares
teachers to lead students to greater academic gains and stymies
profession attrition.\109\ This was confirmed at the
Committee's hearing, ``Educating our Educators: How Federal
Policy Can Better Support Teachers and School Leaders''. The
witness panel consisted of current practitioners, researchers,
and policymakers in the field. H.R. 4674 places greater
emphasis on the residency model as an allowable use for title
II, part A funds. It also makes key updates in pedagogical and
classroom management requirements as skills all teachers need
to be successful, such as learning to use universal design for
learning, embedding comprehensive literacy skills into
pedagogy, and being in tune with the social, emotional, and
cultural needs of all students via positive behavioral
management, including students with disabilities and English
language learners.
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\109\Linda Darling Hammond, Learning Pol'y Inst., The Teacher
Residency: An Innovative Model For Preparing Teachers ii (2016),
https://learningpolicyinstitute.org/product/teacher-residency.
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H.R. 4674 also recognizes the critical role of teacher
leaders, experienced and exemplary teachers who take on greater
responsibility within their schools through mentorship or
formalized leadership roles, play in improving student
achievement. The bill creates additional uses for funds in HEA
title II, part A to include partnerships for teacher leader
development, recognizing a middlerole for experienced teachers
to have opportunities for growth and leadership that does not
require becoming a school principal but may include earning a
teaching leadership credential. While teacher leaders learn to
hone their craft in a new role, they may earn an additional
stipend for their work. The Committee worked with Reps. Brad
Schneider (D-IL), Trone and Underwood on H.R. 3108, the
Teachers are Leaders Act from which this provision was taken.
H.R. 4674 also addresses what research suggests is the most
consistent factor associated with teachers' decision to stay or
leave a school: a lack of support from school
administration.\110\ Teachers who feel unsupported are twice as
likely to leave the profession, resulting in revolving doors at
far too many schools, missed opportunities for exiting
teachers, and time and money wasted on their training.
Increasingly, research demonstrates the positive outcomes
effective school leaders can have on teaching and learning,
particularly for students in high-poverty areas and students of
color.\111\ Effective school leadership is only second to
effective classroom instruction in boosting student academic
achievement.\112\ Yet school leader preparation receives little
attention in comparison to teacher preparation.
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\110\See Learning Policy Institute, The Role of Principals in
Addressing Teacher Shortages (2017), https://
learningpolicyinstitute.org/sites/default/files/product-files/
Role_Principals_Addressing_Teacher_Shortage_BRIEF.pdf
\111\Stephanie Levin & Kathryn Bradley, Understanding and
Addressing Principal Turnover: A Review of the Research (2019), https:/
/learningpolicyinstitute.org/sites/default/files/product-files/
NASSP_LPI_Principal_Turnover_Research_Review_REPORT.pdf.
\112\Kenneth Leithwood et al., Wallace Found., How Leadership
Influences Student Learning 5, (2004), https://
www.wallacefoundation.org/knowledge-center/documents/how-leadership-
influences-student-learning.pdf.
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The HEA first addressed school leadership preparation in
the 2008 reauthorization. Congress authorized a Leadership
Development program in which grantees could use title II-A
funds on a pre-service leader preparation program in rural
schools and only as a supplemental use of funds already being
used on a Teacher Residency or pre-baccalaureate program. Since
the 2008 reauthorization, significant research has been
conducted in the recruitment and preparation of school leaders.
The Wallace Foundation invested in six large urban districts to
establish strong principal pipeline initiatives that recruit
from within district, prepare, and support effective school
leaders. An independent evaluation of the Wallace Foundation
programming by the RAND Corporation found that building such
pipelines of emerging leaders is both a feasible and affordable
way for large urban districts to improve schools.\113\ RAND
found that principals in districts that had developed these
pipelines were less likely to leave their schools when compared
to districts that had no pipeline initiative.\114\ RAND
suggested these results were because the school leaders were
prepared in cohort-style programs pre-service and supported
with targeted mentorship in their first years of
principalship.\115\ Students in schools with a principal
prepared in a pipeline initiative outperformed students from
schools in the control group in reading by 6.22 percentile
points and in math by 2.87 percentile points.\116\ The
Committee also heard direct testimony about the value of
prepared principals on school turnaround during the ``Educating
Our Educators'' hearing from Tricia McManus, Assistant
Superintendent of Leadership, Professional Development, and
School Transformation of Hillsborough County Public Schools in
Florida.
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\113\Susan M. Gates et al., Principle Pipelines: A Feasible,
Affordable, and Effective Way for Districts to Improve Schools xiii
(2019), https://www.rand.org/pubs/research_reports/RR2666.html.
\114\Id. at 51-53.
\115\Id. at 28.
\116\Id. at 64.
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Reflecting the principal induction research, H.R. 4674
expands TQP to include Principal and School Leader residency
programs, including the creation of pipelines within a school
district, as an allowable use of HEA title II-A funds by
themselves. TQP grants are renamed Teacher and School Leader
Quality Partnership grants (TSLQP). Building on a successful
model, principal or school leader residency design requirements
mirror the Teacher Residency program requirements, including
combining graduate level coursework in cohorts as well as
ongoing supports while on the job such as mentorship.
H.R. 4674 also allows TSLQP grantees to develop another
form of a pipeline known as Grow Your Own. Grow Your Own was
born in response to the research that demonstrates teachers
prefer to teach in the communities they grew up in.\117\ This
allows high-need school districts to recruit and support
paraprofessionals and other non-teaching staff who already work
in the school district in gaining their teacher certifications
to teach in their own communities. Partnerships provide tuition
support and may provide other financial assistance as
candidates work through the program. Grow Your Own programs can
close a gap in high-need shortage areas that are otherwise hard
to staff because they recruit from a committed-to-the-community
pool.
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\117\Anne Podolsky et al., Learning Pol'y Inst., Solving the
Teacher Shortage: How to Attract and Retain Excellent Teachers 25 ,
https://learningpolicyinstitute.org/sites/default/files/product-files/
Solving_Teacher_Shortage_Attract_Retain_Educators_REPORT.pdf.
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To ensure TSLQP funds are most effectively used, H.R. 4674
strengthens program accountability reporting metrics and
requires both traditional institutions and alternative
certification programs offering preparation programs to report
annually to the State and the public key information on
programmatic quality and student success. This will also
provide relevant data to the federal government on the
effectiveness of federal funds and what changes TSLQP may
require to close shortage gaps in the future. The bill further
requires states to conduct an assessment to identify at-risk
and low-performing teacher and school leader preparation
programs and to provide those programs with technical
assistance in hopes of improvement.
States are in the best position to meet the shortage gaps
within their borders, a point highlighted by Mr. John White,
the Superintendent of Louisiana, at the Committee's ``Educating
our Educators hearing''. H.R. 4674 allows state educational
agencies to be key partners in partnerships with preparation
programs in their states. State partners who enter into a
partnership with an eligible preparation program must work in
conjunction with one or more high-need school districts in the
state to meet the shortage needs in those districts. H.R.
4674's state accountability reporting incentivizes states to
build the systems to determine where their state's most
critical shortages are. Thus, states may place successful
graduates in the highest-needs school districts. To meet the
needs of the expansion of TQSLP, H.R. 4674 authorizes a
stronger investment in title II, part A by increasing funding
from $300 million to $500 million.
Finally, H.R. 4674 maintains most of the HEA title II, part
B programs authorized in current law. Because the establishment
of these programs are resoundingly supported by preparation
programs around the country, but never funded, the bill
authorizes part B to be funded at $100 million and requires
that each of the four programs it authorizes receive at least
20 percent of those funds.
Part B maintains the recognition of the critical role that
HBCUs and other MSIs play in producing most of the country's
teachers of color by reauthorizing the Augustus F. Hawkins
Centers of Excellence program which supports the teacher prep
programs at these schools and strengthening their residency
preparation in line with part A. Additionally, part B
acknowledges the critical and persistent shortage in special
education teachers with the inclusion of the Well Rounded
Teachers program. Funds under this program support preparation
programs that embed special education into the general
education credential, as dual certification. It requires that
these programs produce teachers well-versed in positive
behavioral management strategies to effectively respond to the
needs of all students. Both programs were incorporated from
H.R. 4288 the Teacher Diversity and Retention Act, introduced
by Rep. Ruben Gallego(D-AZ).
The Committee is also concerned with the increasing demand
for bilingual teachers as the country experiences an influx of
English language learner students. H.R. 4574 incorporates
provisions from H.R. 1153, the Reaching English Learners Act
introduced by Rep. Langevin, to develop the Teaching English
Learners grant. This grant improves English language
instruction preparation.
In line with fostering the pedagogical needs of specific
subject areas, Part B also maintains the graduate fellowships
program that prepare faculty in high-need areas. These areas
include special education, English language instruction,
science, math, and career and technical education subjects such
as engineering and computer science. Under the bill, the
Secretary must also prioritize awarding grants to any part B
program that fills these subject area shortages and programs
that produce high numbers of educators of color.
H.R. 4674 Advances Equity in Higher Education
The original HEA and subsequent reauthorizations were
designed to increase access to higher education for all
students. While efforts have resulted in more low-income
students and students of color accessing and completing higher
education since 1965, significant gaps remain.
As of 2015, 82 percent of high school graduates from
families in the highest income quintile (families making more
$100,010 annually) enrolled immediately in college, compared to
just 58 percent of those from the lowest income quintile (below
$20,582).\118\ While the shares of Black and Hispanic students
enrolling in college have increased substantially over the last
decades (rising by 52 percent and 23 percent, respectively from
1975),\119\ significant racial gaps in enrollment remain. Among
recent high school graduates in 2017, enrollment rates of Black
students lagged 10 percentage points behind the rates of white
students, while Hispanic enrollment rates lagged by 8
percentage points.\120\
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\118\Jennifer Ma, et al., Education Pays 2016, 10 (2016), https://
trends.collegeboard.org/sites/default/files/education-pays-2016-full-
report.pdf.
\119\Id. at 11.
\120\National Center for Education Statistics, Digest Table 302.20
(2018).
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Students of color and low-income students also lag behind
their peers when it comes to degree completion. White students
who start at a four-year university graduate within six years
at more than one-and-a-half times the rate of Black students
(66 vs. 42 percent).\121\ Black males lag even further behind
with a 36 percent six-year graduation rate.\122\ The gap
between white and Hispanic students is smaller but still large
(64 vs. 54 percent).\123\ Gaps in graduation rates are also
large across family income: students who receive Pell Grants
are 18 percentage points less likely to graduate than students
who do not receive Pell.\124\
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\121\National Center for Education Statistics, Digest Table 326.10
(2019)
\122\Id.
\123\National Center for Education Statistics, Digest, Table
326.20.
\124\Wesley Whistle & Tamara Hiler, Third Way, The Pell Divide: How
Four Year Institutions are Failing to Graduate Low- and Moderate-Income
Students 3, (2018).
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Disparities in graduation rates mean that students of color
and low-income students miss out on the social mobility and the
other numerous advantages of a college education. Children
whose parents are in the bottom quintile of the income
distribution can greatly increase their chances of moving up
the income ladder as adults if they obtain a degree. Children
in the bottom income quintile who do not obtain a college
degree only have a one in two (53 percent) chance of moving up
the income ladder as adults, whereas various studies suggest
between 84 and 90 percent of children who are born into the
bottom quintile and earn a college degree will move out of the
bottom quintile.\125\ The benefits of a college degree are so
large for low-income students that research has shown that the
greatest gains in absolute wealth in the past generation have
gone to individuals growing up in the lowest income quintile
who earned a bachelor's degree.\126\
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\125\Pew Charitable Trusts, Pursuing the American Dream: Economic
Mobility Across Generations 3 (2012); Richard Reeves, Saving Horatio
Alger: Equality Opportunity, and the American Dream (2014) http://
csweb.brookings.edu/content/research/essays/2014/saving-horatio-
alger.html
\126\Id. at 23.
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H.R. 4674 makes key investments to help close these gaps
and ensure that students from all backgrounds have the support
they need to graduate from college and successfully transition
to the workforce. The affordability measures in H.R. 4674
provide low-income students greater financial support by
cutting the cost of tuition and covering other basic expenses
that can interfere with their education. The new federal-state
partnership program to provide tuition-free community college
and a path to a tuition-free four-year degree, freeing up
students' federal financial aid dollars to cover non-tuition
expenses. Increases in the value of Pell Grant will cover a
larger share of tuition and put more money in students' pockets
to pay for food, housing, and other basic essentials, while
dual enrollment programs offer flexible college options that
offer accelerated paths to a college degree.
Supports for Students
In addition to improving affordability, H.R. 4674 further
enhances equity and advances student success with numerous
programs and provisions designed to support underserved
students. H.R. 4674 makes important improvements to TRIO and
GEAR UP (Gaining Early Awareness and Readiness for
Undergraduate Programs), longstanding federal programs designed
to identify individuals from disadvantaged backgrounds and help
them enroll in college. Among other things, the bill amends
authorizing language for both programs to increase funding
levels, clarify program requirements, expand and update
authorized uses, and ensure homeless and foster youth can
participate in and benefit from services and activities.
The Committee recognizes that collecting comprehensive data
on homeless and foster youth participating in TRIO and GEAR UP
programs may be challenging for grantees, particularly in the
short term, and H.R. 4674 includes language specifying that
data is only required to be reported ``when available''. This
data is intended to shine a light on the experiences and
outcomes of homeless and foster youth. It should not be used
preference or penalize applicants based on the demographic
makeup of their student populations. Furthermore, the Committee
does not intend the newly required disaggregation of TRIO
outcome data by homeless/foster status to alter the
Department's current practices with respect to the calculation
of prior experience points (renamed ``accountability for
outcomes points'' under H.R. 4674).
H.R. 4674 additionally includes language designed to
address TRIO and GEAR UP grant administration issues that have
emerged since the last HEA. Of particular note, the bill
shortens the timeframe in which TRIO applicants must be
notified of the status of their grant application from 8 months
to 90 days. The Department has been unable to meet the current-
law 8 month notification requirement due to the timing of the
Congressional appropriation and grant competition cycles,
rendering the advance notice provision unachievable and
therefore meaningless. The Committee's intent in shortening the
notification window is to ensure that applicants are informed
of whether or not they will receive funding at least 90 days
prior to the startup date of the proposed program. This is
necessary for ensuring that continuing grantees do not suffer
from an interruption or lapse in funding and for providing all
successful grantees with sufficient time to plan and prepare to
offer TRIO services. Importantly, the notification requirement
applies regardless of whether a TRIO grantee receives funding
through the first slate of awards or after the statutorily
required second review of applications has been completed.
Far too many college students are struggling with food
insecurity. Estimates of food insecurity among college students
range from 9 percent to well over 50 percent, and the majority
of studies examined by the GAO found food insecurity rates of
over 30 percent.\127\ The GAO additionally found that at least
3.3 million students who were at risk of food insecurity and
potentially eligible for Supplemental Nutrition Assistance
Program (SNAP), yet fewer than half of these students reported
that they had accessed SNAP benefits.\128\ To address this
issue, H.R. 4674 ensures that institutions connect potentially
eligible students with federal safety net programs, including
food assistance programs like SNAP and the Special Supplemental
Nutrition Program for Women, Infants, and Children (WIC). By
increasing grant aid and investing in a federal-state
partnership, H.R. 4674 provides students with the funds they
need to not only cover their tuition, but also pay for the
basic necessities of food and housing. States participating in
this new federal-state partnership are further required to
consider changes to state law to facilitate participation in
means-tested federal benefit programs among college students.
As mentioned above, H.R. 4674 additionally allows FSEOG funds
to be used to provide emergency grant aid to students, which
can be essential for addressing issues of food and housing
insecurity. The Act also incorporates H.R. 2632, the bipartisan
CCAMPIS Reauthorization Act, introduced by Reps. Katherine
Clark (D-MA) and Don Young (R-AK), which expands access to
affordable, quality on-campus child care for students with
children, and H.R. 3950, the Remedial Education Improvement
Act, introduced by Rep. Donald Norcross (D-NJ), which supports
the adoption of evidence-based reforms of remedial education
programs. These changes will help keep students--particularly
low-income students and students of color--on campus and on-
track to earning a college degree.
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\127\U.S. Gov't Accountability Off., GAO-19-95, FOOD INSECURITY:
Better Information Could Help Eligible College Students Access Federal
Food Assistance Benefits 11, https://www.gao.gov/assets/700/696254.pdf.
\128\Id. at 18.
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While there are multiple pathways to and through higher
education, the Committee recognizes that, for most students, a
bachelor's degree remains the surest pathway to financial
stability and lifelong success. Unfortunately, the low-income
students who stand to benefit most from earning a bachelor's
degree are significantly less likely than their peers to pursue
or complete a four-year degree.\129\ In response to this
reality, H.R. 4674 creates a new program to reward institutions
that are dedicated to enrolling low-income students and
ensuring that they succeed. Under the Federal Pell Bonus
Program created by the Act, public and private not-for-profit
institutions with a Pell enrollment of at least 25 percent will
receive a bonus for every Pell recipient that earns a
bachelor's degree within the normal time to completion. Bonus
funds can be used by these institutions to expand access and
success among low-income students, including through the
provision of need-based financial aid and student supports.
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\129\Joel McFarland, Differences in Postsecondary Enrollment and
Employment by Socioeconomic Status, NCES Blog, (July 10, 2019) https://
nces.ed.gov/blogs/nces/post/differences-in-postsecondary-enrollment-
and-employment-by-socioeconomic-status.
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Additionally, H.R. 4674 allows undocumented individuals who
entered the U.S. when they were younger than 16 years of age
and either earned a high school diploma (or its equivalent) or
served in the uniformed services for not less than four years
to access federal student aid and services under title IV. This
would allow Deferred Action for Childhood Arrivals (DACA)
recipients access to federal student aid. The Supreme Court has
recognized that undocumented students are entitled to a public
K-12 education and under current law these students experience
an abrupt shift when they graduate high school. Of the
estimated 98,000 undocumented students who graduate high school
every year, only between 5 and 10 percent pursue higher
education and far fewer graduate with a degree.\130\ Enrolling
in college becomes difficult without the appropriate financial
means to pay for the education. Given their ability to work and
contribute to the economy, this provision would allow these
students to contribute at higher rates to American society upon
earning a college degree or credential. Under H.R. 4674,
individuals who would have qualified for Deferred Action for
Parents of Americans and Lawful Permanent Residents (DAPA) and
individuals with temporary protected status are also eligible
for federal student aid.
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\130\Jie Zong & Jeanne Batalova, How Many Unauthorized Immigrants
Graduate from U.S. High Schools Annually? Migration Policy Institute,
2019; but see U.S. Dep't of Educ., Resource Guide: Supporting
Undocumented Youth 3 (2015) (determining the higher education rate but
placing the number of yearly undocumented students who graduate high
school at 65,000).
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Despite some progress in recent reauthorizations, HEA still
needs significant improvements to truly align with the goals of
the Americans with Disabilities Act and the Individuals with
Disabilities Education Act. H.R. 4674 includes grants to train
faculty to deliver accessible, inclusive instruction;
establishes an office of accessibility in every institution to
facilitate access; and increases access to instructional
materials and technologies to make learning accessible for all
students. Further, H.R. 4674 requires the office of
accessibility at each institution to accept documentation such
as an Individualized Education Plan (IEP) or a 504 Plan deemed
by itself sufficient to prove the existence of a disability in
order to ensure that students with disabilities receive the
accommodations they need. The office may also accept and deem
sufficient other types of documentation, including a student's
narrative about their disability or the results of an
evaluation provided by the institution, but cannot require
additional types of documentation.
Homeless and foster youth face unique challenges in
accessing higher education. H.R. 4674 addresses these
challenges in several ways. The bill authorizes a new program
at $150 million per year to help states expand initiatives to
help foster and homeless youth transition to college. The bill
further requires states to provide in-state tuition rates for
foster and homeless youth who have not had stable residency and
would otherwise be ineligible and requires institutions to
provide housing options between terms.
HEA specifies that students who do not hold a high school
diploma or recognized equivalent can only qualify for federal
financial aid under the so-called ``ability to benefit''
provisions if they are enrolled in an eligible career pathway
program. Such programs provide important supports and ensure
that students who enter college without a secondary credential
are able to succeed academically and transition to the
workforce. However, the Committee recognizes that broad-based
liberal arts programs may not be compatible with all the
requirements associated with career pathway programs. As such,
H.R. 4674 allows individuals who demonstrate an ability to
benefit by earning six credit hours toward a postsecondary
degree to be eligible for federal financial aid if they are
enrolled in a program leading to a bachelor's degree; a two-
year or longer program that is acceptable for full credit
toward to a bachelor's degree; or a degree program that is
acceptable to admission to a graduate or professional degree
program. Students at public and private nonprofit institutions
are eligible for title IV aid under this expansion.
Support for Institutions that Enhance Economic Mobility
A high-quality college degree remains out of reach for far
too many students, and students of color and low-income
students face particularly steep barriers to college enrollment
and completion. Unfortunately, institutions that make it part
of their mission to serve large populations of these students
facing the greatest barriers--such as HBCUs, TCCUs, MSIs, and
community colleges--are generally under-resourced, making it
harder to serve students on the path to college completion.
HBCUs, TCCUs, MSIs, and community colleges are all too
often subject to severe resource constraints, which limit these
institutions' ability to support all students through degree
completion. A 2014 report from the Institute for Higher
Education Policy found that, in Fiscal Year (FY) 2010, HBCUs,
TCCUs, and MSIs operated on an average of $16,648 in per-
student revenue, compared to nearly $30,000 at predominantly
white institutions. Community colleges had even fewer resources
and operated on approximately $10,000 in per-student
revenue.\131\
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\131\Alisa Cunningham et al., The Inst. For Higher Educ. Pol'y,
Minority Serving Institutions: Doing More With Less 13, (2014), http://
www.ihep.org/sites/default/files/uploads/docs/pubs/msis_doing_more_w-
less_final_february_2014-v2.pdf.
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Revenue constraints mean that institutions have less to
spend on the students. Research from The Century Foundation
found that in FY 2013, ``private four-year research
institutions spent five times as much per full time equivalent
student annually ($72,000) as did community colleges
($14,000).''\132\ The Georgetown Center on Education and the
Workforce found that, in 2015, ``selective public colleges
spent nearly three times as much per student as open-access
public colleges on instructional and academic support.''\133\
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\132\The Century Found., Recommendations For Providing Community
Colleges With The Resources They Need 2 (2019) https://tcf.org/content/
report/recommendations-providing-community-colleges-resources-need/.
\133\Anthony P. Carnevale et al., Georgetown U. Ctr. on Educ. the
Workforce, Our Separate Unequal Public Colleges 8 (2018), https://
1gyhoq479ufd3yna29x7ubjn-wpengine.netdna-ssl.com/wp-content/uploads/
SAUStates_FR.pdf
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Aross America, the students who attend the least well-
resourced K-12 schools, and those who arrive at college facing
the steepest barriers to completion, are concentrated at
institutions with the lowest funding levels. This pattern
perpetuates and reinforces inequity as students of color and
low-income students are systematically deprived of the public
resources available to their white and affluent peers. On a
macro scale, the lack of access to affordable, high-quality
postsecondary opportunities hampers economic mobility and
contributes to wage inequality and the cycle of poverty.
These gaps in institutional revenue and spending are not
only problematic from a theoretical standpoint. In reality,
inequitable funding impacts the success of students.
Institutions that have more resources are able to provide high-
quality educational opportunities to more students, including
those in need of additional support. The evidence shows that
additional spending on instruction and student support services
can substantially improve graduation rates.\134\
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\134\See e.g., Ann M. Gansemer-Top John H. Schuh, Institutional
Selectivity And Institutional Expenditures: Examining Organizational
Factors that Contribute to Retention and Graduation, 47 Rsch In Higher
Educ. 613, 621-22 (2006), https://link.springer.com/article/10.1007/
s11162-006-9009-4; Ann M. Gansemer-Topf et al., Did the Recession
Impact Student Success? Relationships of Finances, Staffing and
Institutional Type on Retention, 59 Rsch in Higher Educ. 174, 175-76
(2018), https://link.springer.com/article/10.1007/s11162-017-9462-2;
Douglas A. Webber Ronald G. Ehrenberg, Do Expenditures Other Than
Instructional Expenditures Affect Graduation and Persistence Rates in
American Higher Education 11-12 (Nat'l Bureau of Econ. Rsch.. Working
Paper No. 15216, 2009), https://www.nber.org/papers/w15216; Austan
Goolsbee et al., Aspen Institute, A Policy Agenda to Develop Human
Capital for the Modern Economy, 16, 26 (2019), https://
assets.aspeninstitute.org/content/uploads/2019/01/1.1-Pgs-16-39-A-
Policy-Agenda-to-Develop-Human-Capital-for-the-Modern-Economy.pdf; and
The Institute for College Access and Success, Inequitable Funding,
Inequitable Results, Racial Disparities At Public Colleges 3, (2019),
https://ticas.org/sites/default/files/pub_files/inequitable_
funding_inequitable_results.pdf.
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College degrees are essential for upward mobility,
particularly for low-income students. College degree holders
from families in the lowest income quintile are more likely to
experience upward mobility (i.e. more likely to surpass their
parents in terms of income and wealth) than degree holders from
higher income families.\135\ But income in the top quintile is
``sticky'': those born in the top quintile have a significantly
lower chance of falling to the bottom quintile regardless of
whether or not they earn a degree.\136\
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\135\Pew Charitable Trusts, supra note 125, at 3.
\136\Id.
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For these reasons, H.R. 4674 strengthens HBCUs, TCCUs, and
other MSIs. The Act increases and permanently reauthorizes
mandatory funding for HBCUs, TCUs, and other MSIs. It also
makes needed reforms to discretionary grant programs and
increases funding. Additionally, H.R. 4674 authorizes new grant
programs to support innovation at HBCUs, TCCUs, and MSIs;
preserve and revitalize Native American languages; and increase
opportunities for graduate and doctoral studies at these
institutions. These provisions are drawn from the bipartisan
bill H.R. 2486, the Fostering Undergraduate Talent by Unlocking
Resources for Education (FUTURE) Act, introduced by Reps. Alma
Adams (D-NC) and Mark Walker (R-NC) and the Native American
Language Vitalization Act, H.R. 4188, introduced by Reps.
Sablan (D-MP), Schrier (D-WA), and Ed Case (D-HI).\137\
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\137\Since H.R. 4674 has been reported from committee, the FUTURE
Act has been passed into law, permanently authorizing mandatory funds
for HBCUs, TCCUs, and other MSIs. P.L. 116-91.
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H.R. 4674 also supports community colleges in developing
programs that improve completion. There are multiple innovative
models that institutions are implementing to better support
students to completion. Worth highlighting is the City
University of New York (CUNY) Accelerated Study in Associate
Programs (ASAP) initiative, which helps students earn an
associate's degree within three years by providing
comprehensive services. These supports include advisement,
financial assistance (including free metro cards and
textbooks), structured pathways, and employment support. As
students get close to graduating, they receive special support
to help them transfer to a four-year institution or into the
workforce. Over a three-year period, the program doubled
graduation rates and the cost per degree was lower in ASAP than
in the control group despite the initial cost.\138\ The CUNY
ASAP program was replicated at three community colleges in Ohio
and similar student outcomes were achieved.\139\ Due to this
exceptional success, H.R. 4674 provides institutions with
planning and implementation grants to replicate the CUNY ASAP
program at community colleges across the country. Prior to
introduction of H.R. 4674, Committee worked with Rep. Grace
Meng (D-NY) to introduce H.R. 3578, the Community College
Student Success Act which contains these provisions.
---------------------------------------------------------------------------
\138\Susan Scrivener, et al., Doubling Graduation Rates: Three Year
Effects of CUNY's Accelerated Study in Associate Programs (ASAP) for
Developmental Education, 111 (2015), https://www.mdrc.org/sites/
default/files/doubling_graduation_rates_fr.pdf.
\139\MRDC, Evaluating Replications of CUNY's Accelerated Study in
Associate Programs (ASAP), last accessed: Dec. 22, 2020, https://
www.mdrc.org/project/Evaluating-Replications-of-CUNY-ASAP#overview.
---------------------------------------------------------------------------
Campus Climate
The Committee recognizes that campus safety requirements in
H.R. 4674, including those related to hazing and harassment,
may require institutions to revise or expand their approaches
to tracking and reporting crimes under the Clery Act. For
example, newly required reporting on hazing must include
details on findings from campus disciplinary proceedings and
information specific to student organizations. Reporting this
information will likely require separate documentation in the
annual security reports that are submitted by institutions. The
Committee expects the Department to provide guidance to
institutions on how to comply with new requirements, including
how to collect and present data on hazing and harassment
incidents.
H.R. 4674 takes important steps to improve campus climate
and protects students' safety. The bill blocks Secretary
DeVos's Title IX rule and strengthens prevention and reporting
of incidents of campus sexual assault, harassment, and hazing.
It further supports campus diversity by strengthening civil
rights enforcement to prevent discrimination on campus and
invests in programs that advance access to education for
students with disabilities, foster youth, students who struggle
with homelessness, and student veterans. H.R. 4674 additionally
provides expectant and parenting students information on campus
leave policies, financial aid (including emergency aid),
support services, and rights, protections, and accommodations
guaranteed under federal and state law. The Act additionally
amends the current-law anti-discrimination provision in the HEA
to clarify that protections against discrimination based on sex
apply to sexual orientation, gender identity, pregnancy,
childbirth, a medical condition related to pregnancy and
childbirth, and sex stereotype.\140\
---------------------------------------------------------------------------
\140\Videckis v. Pepperdine University 150 F.Supp.3d 1151, 1158-59
(C.D. Cal. 2015); Whitaker v. Kenosha Unified Sch. Dist., 858 F.3d
1034, 1048 (7th Cir. 2017).
---------------------------------------------------------------------------
H.R. 4674 Maintains and Improves Key Policies and Programs in Higher
Education
Beyond the changes described in earlier sections, H.R. 4674
maintains or improves several policies and programs that are
essential in ensuring affordability, accountability, and equity
in higher education.
Institutional Disclosures of Foreign Gifts
In light of recent increased scrutiny on potential foreign
influence on college campuses, H.R. 4674 strengthens current
reporting on institutional disclosures of foreign gifts and
contracts, clarifies what information is necessary, and
improves Departmental engagement to ensure institutional
reports are useful without being over burdensome. To address
concerns about public awareness, the Committee included
language in the bill requiring the Secretary of Education to
make the disclosure reports publicly available in an
electronically downloadable, searchable database that allows
identification and comparison of institutional reports.
H.R. 4674 also requires the Secretary of Education to bring
together community stakeholders through negotiated rulemaking
to ensure the statute is being properly implemented, and to
ensure institutions know what is required on gift disclosure
reports.
Tuition assistance for students in the Commonwealth of the Northern
Mariana Islands (CNMI) and American Samoa territories
All students, regardless of whether they reside on the
continental U.S. or its territories, should have an opportunity
to pursue an affordable four-year college degree. The CNMI and
American Samoa territories have substantially limited academic
offerings for students seeking higher education. Each territory
has just a small public college, providing primarily
certificates and associate degrees, which hinders many students
in these territories from pursuing a college degree beyond two-
years. The lack of options forces many students to move great
distances away from home and at substantial personal cost to
pursue a bachelor's degree. To enable affordable access to
students in the territories, H.R. 4674 creates a Tuition
Assistance Grant (TAG) Program--modeled after the program in
the District of Columbia (i.e. DC TAG)--and authorizes $5
million dollars to cover the difference between in-state and
out-of-state tuition costs for students in the aforementioned
territories. This program comes from H.R. 2465, the Northern
Mariana Islands and American Samoa College Access Act,
introduced by Rep. Sablan (D-MP).
Fund for the Improvement of Postsecondary Education (FIPSE)
FIPSE was first authorized in 2008 and authorizes the
Secretary to make grants to higher education institutions or
groups of institutions to improve postsecondary education
opportunities. An example of a program funded through FIPSE is
the Shepherd Higher Education Consortium on Poverty, which
provides an integrated curricular and co-curricular
interdisciplinary study focusing on poverty and human
capability for undergraduate and graduate students. Students
are provided with service-learning internship opportunities
with non-profit agencies located in disadvantaged communities.
H.R. 4674 reauthorizes FIPSE for FY 2021 and each of the five
succeeding fiscal years.
Programs under title VIII
H.R. 4674 eliminates many programs that were authorized in
the 2008 reauthorization of HEA, but never funded. It
simultaneously reauthorizes and retools several grant programs
under title VIII including the Ronald V. Dellums memorial STEAM
Scholars, provisions that were introduced in H.R. 5922 the
Ronald V. Dellums Memorial Fellowship for Women of Color in
STEAM and National Security Act, introduced by Reps. Barbara
Lee (D-CA) and Raul Grijalva (D-AZ). The bill also reauthorizes
the Teach for America program, Modeling and Simulation grants,
and others. It further authorizes a new grant program to expand
the development and use of high-quality open educational
resources to reduce the cost of textbooks and expand access to
free educational materials to the broader public.
Section-by-Section Analysis
Sec. 1--Short title; table of contents
This section provides the short title ``College
Affordability Act'' and table of contents.
Sec. 2--References
This section states that, unless otherwise stated in the
Act, provisions that are amended or repealed shall be
considered made to the Higher Education Act of 1965 (HEA).
Sec. 3--General effective date
This section states that, unless otherwise stated in this
Act, the provisions will take effect on the date of enactment.
TITLE I--GENERAL PROVISIONS
Part A--Definitions
Sec. 1001--Definition of institution of higher education for purposes
of title IV programs
This section adds receivership to the limitations that
would prohibit an institution of higher education (institution)
from meeting the requirements to participate in title IV of the
HEA. This section adds 85/15 to the institutional eligibility
definition of a proprietary institution starting July 1, 2023.
Sec. 1002--Additional definitions
This section fixes a reference to the Americans With
Disabilities Act of 1990.
This section amends the definition of ``nonprofit'' to make
a nonprofit entity not only one that is owned and operated by a
nonprofit corporation or association per current statute, but
also one that is controlled by a nonprofit corporation or
association.
This section defines the term ``public institution of
higher education'' as an institution for which all its
obligations are valid and binding obligations of the State (or
an equivalent governmental entity) and for which the State (or
an equivalent governmental entity) pledges full faith and
credit to pay the obligations on time.
This section defines the term ``foster care children and
youth'' as children and youth whose care and placement are the
responsibility of the State or Tribal agency, regardless of
whether the State or tribal agency has made foster care
maintenance payments on their behalf. Individuals who are no
longer the responsibility of the State or the Tribal agency but
who were under the care of the State or Tribal agency at 13
years of age or older are included in the term.
This section defines the term ``federal education
assistance funds'' as any federal funds provided under the HEA,
as well as funds provided under any other federal law,
including through funds directly made to an institution on
behalf of an individual (i.e. GI Bill Benefits). This
definition excludes monthly housing stipend payments made
directly to an individual under the Post-9/11 GI Bill.
This section defines the term ``progress period status'' as
the status of an institution that is determined by the
Secretary of Education (Secretary) to be in danger of failing
to meet title IV eligibility criteria because the institution
has a student default risk indicator between 10 and 15 percent.
Sec. 1003--Gainful employment programs
This section establishes a definition for the term
``program of training to prepare students for gainful
employment in a recognized occupation,'' which requires
training programs to comply with performance metrics and
disclosures established by the Secretary. At a minimum, the
Secretary must establish requirements for a debt-to-earnings
rate including a methodology for calculating such rate, a
process to authorize the use of alternate earnings, and a
threshold. The threshold must be comparable to the eligibility
thresholds for the debt-to-earnings ratio established in the
2014 gainful employment final rule. Training programs that are
substantially similar to a training program that did not
previously meet the performance metrics are prohibited from
participating.
The Secretary is required to develop a consumer-tested
disclosure template that training programs must provide to
enrolled and prospective students on an annual basis showing
student outcome information for such program. The Secretary
must also establish a process to annually verify that each
training program is providing the required disclosures.
Part B--Additional General Provisions
Sec. 1011--Antidiscrimination
This section amends the antidiscrimination provision in
section 111 of the HEA to specify that protections against
discrimination on the basis of sex apply to sexual orientation,
gender identity, pregnancy, childbirth, a medical condition
related to pregnancy or childbirth, and sex stereotype.
Sec. 1012--National Advisory Committee on Institutional Quality and
Integrity
This section permanently establishes the National Advisory
Committee on Institutional Quality and Integrity (NACIQI) by
repealing the expiration date.
Sec. 1013--Disclosures of foreign gifts
This section strengthens and clarifies the disclosure of
foreign gifts made to institutions from a foreign entity. It
does this by clarifying that the aggregate dollar amount
reported to the Department of Education (Department) includes
the funding of staff members, textbooks and other in-kind
gifts. It also clarifies that tuition and fees are exempted
from the reporting disclosures and makes further clarifications
to contracts made between the foreign entity and the
institution to include any agreements for services from foreign
government to include gifts, which is defined as money or
property, human resources, or payment of any staff.
Additionally, institutes and instructional programs are added
to what must be disclosed for restricted and conditional gifts.
This section requires the Secretary to make the disclosure
reports electronically available to the public for download 30
days after receipt. It also requires the Secretary to enter
into a negotiated rulemaking to ensure institutions know what
is required on gift disclosure reports to the Department.
Sec. 1014--Alcohol and substance misuse prevention
This section requires institutions that receive federal
funding to adopt and implement an evidence-based program to
prevent alcohol and substance misuse by students and employees.
The section also requires the Secretary to enter into an
agreement with the Secretary of Health and Human Services to
develop the criteria that satisfy the evidence-based program
requirement and promote best practices for adopting and
implementing a program.
This section also updates and improves federal grants to
support evidence-based alcohol and substance misuse prevention
programs. Grant funding under this section can be used for
activities including (but not limited to) providing recovery
support services to students, re-entry assistance for students
on academic probation due to substance use, and the prevention
of fatal and nonfatal overdoses. This section authorizes $15
million for FY 2019 and the five succeeding fiscal years for
these grants.
Sec. 1015--Exception to required registration with selective service
system
This section prohibits making an applicant ineligible for
federal student aid under title IV of the HEA for failure to
register for Selective Service in accordance with the Military
Selective Service Act and repeals the requirement.
Sec. 1016--Integrity of nonprofit institutions of higher education
This section establishes requirements that institutions
converting to nonprofit status must meet in order to
participate under the HEA as a nonprofit. The institution must
be tax exempt and meet the definition of nonprofit established
in the HEA. The institution must also demonstrate that assets
it acquires from former owners are not acquired at a value
greater than its worth. Additionally, the institution must
demonstrate that no member of its governing board or any person
with the power to appoint or remove members from the governing
board receives any substantial economic benefit (e.g. a lease,
promissory note, other contract). Further, the institution
cannot be controlled by an entity that is not a public
institution or other nonprofit entity.
An institution must apply to convert to nonprofit status.
The Secretary must publish the institution's application in the
Federal Register with an appropriate notice and comment period.
Upon final determination, the Secretary's decision and
rationale must also be published in the Federal Register. A
for-profit institution approved for nonprofit conversion must
abide by the rules and regulations that apply to for-profit
institutions for the first five years after such conversion.
An institution is prohibited from promoting or marketing
itself as a nonprofit institution unless the Secretary has
given final approval of the conversion, the accrediting agency
has approved the nonprofit status, the State has given final
approval to the institution as a nonprofit entity, and the
Internal Revenue Service (IRS) has approved the institution as
tax exempt.
The Secretary is required to create an office with
expertise within the Department to carry out these provisions.
The Secretary is also required to review the institution's
governance when a public or private nonprofit institution has
engaged in transactions or arrangements determined to be
potential indicators of private inurement.
Sec. 1017--Support and guidance for homeless individuals and foster
care youth
This section requires the Secretary to issue guidance,
provide annual professional development opportunities, and
issue a report at least once every five years on best practices
for serving homeless individuals and foster care youth.
Sec. 1018--Calculation of percentage of enrolled students receiving or
eligible for Federal Pell Grants
This section ensures that an institution offering dual
enrollment programs is not penalized when calculating its share
of students who receive Pell Grants. Low-income students who
are enrolled in courses at an institution while still attending
high school are not eligible for federal Pell Grants. This
section removes such students from the total count of enrolled
students that is used to calculate the share of students who
are eligible for or receiving Pell Grants at an institution.
Sec. 1019--Certification regarding the use of certain Federal funds
This section makes a technical fix by striking reference to
the Higher Education Opportunity Act (HEOA) and replacing such
term with reference to the HEA to prohibit the use of funds
from title IV of the HEA to be used to pay an individual
advocating for a federal contract, grant, loan, or cooperative
agreement. It also prohibits using title IV funds to hire a
registered lobbyist for the purposes of securing an earmark.
Sec. 1020--Freedom of Association
This section prohibits institutions from retaliating
against any student on the basis of such student's membership
in a single-sex organization based solely on the membership
practice of such organization limiting membership to only
individuals of one sex.
Part C--Cost of Higher Education
Sec. 1021--Consumer information
This section amends the requirements for net price
calculators in section 132 of the HEA. This section requires
each institution to include a prominent link to the
institution's net price calculator on relevant institutional
webpages, display a chart of net prices for students receiving
federal financial aid disaggregated by income category on the
input screen for the calculator, include specified information
on the results page of the calculator, and populate the
calculator with data from not earlier than 2 academic years
prior than the most recent academic year. This section
prohibits data collected by net price calculators from being
sold or made available to third parties. This section
authorizes the Secretary to develop a universal net price
calculator to enable users to answer one set of questions and
receive net prices for any institution required to have a net
price calculator under section 132 of the HEA.
This section adds the new adjusted cohort default rate
(aCDR), as well as institutional expenditures on instruction,
student services, marketing, recruitment, advertising, and
lobbying to the College Navigator website.
Sec. 1022--Postsecondary student data system
This section directs the Commissioner of the National
Center on Education Statistics (NCES) to develop and maintain a
secure postsecondary student data system to evaluate student-
level enrollment, progression, and completion patterns, post-
college outcomes, postsecondary costs, and financial aid. In
developing the system, the NCES Commissioner is required to
focus on the needs of users (including institutions), follow
relevant web design and digital service standards, and ensure
student data privacy and security in accordance with federal
standards. The system is designed to improve institutional
transparency, facilitate institutional improvement, reduce
regulatory burden, and analyze, evaluate, and improve federal
student aid programs.
The Secretary and NCES Commissioner are authorized to
consider reporting to the new postsecondary student data system
as sufficient to satisfy any other reporting required under
section 132 of the HEA in cases where the same reporting or
collection of data is required. The NCES Commissioner will
review methods for streamlining data collection and minimizing
duplicative reporting at least once every three years.
The postsecondary data system shall include, at a minimum,
the student-level data elements necessary to calculate the
information within any student-related surveys in the
Integrated Postsecondary Education Data System (IPEDS) and the
student-level data elements necessary for reporting enrollment,
persistence, retention, transfer, and completion for all
credential levels within and across institutions. Data
reporting must be sufficient to allow for disaggregation by 10
separate characteristics including race, military or veteran
status, Pell Grant eligibility, and Federal loan receipt. The
NCES Commissioner is directed to consult with stakeholders in
determining and revising data elements to be included in the
postsecondary data system. The NCES Commissioner is prohibited
from collecting the following for the purposes of the
postsecondary data system: health data, discipline records or
data, elementary and secondary education data, physical
addresses, information on citizenship or national origin
status, grades, student-level college entrance exam results,
political affiliation, and religion.
The NCES Commissioner is authorized, after consultation
with stakeholders, to include additional data elements in the
postsecondary data system. The NCES Commissioner is also
directed to enter into agreements with other federal agencies
to create secure linkages between the postsecondary data system
and other federal data systems. These secure linkages will
result in the consistent reporting of data on postsecondary
outcomes, financial aid, and post-college outcomes, protect
student data privacy, and comply with all federal data
protection protocols and applicable privacy laws.
The NCES Commissioner is required to make summary aggregate
information available to the public in a user-friendly format
on, at a minimum, institution-level data on access,
progression, completion, cost, and post-college outcomes. The
NCES Commissioner will also develop and implement a secure
process for making non-personally identifiable student-level
data available for research and evaluation purposes. Through
this process, institutions and states will be able to request
and receive non-personally identifiable information and
aggregate summary data on current and former students. The
process will also allow institutions to receive program-level
data related to current and former students at least once a
year.
The NCES Commissioner will promulgate guidance and
regulations related to data access and security. Data collected
under the postsecondary data system shall not be sold to any
third party or be used for any activity that would result in an
adverse action against a student, including activities related
to law enforcement, immigration law enforcement and debt
collection.
Each institution participating in a title IV program is
required to collect and submit data requested by the NCES
Commissioner to carry out this section. Institutions not
participating in title IV programs may elect to submit data if
they so choose.
Sec. 1023--Avoiding duplicative reporting
This section allows the Secretary to use the postsecondary
student data system created under Sec. 1022 of this Act to
satisfy any other reporting required of institutions under
title IV of the HEA.
Sec. 1024--Disclosure of non-instructional spending increases
This section requires institutions to disclose to students
when non-instructional spending increases by more than 5
percent year-over-year. This section also requires such
institutions to provide an analysis of the expected impact of
such increase on tuition.
Sec. 1025--Textbook information
This section updates the current law definition of
supplemental material by removing a reference to computer disks
and incorporating references to online and digital learning
platforms. It additionally requires that publishers provide
information to institutions on whether textbooks and
supplemental materials are available in digital formats. This
section encourages institutions to disseminate information on
institutional programs for accessing lower cost digital course
materials and digital textbooks. It also adds inclusive access
programs and digital content distribution platforms as examples
of alternative content delivery programs. Institutions are
encouraged but not required to disseminate information on such
programs.
Sec. 1026--Repeals
This section lifts the ban on creating a student-level data
system and repeals the state higher education information
system pilot program.
Sec. 1027--In-state tuition rates for homeless youth and foster care
youth
This section requires homeless and foster care students to
receive in-state tuition at public institutions in the state
where they live.
Part D--Administrative Provisions for Delivery of Student Financial
Assistance
Sec. 1031--Improvements to the Federal Student Aid Office
This section amends the purpose of the Federal Student Aid
Office at the Department--a Performance-Based Organization
(PBO)--to include prioritizing students and borrowers in the
decision-making process related to the management and
administration of federal student aid programs. Other changes
to the purpose include increasing transparency in the
operations and outcomes of federal student financial assistance
programs authorized under title IV.
To ensure the PBO carries out its duties effectively and in
a manner that accomplishes its purposes, this section
explicitly requires the Secretary to implement oversight and
accountability measures.
Additionally, the PBO will now be responsible for the
collection, publication, and sharing of aggregate and
longitudinal data that may be used to evaluate federal student
financial assistance programs, including the outcomes of such
programs. The PBO is required to make the data available to
NCES for purposes of research and policy analysis. The NCES
Commissioner must make non-personally identifiable data
available to researchers for approved research and evaluation
purposes. The PBO must make aggregate data publicly available
at least once a year.
This section also strengthens the PBO's performance plan
and annual report, including by requiring the inclusion of
measurable quantitative and qualitative goals and objectives
set by the PBO. The Secretary is required to provide the
authorizing Congressional committees a briefing on the steps
taken by the Department to ensure the experience of students
and borrowers are accounted for in decision-making and that
contractors and third-party servicers (as amended by Sec. 4602
of this Act) are adhering to the requirements of title IV of
the HEA. Further, within 180 days of the enactment of this Act,
the Secretary must enter into a memorandum of understanding
with the Consumer Financial Protection Bureau (CFPB).
Additionally, this section places some pre- and post-
service restrictions on the Chief Operating Officer (COO)
position. For example, the COO cannot be employed by or have a
financial interest in an entity that contracts with the PBO.
This section also requires that the performance agreement
between the Secretary and COO include metrics that measure
progress toward organizational and individual goals. It makes
similar amendments to the performance agreement between the
Secretary and senior managers. The COO must provide members of
the public with information about the PBO's oversight of
institutions, lenders, and third-party servicers.
This section renames the Student Loan Ombudsman to the
Borrower Advocate and focuses the duties of the position on
assisting borrowers and attempting to resolve borrower
complaints. In consultation with knowledgeable parties, the
Borrower Advocate must also resolve complaints about a homeless
student's determination of independence for purposes of federal
student aid. Similar to the COO, the Borrower Advocate must
abide by pre- and post-service requirements as outlined in this
section. Yearly, the Borrower Advocate must submit to the COO a
report on the activities of the Borrower Advocate office.
This section establishes an enforcement unit to review and
investigate violations of the HEA by institutions, lenders, and
third-party servicers. The office is led by a Chief Enforcement
Officer (CEO) who is appointed for a term of six years and
reports directly to the Secretary. During such term, the CEO
may only be removed for cause. The CEO must review and
investigate each allegation and provide the Secretary with a
recommendation on whether to pursue enforcement action against
the entity concerned. The Secretary is then responsible for
deciding the action. The enforcement unit must coordinate with
existing federal agencies, state agencies, and oversight bodies
and develop protocols for information sharing on allegations.
The CEO must also submit an annual report to the authorizing
committees that includes the number of allegations received,
the number of allegations investigated by the unit, and other
pertinent information about the allegations.
TITLE II--TEACHER QUALITY ENHANCEMENT
Part A--Teacher and School Leader Quality Partnership Grants
Sec. 2001--Definitions
This section adds 25 new definitions and makes technical
edits to align some terms to those used in the reauthorization
of the Elementary and Secondary Education Act (ESEA). The new
definitions include: ``blended learning,'' ``comprehensive
literacy instruction,'' ``digital literacy,'' ``diverse teacher
candidates,'' ``English learner,'' ``evidence-based,''
``evidence of student learning,'' ``foster care,'' ``homeless
child,'' ``infant or toddler with a disability,''
``mentoring,'' ``profession-ready,'' ``residency program,''
``school leader,'' ``school leader preparation entity,''
``school leader preparation program,'' ``teacher leader,''
``teacher performance assessment,'' ``teacher preparation
entity,'' ``teacher preparation program,'' and ``trauma-
informed care.''
Sec. 2002--Purposes
This section expands the purpose of title II to include 1)
accountability for educator preparation programs; 2)
recruitment of individuals from underrepresented groups and
other occupations as educators with an emphasis on addressing
high shortage areas as identified by the state; and 3) support
for staffing needs of high-need local educational agencies
(LEAs) through partnerships with educator preparation programs
at universities.
Sec. 2003--Partnership grants
This section expands the Teacher Quality Partnership Grant
program to include partnership grants for principal or school
leader residency programs in high-need schools. Programs must
be based on successful models that prepare principals or school
leaders for success in high-need schools. These programs must
include rigorous graduate coursework toward an appropriate
advanced credential and learning opportunities under an
experienced principal or school leader mentor. The section
outlines selection criteria for school leader or principal
mentors.
Eligible individuals for the principal or school leader
residency program must have prior preK-12 teaching experience
and have experience as an effective leader, manager, and
written/oral communicator. If selected for the program, school
leader residents would receive a one-year living stipend or
salary in exchange for agreeing to serve for at least three
school years in a high-need school. Participants who do not
complete the program must repay the stipend or salary to the
eligible partnership. This section also adds a requirement for
all residency programs to expose participants to the principles
of universal design for learning and multi-tiered systems of
support. Successful programs will facilitate collaboration and
cultivation of relationships with external stakeholders
(including professional disciplinary organizations and
nonprofit advocacy organizations) to foster the sharing of
evidence-based resources to promote high-quality, effective
practices.
Additionally, this section repeals the existing Partnership
Grants for the Development of Leadership program and replaces
it with the Teacher Leader Development Program. The Teacher
Leader Development program provides grants to fund professional
development activities for teachers who maintain their role as
classroom teachers but who also carry out formalized leadership
responsibilities, including the development of curriculum, team
management, family and community engagement, peer observations
and coaching, and dual enrollment instruction. Grantees must
develop a plan detailing how teacher leaders will allocate
their time between leadership activities and classroom
responsibilities, as well as how the grantee will support
teacher leaders after the program concludes. This section
outlines selection criteria for teacher leaders.
This section also authorizes ``Grow Your Own'' programs as
a use of funds for the grants. Eligible partnerships are
between institutions and high-need LEAs to recruit and support
paraprofessionals and other school personnel to become
educators in their schools. Partnerships would integrate
coursework and school-based learning opportunities that include
a year-long clinical residency with mentorship to support
candidates in earning their associate's, bachelor's, or
master's degrees and a teaching or school leadership
credential. Successful programs offer financial aid (in
addition to the assistance that educator candidates qualify for
under title IV of the HEA) and may offer candidates stipends to
cover living and childcare costs for the duration of the
program. Programs may also offer compensation to residency
mentors.
Sec. 2004--Administrative provisions
This section maintains that an eligible partnership may not
receive more than one grant in a five-year period, except that
partnerships may now receive an additional grant if used to
establish a teacher or principal residency program not
previously established with the prior grant.
Sec. 2005--Accountability and evaluation
This section requires that each eligible partnership
develop an evaluation plan that includes rigorous,
comprehensive, and measurable objectives for any of the
residency programs for which grants can be used.
Sec. 2006--Accountability for programs that prepare teachers,
principals, or other school leaders
This section establishes teacher and school leader
retention rates in the same LEA and in the profession as
indicators of teacher and school leader preparation program
quality. Teacher and school leader preparation programs must
report retention rates to the state and public. The section
also adds school leader preparation programs to the State
report card requirement on teacher preparation program quality.
It also specifies that states are not responsible for reporting
program completion for those who do not teach in the State.
Sec. 2007--Teacher development
This section replaces ``limited English proficient'' with
``English learner.''
Sec. 2008--State functions
This section specifies that states must identify at-risk
and low-performing teacher and school leader preparation
programs. It also specifies that states must conduct the at-
risk and low-performing program identification in order to
receive funds under title II of the ESEA, in addition to
receiving funds under this title of the HEA, as previously
required. It also increases the requirements and capacity for
effective oversight and intervention for at-risk and low-
performing teacher and school leader preparation programs to
ensure program improvement. It adds a requirement that states
work in consultation with a representative group of community
stakeholders (including leaders and faculty of traditional and
alternative route educator preparation programs, preK-12
leaders and staff, teacher leader candidates, and other
stakeholders as determined by the state) to identify low-
performing programs. States must establish a period of
improvement and redesign for such programs.
This section also removes the requirement that states
reinstate teacher preparation programs that closed upon
demonstration of improved performance, meaning that states are
not required to reopen a failing program even if its
performance improves. This section maintains the authority for
the Secretary to issue regulations on state functions in
evaluating teacher preparation programs, so long as such
regulations are promulgated pursuant to a negotiated
rulemaking.
Sec. 2009--General provisions
This section makes a technical edit to institutions'
reporting requirements.
Sec. 2010--Elevation of the education profession study
This section establishes a new study to examine state
policies related to teacher and school leader education and
certification. The study seeks to produce a comprehensive set
of expectations for entry into the profession and ensure
teachers and school leaders are profession-ready upon entering
the field. Additionally, the study will include recommendations
to Congress on evidence-based best practices to elevate the
education practice. This section requires the Secretary to
establish an Advisory Committee to carry out the study, which
will be comprised of representatives from a variety of
educational technology organizations, nonprofits, teacher
unions, professional development organizations, and state and
LEAs.
Sec. 2011--Authorization of appropriations
This section increases the authorization level of the
Teacher and School Leader Quality Partnership Grants program
from $300 million to $500 million for FY 2021 and the five
succeeding fiscal years.
Part B--Enhancing Teacher and School Leader Education
Sec. 2101--Enhancing teacher and school leader education
This section authorizes $150,000,000 to carry out this part
for FY 2021 and each of the five succeeding fiscal years. This
section repeals authorizations for three unfunded grant
programs. This section adds Congressional findings on the
teacher diversity gap that negatively affects student
achievement to the Honorable Augustus F. Hawkins Centers of
Excellence program. It also establishes that the purpose of
such program is to strengthen and expand the recruitment,
training, and retention of diverse candidates into the teaching
profession. It specifies that funds may also be used to
implement reforms in school leader programs at eligible
institutions.
This section re-designates Subpart 2 as Preparing Well-
Rounded Teachers as an update to the previously authorized Part
B program that prepared general education teachers to educate
students with disabilities. The program will provide
competitive grants to improve general educator preparation to
ensure that teacher candidates have the skills necessary to
instruct students with disabilities in general education
classrooms and to expand programs that embed social-emotional
learning, trauma-informed care, and positive behavior
management practices.
Subpart 3 authorizes the Preparing Teachers for English-
Learner Instruction program, which will provide competitive
grants to improve the preparation of teacher candidates to
ensure they possess the knowledge and skills necessary to
effectively instruct English Learners. Eligible partnerships
that receive grants must provide a match of at least 25 percent
toward the cost of activities. The Secretary is required to
ensure geographic distribution in awarding grants. Grantees
must report an evaluation of the program to the Secretary who
will make the findings public.
Subpart 4 is re-designated as the Graduate Fellowships to
Prepare Faculty in High-Need Areas at Colleges of Education,
which was formerly authorized as Subpart 5.
Subpart 5 specifies priorities in awarding competitive
grants to any Part B program. The Secretary must prioritize
programs that increase diversity in the educator workforce,
those that recruit candidates to work in their local schools,
or address the science, technology, music, arts, math, and
computer science teacher shortages.
TITLE III--INSTITUTIONAL AID
Sec. 3001--Strengthening institutions
This section adds the following allowable uses for the
Strengthening Institutions Program (SIP): establishing
community outreach programs, developing and implementing
postsecondary career and technical education programs, aligning
and integrating career and technical education programs with
programs of study, and developing and expanding dual enrollment
programs.
Sec. 3002--Strengthening institutions
This section makes changes to give Tribally Controlled
Colleges and Universities (TCCUs), Alaska Native and Native
Hawaiian-Serving Institutions (ANNHSIs), Predominantly Black
Institutions (PBIs), Native American-Serving Non-Tribal
Institutions (NASNTIs), Asian American Native American Pacific
Islander Serving Institutions (AANAPISIs), and institutions
receiving grants under the SIP more flexibility to develop
endowments. Such flexibility includes allowing institutional
grantees that use grant funds for endowments to count
restricted gifts to the endowment fund toward the statutory
matching requirement and reducing such requirement from a
minimum of 100 percent to 50 percent. This section further
allows institutions using grant funds for endowment growth to
use endowment earnings to support student scholarships.
This section adds instruction in Native American language
and outreach to encourage adults to pursue an interest in
postsecondary education to the list of authorized activities
for title III funds for TCCUs. This section also removes the
requirement that TCCUs must enroll a certain threshold of needy
students and have low educational and general expenditures and
allows TCCUs to carry over unspent funds into the next grant
cycle.
This section authorizes the Native American Language
Vitalization and Training Program to support the preservation,
revitalization, relevancy, and use of Native American
languages. Under such program, TCCUs, ANNHSIs, and AANAPISIs
located in American Samoa, Guam, or the Commonwealth of the
Northern Mariana Islands are eligible to apply for grants (not
to exceed five years in length) to support programs that
promote Native American languages. Authorized activities
include curriculum and professional development, partnerships
with K-12 schools, and innovative language programs (e.g.
language immersion programs). This section authorizes $20
million for FY 2021 and each of the five succeeding fiscal
years for this program, $15 million of which shall be made
available to TCCUs each fiscal year.
This section makes a technical correction to ensure that
ANNAHSIs and AANAPISIs are aligned with the other institutions
regarding eligibility for Title V. This section also makes a
technical correction to ensure that PBIs, like other
institutions funded under sections 316 through 320 of the HEA,
do not face a wait-out period before being eligible to compete
for funding.
Sec. 3003--Strengthening Historically Black Colleges and Universities
This section expands the authorized activities for grants
to Historically Black Colleges and Universities (HBCUs)
authorized under section 323 of the HEA to include support for
customized instructional courses, such as remedial education;
the acquisition of technology; establishment or enhancement of
an alternative teacher training program; creation or
improvements to distance education programs; establishment or
improvements to programs that support the educational outcomes
of Black males; financial assistance to students in Science,
Technology, Engineering, and Math (STEM) fields (not more than
30 percent of the grant can be used for this purpose); and
establishment or improvement of an office to help identify and
apply for external funding opportunities.
This section gives HBCUs flexibility to develop endowments
using funds awarded under title III of the HEA. Such
flexibility includes allowing HBCUs that use grant funds for
endowments to count restricted gifts to the endowment fund
toward the statutory matching requirement and reducing such
requirement from a minimum of 100 percent to 50 percent. This
section further allows HBCUs using grant funds for endowment
growth to use endowment earnings to support student
scholarships.
This section also amends the process for allotment of funds
to allow six years for HBCU graduates to enroll in a graduate
or professional discipline where Black students are
underrepresented; amends the minimum allotment each HBCU must
receive based on whether the institution has previously
received a grant under part B of title III; and includes a hold
harmless provision for institutions that were funded in FY 2019
in the event additional institutions become eligible. This
section also makes changes to require a description of student
retention, graduation, and post-graduate outcomes goals on the
funding application.
This section updates the allowable uses in grants to
Historically Black Graduate Institutions under section 326 of
the HEA to allow for strengthening of funds management,
tutoring and student supports, and creating or improving
distance education programs. This section makes the University
of the Virgin Islands School of Medicine an eligible
institution for this grant.
Sec. 3004--Historically Black College and University Capital Financing
This section makes several changes to improve the
administration and availability of funds under the HBCU Capital
Financing program. It recharacterizes the current escrow
account as a bond insurance fund to address concerns arising
from state laws that have prevented public HBCUs in certain
states from accessing funds under this program. This section
limits the interest rate on loans for academic facilities in
STEM disciplines to one percent and it increases the aggregate
bond limit to $3.6 billion. This section improves the
Department's ability to provide technical assistance to HBCUs
seeking capital improvement loans and allows Department to
modify or defer a loan made to an institution. Finally, this
section strengthens the oversight provided by the HBCU Capital
Financing Advisory Board.
Sec. 3005--Strengthening Historically Black Colleges and Universities
and other minority-serving institutions
This section authorizes and appropriates $300 million for
FY 2021 and each of the succeeding fiscal years for part F of
title III of the HEA and adjusts the allocation amounts for
each institutional designation proportionate to the increase
annual funding.
Sec. 3006--General provisions
This section reauthorizes discretionary programs in support
of TCCUs, ANNHSIs, PBIs, NASNTIs, AANAPISIs, Historically Black
Graduate Institutions, and institutions receiving SIP funds for
FY 2021 and each of the five succeeding fiscal years. This
section reauthorizes Endowment Challenge Grants, the HBCU
Capital Financing program, the Minority Science and Engineering
Improvement Program, and the Programs in STEM Fields.
TITLE IV--STUDENT ASSISTANCE
Sec. 4001--Effective date
This section establishes an effective date of July 1, 2021
for title IV of this Act, unless otherwise provided.
Part A--Grants to Students in Attendance at Institutions of Higher
Education
Subpart 1--Federal Pell Grants
Sec. 4011--Amount of grants
This section increases the maximum Pell Grant award by $625
(to $6,820 for the 2021 2022 award year) and reinstates and
makes permanent annual inflation increases to the maximum
award. This section repeals the ban on the use of Pell Grants
among incarcerated individuals, continues the year-round Pell
Grant program, and makes conforming changes to include
references to the aCDR and on-time repayment rate authorized by
this Act.
Sec. 4012--Grant eligibility
This section allows students to exhaust full Pell
eligibility on graduate studies following completion of a
bachelor's degree. This section extends the period of
eligibility for Pell Grants from 12 semesters to 14 semesters.
This section restores Pell Grant eligibility for students who
had federal student loans forgiven due to school closure or
fraudulent institutional behavior and for students who
successfully assert a borrower defense claim and restores Pell
Grant eligibility to students who did not receive a federal
student loan but would have qualified for a loan discharge due
to such circumstances.
Sec. 4013--Extending Federal Pell Grant eligibility of certain short-
term programs
This section authorizes the use of Pell Grants for short-
term job training programs that last between 8 and 15 weeks,
provide between 150 and 600 hours of instructional time, and
lead to an industry-recognized credential. Participating
institutions are required to work with an industry or sector
partnership to ensure that programs are aligned with the
requirements of high-skill, high-wage, or in-demand industry
sectors or occupations in the state or local area.
This section makes students who have already received a
post-baccalaureate degree ineligible for use of Pell Grants for
short-term job training program and stipulates that any period
during which a student receives a job training Pell Grant will
be included in calculating such student's total eligibility
period for Pell Grants. The minimum Pell award is waived for
the purposes of this section, and students are prohibited from
simultaneously receiving a standard Pell Grant and a Pell Grant
for enrollment in a short-term job training program.
Industry and sector partnerships will identify the
anticipated earnings of program graduates for short-term
programs accessing Pell under this section, which must be
higher than earnings of students with only a high school
diploma. The anticipated earnings benchmark is subsequently
used to review eligibility for job training programs. This
section requires institutions providing short-term programs
accessing Pell under this section to ensure that students are
able to earn academic credits that are applicable to a
subsequent certificate or degree program. Credits can be
awarded at the time of course completion or upon enrollment in
a subsequent program (for example, via a prior learning
assessment). Institutions must inform students of the
anticipated earnings and subsequent certificate and degree
programs associated with Pell-eligible job training programs.
Short-term programs accessing Pell under this section must
also meet requirements associated with programs that prepare
students for gainful employment in a recognized occupation and
the earnings and completion requirements associated with short-
term programs that access federal student loans. Only title IV
eligible institutions listed in the Workforce Innovation and
Opportunity Act (WIOA) eligible training provider lists may
participate under this section, and programs must be part of a
career pathway (as defined in WIOA) in order to be eligible.
For-profit institutions and any institution that has been
subject to adverse or negative actions by accrediting agencies
or state or federal enforcement agencies within the past five
years are excluded from accessing Pell under this section. This
section establishes that job training programs cannot exceed by
more than 50 percent the minimum program length required by a
state to receive a professional license or certification.
Institutions must secure confirmation from the state workforce
board of the state in which the program is located of the
program's compliance with this and other relevant requirements.
This section requires the Secretary to approve short-term
program applications within 180 days and review each program's
eligibility at least once every three years. This review must,
at a minimum, evaluate whether program completers are earning
the anticipated wages identified in the initial application.
The Secretary is also required to collect data on the impact of
short-term programs accessing Pell under this section and
report on such impact to the public and to Congress.
Sec. 4014--Providing Federal Pell Grants for Iraq and Afghanistan
veteran's dependents
This section makes the Iraq and Afghanistan Service Grants
program part of the Pell Grant program, effective for the award
year immediately following the date of enactment of this Act.
Sec. 4015--Federal Pell Grant fraud prevention
This section requires the Secretary to prepare and submit
an annual report to Congress regarding potential fraud in the
Pell Grant program, including the name of every institution
where more than two percent of total applicants were flagged
for unusual enrollment history.
Sec. 4016--Federal Pell Grants on behalf of incarcerated individuals
This section establishes requirements that institutions
must satisfy in order to receive Pell Grant funding for the
enrollment of incarcerated students. Only public institutions,
private nonprofit institutions, and postsecondary vocational
institutions (as defined in section 102(c) of the HEA) are
eligible to award Pell Grants on behalf of incarcerated
students. Institutions are not eligible if they have been
subject to the denial, withdrawal, suspension, or termination
of accreditation over the past five years.
Institutions offering Pell-eligible prison education
programs must provide incarcerated students with academic
credits that are the same as credits earned by non-incarcerated
students for an equivalent course and provide confirmation from
each facility involved that the course of study offered by the
institution at such facility is accessible to incarcerated
individuals, including individuals with disabilities.
Institutions offering distance education programs must provide
evidence of the institution's success in offering distance
programs and confirmation that the distance education program
offers levels of faculty interaction, peer engagement, and
student support sufficient to enable students to successfully
participate the program.
Institutions must additionally institute a process to allow
incarcerated individuals to access their transcripts and other
educational records, including after transfer or release, and
to allow incarcerated students opportunities to provide
feedback on educational programs that are comparable to the
opportunities afforded to non-incarcerated students.
Institutions are prohibited from passing any direct costs onto
Pell-eligible incarcerated students or their families,
including the cost of accommodations for students with
disabilities. The cost of attendance for Pell-eligible students
must be covered by other sources, such as federal, state and
institutional grants or other grant aid. This requirement
applies to students who are determined, based on the income and
asset information submitted in the FAFSA, to have an expected
family contribution (EFC) that would qualify them for Pell,
regardless of whether the student receives a Pell Grant.
A limited exception is made to the direct cost prohibition
for students who are determined, based on the income and asset
information submitted in the FAFSA, to have an EFC that would
disqualify them from receiving a Pell Grant. In such cases,
institutions may not directly charge such students an amount
that exceeds their EFC.
Institutions must additionally provide the following
information to prospective students, the Secretary, the
institution's accrediting agency, and the correctional facility
with regard to each course of study offered to Pell-eligible
incarcerated students: the cost of attendance; the mode of
instruction (e.g. distance education, in-person, or blended);
how enrollment will impact students' lifetime eligibility for
Pell Grants; the transferability of credits and whether credits
are counted toward a degree or certificate program offered by
the institution; the process for continuing education upon
transfer to another facility or release; the process for
continuing enrollment at the institution upon release,
including barriers to admission such as criminal history
questions on applications for admissions; and in the case of
programs designed to prepare students for gainful employment in
a recognized occupation, information on any relevant licensure
and certification requirements for the relevant occupation, as
well as restrictions in State or federal law related to the
employment of formerly incarcerated individuals in the relevant
occupation.
This section requires the Secretary to confirm an
institution's initial eligibility and determine at least once
every 5 years whether an institution should continue to be
eligible to receive Pell Grants on behalf of incarcerated
students. Reviews of eligibility are based on compliance with
the requirements of this Act, the data collected on each course
of study offered by the institution, and any other information
that may be available to the Secretary. The Secretary is also
required to collect data on the courses of study for which
incarcerated students receive Pell Grants, including data
related to student demographics, the share of students
receiving Pell Grants, academic outcomes of incarcerated
students (such as credit accumulation and degree completion),
to the extent practicable, post-release outcomes (such as
continued postsecondary enrollment, employment, and
recidivism), and, where available, data from student
satisfaction surveys conducted by the institution or
correctional facility. The Secretary will provide a report on
best practices in educating incarcerated students at least once
every three years and issue a report on the impact of the
expansion of Pell Grants for incarcerated students within three
years of the enactment of this Act.
Subpart 2--Federal Early Outreach and Student Services Programs
Chapter 1--Federal TRIO Programs
Sec. 4021--Program authority; authorization of appropriations
This section authorizes the minimum grant amount for TRIO
programs at $220,000 except in cases where total funding would
result in fewer than 2,7800 grants being awarded, in which case
the minimum is reduced until at least 2,7800 grants can be
funded. This section further renames the TRIO priority for
`prior experience' to `prior success' and ensures that homeless
and foster youth are able to participate in and benefit from
TRIO services. Homeless and foster youth status are also added
as required disaggregation categories for TRIO programs.
This section sets the required timeframe for notifying
grant recipients of the status of their renewal applications at
90 days and requires the Department to publish guidance for
TRIO applicants at least 90 days before the start of each grant
competition. The Department is also required to provide at
least one virtual, interactive training for potential grant
applicants.
This section prohibits the Department from rejecting a TRIO
grant application solely on the basis of a failure to meet page
limits and formatting standards. It further requires that the
Department provide applicants an opportunity to correct
typographical and rounding errors in proposed budgets before
issuing any rejection or penalty.
This section allows TRIO programs to use income as reported
in the FAFSA and Pell Grant eligibility as proof of low-income
status for the purpose of qualifying for TRIO services. For the
Talent Search and Educational Opportunity Centers programs,
students will also be considered low-income if they attend a
school that is receiving or eligible to receive special
assistance payments through the federal free and reduced price
school lunch program.
This section makes conforming changes to remove references
to the Academic Competitiveness Grant Program. For the Talent
Search and Upward Bound programs, this section adds outcome
metrics related to FAFSA completion and college admissions
applications. For Upward Bound programs this section further
ensures that programs that specifically target veterans will be
evaluated based on a set of criteria reflective of the
population served (e.g. not including metrics related to high
school performance). For Student Support Services (SSS)
Programs, this section ensures that outcome metrics for
programs at two-year institutions accurately reflect the
success of students who transfer to a four-year institution.
For Postbaccalaureate Achievement Programs, this section sets a
two-year timeframe for the graduate study outcome metric and a
ten-year timeframe for the outcome metric related to doctoral
degree attainment. For Educational Opportunity Centers, this
section sets a two-year timeframe for the outcome metric
related to enrollment in programs that lead to a secondary
school diploma or its equivalent and ensures that returning
college students are captured in the college enrollment outcome
metric.
This section authorizes $1.12 billion for FY 2021 and each
of the five succeeding fiscal years and includes an annual
inflation increase for FY 2022 through FY 2026. This section
authorizes the Department to use up to one percent of program
funds to administer grant competitions, conduct oversight,
provide technical assistance, and provide guidance to potential
TRIO applicants.
Sec. 4022--Talent search
This section adds college advising to the purpose of the
Talent Search program, adds career counseling to the list of
required services, and ensures that required financial literacy
services include information on degree choice and potential
federal loan burden. This section requires applicants to
provide an assurance that they have reviewed and revised
policies and practices to remove barriers to participation of
homeless and foster youth and to submit a description of the
activities they will undertake to conduct outreach to homeless
and foster youth. Talent Search grant recipients must also
report on the number of homeless children and youth served and
any strategies or program enhancements that were effective in
meeting the needs of homeless and foster youth.
Sec. 4023--Upward bound
This section updates the required services for Upward Bound
to include career counseling and to ensure that required
financial literacy services help participants make informed
choices regarding postsecondary options. This section removes a
required activity related to providing secondary school
reentry, alternative education programs, and GED programs. This
section specifies that Upward Bound programs shall provide
instruction in math, science, foreign language, language arts,
and, in the case of a program not designed specifically for
veterans, literature. This section strikes the requirement that
multi-year grant recipients provide instruction in such areas
and strikes language related to program funding in FY 2008
through FY 2011.
This section replaces references to ``youth'' with the word
``participants'' and sets the maximum stipends available to
participants at $90 per month in the summer, $450 per month for
individuals participating in a work-study program in the
summer, and $60 per month during non-summer months. This
section authorizes a $100 per month stipend available to adults
participating in projects specifically targeting veterans.
This section requires Upward Bound applicants to provide an
assurance that they have reviewed and revised policies and
practices to remove barriers to participation of homeless and
foster youth and to submit a description of the activities they
will undertake to conduct outreach to homeless and foster
youth. Upward Bound grant recipients must also report on the
number of homeless children and youth served and any strategies
or program enhancements that were effective in meeting the
needs of homeless and foster youth.
Sec. 4024--Student support services
This section includes support for low-income and first-
generation college students in the purpose of the SSS Program.
This section strikes financial planning services from the
program purpose and includes such services as a required
service. This section further amends the required services to
require that financial literacy services include information on
loan burdens, repayment options, and expected earnings.
This section requires SSS applicants to provide an
assurance that they have reviewed and revised policies and
practices to remove barriers to participation of homeless and
foster youth and to submit a description of the activities they
will undertake to conduct outreach to homeless and foster
youth. SSS grant recipients must also report on the number of
homeless children and youth served and any strategies or
program enhancements that were effective in meeting the needs
of homeless and foster youth.
Sec. 4025--Postbaccalaureate achievement program authority
This section amends required services for the
Postbaccalaureate Achievement Program to include year-round
internships as well as faculty-led experiences. This section
authorizes the maximum annual stipend for participating
students at $4,000.
Sec. 4026--Educational opportunity centers
This section amends the purpose of the Educational
Opportunity Centers (EOC) program to reflect the participation
of returning students and to ensure that financial literacy
services include information on financial planning for college,
including loan burdens, repayment options, and expected
earnings.
This section requires EOC applicants to provide an
assurance that they have reviewed and revised policies and
practices to remove barriers to participation of homeless and
foster youth and to submit a description of the activities they
will undertake to conduct outreach to homeless and foster
youth. EOC grant recipients must also report on the number of
homeless children and youth served and any strategies or
program enhancements that were effective in meeting the needs
of homeless and foster youth.
Sec. 4027--Staff developmental activities
This section amends staff development activities for TRIO
programs to include webinars and online classes and make
training available to all staff of TRIO programs. This section
provides for two training opportunities on legislation and
regulatory requirements and program management--one for new
directors and one for continuing directors and staff. This
section strikes a reference to ``model programs'' and inserts a
reference to ``innovations.''
Sec. 4028--Reports and evaluations
This section expands reporting requirements for various
TRIO programs. This section removes references to an FY 2010
evaluation of Upward Bound programs and specifies that
evaluations of TRIO programs shall address issues including the
effectiveness of programs and projects in meeting or exceeding
their stated objectives, enhancing access of low-income and
first-generation students to postsecondary education, and
preparing such individuals for college. The section further
requires that TRIO evaluations compare students who participate
in TRIO programs with students who do not participate,
including on measures of educational attainment, retention
rates, graduation rates, and college admission and completion
rates. It ensures that the outcome targets used by TRIO
programs are considered when implementing evaluations required
under this section and requires that Upward Bound programs be
additionally evaluated based on the characteristics of students
who benefit most from such programs. This section requires that
TRIO evaluations be submitted to the Congress.
This section authorizes reporting requirements related to
homeless and foster youth to which Talent Search, Upward Bound,
Student Support Services, and Educational Opportunity Centers
grant recipients are subject. Such grant recipients must report
on the number of homeless children and youth served (when such
data are available) and any strategies or program enhancements
that were effective in meeting the needs of homeless and foster
youth.
Chapter 2--Gaining Early Awareness and Readiness for Undergraduate
Programs
Sec. 4031--Gaining early awareness and readiness for undergraduate
programs
This section makes amendments to emphasize college
readiness and codify long-standing policies related to the
receipt of multiple awards, the distribution of program funds,
the frequency of open competitions, and the treatment of non-
federal scholarships for the purposes of the non-federal
matching requirement. It also updates competitive priorities
and applies such priorities as optional to both state and
partnership grantees.
This section requires GEAR UP applicants to describe how
they will facilitate the participation of homeless and foster
youth in GEAR UP programs, including through identification and
outreach activities, data collection and reporting, and the
revising of policies and practices to remove barriers to
participation among homeless and foster youth.
This section authorizes a two-to-one federal-to-non-federal
match requirement. This section authorizes, as grant
activities, advising by peer and near-peer mentors, counseling
and referral services, additional types of assessments, and
capacity building activities that create college going cultures
in participating schools. This section authorizes grantees to
implement expanded credit recovery programs, to collect and
analyze data, and to recruit and retain homeless individuals
and foster care youth. This section authorizes, but does not
require, grantees to provide services to high school students
who received services under a previous grant. This section
authorizes the provision of technical assistance as an activity
of State grantees.
This section clarifies that free and reduced priced lunch
eligibility can be used to determine status as a priority
student and provides flexibility for GEAR UP grantees that
choose to offer scholarships. This section allows scholarship
recipients to use funds for pre-enrollment costs such as
application fees and deposits. This section further improves
the technical assistance available to, and national evaluations
of, GEAR UP programs.
This section authorizes reporting requirements related to
homeless and foster youth to which GEAR UP grantees are
subject. Grant recipients must report on the number of homeless
children and youth served (when such data are available) and
any strategies or program enhancements that were effective in
meeting the needs of homeless and foster youth.
This section authorizes $500 million for FY 2021 and each
of the five succeeding fiscal years for GEAR UP programs.
Subpart 3--Federal Supplemental Educational Opportunity Grants
Sec. 4041--Purpose; appropriations authorized
This section authorizes appropriations for the Federal
Supplemental Educational Opportunity Grants (FSEOG) program and
authorizes the creation of an emergency grant aid program for
public and private nonprofit institutions that participate in
FSEOG. This section authorizes $1.15 billion for FY 2021, $1.3
billion for FY 2022, $1.45 billion for FY 2023, $1.6 billion
for FY 2024, and $1.75 billion for FY 2025 and each succeeding
fiscal year. This section also allocates $12.5 million from
authorized funds in FY 2021 and each of the five succeeding
fiscal years for the emergency grant aid program.
Sec. 4042--Institutional eligibility
This section does not require an institutional match of
funds for HBCUs, TCCUs, and HSIs, ANNHSIs, PBIs, AANAPISIs, and
NASNTIs (other MSIs), described under title III and title V of
the HEA, that participate in FSEOG.
Sec. 4043--Allocation of funds
This section amends the formula for allocation of FSEOG
program funds to give more weight to student need and provides
for gradual implementation of such amended formula. Beginning
in FY 2021 the formula changes to: 90 percent of the amount the
institution received in FY 2020 or the fair share amount,
whichever is greater. This continues through FY 2022--FY 2025.
Starting in FY 2026 and for each succeeding fiscal year, the
allocation is the fair share amount.
This section defines the fair share amount as based on
undergraduate need at the institution, which is equal to 50
percent of the proportional amount of Pell grants awarded at
the institution relative to Pell Grants awarded at all
participating institutions, and 50 percent of the proportional
amount of undergraduate need at the institution relative to
institutional need at all participating institutions.
Undergraduate need is determined by taking such student's
average cost of attendance at the participating institution and
subtracting such student's EFC which cannot exceed such
student's annual subsidized or unsubsidized loan limit. An
institution that enrolls less than seven percent Pell Grant
recipients for two or more fiscal years during a three-year
fiscal year period is ineligible to participate in FSEOG.
Sec. 4044--Emergency financial aid grant program
This section authorizes a competitive grant program for
participating institutions to provide students with emergency
funding of no more than $750 for an individual request and no
more than $2,000 total from the federal share of funds through
completion. Institutions are provided flexibility to define an
emergency for which a grant may be awarded to a student but at
minimum, this includes loss of employment, loss of housing,
food insecurity, a medical condition, and death or medical
condition of the student's parent or guardian. The Secretary
will determine how quickly aid must be released to students and
priority is given to institutions that enroll at least 30
percent Pell eligible students. Participating institutions are
required to report annually to the Secretary about the outcomes
of the grant program including the types of emergencies
declared and the average grant award.
Subpart 4--Special Programs for Students Whose Families Are Engaged in
Migrant and Seasonal Farmwork
Sec. 4051--Special programs for students whose families are engaged in
migrant and seasonal farmwork
This section reauthorizes the high school equivalency
program and college assistance migrant program projects for FY
2021 and each of the five succeeding fiscal years.
Subpart 5--Child Care Access Means Parents in School
Sec. 4061--CCAMPIS reauthorization
This section reauthorizes and makes changes to the Child
Care Access Means Parents in School (CCAMPIS) program. This
section authorizes the maximum grant amount at 2 percent of the
total amount of Pell Grant funds awarded to students at the
institution and authorizes the Department to award bonus funds
to longstanding and successful grantees in the event that
appropriations for the program exceed $140 million in a given
fiscal year. Such bonuses are not to exceed an amount equal to
20 percent of the annual grant payment received by the
institution in the preceding fiscal year.
This section authorizes a five-year grant period for
CCAMPIS and specifies that grant funds may be used to provide
evening, summer, weekend and before and after school services,
as well as services to expectant parents. This section requires
CCAMPIS applications to include information on the number of
low-income student parents being served through campus-based
childcare services and the estimated percentage of the
institution's grant that will be used to directly subsidize the
fee charged for on- and off-campus childcare for low-income
students.
This section requires new grantees to meet reasonable
quality standards aligned to standards used in other federal
childcare support programs within three years of receiving a
CCAMPIS grant. This section requires grantees to provide
information to student parents on potential eligibility for
benefits under the supplemental nutrition assistance program
(SNAP), special supplemental nutrition program for women,
infants, and children (WIC), and temporary assistance for needy
families (TANF) program. Applications must also contain an
abstract summarizing the contents of such application and how
the institution intends to achieve the purpose of the CCAMPIS
program. This section further requires applications to include
an assurance that the applicant will provide information
regarding the availability of child care subsidies for student
parents and the dependent care cost allowance available to
parents with dependent children in accordance with section 472
of the HEA.
This section authorizes the Secretary to provide technical
assistance to help eligible institutions qualify for, apply
for, and maintain a CCAMPIS grant. This section updates CCAMPIS
priorities to include the extent to which grantees leverage
local or institutional resources and to prioritize applicants
that demonstrate a high likelihood of need for campus-based
child care based on student demographics.
This section updates and refines the reporting requirements
for CCAMPIS grantees and includes specific reporting on the
outcomes of students who receive child care services at least
once per week. Such outcomes, which include rates of retention,
transfer, and graduation, are compared to outcomes among all
students and low-income students at the institution. Grant
recipients must also report on the percentage of the
institution's grant that was used to directly subsidize the fee
charged for on- and off-campus childcare and indicate whether
the institution restricts eligibility to only full-time
students. Institutions receiving CCAMPIS grants must also set
sufficiently ambitious performance goals to be used to asses
eligibility for bonus funds. Such performance goals are not
used to determine initial or ongoing eligibility for CCAMPIS.
This section requires the Secretary to annually produce a
public report summarizing the information collected from
CCAMPIS grantees and to provide technical assistance to help
grantees meet CCAMPIS reporting requirements.
This section authorizes $200 million for FY 2021 and each
of the five succeeding fiscal years.
Subpart 6--Jumpstart to College Grant Programs
Sec. 4071--Jumpstart to college grant programs
This section authorizes the ``Jumpstart to College'' grant
program to increase the percentage of students, particularly
low-income students and other students traditionally
underrepresented in higher education, who complete a recognized
postsecondary credential within 100 percent of normal time for
the completion of such credential.
This section defines eligible entities as public or private
nonprofit institutions partnered with one or more LEA. This
section also aligns definitions of dual or concurrent
enrollment and early college high school, along with other
definitions, with the ESEA. The term recognized postsecondary
credential is aligned to WIOA.
This section authorizes $250 million for FY 2021 and each
of the five succeeding fiscal years. This section reserves 40
percent of funds to grants that are partnerships established
between institutions and LEAs, 55 percent of funds for grants
to states, and 5 percent for national activities.
This section creates a six-year competitive grant
competition for eligible entities to establish or support a
dual or concurrent enrollment program or early college high
school and limits each grant to no more than $2 million.
Grantees must provide a match that starts at 20 percent of the
grant award and increases over time to 50 percent by year six.
This section allows the Secretary to give priority to
applicants that propose to establish or support a quality
program serving low-income students. Priority shall also be
given to applicants located in states that provide state
support for dual enrollment or early college. The Secretary
shall ensure that awardees are geographically diverse and
represent both two- and four-year institutions.
This section creates a six-year competitive grant
competition for states to assist them in supporting or
establishing early college high schools or dual or concurrent
enrollment programs. There is no authorized limit on the
maximum award given to any one state. States must match at
least 50 percent of the grant award with non-federal funds.
Applicants must provide information on how the state will do
the following: Access and leverage resources necessary to
sustain the programs; align programs with ESEA, WIOA, Carl D.
Perkins Career and Technical Education Act (CTE); and identify
and eliminate barriers to program sustainability.
This section requires all grantees to submit annual reports
to the Department including information about the number of
students enrolled in programs funded under this section, the
number and percentage of students who earn a recognized
postsecondary credential when they graduate high school, the
number of postsecondary credits students earn, and other
outcome data.
This section requires the Department to provide technical
assistance to grantees and disseminate best practices. Further,
this section requires the Department to contract with an
independent entity to evaluate the grants awarded under this
section.
Subpart 7--TEACH Grants
Sec. 4081--Revised definitions of teach grants
This section defines teacher preparation programs as a
state-approved course of study at an institution that meets all
the state's educational or training requirements for initial
certification or licensure to teach in the state's elementary
or secondary schools.
Sec. 4082--Revisions to establishing teach grant program
This section allows for individuals who complete an
associate's degree in early childhood development to qualify
for up to $8,000 under the TEACH Grant program. If such
individuals pursue a bachelor's degree in early childhood
development upon completion of their associate's degree, this
section clarifies that those individuals can receive up to
$8000 more under the program. This section amends the grant
structure to authorize $8000 per year per individual in the
junior and senior years of such individual's undergraduate
program.
Sec. 4083--Revisions to teach grant agreements to serve and eligibility
This section authorizes early childhood education as an
eligible high-need field and location for teachers to complete
their four years of service under the TEACH Grant. An early
childhood educator qualifies if they work at a location serving
low-income communities that is in the same geographic location
of a high-need LEA. This section includes an assurance that an
applicant's loan servicer will notify the applicant when they
are required to certify their service, including when they have
failed to submit such certification. Further, this section
clarifies the timeframe during which an applicant's grant is
converted to a loan that must be repaid. This section allows
for a TEACH grant recipient's service to still qualify if their
LEA no longer meets the high-need definition, they change
duties or assignments at their school, or their subject area no
longer meets the high-need definition.
Sec. 4084--Revisions to teach grant data collection and reporting
This section requires the Secretary to make publicly
available annual reports with aggregate student data on
recipient outcomes, proportion of those whose TEACH grant is
converted into loans and requires data to be disaggregated.
This section requires the Secretary to provide reports at least
once every three years to Congress on the utilization rates of
TEACH grants, review of best practices associated with higher
rates of completion of agreements, and recommendations to
improve the program.
Subpart 8--Northern Mariana Islands and American Samoa College Access
Sec. 4091--Northern Mariana Islands and American Samoa College access
This section authorizes a grant program to increase access
to four-year institutions for eligible students residing in the
Northern Mariana Islands (CNMI) and American Samoa. Funding is
provided to the Governors of CNMI and American Samoa to pay an
eligible participating institution the difference between the
tuition and fees charged for in-State and out-of-State
students. The participating institution must enter into an
agreement with the Governors and be a public four-year
institution located in one of the fifty states, the District of
Columbia, Puerto Rico, the United States Virgin Islands, or
Guam. Eligible students are individuals who enroll in a
participating four-year institution within three years of
graduating from a two-year college located in the CNMI or
American Samoa.
This section authorizes $5 million for FY 2021 and each of
the five succeeding fiscal years. The amount paid on behalf of
an eligible student cannot exceed $15,000 during one award year
and not more than $45,000 in the aggregate. If there is
insufficient funding, the amount paid on behalf of the student
can be ratably reduced. The Governors are authorized to
prioritize the amount of tuition and fee payments based on the
income and need of eligible students. A Governor cannot use
more than 5 percent of the available funds to pay the
administrative expenses of the program.
Each Governor must carry out the program in consultation
with the Secretary and must develop policies and procedures to
administer the program. Additionally, each Governor must submit
an annual report to Congress detailing the number of
participating students and their progress in completing a
degree.
This section also requires that the Government
Accountability Office (GAO) report on the effect of the program
on educational opportunities for eligible students and any
barriers to implementation.
Subpart 9--Student Access
Sec. 4092--Community College Student Success Grant program authorized
This section authorizes a competitive grant program to
community colleges to plan and implement student success
programs designed to increase the rates at which community
college students either transfer or complete their programs of
study within 150 percent of the normal time of completion.
This section authorizes a one-year competitive planning
grant for community colleges to develop community college
student success programs and gives priority to institutions
eligible to receive funds under title III or title V of the
HEA. Applications must be peer-reviewed by non-federal
employees who have research or practical experience with
community college student support programs.
This section authorizes a five-year competitive grant for
community colleges to implement student success programs and
limits eligibility for receipt of implementation grants to
community colleges that received a planning grant authorized
under this section. This section requires a non-federal match
starting in the second year of the grant and requires
institutions to contribute an increasing match between years
two and five of the grant. TCCUs and colleges located in the
U.S. territories are not required to match more than 5 percent
of the cost to carry out the community college student success
program for each year.
Community colleges must use funds to implement a community
college student success program, regularly review student
progress through data monitoring, and employ individuals
specifically responsible for administering the student success
program. This section also authorizes uses of funds including
the creation or expansion of data tracking systems; provision
of financial assistance to help cover the cost of textbooks,
living expenses, and childcare; funds to cover financial gaps
for summer courses; and establishment or expansion of career
development and tutoring services. Further, this section
requires community colleges to submit annual reports to the
Secretary on grant progress and requires a final report within
a year after the grant concludes on the success or failure of
the program; challenges faced and opportunities for
improvement; and plans for program continuation.
This section requires the Institute of Education Sciences
(IES) to contract with an independent evaluator prior to
awarding implementation grants and mandates program evaluation
of each individual community college student success program as
well as the average impact, variation in program impacts, and
cost effectiveness of student success programs on graduation
and transfer rates compared to eligible institutions without
such programs. The Secretary is required to notify eligible
institutions of the availability of grants under this program
and to provide technical assistance in developing sufficiently
ambitious outcome goals and implementing community college
student success programs. The Secretary is required to submit a
report to Congress within one year of receiving the final
evaluation results. This section prohibits grantees from using
grant funds to carry out activities that would have been
carried out in the absence of federal funds.
This section defines community college student success
program as a program carried out by an eligible institution
(i.e. a public two-year institution) that provides eligible
students with additional support to meet unmet financial need.
This section requires such students to meet with a program
advisor twice monthly during the first semester and as directed
in subsequent terms and participate in career advising events
at least once per semester. For students referred to remedial
education, this section requires such students to meet with
tutors at least weekly.
This section requires grantees to actively offer students
tutoring, career services, and program advisors who provide
comprehensive advising, including help with the creation and
implementation of an academic plan and academic goals. An
eligible student is defined as a full-time community college
student enrolled in an associate degree program and is either a
first-time undergraduate or a transfer student with no more
than 15 credits and a 2.0 minimum GPA. Eligible students must
need no more than two remedial courses and have completed the
Free Application for Federal Student Aid (FAFSA). This section
authorizes $1 billion in FY 2021 to be available until expended
for five succeeding fiscal years.
Sec. 4093. Federal Pell Bonus Program
This section authorizes and appropriates $500 million for
FY 2021 and each succeeding fiscal year to reward institutions
for enrolling low-income students and ensuring that such
students succeed. Under this section, eligible institutions
(i.e. public and private not-for-profit institutions with a
Pell enrollment of at least 25 percent) will receive a bonus
for every Pell recipient that earns a bachelor's degree within
the normal time to completion. Funds authorized and
appropriated under this section may be used by eligible
institutions to expand access and success among low-income
students, including through the provision of need-based
financial aid and student supports.
Part B--Federal Family Education Loan Program
Sec. 4101--Termination of certain repayment plan options and
opportunity to change repayment plans
This section allows borrowers with a loan under the Federal
Family Education Loan (FFEL) program to discontinue repayment
under their existing repayment plan and enter repayment in
either the section 493C(f) income-based repayment (IBR) plan or
section 493E fixed repayment plan authorized under Sec. 4630
and Sec. 4631 of this Act, respectively. In the case of a
defaulted borrower whose loan is assigned to the Secretary, the
Secretary may require the borrower to repay according to the
section 439C(f) IBR plan.
Sec. 4102--Termination of interest capitalization for subsidized loans
after certain periods
This section prohibits accrued interest on FFEL Subsidized
Loans from capitalizing after periods of forbearance subsequent
to enactment of this Act. This section requires lenders to
inform borrowers that interest will not be capitalized at the
end of forbearance.
Sec. 4103--Termination of interest capitalization for PLUS loans after
certain periods
This section prohibits the accrued interest on FFEL and
Federal Direct PLUS Loans (applicable to parent borrowers and
graduate/professional student borrowers) from capitalizing at
the end of forbearance and certain types of deferment (i.e.
graduate fellowship deferment, rehabilitation training program
deferment, unemployment deferment, economic hardship deferment,
military service deferment, and post-active duty student
deferment) subsequent to enactment of this Act.
Sec. 4104--Consolidation loans
This section allows borrowers who have already consolidated
their loans to obtain a subsequent consolidation loan for the
purpose of separating an existing Joint Consolidation Loan into
two separate Direct Consolidation Loans (see Sec. 4302 of this
Act for more information), Public Service Loan Forgiveness
(PSLF), or entering repayment under the section 493C(f) IBR
plan or section 493E fixed repayment plan authorized under Sec.
4630 and Sec. 4631 of this Act, respectively. This section also
allows prohibits the accrued interest on consolidation loans
from capitalizing at the end of forbearance and certain types
of deferment (i.e. graduate fellowship deferment,
rehabilitation training program deferment, unemployment
deferment, economic hardship deferment, military service
deferment, and post-active duty student deferment) subsequent
to enactment of this Act.
Sec. 4105--Default reduction program
This section requires the Secretary to request any consumer
reporting agency to which the Secretary reported the default of
the loan to remove any adverse information relating to such
loan from the borrower's credit history.
Sec. 4106--Termination of interest capitalization for unsubsidized
loans after certain periods
This section exempts the accrued interest on unsubsidized
FFEL loans from capitalizing at the end of all forbearance and
certain types of deferment (i.e. graduate fellowship deferment,
rehabilitation training program deferment, unemployment
deferment, economic hardship deferment, military service
deferment, and post-active duty student deferment) subsequent
to enactment of this Act.
Sec. 4107--Disbursement of student loans
This section allows institutions with an aCDR (authorized
under Sec. 4110 of this Act) below a specified threshold for
each of the three most recent fiscal years to disburse loans
(FFEL and Direct Loans) in a single installment for a period of
enrollment. Further, this section makes additional conforming
amendments related to use of aCDR.
Sec. 4108--Student loan contract and loan disclosures
This section requires that the master promissory note be
referred to as a ``student loan contract'' for periods of
enrollment subsequent to enactment of this Act. A borrower may
only enter into a student loan contract after completing all
annual loan counseling required under Sec. 4611 of this Act.
The loan contract is only valid for one academic year. This
section requires the Secretary to streamline the student loan
disclosure requirements under the HEA.
Sec. 4109--Borrower advocate conforming amendments
This section makes conforming amendments to account for the
use of ``Borrower Advocate'' in place of ``Student Loan
Ombudsman'' (see Sec. 1031 of this Act).
Sec. 4110--Cohort default rates
This section prohibits the default management plans
required of poorly performing institutions from including
forbearance as a means of reducing cohort default rates.
This section improves the cohort default rate (CDR) metric
by adjusting for the number of borrowers at an institution and
the number of borrowers who are in long-term forbearance (18
months or longer). An institution's aCDR is defined in this
section as the share of students in default within three years
after entering repayment multiplied by the share of students
enrolled at the institution who are borrowing a loan under part
D of title IV of the HEA (i.e. direct loans including direct
subsidized loans, direct unsubsidized loans, and direct PLUS
loans). Borrowers who are in nonmandatory forbearance for
between 18 and 36 months are not counted as having entered
repayment until they cease to be in forbearance and otherwise
meet the requirements for being in repayment, while borrowers
in forbearance for 3 or more years shall be counted as being in
default for the purpose of the aCDR calculation.
This section establishes multiple thresholds that require
institutions to take measures to improve their aCDR.
Institutions lose eligibility to participate in programs under
title IV of the HEA if they have an aCDR of greater than 20
percent for three consecutive fiscal years. Institutions with
an aCDR of 15 percent or higher for six consecutive fiscal
years lose eligibility unless the Secretary determines that the
institution has made adequate progress in meeting accreditor
standards for student achievement (see Sec. 4713 of this Act)
during the six-year period. Institutions subject to loss of
title IV funds based on the six-year threshold may request
exceptions to maintain access to title IV for categories of
educational programs defined at the credential level (e.g.
bachelor's degrees, associate's degrees, and certificates) that
have aCDRs below 15 percent. Institutions with an aCDR of 10
percent or higher for eight consecutive years lose eligibility
unless the Secretary determines that the institution has made
adequate progress in meeting accreditor standards for student
achievement during the eight-year period.
This section makes conforming changes to provide for the
orderly transition from the CDR metric to the aCDR. This
transition is made after the Secretary has published final aCDR
rates for at least three fiscal years. This section also
provides for a transition period during which any covered
institution with an aCDR of over 20 percent may request an
exception to maintain title IV eligibility for a maximum of
three years after the transition to the aCDR is made. Covered
institutions include public institutions, HBCUs, and private
nonprofit institutions with a low-income student enrollment of
45 percent or greater.
Institutions with a high aCDR can receive technical
assistance and financial support from the Department to improve
student outcomes. Only covered institutions with an aCDR of 10
to 15 percent are eligible for such assistance and support (see
Sec. 4731 of this Act for details).
Sec. 4111--Automatic income monitoring procedures after a total and
permanent disability discharge
This section requires the Secretary to establish and
implement automatic income monitoring for borrowers who have
experienced a total and permanent disability. The Secretary
must provide the borrower with an opportunity to update the
income information obtained before determining the borrower's
continued eligibility for loan discharge. The Secretary must
also allow a borrower to opt-out of the automatic income
monitoring under this section.
Sec. 4112--Automatic closed school discharge
This section requires the Secretary to automatically
discharge the loans of a borrower who was unable to complete a
program due to the closure of the institution and has not
enrolled in another institution two years after closure.
Sec. 4113--Repayment of parent loans due to student disability
This section requires the Secretary to discharge a parent's
liability on a Federal PLUS loan if the student on whose behalf
the parent received the loan becomes permanently and totally
disabled or is unable to engage in any substantial gainful
activity for at least 60 months due to medical impairment.
Safeguards to prevent fraud and abuse applicable to total and
permanent disability discharge for loans taken out by students
apply to these provisions. This section authorizes the
Secretary to promulgate regulations to reinstate the obligation
of discharged loans in cases when reinstatement is determined
to be necessary and appropriate.
Part C--Federal Work-Study Programs
Sec. 4201--Purpose; authorization of appropriations
This section authorizes $1.5 billion for FY 2021; $1.75
billion for FY 2022; $2 billion for FY 2023; $2.25 billion for
FY 2024; and $2.5 billion for FY 2025 and each succeeding
fiscal year for Federal Work Study (FWS). This section
authorizes ``work-based learning'' as qualifying under
Community Services and defines such term.
Sec. 4202--Allocation formula
This section authorizes use of up to $150 million for each
fiscal year to award bonus payments of $5,000 or greater to
private nonprofit and public institutions for enrolling and
graduating high numbers of Pell Grant recipients. To qualify
for the bonus fund, institutions must meet certain thresholds
of Pell enrollment and completion. This section also directs
the Secretary to make publicly available the list of
institutions that receive awards from the bonus fund.
This section amends the FWS formula to allocate funds to
institutions serving the neediest students and phases-in such
amendments. During the phase in period each institution
receives the greater of a declining percentage of its FY 2021
allocation or its fair share amount.Beginning in FY 2021 the
formula changes to: 90 percent of the amount the institution
received in FY 2020 or the fair share amount, whichever is
greater. This reduction continues in FY 2022 through FY 2025.
In FY 2026 and for each succeeding fiscal year, the
institution's allocation is the fair share amount.
The allocation for FY 2026 and future years is based on the
fair share amount for the institution, which is the sum of 100
percent of an institution's undergraduate need and 25 percent
of the institution's graduate need. Under this formula,
institutional undergraduate need is equal to 50 percent of the
proportional amount of Pell grants awarded at the institution
relative to Pell Grants awarded at all participating
institutions, and 50 percent of the proportional amount of
undergraduate need at the institution relative to institutional
need at all participating institutions. Institutional graduate
need is equal to the proportional amount of the institution's
graduate need compared to graduate need at all participating
FWS institutions. Undergraduate need is determined by taking
such student's average cost of attendance at the participating
institution and subtracting such student's EFC which cannot
exceed such student's annual subsidized or unsubsidized loan
limit. Graduate need is calculated in a similar way and cannot
exceed the unsubsidized loan limit for graduate students. An
institution is no longer eligible to participate if its student
population has less than seven percent Pell Grant recipients
for two or more fiscal years during a three-year fiscal year
eligible or if the institution only serves graduate students,
fewer than five percent have an EFC of zero for two out of
three fiscal years.
Sec. 4203--Grants for Federal work-study programs
This section requires institutions to use at least seven
percent of total funding to pay students employed in work-based
learning positions and use at least three percent of total
funding to compensate students with the lowest EFC employed in
work-based learning positions during qualified periods of non-
enrollment, allowing for individuals to use FWS during the
summer. It further allows FWS funds to be used for cooperative
education programs in a part-time or full-time capacity that is
no longer than six months. This section also requires
institutions to provide funding for students' travel expenses
if such travel is necessary to allow for participation in the
program and requires alignment between a student's educational
and career goals.
This section requires institutions to notify students
participating in the FWS program of their potential eligibility
for SNAP and to provide documentation of such students'
participation in FWS for the purposes of qualifying for SNAP
benefits. This section requires the Secretary, in consultation
with the Secretary of Agriculture, to provide guidance to
states and institutions on how to identify and communicate with
students who are likely to be eligible for SNAP, including
students participating in the FWS program.
Sec. 4204--Flexible use of funds
This section authorizes participating institutions to carry
over 20 percent of program funds from on year to the next and
allows students to continue to earn unearned portions of their
work study award from the previous year if they are employed in
a work-based learning position.
Sec. 4205--Job location and development programs
This section authorizes 20 percent or $150,000 for Job
Location and Development Programs and requires institutions to
locate and develop work-based learning opportunities and
prioritize placing students with exceptional need and FWS
recipients in such opportunities.
Sec. 4206--Community service
This section allows participating institutions to use up to
10 percent of funds an institution receives for administrative
expenses for the operation of the community service-learning
programs, including the work-based learning requirement. Funds
must be used to assure the academic quality of the student
experience and support a student's career goals.
Sec. 4207--Amendments to Work Colleges
This section adds a staggered date for new Work College
applications, requires all applicants to have participated in
the Federal Work Study program for at least two years prior to
applying, and clarifies that only four-year programs are
eligible to participate in the Work College program.
Sec. 4208--Pilot grant program
This section authorizes a $30 million pilot program to
provide grants to eligible institutions to establish or expand
a program to develop work-based learning positions targeted to
students with exceptional need. The application must: identify
high-demand occupations and develop partnerships with those
employers; involve participating employers in the evaluation
and improvement of the program; track and report academic and
employment outcomes for participating students; and show the
institution's ability to continue implementation when the grant
term ends. Institutions must submit a report to the Department
on the pilot program, which will include graduation and
completion rates of participants, student satisfaction of the
program, and the percentage of participants employed in high-
demand occupations.
Sec. 4209--Department activities
This section requires the Secretary to develop a consumer-
tested electronic survey for students awarded work-study
employment and employers of students participating in work-
study employment. The Secretary is required to implement such
tool no later than one year after enactment of this Act and
every four years.
Sec. 4210--Study and report
This section requires the GAO to conduct a study on best
practices for assisting students participating in the FWS
program.
Part D--Federal Direct Loan Program
Sec. 4301--Program authority
This section makes available to the Department mandatory
funding to make newly authorized (1) loans under the Refinanced
Direct Loan program, which would include refinanced FFEL Loans
and Direct Loans under the new authority, and (2) loans under
the Federal Direct Refinanced Private Loans program.
Sec. 4302--Amendments to terms and conditions of loans and repayment
plans
This section makes changes to the Direct Loan program,
including changes to:
Provide graduate and professional students
attending public and non-profit institutions with
access to subsidized loans at the same interest rate
available to these students for unsubsidized loans.
Repeal origination fees on all loans subject
to collection of such fees--Direct Subsidized and
Unsubsidized Loans and Direct PLUS Loans.
Require the Secretary to end new eligibility
for all existing repayment plans and offer new
borrowers either the section 493C(f) IBR plan or
section 493E fixed repayment plan established under
Sec. 4630 and Sec. 4631 of this Act, respectively. The
Secretary must initiate an awareness campaign to inform
borrowers of the new existing repayment plans. If the
borrower does not select a plan, the Secretary may
enroll the borrower in such fixed repayment plan. An
existing borrower who is in repayment may choose to
retain their repayment plan or elect to enter one of
the two plans authorized by this Act. If the borrower
elects one of such plans, they will retain any years of
repayment in their prior repayment plan for purposes of
forgiveness or cancellation.
Authorize the Secretary to obtain income and
family size information of a borrower (and the
borrower's spouse, if applicable) who is 60 days
delinquent. This section requires the Secretary to
provide certain information to such borrowers (e.g.
identification of the delinquent loans, monthly payment
amounts applicable to the borrower's loans under the
newly created repayment plans, and clear instructions
on how to select a repayment plan). A borrower has the
option to opt-out of this process.
Require the Secretary to place borrowers who
are 120 days delinquent on a covered loan and not
already enrolled in an IDR plan into the section
493C(f) IBR plan if the borrower's monthly payment is
lower under the section 493C(f) IBR plan. Such borrower
has the option to opt-out of this process and may elect
to enroll in the section 493E fixed repayment plan.
Authorize the Secretary to obtain income and
family size information of a borrower (and the
borrower's spouse, if applicable) who is rehabilitating
a covered loan. Within 30 days of a borrower's sixth
payment required for loan rehabilitation, the Secretary
must notify the borrower that upon making the ninth
(and final) required payment, the borrower will be
placed in the section 493C(f) IBR plan. A borrower who
is rehabilitating a defaulted loan may opt-out of this
process.
Require a borrower's prepayments to be
applied first to such borrower's loan with the highest
interest rate, unless such borrower requests otherwise
for any borrower who has multiple loans with different
interest rates. For a borrower who makes a prepayment
on multiple loans with the same interest rate, the
prepayment is applied first to the loan with the
largest outstanding principal balance. Such
requirements relating to the application of a
borrower's prepayment apply to such borrower's loans
that are held by the same entity and on which there are
no outstanding fees or collection costs owed.
Make a conforming amendment to authorize
borrowers enrolled in the income contingent repayment
(ICR) plan on the day before the date of enactment of
this Act to enroll in the section 493E fixed repayment
plan or the section 493C(f) IBR plan authorized by this
Act.
Provide for automatic annual recertification
of a borrower's income (and their spouse, as
applicable) and family size for borrowers enrolled in
specified IDR plans, including the section 493C(f) IBR
plan authorized by this Act. Borrowers may opt-out of
such automatic recertification. Any such borrower must
actively provide recertification information to the
Secretary on an annual basis.
Prohibit accrued interest from capitalizing
after forbearance and specified types of deferment
(i.e. graduate fellowship deferment, rehabilitation
training program deferment, unemployment deferment,
economic hardship deferment, military service
deferment, and post-active duty student deferment) for
Federal Direct PLUS loans, Federal Direct Unsubsidized
Loans, and Federal Direct Consolidation Loans
subsequent to enactment of this Act.
Allow married borrowers or previously
married borrowers who received a Joint Consolidation
Loan (JCL) to apply to separate such loan into two
Federal Direct Consolidation Loans. Each such loan is
equal to either (1) the unpaid principal and accrued
unpaid interest of the proportion of the JCL
attributable to the loans initially borrowed by each
individual or (2)a different proportion mutually agreed
to by the borrowers. Borrowers are eligible to receive
a separate Consolidation Loan, irrespective of
currently existing statutory restrictions on
Consolidation Loan borrower eligibility. The two
resulting Federal Direct Consolidation Loans have the
same terms and conditions of the JCL. For purposes of
PSLF, any qualifying payment made on the JCL during a
period in which the individual borrower was employed in
public service would be treated as if such payment was
made on the newly separated Federal Direct
Consolidation Loan and count toward forgiveness. Any
payment made on the JCL under the standard repayment
plan, graduated repayment plan, extended repayment
plan, income-contingent, and IBR plan are treated as if
such payment were made on the resulting Consolidation
Loan. Individual borrowers seeking separation of an
existing JCL must apply jointly. Individuals who
suffered domestic violence or economic abuse may apply
individually for separation of their JCL if they
certify that they are unable to reasonably access the
loan information of the other individual borrower.
Repeal subsection (q) of section 455 of the
HEA, which bars students from borrowing subsidized
loans after being enrolled in their program for more
than 150 percent of the length of their academic
program commonly referred to as the Subsidized Usage
Limit Applies or SULA.
Sec. 4303--Amendments to terms and conditions of public service loan
forgiveness
This section makes conforming amendments to include
payments made under the section 493C(f) IBR plan or section
493E fixed repayment plan established under Sec. 4630 and Sec.
4631 of this Act, respectively, as qualifying payments for
forgiveness under this section.
This section repeals the requirement that a borrower be
employed in a public service job at the time of forgiveness and
requires the Department to provide forgiveness authorized under
this section without further action by the borrower upon such
borrower having satisfied eligibility requirements for such
forgiveness.
This section requires the Department to consider payments
made prior to a borrower's receipt of a Refinanced FFEL or
Direct Loan during which time such borrower is employed in a
qualifying public service job as qualifying payments for
forgiveness under this section. Such payments are treated as a
monthly payment on the portion of the refinanced loan
attributable to such discharged loan. Payments made prior to a
borrower's receipt of a Federal Direct Consolidation Loan
during which time such borrower is employed in a qualifying
public service job made on or after the date of enactment of
this Act shall be considered as qualifying payments for
forgiveness under this section. Such payments shall be made
attributable to the portion of the Direct Consolidation Loan
that the Consolidation Loan discharged. Special rules apply in
cases of subsequent consolidation loans.
This section requires the Department to maintain an online
portal that provides borrowers with a variety of information to
help such borrowers determine eligibility for PSLF and how to
submit any forms associated with the program. The portal must
allow borrowers to electronically sign and submit any required
forms. The portal must allow a borrower to file a dispute and
the Secretary must provide status updates on the claim at least
once every 90 days. The Secretary must ensure that employers
can electronically sign and submit any required forms. This
section requires the Department (in consultation with the
Commissioner of the IRS) to establish and regularly update a
database listing qualifying public service jobs.
This section expands public service jobs to include part-
time faculty at public and nonprofit institutions teaching no
less than two courses and not working full-time anywhere else.
Additionally, public service jobs will now the following
include full-time jobs:
as an employee or manager of a farm or ranch
with fiscal year gross revenues greater than $35,000;
at certain veterans or military service
organizations that do not engage in partisan political
campaign activity (must be an organization described in
section 501(c)(19) and (23) of the Internal Revenue
Code); and
as a healthcare practitioner who provides
medical services at a nonprofit or public hospital or
healthcare facility and who is prohibited by state law
from being employed directly by such hospital or
healthcare facility.
This section repeals the prohibition on receiving a
reduction of loan obligation for the same service under PSLF
and loan forgiveness for teachers.
Sec. 4304--Federal Direct Perkins Loans terms and conditions
This section authorizes the Federal Direct Perkins Loan
program to allow participating institutions to award 5 percent
interest loans to undergraduate and graduate and professional
students. Such authorization prohibits annual awards from
exceeding $5,500 for undergraduate students and $8,000 for
graduate and professional students.
Sec. 4305--Common manual for loan servicers
This section makes a conforming amendment to align with the
requirement that the Department develop a common manual of
standardized procedures and policies for entities that contract
with the Secretary for the servicing and collecting of loans
authorized by Sec. 4632 of this Act.
Sec. 4306--Refinancing FFEL and Federal Direct Loans
This section requires the Secretary to allow borrowers to
refinance FFEL and Federal Direct Stafford Loan, Federal Direct
Unsubsidized Stafford Loan, Federal Direct PLUS Loan, and
Federal Direct Consolidation Loans to statutorily-specified
interest rates. This section limits eligibility for such
refinancing to FFEL loans disbursed no later than July 1, 2010
and all other eligible loans no later than July 1, 2020.
Interest rates for refinanced loans would be fixed for the
life of the loan and are as follows:
Where the original loan was a FFEL or Direct
Loan program Subsidized or Unsubsidized Loan issued to
an undergraduate student, the current rate applicable
to Direct Subsidized and Unsubsidized Loans issued to
undergraduate students between July 1, 2019 and June
30, 2020 (i.e. 4.53 percent).
Where the original loan was a FFEL or Direct
Loan program Subsidized or Unsubsidized Loan issued to
graduate/professional student, the current rate
applicable to Direct Unsubsidized Loans issued to
graduate/professional students between July 1, 2019 and
June 30, 2020 (i.e. 6.08 percent).
Where the original loan was a FFEL or Direct
Loan program PLUS loan, the current rate applicable to
Direct PLUS Loans issued between July 1, 2019 and June
30, 2020 (i.e. 7.08 percent).
Where the original loan was a FFEL and
Direct Loan program Consolidation Loan, the Secretary
must calculate an interest rate according to the
proportion of unpaid principal balance on each of the
component loans. The refinanced interest rate must be
the rate established for borrowers originating a loan
between July 2017 and June 2018 or the original
interest rate of the component loan, whichever is
lowest. For component loans that are not FFEL or Direct
Loan program loans (e.g. Health Education Assistance
Loans program loans, Nursing Student Loans, National
Defense Student Loans, etc.), the original interest
rate of the component loan is applied in calculating
the weighted average of the FFEL or Direct Loan program
Consolidation Loan.
The refinanced loan carries the same terms and conditions
as the original loan. Refinancing a loan under this section
shall not extend the duration of the repayment period and the
borrower shall retain the same repayment term. Borrowers shall
have the authority to elect a different repayment plan at any
time following such refinancing.
This section requires the Secretary to establish debt-to-
income eligibility requirements in a way that considers access
for borrowers with the greatest financial need.
This section requires the Secretary, in coordination with
the CFPB, to initiate an awareness campaign to inform eligible
borrowers of refinancing opportunities authorized under this
Act. The Department is required to develop consumer information
materials, which shall be provided to borrowers by servicers.
Sec. 4307--Refinancing private student loans
This section establishes a Federal Direct Refinanced
Private Loan program, which allows eligible borrowers with
qualified private loans disbursed before July 1, 2020 to
refinance such loans through the Federal Direct Loan program.
To be eligible for refinancing of private loans authorized by
this section, loans must have been taken out to pay educational
expenses at an institution participating in the Direct Loan
program when the loans were first disbursed and must be current
for six months prior to the application and in good standing.
Furthermore, borrowers must undergo loan counseling before
their loans are refinanced and must meet debt-to-income
eligibility requirements and other criteria established by the
Secretary.
The Federal Direct Refinanced Private Loan is issued in an
amount equal to the unpaid principal, accrued interest, and
late charges on the private education loans being refinanced.
To discharge the private education loans, the proceeds of the
loans are paid to the private loan lender. Terms and conditions
are the same as a Direct Unsubsidized Loan except as follows:
Where the private education loans refinanced
were for undergraduate study, the interest rate is the
current rate applicable for Direct Subsidized and
Unsubsidized Loans issued to undergraduate students
between July 1, 2019 and June 30, 2020 (i.e. 4.53
percent).
Where the private education loans refinanced
were for graduate/professional study, the interest rate
is the current rate applicable for Direct Unsubsidized
Loans issued to graduate students between July 1, 2019
and June 30, 2020 (i.e. 6.08 percent).
Where the private education loans refinanced
were for undergraduate and graduate/professional study,
the interest rate is the current rate applicable for
Direct PLUS loans issued to graduate students between
July 1, 2019 and June 30, 2020 (i.e. 7.08 percent).
The amount of a Federal Direct Refinanced
Private Loan shall not count against a borrower's
annual or aggregate federal student loan limits.
Refinanced private loans are ineligible for
certain loan forgiveness (i.e. for service in areas of
national need, loan repayment for civil legal
assistance attorneys, teacher loan forgiveness, and
PSLF).
This section requires private educational lenders to report
data (e.g. total number of private education loan borrowers
served and average interest rate on its outstanding private
education portfolio) to the Secretary, Congress, the Secretary
of the Treasury, and the Director of the CFPB. The Secretary,
in coordination with the Secretary of the Treasury and Director
of the CFPB, is required to initiate a campaign to alert
private education loan borrowers of the opportunity to
refinance eligible loans into a Federal Direct Refinanced
Private Loan.
Part E--Federal Perkins Loan
Sec. 4401--Authorization of appropriations for Perkins loan
This section authorizes appropriations for the Federal
Direct Perkins loan program.
Sec. 4402--Allocation of funds for Perkins loan
This section clarifies that the allocation formula of
Perkins loans in effect prior to enactment of this Act shall be
used for any year before FY 2021.
Sec. 4403--Federal Direct Perkins loan allocation
This section authorizes up to $2.4 billion in annual loan
authority for the allocation of Federal Direct Perkins loans
for award year 2021-2022 and each succeeding award year. The
minimum allocation amount must be no less than the average of
the institution's total Perkins loans from academic years 2011-
2012 to 2015-2016. If this is the case, the Secretary will take
steps to ensure an institution's minimum allocation by ratably
reducing the amount of the loans to all participating
institutions. Loan authority authorized by the section shall be
allocated to institutions using the formula authorized under
Sec. 4202 of this Act.
Sec. 4404--Agreements with institutions of higher education for
purposes of the Perkins loan program
This section stipulates requirements for agreements made
between the Department and institutions participating in the
Perkins loan program before and after July 1, 2021. This
section repeals authority for the Department to use collections
on defaulted loans to cover collection costs and repeals the
authority for the Secretary to divide defaulted loan
collections among other institutions. This section requires the
Secretary to return a portion of funds from loan repayments to
the institution and amends the authority for institutions to
receive payments in lieu of reimbursement for expenses in
servicing loans made before July 1, 2021. For loans made after
July 1, 2021, the institution shall operate the program
consistent with the requirements of the direct loan program
unless otherwise specified and will lose eligibility to
participate in the direct Perkins loan program if such
institution has a high adjusted cohort default rate.
Sec. 4405--Student loan information by eligible institutions for
purposes of the Perkins loan program
This section clarifies that disclosure requirements in
place for Perkins loans on the day prior to the date of
enactment of this Act shall be used for loans made before FY
2021.
Sec. 4406--Terms of loans for purposes of the Perkins loan program
This section maintains requirements in place for Perkins
loans on the day prior to the date of enactment of this Act for
Perkins loans made before July 1, 2021. For Perkins loans made
on or after July 1, 2021, the loan agreements no longer require
an institutional match from the institution.
Sec. 4407--Reimbursement for cancellation of Perkins loans for certain
public service
This section amends the reimbursement for cancellation of
Perkins loans under the program authorized through October 2017
to require the Department to repay each quarter. This section
also allows institutions to deduct from their loan repayments
owed to the Department, loan payments from loans the
institution has retained for servicing.
Sec. 4408--Distribution of assets from student loan funds for purposes
of the Perkins loan program
This section subtracts an institution's outstanding
administrative costs, charges, and loan cancellation costs and
short-term loan costs from the amount paid to the Department by
the institution. This section authorizes a quarterly payment
until all outstanding Perkins loans originated under the
program authorized through October 2017 have been assigned to
the Department.
Part F--Need Analysis
Sec. 4501--Amendments to family contribution
This section makes conforming amendments including by
replacing the term ``academic year'' with the term ``award
year'' as it relates to the calculation of EFC. This section
extends the benefit for the dependents of police officers and
active duty members of the military who are killed in the line
of duty to the spouses of such individuals. Individuals who
meet the qualifications of the section are deemed to have a
zero EFC.
Sec. 4502--Amendments to data elements when determining the expected
family contribution
This section makes specified data elements used to
determine a student's EFC only applicable for FAFSA filers
whose families were required to file lettered tax schedules
(other than the schedule EIC or schedule R) for purposes of
their income tax return or whose adjusted gross income exceeds
$60,000.
Sec. 4503--Amendments to family contribution for dependent students
This section makes specified data elements used to
determine a dependent student's EFC only applicable for FAFSA
filers whose families were required to file lettered tax
schedules (other than the schedule EIC or schedule R) for
purposes of their income tax return or whose adjusted gross
income exceeds $60,000.
This section eliminates statutory inconsistencies between
academic year and award year by replacing the term ``academic
year'' with the term ``award year,'' where appropriate.
This section increases the income protection allowance for
academic year 2021-2022 to $9,230 for a dependent student.
Sec. 4504--Amendments to family contribution for independent students
without dependents other than a spouse
This section makes specified data elements used to
determine the EFC for independent students without dependents
other than a spouse only applicable for FAFSA filers who were
required to file lettered tax schedules (other than the
schedule EIC or schedule R) for purposes of their income tax
return or whose adjusted gross income exceeds $60,000.
This section eliminates statutory inconsistencies between
academic year and award year by replacing the term ``academic
year'' with the term ``award year,'' where appropriate.
This section increases the income protection allowance for
academic year 2021-2022 and to $14,360 for single or separated
students, or married students where both are enrolled and to
$23,030 for married students where one is enrolled.
Sec. 4505--Amendments to family contribution for independent students
with dependents other than a spouse
This section makes specified data elements used to
determine the EFC for independent students with dependents
other than a spouse only applicable for FAFSA filers who were
required to file lettered tax schedules (other than the
schedule EIC or schedule R) for purposes of their income tax
return or whose adjusted gross income exceeds $60,000.
This section eliminates statutory inconsistencies between
academic year and award year by replacing the term ``academic
year'' with the term ``award year,'' where appropriate.
This section updates the table to increase the income
protection allowance for independent students with dependents
other than a spouse by 35 percent. The dollar amount varies
based on family size and number of dependents in college.
Sec. 4506--Institutional calculations for off-campus room and board
This section requires the Secretary to prescribe at least
one methodology that institutions must use in determining the
cost of room and board for students living off campus for the
purpose of calculating the projected cost of attendance.
Sec. 4507--Updated tables and amounts to need analysis
For each academic year after 2021-2022, this section
directs the Secretary to publish in the Federal Register
updated income protection allowance amounts and tables by
increasing the 2021-2022 dollar amounts by a percentage equal
to the estimated percentage increase in the Consumer Price
Index, rounded to the nearest $10.
Sec. 4508--Zero expected family contribution
This section amends the criteria that qualify a FAFSA
applicant for an automatic zero EFC determination, including by
removing the income requirement for filers who received a
means-tested federal benefit in the previous two years.
Eligible means-tested federal benefit programs include the
following: supplemental security income (SSI); SNAP; TANF; WIC;
Medicaid; and any other program identified by the Secretary.
A student who did not benefit from a federal benefit
program can qualify for an automatic zero EFC if they (or, in
the case of a dependent student, their parents) had an adjusted
gross income (AGI) of $37,000 or less and did not file a
lettered tax schedule (other than the schedule EIC or schedule
R). The section requires the Secretary to annually increase the
AGI threshold by the estimated percentage change in the
Consumer Price Index, rounded to the nearest $1,000.
This section removes the requirement that independent
students have dependents in order to be eligible for an
automatic zero EFC.
Sec. 4509--Amendments to definitions in need analysis
This section requires the Secretary to allow the use of
income data from the previous year's tax return on the FAFSA.
This section removes specified data elements from the
definition of ``untaxed income and benefits'' for the purposes
of calculating EFC, including workman's compensation; veteran's
benefits such as death pension, dependency, and indemnity
compensation; and interest on tax-free bonds.
This section amends the definition of an independent
student as it relates to foster and homeless youth and
streamlines the processes for determining and verifying
independent status for such youth, including by listing
examples of documentation that shall be considered adequate to
verify independence by financial aid administrators and
requiring that a determination of independence be made as
quickly as practicable, and no later than the award year for
which the student initially submits a FAFSA. Students who are
determined to be independent for one award year are presumed to
be independent for the subsequent year unless the student
informs the institution that their circumstances have changed
or the institution has specific conflicting information about
the student's independence.
This section amends the definition of excludable income to
explicitly include payments made through title IV part E of the
Social Security Act to or on behalf of any child or youth over
whom the State agency has responsibility for placement, care,
or supervision. This includes the value of vouchers for
education and training and amounts expended for room and board
for youth who are not in foster care but are receiving services
under section 477 of such Act (John H. Chaffee Foster Care
Independence Program).
Part G--General Provisions Relating to Student Assistance Programs
Sec. 4601--Definition of eligible program
This section specifies loan eligibility requirements for
certificate programs lasting 300 to 600 clock hours. This
section establishes an earnings metric for eligibility that
requires graduates to have earnings higher than students with
only a high school diploma. This section requires such programs
to prepare students for gainful employment in a recognized
occupation. To maintain eligibility, such short-term
certificate programs must meet a completion rate metric, the
gainful employment metric established by the Secretary, and the
newly created earnings metric each year. This section also
requires the Secretary to collect and report data on these
programs.
Sec. 4602--Definition of third party servicer
This section expands the definition of third party servicer
to include any entity that contracts with an institution to
recruit students.
Sec. 4603--FAFSA simplification
This section makes conforming amendments to section 483 of
the HEA in accordance with the changes contained in this Act.
This section directs the Secretary to include a single,
easily understood screening question on the FAFSA to determine
if a student is homeless or self-supported and at risk of
homelessness.
This section reduces the number of questions that an
applicant must answer when completing their FAFSA by placing
the applicant into one of three authorized pathways:
Pathway 1: Applicants (or in the case of a
dependent student, the student's parents) who benefited
from a means-tested federal benefit program in the
previous two years may automatically skip all financial
questions and be deemed to have zero EFC, thereby
maximizing their eligibility for federal aid. To verify
the information, the Secretary is directed to enter
into 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.
Pathway 2: Applicants (or in the case of a
dependent student, the student's parents) who did not
participate in a means-tested federal benefit program
in the previous two years, but have an adjusted gross
income of less than $60,000 and do not have to file
lettered tax schedules with their federal income tax
(other than the schedule EIC or schedule R) shall
complete a limited number of financial questions based
on the changes made in Sec. 4502 of this Act. The
Secretary is directed to use the data retrieval tool
(DRT) to obtain necessary federal income tax
information from the IRS.
Pathway 3: All other applicants (those who
file lettered tax schedules other than the EIC or R or
who have an adjusted gross income of over $60,000) must
complete the remainder of the financial questions in
the FAFSA. The Secretary is directed to use the DRT to
obtain necessary federal income tax information from
the IRS.
This section requires Pell Grant recipients to file a FAFSA
just once before going to college, instead of annually. In
subsequent years, students will maintain the EFC amount that
was calculated for that first year if their circumstances have
not significantly changed. This section requires such an
applicant to annually certify via a simple, consumer-tested
form, that they have the same dependency status and indicate
whether their need or eligibility for federal financial
assistance has substantially changed. Applicants experiencing a
change in dependency status or significant change in
circumstances either will either re-file the FAFSA or receive a
professional judgement determination from their financial aid
administrator.
This section requires the Secretary to provide the FAFSA in
both paper and electronic formats in at least 11 foreign
languages based on the languages most often spoken by English
learner students and their parents. This section also requires
the FAFSA to be available in formats accessible to individuals
with disabilities.
This section directs the Secretary to make every effort to
allow all applicants to utilize the DRT to automatically
populate the FAFSA with tax return information for an expedited
process. This section requires the Secretary to examine whether
IRS information can be used to generate an EFC without
additional information being provided by the applicant. This
section requires the Secretary to report on these
simplification efforts at least once every other year.
This section directs the Secretary to annually publish data
on the number of FAFSA applicants who are homeless, including
unaccompanied youth and foster care children and youth,
disaggregated by state and the source of the determination of
homeless status. The Secretary will also report on the number
of undetermined requests for homelessness consideration,
including statuses that remain unknown because no determination
has been made.
This section prohibits the Secretary from including any
question about convictions related to the possession or sale of
illegal drugs on the FAFSA.
This section requires the Secretary to annually report
information about the number and percentage of Pell-eligible
applicants who are asked to verify their income disaggregated
by a number of characteristics, including whether applicants
filed the FAFSA through Pathway 1, 2, or 3 as authorized by
this section. The report must be submitted to Congress and made
publicly available.
This section requires all title-IV participating
institutions to use a financial aid offer that complies with
federal requirements developed by the Department following
consumer testing. This section enumerates a number of required
elements that must be included in all aid offers and requires
the Secretary to establish standardized terms, definitions, and
formatting requirements. Each financial aid offer must include
a standardized quick reference box with a maximum of eight
elements including, at a minimum, cost of attendance, total
grant aid, and net price.
Sec. 4604--Student eligibility
This section allows individuals who have temporary
protected immigration status and qualifying undocumented
individuals to be eligible for federal student aid and services
provided under title IV of the HEA. Such undocumented
individuals (defined as ``Dreamers'' in this Act) are those who
were younger than 16 years of age on the date of U.S. arrival
and earned a high school diploma (or its equivalent), enrolled
at an institution without a high school diploma (or its
equivalent) but meets the eligibility requirements under
section 484(d) of the HEA, or served in the uniformed services
for not less than four years. Individuals who would have been
eligible under the Deferred Action for Parents of Americans and
Lawful Permanent Residents (DAPA) program are also eligible for
federal student aid and services. This section authorizes the
Secretary to provide a waiver for the age requirement if the
individual shows a hardship exception.
This section allows individuals who do not hold a high
school diploma or the equivalent to be eligible for federal
student aid and services provided under Title IV of the HEA if
they demonstrate an ability to benefit by earning six credit
hours toward a postsecondary degree. Such students must be
enrolled in a degree program meeting specific requirements in
order to qualify. Only students at public and private nonprofit
institutions are eligible for Title IV aid under this
expansion.
This section lifts the selective service registration
requirement for federal student aid eligibility and repeals
statutory language that limits eligibility for students who
have a drug-related offense.
Sec. 4605--Reasonable collection costs on defaulted loans
This section places a cap on collection fees charged to
defaulted borrowers. For purposes of the first collection
effort, the collection cost cannot exceed five percent of the
outstanding principal and interest on the defaulted loan.
Subsequent collection efforts, cannot be more than five
percentage points greater than the collection costs charged in
the preceding collection effort. The maximum amount that can be
charged is 20 percent of the outstanding balance of principal
and interest.
Sec. 4606--Student eligibility information for nutrition assistance
programs
This section requires institutions to provide students with
the most recent relevant student eligibility guidance for SNAP
and WIC, as well as the contact information for the State
agency responsible for administering those programs and
information on food pantries and other food assistance
facilities and services available to students. This section
requires the Department to make available and annually update
the student eligibility guidance for SNAP and WIC on the
College Navigator website.
Sec. 4607--Exit counseling
This section requires institutions to use an interactive
program or the online counseling tool created by the Secretary
for exit loan counseling provided pursuant to section 485(b) of
the HEA. The section outlines additional information that must
be included in exit counseling such as a summary of the
borrower's outstanding loan balance, an explanation of the
grace period prior to repayment, the expected date the borrower
will enter repayment, and contact information for the loan
servicers. The section makes conforming amendments.
Sec. 4608--Clery Act amendments
This section amends section 485(f) of the HEA, also known
as the Clery Act. This section requires institutions to
disclose campus policies regarding required background checks
for employees and volunteers working with student athletes,
children, or youth participating in university-sponsored
programs held in campus facilities. This section also requires
institutions to report on the number of incidents of hazing and
harassment that are reported to campus security authorities or
local police and establishes definitions for hazing, harassment
(including sexual harassment), commercial mobile service,
electronic communication, and electronic messaging. For the
purposes of this reporting, harassment includes conduct
undertaken in whole or in part through the use of electronic
messaging services, commercial mobile services, and electronic
communications.
This section requires institutions to report on each
finding that a student organization has committed a violation
of the anti-hazing policies of the institution. This section
requires institutions to provide victims of campus sexual
assault with information on institutional policies regarding
the reimbursement of lost tuition and costs associated with
student loan interest accrual. This section further requires
institutions to develop and distribute a statement of policy
regarding harassment, which shall include a prohibition on
harassment, a description of the institution's programs to
combat and prevent harassment, and a description of the
procedures that the institution will follow when harassment
incidents are reported. This section authorizes a civil penalty
of $100,000 on an institution that has substantially
misrepresented the number, location, or nature of the crimes
required to be reported under the Clery Act per each such
misrepresentation.
Sec. 4609--Online survey tool for campus safety
This section requires the Secretary to develop a
standardized online survey tool regarding student experiences
with domestic violence, dating violence, sexual assault, sexual
harassment, and stalking. Such survey must reflect best
practices and peer-reviewed research; be fair, unbiased,
statistically valid and reliable; use trauma-informed language;
and meet the highest standards of survey research. The section
describes the elements that will be included in the survey to
gather information on student experiences with dating violence,
sexual assault, sexual harassment, and stalking, including
questions regarding the prevalence of such incidents, whether
victims reported the incidents or were referred to campus
resources, relevant contextual factors, the impact of incidents
on victims' education, the impact and effectiveness of
prevention and awareness programs, and respondents' attitudes
toward sexual violence and harassment, including the
willingness of individuals to engage in bystander intervention.
This section requires institutions to administer such
survey every two years. Institutions are authorized to add
additional elements specific to their institutions and will be
required to ensure, to the maximum extent practicable, that an
adequate, random, and representative sample size of students
complete the survey. The Secretary is prohibited from charging
institutions from modifying the survey tool. This section
directs the Secretary to prepare and publicly release a
biennial report using the information gained from the
standardized survey and requires that each institution publish
the campus-level results of the survey on the website of the
institution. Survey responses must be confidential and, when
published in a report, shall not include personally
identifiable information. Survey results shall not be included
in the school's crime statistics.
Sec. 4610--Transfer of credit policies
This section requires institutions participating in title
IV programs to provide information on transfer of credit
policies to students including information on articulation
agreements into which the institution, relevant deadlines,
financial aid information, and staff contact information.
Sec. 4611--Amendments to institutional and financial assistance
This section repeals notice requirements related to the
impact of drug offenses on title IV eligibility. The relevant
penalties are repealed in Sec. 4604 of this Act.
This section requires institutions that participate in
federal student aid to have a single point of contact to assist
homeless foster care youth, including by connecting such
students to support services, programs, financial aid, academic
advising, housing, food, public benefits, healthcare, health
insurance, mental health services, and mentoring. This section
requires institutions to give homeless and foster youth
priority for housing that is open on a year-round basis and to
have a plan to help homeless and foster youth access housing
during school breaks.
This section also requires institutions to provide annual
loan counseling to borrowers in an interactive format either
in-person or online. This section requires certain information
that must be included in counseling sessions, including
information about various financial aid options including
encouraging students to use grant aid first, interest rates on
the loan, and how repayment works. This section requires
borrowers to sign a student loan contract that affirmatively
states the borrower accepts the loan. This section requires the
Secretary to maintain an online counseling tool that
institutions may use for exit counseling and annual loan
counseling.
This section establishes requirements for institutions that
request, receive, or exercise a religious exemption to the
requirements of title IX of the Education Amendments of 1972.
This section requires such institutions to submit a written
statement identifying the provisions that conflict with a
specific tenet of the religious organization to the Assistant
Secretary for Civil Rights. Institutions are required to
publish online, in a prominent location, the following: each
request letter submitted to the Department to request a title
IX exemption; each exemption letter from the Department that
grants or denies a requested exemption; a notice indicating
that the institution has requested an exemption; if applicable,
a notice that the institution has received an exemption; a list
of the personal characteristics, behaviors, activities, and
programs to which each exemption applies; and a statement of
rights specifying that students continue to have the rights
under title IX of the Education Amendments of 1972 and
providing contact information for the Department's Office for
Civil Rights.
This section requires institutions to make information
available to expectant and parenting students on how to take a
leave of absence, how to take advantage of financial aid and
support services (including emergency aid programs offered by
the institution), and how to exercise rights and secure
protections and accommodations under title IX of the Education
Amendments of 1972, the Rehabilitation Act of 1973, and the
Americans with Disabilities Act of 1990. This section also
requires institutions to inform expectant and parenting
students of the rights and protections guaranteed under
applicable federal and state laws.
Sec. 4612--Prevention of improper access
This section directs the Secretary when administering the
National Student Loan System to prevent improper access to
borrower information. This section also directs the Secretary
to create a new form of third-party access, similar to the
preparer function under the FAFSA for those applying to repay
their loans on behalf of a student and their family.
Sec. 4613--Information with respect to crime statistics for programs of
study abroad
This section requires institutions to develop and
distribute a statement of policy regarding crime and harm that
may occur during study abroad programs approved for credit by
the institution. Institutions are required to, at a minimum,
conduct a biennial review of study abroad programs to determine
the effectiveness of the programs at protecting students from
crime and harm and whether changes to the program are needed.
Institutions must also report on the number of deaths, sexual
assaults, accidents and illness that result in hospitalization,
and incidents that result in police involvement that occur
during the study abroad program. Such reporting will include
incidents that occurred during program participation (and, in
the case of death, during any other activities during the
period of study abroad) over the preceding five years.
Institutions are further required to provide each student
who is interested in participating in a study abroad program
with an orientation session and advising that includes travel
warnings and alerts issued by the State Department and the
crime and safety statistics collected for the relevant study
abroad programs. Students returning from study abroad must be
provided with a post-trip debriefing session and exit interview
to inform the data collection required under this section.
Sec. 4614--Remedial education grants
This section authorizes a grant program to improve remedial
education.
Eligible entities are required to provide an assurance they
will use multiple measures to identify students in need of
remedial education, rather than the traditional method of
basing the placement into remedial education on one test.
Eligible entities seeking funding must also describe how they
will use evidence-based strategies to improve remedial
education, how the new model will be sustained once the grant
program concludes, and the plan for internal monitoring and
evaluation.
The Secretary is required to contract and consult with an
independent third-party evaluator in carrying out the remedial
education grant program authorized by this section. Such
evaluator will provide input on which entities should receive
grants and conduct a rigorous evaluation of the effectiveness
of remedial education programs funded under this section.
The section requires eligible entities to develop or
improve remedial education programs based on one or more of
five authorized models. The first model supports partnerships
between institutions and local educational agencies or state
educational agencies to align coursework between the high
school and colleges and allows for early assessments to be
implemented measuring a student's readiness for college. The
second model requires eligible entities to redesign or improve
course work that allows a student to complete in an accelerated
time schedule. The third model, Modular Instructional Methods,
allows the eligible entity to use or improve assessments that
provide information based on specific skills needed to be ready
for credit-bearing coursework. The eligible entity can then
provide targeted skill instruction to students rather than
requiring a student to take an entire course for specific skill
deficits. The fourth model, co-requisite remediation, allows
students to enroll in remedial education classes while also
enrolling in credit-bearing coursework. The final model,
systemic reform to implement comprehensive, integrated support
programs, requires a system-wide restructuring of remedial
education programs that help students find success in their
remedial education course work and once in credit-bearing
courses.
When making awards, the Secretary is required to consult
with the Director of IES and must make at least 30 awards to
eligible entities. Other considerations include geographic
distribution, distribution of awards in rural and urban
entities, and provision of awards to a range of institutional
types and sizes. Applications that primarily serve students who
are low-income shall be given preference. The Secretary must
also seek to distribute funds in such a way as to allow for
statistical comparisons within and between each model.
This section clarifies that grant funds are meant to
supplement not supplant any other funding provided for remedial
education. Eligible entities are required to match funding up
to 10 percent of the amount of the grant from non-federal
sources. TCCUs and institutions located in the Commonwealth of
Puerto Rico, Guam, American Samoa, United States Virgin
Islands, Commonwealth of the Northern Mariana Islands, Republic
of the Marshall Islands, Federated States of Micronesia, and
Republic of Palau are exempt from such matching requirement.
This section provides eligible entities the option to
voluntarily use an experimental authority granted to the
Secretary to extend funding for students under title IV of the
HEA to two years for non-credit bearing course work.
Grant recipients are required to provide student-level data
sufficient to determine the number of students in remedial
education programs, the type of remedial education courses
students receive, the cost of courses, the amount of grant or
loan funds awarded to students for enrollment in remedial
education programs, the length of time students spend in
remedial education, the number of students who complete the
remedial education program, the number of students that enroll
postsecondary-level courses after completing remedial
education, the time it takes students to complete a credential,
and the number and percentage of students who graduate from the
institution within 150 percent of the normal time of
completion. Data shall be disaggregated by race, gender,
income, first-generation status, veteran or active duty status,
and disability status.
Data reported by grant recipients shall be used by the
third-party evaluator to conduct an independent evaluation of
the impact of the remedial education programs funded under this
section. The evaluation will address the effectiveness of
remedial education programs in increasing course and degree
completion and compare the effectiveness of the five models
identified in this section. The Secretary is required to
provide an initial report a year after the first award is
distributed and a final report not later than five years after
the last award is distributed. Both reports will be submitted
to the authorizing committees and made available to the public.
This section specifies that it is unlawful for any person
with access to personally identifiable information to share
such information with any unauthorized person. Those in
violation of this section will be fined or, in the case of
federal employees, be dismissed. Sale of data is prohibited.
The data cannot be shared with federal agencies not explicitly
authorized and cannot be used for law enforcement activity.
This section defines eligible entity as an institution per
the definition in section 101 of the HEA or as a partnership
between an institution and a local educational agencies or
state educational agencies. This section defines the term
``remedial education'' to mean below-college-level courses and
training that provide the competencies necessary for a student
to succeed in college level coursework. Remedial education may
also be identified as developmental education. Five other
definitions relevant for this section are included.
This section authorizes $162.5 million for FY 2021 and each
of the five succeeding fiscal years.
Sec. 4615--Competency-based education
This section authorizes the voluntary implementation of
five-year competency-based education (CBE) demonstration
project at institutions. The Secretary shall develop an
application process to select eligible entities and will
conduct outreach to HBCUs, TCCUs, and other MSIs, rural
institutions, institutions predominantly serving adult learners
and; and institutions serving students with disabilities.
Institutions applying to participate must include a
description of the CBE program and information on the project's
academic delivery, business, and financial model. Applying
institutions must also explain how the CBE program will differ
from standard credit hour programs, facilitate student
achievement of competencies, evaluate assessments of student
learning, align the competencies with workforce needs and
career pathways. Additionally, applying institutions must
explain how the CBE program will lead to strong earnings, job
placement, and loan repayment rates, and result in lower costs
or shorter time to degree or certification completion.
In the application, institutions must provide a proposal
for determining a student's federal student aid eligibility and
develop safeguards to ensure students are making satisfactory
academic progress that warrants aid disbursement. Institutions
must ensure that students participating in the program are
eligible for the same amount of federal aid under a credit or
clock hour program. Applying institutions must also identify
the population of students who will be served under the project
and disaggregate the data by certain student demographics.
Other application requirements are outlined under this section.
To participate, institutions must meet financial
responsibility standards. Additionally, entities seeking to be
part of the demonstration project must ensure its accreditor
will review and evaluate the program based on standards
outlined under this section. Accrediting agencies must create
standards for determining when to deny, withdraw, suspend, or
terminate a program's accreditation. Additionally,
participating institutions must enroll no more than 3,000
students. However, institutions that have been evaluated at
least twice under this section may amend its application (with
Secretarial approval) to expand CBE program enrollment to no
more than 5,000 students.
The Secretary will select up to 100 eligible entities,
prioritizing programs that are committed to program evaluation,
have a history of compliance with federal higher education laws
and regulations, and commit to working with the Secretary and
Director of IES to evaluate the demonstration project. The
Secretary will ensure selection of programs that represent a
diverse group of eligible entities. The Secretary is prohibited
from awarding grant funds to institutions with a high aCDR,
under probation from the accrediting agency or the State, or
under public investigation or facing a pending lawsuit from a
State or federal agency.
The Secretary may waive or provide flexibility from certain
statutory and regulatory requirements as listed under this
section for participating institutions. Within nine months of
the enactment of this Act, the Secretary must provide Congress
and the public a list of the participating institutions and the
specific statutory or regulatory waivers provided.
Participating institutions must provide student-level data
to the Director of IES who will use the data to calculate
information such as the average period of time between a
student's enrollment and the first assessment of student
knowledge of such student, the average time to completion, and
a cohort's completion rate. The information must be
disaggregated by student characteristics and demographics as
outlined in this section. The Director of IES, in consultation
with the Secretary, must annually evaluate each participating
entity and submit an annual report to Congress detailing the
evaluation results. To allow IES to rigorously compare the
success of the CBE program, eligible entities must submit data
on students in the demonstration program, students
participating in a CBE program outside of the demonstration
project, and other students attending the institution. This
section outlines provisions on data privacy including penalties
for individuals who knowingly disclose to any person personally
identifiable information.
The Secretary must assure compliance of participating
entities, provide technical assistance, monitor enrollment
changes at eligible entities, work with accrediting agencies
and State regulatory authorities on ways to improve CBE
implementation, and share best practices with participating
entities.
This section authorizes $5,000,000 to carry out the
demonstration project.
The section defines the term ``competency-based education''
as a program that provides CBE which an institution's
accreditor has established or will establish standards
described in this Act and in accordance with certain standards
outlined in this subsection. This section also defines
``eligible entity'' as an institution defined in section 102 of
the HEA and may include dual or concurrent enrollment programs.
Sec. 4616--Competency-based education council
This section establishes a council to study CBE. The
council is comprised of individuals appointed by the Secretary,
the CFPB Director, and both the majority and minority
leadership in the Senate and House. The Comptroller General
will also appoint eight to 13 individuals such as experts in
CBE, faculty members, administrators, CBE students, and
representatives from accrediting agencies, state educational
agencies, and business. This section details the administrative
obligations of the council. The council is charged with
conducting a study on the development of CBE programs. Based on
the study and the annual evaluations described under Sec. 4615
of this Act, the council must develop recommendations related
to defining CBE, the amount of learning in a competency unit,
the transfer of competency units, the minimum amount of time in
an academic year, considerations for accrediting agencies, the
role of faculty in CBE programs, and additional resources that
may be needed for adequate oversight of CBE. A final report
containing the study's findings and the Council's
recommendations must be submitted to the Secretary and Congress
no later than six years after the date of enactment of this
Act.
Sec. 4617--Written arrangements to provide educational programs
This section establishes requirements for each institution
that outsources of portion of its educational programs to a
third-party provider. This section sets transparency and
accountability requirements for institutions that partner with
third-party providers and prohibits institutions from
outsourcing both admissions and educational content to the same
provider.
Sec. 4618--Improvements to program participation agreements
This section makes conforming changes to the program
participation agreement requirements as it relates to the
alcohol and substance misuse prevention program, aCDR, and
postsecondary data collection. This section amends the program
participation agreements by requiring institutions to provide
students with access to housing for foster youth. The section
amends the requirement that institutions distribute voter
registration forms to require all institutions make a good
faith effort to distribute such forms, regardless of the state
in which the institution is located. This section modifies the
``90/10 rule'' to require for-profit institutions to receive at
least 15 percent of their funding from non-federal sources and
includes a phase-in for institutions to meet this new
requirement starting July 1, 2022. This section modifies the
program participation agreement to require institutions that
enter into written arrangements with other entities to provide
part of an educational program to comply with the requirements
of section 486D of HEA, as amended by Sec. 4617 of this Act.
Sec. 4619--Compliance with the Civil Rights Act of 1964
This section requires each institution to designate at
least one employee to coordinate compliance with title VI of
the Civil Rights Act of 1964. Institutions are required to
annually submit a report to the Secretary including all title
VI complaints, to make such report publicly available on the
institution's website, and to notify students and employees of
the existence of such report, the name and contact information
for the employee designated by the institution to coordinate
title VI compliance, the title VI enforcement policies, and the
procedure for reporting and investigating title IV complaints.
Sec. 4620--Submission of data with respect to students with
disabilities
This section adds data regarding students with disabilities
to IPEDS. New information includes: total number of students
with disabilities enrolled, number of students accessing or
receiving accommodations, percentage of students with
disabilities of all undergraduate students, and the total
number of undergraduate certificates or degrees awarded to
students with disabilities.
Sec. 4621--Education program on hazing
This section requires institutions to provide students with
an educational program on hazing, including information on
hazing awareness, hazing prevention, and the institution's
policies on hazing.
Sec. 4622--Changes to program participation agreements to strengthen
consumer protections
This section prohibits an institution from preventing a
student (current or former) from accessing their transcripts,
degree scrolls, or other certifications of coursework or
educational attainments due to a student's default on the
repayment of a federal student loan. This section prohibits
institutions from requiring a student to agree to (or enforce)
a limitation or restriction on the student to pursue a claim
against the institution in court.
Sec. 4623--Misrepresentation and substantial misrepresentation defined
This section authorizes the Secretary to impose a civil
penalty of $60,000 on an institution that violates any
provision under title IV of the HEA or engages in substantial
misrepresentation about its educational program, its financial
charges, and the employability of its graduates per each such
violation or misrepresentation. This section defines the terms
``misleading,'' ``misrepresentation,'' ``statement,'' and
``substantial misrepresentation.''
Sec 4624--Revenue requirement
This section clarifies that if an institution is a holder
or guarantor of a loan made to a student, only the payment made
on the loan count as revenue under the formula. This section
allows brick and mortar institutions providing training
contracted with an independent third party entity before the
date of enactment to count such revenue for up to 5 percent
under the formula. This section aligns the formula with the new
definition of federal education assistance funds.
Sec. 4625--Teach-out plans
This section requires that teach-out plans include
procedures to maintain student contact information as well as
ensure students have access to their transcripts aligning with
requirements of Sec. 4701 of this Act.
Sec. 4626--Experimental programs
This section amends the Department's experimental sites as
authorized under section 487A of the HEA. It combines two
subsections (one authorizing a Quality Assurance Program and
another authorizing regulatory improvement and streaming
experiments) into a single experimental sites authorization
focused on increasing student success.
The Secretary is authorized to continue experiments in
effect on the date of enactment of this Act. However,
experiments that have not been successful in increasing student
success must be discontinued before the start of the award year
following the enactment of this Act. This section maintains the
waiver authority for the regulatory improvement and
streamlining experiments subsection.
This section requires the Department to develop an
evaluation plan and provide notice to Congress before carrying
out an experiment under the new experimental sites program. The
evaluation plan must include a description of the methodology
that will be used to evaluate the experiment and to
disaggregate results by age, race, gender, disability status,
veteran/military status, first-generation student status, and
Pell recipient status. If practicable, evaluations must include
a randomized control design and an assessment of differential
impact of the experiment on different types of students. The
evaluation plan must also provide a schedule for conducting the
experiment, an estimate of the cost, and an estimate of the
size of the study sample. The notice to Congress must be
submitted at least 60 days before the start of the experiment
and must include a description of the experiment and a list of
the specific statutory and regulatory requirements that will be
waived, among other items.
This section also sets duration limits for experimental
sites. Experiments can last a maximum of four years after the
first award year in which the experiment is active, except that
the Secretary may extend an experiment for up to two additional
years on a case-by-case basis.
This section provides a definition of success for the
purposes of evaluating the results of experimental sites.
Determinations of success under this section are based on
whether, and to what extent, student outcomes improve as a
direct result of the experiment; whether the experiment
improves the delivery of services to, or otherwise benefits,
students; and the extent to which the experiment reduces
administrative burden without harming students.
This section additionally strengthens reporting and
evaluation requirements for the experiments. Under this
section, the Secretary must submit annual reports as outlined
in this Act about each experiment. If the Secretary has
deviated from the data collection methodology included in the
experiment's evaluation plan, the Secretary must provide an
explanation of the deviation and a description of the
alternative methodology that will be used. The Secretary is
also required to submit a final report, which must include a
summary of the results (including disaggregated results), the
conclusions reached regarding the experiment, recommendations
for changes to relevant statutes and regulations, and an
explanation of any regulatory changes the Secretary plans to
make as a result of the experiment. All annual and final
reports must be made available on the Department's website.
Information collection requirements included under section 3507
of title 44 of the U.S. Code are waived for the purposes of
this section.
Sec. 4627--Administrative expenses
This section removes references to Perkins Loans in the
laws related to administrative expenses that are paid to
institutions to offset the cost of the administration of Tile
IV programs. Perkins Loans will no longer be used in the
calculation of administrative expenses.
Sec. 4628--Criminal penalties for misuse of access devices
This section clarifies that it is a federal crime to access
U.S. Department of Education information technology systems for
fraud, commercial advantage, or private financial gain, and
impose fines on scammers for violations of the law.
Sec. 4629--Regional meetings and negotiated rulemaking
This section establishes requirements for the Department's
negotiated rulemaking process. It requires that rulemaking
panels include representatives of students, borrowers, and
consumers and negotiators that are broadly representative of
constituencies in different sectors and geographic locations.
This section also requires the Department to comply with
reasonable requests for data from negotiators, to make issue
papers and proposed regulations available to the public in a
timely manner, to provide live and archived videos of
negotiation sessions, and to make transcripts of negotiations
available to the public.
Sec. 4630--Income-based repayment plan
This section authorizes the IBR plan under section 493C(f)
of the HEA. Borrowers entering an IBR repayment plan after June
30, 2021 will only be able to select the section 493C(f) IBR
plan. Borrowers already in repayment may retain their repayment
plan or choose to leave their repayment plan and enter the
section 493E fixed repayment plan established under Sec. 4631
of this Act or section 493C(f) IBR plan established under this
section. Payments made under a current borrower's original
repayment plan count toward repayment upon switching to the
section 493E fixed repayment plan or section 493C(f) IBR plan.
Borrowers who elect to leave their repayment plan will not be
allowed to re-elect a repayment plan that is not the section
493E fixed repayment plan or section 493C(f) IBR plan.
The section 493C(f) IBR plan shares the same
characteristics of the existing current law IBR plan with the
following exceptions:
The repayment amount is equal to 10 percent
of the borrower's (and the borrower's spouse, if
applicable) adjusted gross income that exceeds 250
percent of the poverty line that is applicable to the
borrower's family size. The amount of income protected
is reduced by 10 percentage points for each $1,000 by
which the borrower's adjusted gross income exceeds
$80,000 or by 10 percentage points for each $2,000 by
which the borrower's and borrower's spouse adjusted
gross income exceeds $160,000. Unless the borrower is
separated from his or her spouse or is unable to
reasonably access the income information of the spouse,
the adjusted gross income of the borrower and the
borrower's spouse would be used in the calculation.
The maximum repayment term is 20 years,
irrespective of the type of loan.
A borrower is not required to have a partial
financial hardship to elect and remain enrolled in the
new IBR plan regardless of income level.
A borrower's monthly payment may exceed the
monthly repayment amount under a standard 10-year
repayment plan or the section 493E fixed repayment
plan.
Unpaid accrued interest will not be
capitalized when a borrower switches repayment plans or
makes payments that are more than the amount under a
standard repayment plan.
For Direct Consolidation Loans made on or after the date of
enactment of this Act, monthly payments that had been made on
such loans prior to consolidation are treated as a monthly
payment under this section 493C(f) IBR plan. However, if the
borrower's consolidation is a subsequent Direct Consolidation
Loan, payments made on underlying loans that had been included
in the first Consolidation Loan shall not be treated as monthly
payments under this section 493C(f) IBR plan.
For a borrower refinancing FFEL or Federal Direct loans,
all monthly payments made for the original loan count toward
the borrower's length of repayment. However, for Federal Direct
Refinanced Private loans, monthly payments prior to the
refinance do not count toward the length of repayment. For such
loans, only payments made after the date of the refinance count
toward the 20 years of repayment under this section 493C(f) IBR
plan.
This section requires the Secretary to develop and
implement a process (including verification) that allows
borrowers to enter the section 493C(f) IBR plan through
written, electronic, or verbal notice to the Secretary.
Sec. 4631--Fixed repayment plan
This section authorizes a fixed repayment under section
493E of the HEA. Borrowers entering repayment after June 30,
2021 will only be able to select the fixed repayment plan or
the section 493C(f) IBR plan.
Under the section 493E fixed repayment plan, a borrower
makes payments in fixed amounts over a repayment period that is
indexed to the outstanding balance of principal and interest on
the borrower's loan as of the day prior to entering repayment.
Borrowers have the option of having their loans amortized over
a shorter period if desired. Under the section 493E fixed
repayment plan, borrowers with a balance that is--
equal to or less than $20,000 pay a fixed
monthly amount over 10 years;
greater than $20,000 but less than $30,000
pay a fixed monthly amount over 15 years;
equal to or greater than $30,000 but less
than $40,000 pay a fixed monthly amount over 20 years;
and
equal to or greater than $40,000 pay a fixed
monthly amount over 25 years.
For Direct Consolidation Loans made on or after the date of
enactment of this Act, monthly payments that had been made on
the loans prior to consolidation would be treated as a monthly
payment under this section 493E fixed repayment plan. However,
if the borrower's consolidation is a subsequent Direct
Consolidation Loan, payments made on underlying loans that had
been included in the first Consolidation Loan would not be
treated as monthly payments under this section 493E fixed
repayment plan.
Sec. 4632--Requiring a common manual for loan servicers
This section requires the Secretary to develop a manual of
common procedures and policies for entities with which it
contracts for the origination, servicing, and collection of
loans (e.g. servicers). The purpose of the manual is to
standardize and ensure consistency across loans servicers and
ensure minimum standards of practice. The Secretary is required
to update the manual as frequently as necessary, but not less
than every five years.
Sec. 4633--Removal of record of default
This section specifies that upon repaying a defaulted loan
made under title IV (including FFEL, Direct Loan, Perkins Loan,
and Direct PLUS Loan) in full, the holder of the loan shall
request that consumer reporting agencies remove all adverse
credit history, including default, from the borrower's credit
history. This section also requires the holder of the loan to
contact the consumer reporting agency when a borrower requests
removal of adverse information from their credit history for
having cured their defaulted loan by paying the loan amount in
full prior to the enactment of this Act.
Sec. 4634--Amendments to terms and conditions of borrower defenses
This section specifies that students are entitled to relief
on their federal student loans under title IV of the HEA in
cases of substantial misrepresentation or an act or omission
that would give rise to a cause of action against the school
under State law. The Secretary must specify through regulation
other acts or omissions that are also applicable as a defense
to repayment of a federal student loan. This section requires
the Secretary to decide on a borrower defense claim based on
all evidence available and sets the evidentiary standard of
proof as ``preponderance of evidence.''
Further, this section requires the Secretary to establish
procedures for the fair and expeditious resolution of borrower
defense claims. The Secretary must specify a fixed timeframe
for the resolution of claims that is no longer than 12 months
from when a claim was filed. Further, this section requires the
Secretary to resolve pending claims that were submitted prior
to enactment of this Act within 12 months of enactment.
This section also requires the Secretary to review a
borrower defense claim at any time without regard to the
repayment status of the borrower's loan(s) that are subject to
such claim. This section also requires the Secretary to process
claims for groups of similarly-affected borrowers. Borrowers
with pending claims will have their loans placed in deferment
and adverse credit reporting and collection suspended.
Borrowers may opt-out of the deferment.
The borrower is entitled to full relief (i.e. cancelation
of all outstanding debt and return of prior payments) when the
claim is based on substantial misrepresentation. If the
Secretary determines that a borrower is entitled to relief
based on a claim other than substantial misrepresentation, this
section establishes a presumption of full relief. If, in a
particular case, the Secretary determines that full relief is
not appropriate, the Secretary must provide the borrower with a
written explanation as to why partial cancellation is
appropriate. The Secretary must develop and implement an
appeals process. Borrowers may refile a denied claim for good
cause. Borrowers with a pending claim must be notified at least
every 90 days with a status update.
This section requires the Secretary to designate Department
personnel to process borrower defense claims. The Secretary
must produce publicly available quarterly reports on the status
of borrower defense claims.
This section repeals subsection (h) of section 455 of the
HEA, which limited borrower defense claims to Direct Loans.
Sec. 4635--On-time repayment rates
This section creates an on-time repayment rate metric for
institutional accountability. Institutions that have at least
20 percent of their students participating in federal student
loan programs are subject to this provision. For each
participating institution, an on-time repayment rate is
calculated as the percentage of students who have paid at least
90 percent of their monthly payments over three years of
repayment. Students with a zero balance or in certain types of
forbearance and deferments (including educational, military,
teacher, and national service) are considered paid. The
Secretary shall determine the threshold on-time repayment
rate(s) and time period(s) for which such thresholds apply.
Institutions failing the on-time repayment rate threshold
must demonstrate a commitment to investing in students to avoid
loss of title IV. Institutions that spend at least 1/3 of their
revenue from tuition and fees on instruction in each of the
previous three years avoid loss of Title IV but must create and
implement a repayment management plan. Institutions failing the
on-time repayment rate threshold and spending less than 1/3 of
their tuition and fee revenue on instruction in any of the
previous three years are subject to loss of Title IV.
Institutions subject to title IV loss based on on-time
repayment and instructional spending may request exceptions to
maintain access to title IV for categories of educational
programs defined at the credential level (e.g. certificates,
associate's degrees, and bachelor's degrees) that pass on-time
repayment thresholds. Institutions may appeal if their
expenditures on certain types of student support services and
instruction together account for more than 50 percent of their
tuition and fee revenue. Appeals may also be based on
inaccurate repayment data, improper loan servicing, or
exceptional mitigating circumstances.
This section also requires the Secretary to publish annual
reports listing on-time repayment rates and instructional
spending metrics for each institution.
Part H --Program Integrity
Subpart 1--State Role Sec.
Sec. 4701--State responsibilities
This section requires states to certify to the Department
that each institution located in the state or seeking
authorization to operate in the state meets the applicable
state standards in the following categories: facilities,
equipment, and supplies; program length state licensure
requirements. This section requires states to accept student
complaints from all students in the state as well as residents
pursuing distance education outside of the state. It also
requires states to manage, compile, and distribute data on
student complaints to the appropriate entity. This section
requires states to have the following procedures in place to
protect the interests of students in the event of institutional
closure: maintenance of sufficient cash reserves in the form of
a State Tuition Recovery Fund or equivalent alternative; a
mechanism to maintain student contact information and to ensure
students have access to their transcripts; and a process for
addressing individual campus closures of national chains.
Subpart 2--Accrediting Agency Recognition
Sec. 4711--Accrediting agency recognition of eligible job training
programs
This section establishes requirements for accreditors that
oversee institutions participating in the job training Pell
Grant program authorized in Sec. 4013 of this Act. Such
accreditors must establish a process for determining whether
the job training program provides training aligned with the
requirements of employers. They must further require that job
training programs demonstrate that the program has identified
each recognized postsecondary credential offered and the
corresponding industry or sector partnership that recognizes
each credential. Accreditors must also require a demonstration
that the program provides the academic content and
instructional time necessary to meet the hiring requirements of
employers and to satisfy applicable prerequisites for relevant
licensure and certification exams.
Sec. 4712--Accrediting agency recognition of institutions enrolling
incarcerated individuals
This section establishes requirements for accreditors that
oversee institutions receiving Pell Grants on behalf of
incarcerated students as authorized under Sec. 4016 of this
Act. Such accreditors must establish a process for determining
whether institutions have the capability to effectively offer a
course of study to incarcerated individuals. They must further
require institutions receiving Pell Grants on behalf of
incarcerated students to demonstrate that the courses of study
available to incarcerated students are taught by faculty with
experience and credentials comparable to those of faculty who
teach courses available to non-incarcerated students; that
academic credits awarded to incarcerated students are treated
the same as those earned by non-incarcerated students; and that
such institutions have the capacity, staffing, and expertise to
provide incarcerated individuals with the support and advising
necessary to select and successfully participate in a course of
study and, to the extent practicable, with support upon
reentry.
Sec. 4713--Requirements for accrediting agency recognition
This section directs the Secretary to establish a working
group to create a common glossary of measures that accrediting
agencies may use to assess three outcomes: 1) completion, 2)
progress toward completion, and 3) workforce participation.
Such glossary shall provide accrediting agencies with enough
flexibility for adequate assessment of each outcome and may
include measures from IPEDS, the postsecondary data system
established under Sec. 1022 of this Act, or a successor system.
The working group must be comprised of accrediting agencies,
institutional representatives, the Commissioner of the NCES or
a representative, and student advocate representatives familiar
with the accreditation process. This section clarifies that
accrediting agencies may use measures not included in the
glossary and that the glossary shall not include performance
benchmarks for the use or application of measures included in
the glossary.
Additionally, this section directs the Secretary to
initiate a negotiated rulemaking to develop procedures for
identifying representative member institutions an accrediting
agency must use to demonstrate to the Secretary that the agency
consistently applies and enforces standards and effectively
evaluates the quality of education or training offered by the
institutions it accredits. The negotiated rulemaking must also
establish definitions for terms to describe actions taken by an
accrediting agency with respect to an institution and establish
notice and disclosure requirements for such terms.
Further, this section requires student achievement to be
assessed for completion, progress toward completion, and
workforce participation. Accreditors may use measures from the
glossary created by the working group and may use different
measures for different institutions. Accrediting agencies must
establish a single performance benchmark for each measure used.
An accrediting agency may establish a different performance
benchmark for each credential level. Accreditors may consider
the historical significance of the institution and whether the
institution is in an educational dessert when assessing whether
the institution meets the student achievement standards.
To facilitate institutional improvement, accreditors must
establish standards on student achievement outcomes
disaggregated by certain student subgroups, as long as the data
yield statistically reliable information that do not reveal
personally identifiable information. This section specifies
that curricula standards must assess program length, course
sequencing, and objectives related to credentialing.
Accreditors must have standards regarding the value of
credentials (including non-monetary value); faculty; student
support services; recruiting and admission practices, academic
calendars, catalogues, publications, and grading; and fiscal
and administrative capacity. This section repeals requirements
that accrediting agencies have standards related to facilities,
equipment, and supplies; record of student complaints; and
record of institutional compliance with its program
responsibilities under title IV of the HEA based on student
loan default rate data, the results of financial or compliance
audits, program reviews, and any such other information as the
Secretary may provide to the agency or association.
This section requires the accrediting agency to make
certain information available on a publicly accessible website.
Information includes the performance benchmark established for
each measure used to determine success with regard to student
achievement as established under this section, the rationale
for such performance benchmark, and how such performance
benchmarks are factored into the accreditation process.
Accrediting agencies must also specify the process used when an
institution fails to meet an accreditation standard established
by the agency. Any institutional sanction or adverse action
taken by the accreditor must also be included on the website.
This section increases transparency of accreditor actions.
Including by reducing the number of days an accreditor has to
notify the Secretary and the State about any adverse action
(e.g. final denial, withdrawal, and probation) to 10 days. This
section requires accrediting agencies to ensure that any
substantive change to an institution's educational mission or
program does not adversely affect the institution's capacity to
meet the accrediting standards. In order to change an
institution's scope of accreditation or preaccreditation, the
institution must obtain approval for any substantive change.
This section amends the restrictions on who may serve on
the board of an accrediting agency to include individuals who
exercise substantial control over an institution that is in
trouble with the Department as specified under this section
(e.g. an institution that is on Heightened Cash Monitoring 2 or
an institution against which the Secretary is initiating or
carrying out an emergency action). This section also increases
the number of public members that must serve on an accreditor's
board from one for each six members (14 percent) to one for
each four members (20 percent). This section requires that the
public member be selected to serve on the board in the same
manner that other board members are selected for such service.
This section prohibits the public member from having previously
served on the board as a non-public member in the preceding 10
years and from being an owner, shareholder, consultant, or
full-time employee of an institution that is accredited by that
accrediting agency. This section further codifies certain
regulatory requirements related to serving as a public member.
This section requires accrediting agencies to ensure peer
reviewers are well-trained and knowledgeable about the history
and mission of the institution being reviewed. This section
requires accrediting agencies to monitor institutions that are
experiencing significant enrollment decline. This section
requires an accrediting agency to mandate a teach-out plan and
an agreement upon the occurrence of certain events as outlined
under this section. This section also requires an accrediting
agency to respond within 30 days to complaints received with
respect to an institution and submit relevant complaints to the
Secretary and the State that authorizes such institution.
Furthermore, nothing in this section prohibits the
Secretary from implementing a different recognition process for
accrediting agencies that accredit institutions or programs for
the purpose of participating in other programs outside of title
IV of HEA (including programs outside of the Department).
For purposes of evaluating an accrediting agency's
recognition, the Secretary must make the accrediting agency's
application public upon publishing the agency's solicitation
for third-party information. In the case where a Department
official (other than the Secretary) makes a decision on the
recognition of an accrediting agency that differs from NACIQI's
recommendation, the official must submit the rationale and
evidence for such decision to Congress.
Each fiscal year, the Secretary must submit to Congress
information about each accrediting agency reviewed during the
preceding fiscal year, NACIQI's recommendation about whether to
recognize each accrediting agency, and the Department's
decision regarding each agency.
This section also requires the Secretary to direct NACIQI
to regularly evaluate the effectiveness of the measures
selected and the performance benchmarks established by
accrediting agencies. NACIQI must account for similarly
situated accreditors, which cannot be determined solely by the
educational sector of the institutions accredited by the
agency. If the Secretary determines that an accreditor's
performance benchmark is too low, this section authorizes the
Secretary to require an accreditor to review and revise such
performance benchmark. This section also includes a rule of
construction to clarify that the Secretary cannot specify the
specific performance benchmark that the accreditor must use.
Within six months of enactment of this Act, the Secretary
shall publish an annual report on accrediting agencies
including information specified in this section.
This section also states that nothing in this section shall
be construed to prohibit an institution from seeking
accreditation, in a manner consistent with certain requirements
in the section, from an accreditor that accredits a branch
campus of such institution in the State in which the
institution is located.
Subpart 3--Program Review and Data
Sec. 4721--Eligibility and certification procedures
This section enumerates automatic, mandatory and
discretionary events that could affect the financial health of
a private nonprofit and proprietary institution.
Automatic triggering events that result in a failure of the
financial responsibility requirements include: the institution
must submit a teach-out plan if the Secretary takes an action
to limit that institution's participation in title IV or takes
an emergency action against the institution; the institution is
at risk of failing the aCDR under Sec. 4110 of this Act; and
the institution has more pending or approved borrower relief
clams that equals or exceeds the number of full-time enrolled
students for the previous year. For proprietary intuitions,
additional automatic events include: an action from the
Securities and Exchange Commission for publicly traded
institutions; failing 85/15; and if shareholder equity is
reduced after an institution fails to meet the financial
responsibility standards.
Mandatory triggering events require an institution to
submit to the Secretary updated financial information if the
following events happen: the institution is required to pay a
large debt or incur a large liability resulting from a final
judgement or administrative proceeding; the institution is
involved in a lawsuit for financial relief claims for federal
loans; and if the Secretary determines that an institution has
programs that are at risk of noncompliance with the statutory
requirement for gainful employment.
Discretionary events authorize the Secretary to request
additional financial information from the institution if the
Secretary determines that the Department is likely to receive a
large number of borrower relief claims from the result of a
lawsuit, settlement or judgement against the institution; the
institution experiences significant fluctuation in enrollment;
the institution received a citation from its accreditor or
state authorizing agency; the institution saw high annual
dropout rates; or the institution has pending borrower relief
claims.
This section requires an institution to submit additional
financial information to the Secretary upon subsequent change
of such institution's financial circumstances changes again and
requires financial information submitted under this section to
be publicly available. This section requires the IG to conduct
audits every two years to ensure the financial responsibility
standards are aligned with accepted accounting requirements.
This section also allows institutions that have a rating of
investment grade or above from a recognized credit agency to
meet the requirements of this section. This section adds
receivership to the list of conditions under a change in
ownership that requires an institution to demonstrate
compliance with requirements to participate in title IV. This
section requires a negotiated rulemaking to update the criteria
used in the composite score to determine whether an institution
meets statutory financial responsibility requirements.
Sec. 4722--Program review and data
This section makes conforming amendments to prioritize
program reviews of institutions with an aCDR over 18 percent
and institutions in the highest quartile of aCDRs. Such
amendments are necessary to transition to use of aCDR as
required by this Act.
This section authorizes the Secretary to conduct undercover
and secret shopper operations to encourage the ethical
treatment of students and detect fraud and abuse by an
institution including misrepresentation of educational programs
to students, enforcement of the incentive compensation ban, and
admissions and recruitment activity. This section requires the
Secretary to develop written guidelines for such activities in
accordance with commonly accepted federal practices and
requires the Secretary to report the results of such activities
to Congress and to make such reports publicly available.
Subpart 4--Strengthening Institutional Quality
Sec. 4731--Strengthening institutional quality
This section allows institutions with a high aCDR to
receive technical assistance and financial support from the
Department to improve student outcomes. Only public
institutions, HBCUs, and private nonprofit institutions with a
low-income student enrollment of 45 percent or greater are
eligible for such technical assistance and financial support.
This section authorizes such assistance and support for between
one and three years per eligible institution, with length of
support determined by such institution's progress based on
accreditor-set student achievement standards. Institutions that
fail to reach an aCDR of less than 10 percent by the end of
three years lose eligibility to receive further improvement
funds, as do institutions where the share of low-income
students declines by more than 10 percent. The Secretary is
directed to develop a formula for distributing improvement
funds. This section authorizes and appropriates $100 million
for such technical assistance and financial support for FY 2021
and each succeeding fiscal year.
This section limits marketing expenditures for institutions
that spend little on instruction. It requires the Secretary to
separately define expenditures on marketing, recruitment,
advertising, lobbying, and student services for annual
reporting by institutions in IPEDS. If an institution spends
less than 1/3 of its revenue from tuition and fees on
instruction in any of the three most recent fiscal years, such
institution is subject to the marketing limitation. For any
such institution, if total expenditures on marketing,
recruitment, advertising, and lobbying exceed the amount of
revenue the institution receives from sources other than
federal financial aid (including the GI bill) for two
consecutive years, the institution loses access to title IV for
at least two years.
The Secretary is required to publicly disclose a list of
institutions that have failed to meet accreditation
requirements or title IV requirements, as well as a list of
institutions that are in progress period status and receiving
improvement funds under this section. Institutions are required
to disclose accreditation status and keep such disclosures up
to date within 30 days of a change of status. The Secretary is
directed to develop a disclosure template that institutions
must use.
Part I--America's College Promise Federal-State Partnership
Sec. 4801--Program authorized
This section authorizes the Secretary to make grants to
states and Indian tribes (``grantees'') to waive tuition and
fees at participating community colleges for eligible students.
This section authorizes the Secretary to devise a formula where
the federal government will contribute at least 75 percent of
total costs. The formula will also account for the grantee's
share of eligible students, per-student funding levels at
public colleges, and the average net price charged to low-
income students at public four-year colleges.
This section outlines the conditions grantees must meet to
be eligible for a grant--namely, waiving tuition and fees on a
first dollar basis for eligible students at community
colleges--and outlines the required contents of applications
for funds. Applications must include: an estimate of the number
of students who will be served by the grant; a description of
evidence-based institutional reforms community colleges will
undertake to improve student outcomes; and a description of how
the grantee will ensure that programs provided that lead to a
postsecondary credential are high-quality. Applicants must also
provide an assurance that all participating community colleges
have entered into a program participation agreement with the
Department of Education; an assurance that the state or tribe
will assist eligible students in obtaining information about
and accessing means-tested Federal benefit programs like SNAP
and WIC; and, in the case of state applicants, an assurance
that the state will consider changes to state law to make more
community college students eligible for such benefits.
In addition to waiving tuition and fees for eligible
students, states receiving a grant under this section must
promote alignment between their secondary, two-year, and four-
year postsecondary education systems. States are required to
submit a plan to align the requirements for receiving a regular
high school diploma from public high schools in the state with
the requirements for entering credit-bearing coursework at
participating community colleges in the state. States are
further required to submit a plan to improve postsecondary
transfer pathways, including by ensuring that associate degrees
awarded by public institutions in the State are fully
transferable to, and credited as, the first two years of
related baccalaureate programs at public institutions of higher
education. States are required to certify that they have
achieved both types of alignment within three years of
receiving a grant under this section. States that fail to
achieve alignment in that time frame are required to provide a
written explanation for that failure and a plan to come into
compliance within the following two years.
This section outlines additional allowable uses available
to grantees that have waived community college tuition and fees
for all participating eligible students. Allowable uses include
enhancing the quality of public higher education, expanding the
scope and capacity of community college programs, improving
postsecondary readiness, expanding dual enrollment
opportunities, and improving affordability at four-year
colleges. It additionally requires that states maintain their
financial support for higher education in order to receive
their full allotment of funds. The maintenance of effort
provision applies to per-student funding at public
institutions, funding for operational expenses at four-year
public institutions, and funding for state need-based aid
programs. This section specifies that funds made available
under the America's College Promise partnership must be used to
supplement, and not supplant, funds that would otherwise be
expended by grantees. This section includes reporting
requirements.
This section defines key terms, including eligible student,
which is defined as any student enrolled in a title IV-eligible
program at a community college on at least a half-time basis
who maintains satisfactory academic progress and qualifies for
in-state tuition. Students who would qualify for in-state
tuition but for their immigration status are also eligible.
Students lose eligibility three calendar years after first
receiving a benefit under this subpart. This section authorizes
and appropriates $1.57 billion for FY 2021 and authorizes and
appropriates increasing amounts for each succeeding fiscal
year, with such authorization and appropriation equaling $16.3
billion in FY 2030.
Sec. 4802--Student Success Fund
This section authorizes a student success fund to ensure
that public institutions, including public two-year and public
four-year institutions, in states and tribes participating in
the America's College Promise partnership have the resources
they need to serve students well. States that receive a grant
pursuant to Sec. 4801 of this Act are eligible to receive an
additional allocation based on the formula included in such
section. Grantees are required to provide an increasing amount
of matching funding the longer they participate in the student
success fund, starting at an amount equal to 25 percent of the
federal allocation in years one through four and increasing
steadily to a maximum of 100 percent in year nine and beyond.
Indian tribes serving large shares of low-income students may
request a waiver from the matching requirements.
This section enumerates application requirements for
eligible entities seeking funds through the student success
fund. Grantees must provide a plan for using funds provided
under this section, including a description of how the grantee
will use such funds to support the adoption and expansion of
evidence-based reforms and practices to advance student
success. Grantees are also required to identify annual
implementation benchmarks for the adoption of such reforms and
practices, as well as the improvements in graduation and
transfer rates that the grantee anticipates. Such
implementation benchmarks and anticipated outcome improvements
are subsequently used to track progress in reports that are
submitted by grantees every two years. Progress reports must
also include updated plans for the use of student success funds
for the subsequent two-year period.
States utilizing the student success fund are required to
identify gaps in per-student spending and academic achievement
and to prioritize spending on underfunded institutions that
serve disproportionate shares of low-income students, students
of color, students with disabilities and students in need of
remediation. Grantees may use up to ten percent of program
funds for administrative purposes.
The Secretary may approve or require changes to the initial
applications and renewal plans submitted by grantees. The
Secretary is also required to make all final plans publicly
available on the Department's website.
This section authorizes and appropriates $500 million in FY
2021 and each of the succeeding fiscal years.
Sec. 4803--Pathways to student success for Historically Black Colleges
and Universities, Tribal Colleges and Universities, and
Minority-Serving Institutions
This section authorizes grants to eligible four-year HBCUs
based on actual tuition and fees. The per-student amount
granted will not exceed the national average of public, four-
year institutional tuition and fees. Grant funds are used to
waive or significantly reduce the cost of tuition and fees on a
first dollar basis for eligible students for up to sixty
credits. In order to be eligible, HBCUs must have a student
body that is at least 35 percent low-income, including Pell-
eligible students. Additionally, eligible HBCUs must commit to
maintain or adopt evidence-based institutional reforms designed
to improve student outcomes, and to set performance goals for
improving those outcomes. Eligible HBCUs who enter into
articulation agreements with community colleges may also
receive grant funds for eligible transfer students.
This section authorizes grants to eligible four-year TCCUs
based on actual tuition and fees. The per-student amount
granted will not exceed the national average of public, four-
year institutional tuition and fees. Grant funds are used to
waive or significantly reduce the cost of tuition and fees on a
first dollar basis for eligible students for up to sixty
credits. In order to be eligible, TCCUs must have a student
body that is at least 35 percent low-income, including Pell-
eligible students. Additionally, eligible TCCUs must commit to
maintain or adopt evidence-based institutional reforms designed
to improve student outcomes, and to set performance goals for
improving those outcomes. Eligible TCCUs who enter into
articulation agreements with community colleges may also
receive grant funds for eligible transfer students.
This section authorizes grants to eligible four-year MSIs
(HSIs, AANAPISIs, ANNHSIs, PBIS, and NASNTIs) based on actual
tuition and fees. The per-student amount granted will not
exceed the national average of public, four-year institutional
tuition and fees. Grant funds are used to waive or
significantly reduce the cost of tuition and fees on a first
dollar basis for eligible students for up to sixty credits. In
order to be eligible, an MSI must have a student body that is
at least 35 percent low-income including Pell-eligible
students. Additionally, eligible MSIs must commit to maintain
or adopt evidence-based institutional reforms designed to
improve student outcomes, and to set performance goals for
improving those outcomes. MSIs who enter into articulation
agreements with community colleges may also receive grant funds
for eligible transfer students.
This section defines terms for the purpose of grants
authorized under this section. Eligible students are those who
are enrolled at an HBCU, TCCU, or MSI on at least a half-time
basis, who maintain satisfactory academic progress and are low-
income, including Pell-eligible students. This includes both
students who start at an HBCU, TCCU, or MSI, as well as those
who transfer from another college. Benefits apply for a maximum
of sixty credits, and students lose eligibility for benefits
after three calendar years. Students whose parents were denied
a Parent PLUS loan between November 2011 and March 2015, who
subsequently withdrew from an HBCU, TCCU, or MSI, may also
participate in the program even though they are returning
students. HBCUs are defined as institutions that meet the
requirements described in paragraph (2) of section 322 of the
HEA. TCCUs are defined as institutions that meet the
requirements of section 316 of the HEA. MSIs are defined as
institutions that meet the requirements described in any of
paragraphs (2) or (4) through (7) of section 371(a) of the HEA.
This section authorizes and appropriates $63.25 million in FY
2021 and authorizes and appropriates increasing amounts for
each succeeding fiscal year, with such authorization and
appropriation equaling $1.63 billion in FY 2030.
Sec. 4804--Unmet need for Federal Pell Grant recipients
This section authorizes the Secretary to expand the
America's College Promise partnership authorized by Sec. 4801
of this Act to provide an additional affordability guarantee,
subject to appropriations. Under this section, each Pell
recipient at a public college in the participating states and
tribes is provided with a grant sufficient to cover the
student's remaining unmet need (i.e. the difference between the
student's cost of attendance and other grants already received
by the student). This guarantee applies to Pell recipients at
both two- and four-year institutions. Students lose eligibility
for grants three years after they first receive a benefit at a
two-year institution and six years after they first receive a
benefit at a four-year institution.
Funds under this section are allocated using a formula that
accounts for the number of eligible students within a state or
tribe as compared to the number of eligible students among all
participating grantees. Grantees are provided a minimum federal
allocation sufficient to pay for 75 percent of the grants
covering unmet need for eligible students (based on average
unmet need among Pell recipients nationwide). States and tribes
are required to provide matching funds equal to 25 percent of
the cost of providing such grants. An exception to such
matching requirement is made for Indian tribes with a Pell
enrollment of at least 75 percent.
Only states receiving a grant under Sec. 4801 of this Act
are eligible to participate in the expanded affordability
guarantee authorized by this section. This section includes
reporting requirements, student eligibility requirements,
technical assistance, and logistical provisions aligned to the
requirements enumerated in Sec. 4801 of this Act.
Sec. 4805--Unmet need for students
This section authorizes the Secretary to expand the
America's College Promise partnership authorized by Sec. 4801
of this Act to provide an additional affordability guarantee,
subject to appropriations. Under this section, each student at
a public college in the participating states and tribes is
provided with a grant sufficient to cover the student's
remaining unmet need (i.e. the difference between the student's
cost of attendance and other grants already received by the
student). This guarantee applies to students at both two- and
four-year institutions. Students lose eligibility for grants
three years after they first receive a benefit at a two-year
institution and six years after they first receive a benefit at
a four-year institution.
Funds under this section are allocated using a formula that
accounts for the number of eligible students within a state or
tribe as compared to the number of eligible students among all
participating grantees. Grantees are provided a minimum federal
allocation sufficient to pay for 75 percent of the grants
covering unmet need for eligible students (based on average
unmet need among students nationwide). States and tribes are
required to provide matching funds equal to 25 percent of the
cost of providing such grants. An exception to such matching
requirement is made for Indian tribes with a Pell enrollment of
at least 75 percent.
Only states receiving a grant under Sec. 4801 of this Act
and covering the unmet need of Pell recipients under Sec. 4804
of this Act are eligible to participate in the expanded
affordability guarantee authorized by this section. This
section includes reporting requirements, student eligibility
requirements, technical assistance, and logistical provisions
aligned to the requirements enumerated in Sec. 4801 of this
Act.
Sec. 4806--Tuition waivers
This section authorizes the Secretary to expand the
America's College Promise partnership authorized by Sec. 4801
of this Act to provide an additional affordability guarantee,
subject to appropriations. Under this section, participating
states and tribes would waive the cost of tuition and fees for
students at public four-year colleges. Students lose
eligibility for waivers six years after they first receive a
benefit under this section.
Funds under this section are allocated using a formula that
accounts for the number of eligible students within a state or
tribe as compared to the number of eligible students among all
participating grantees. Grantees are provided a minimum federal
allocation sufficient to cover 75 percent of the tuition
waivers for eligible students (based on average tuition at
public four-year institutions nationwide). States and tribes
are required to provide matching funds equal to 25 percent of
the cost of providing such waivers. An exception to such
matching requirement is made for Indian tribes with a Pell
enrollment of at least 75 percent.
Only states receiving a grant under Sec. 4801 of this Act,
covering unmet need for Pell recipients under Sec. 4804 of this
Act, and covering unmet need for non-Pell students under Sec.
4805 of this Act, are eligible to participate in the expanded
affordability guarantee. This section includes reporting
requirements, student eligibility requirements, technical
assistance, and logistical provisions aligned to the
requirements enumerated in Sec. 4801 of this Act.
Sec. 4807--Expansion for private institutions
This section authorizes the Secretary to expand the unmet
need affordability guarantees authorized under Secs. 4804 and
4805 of this Act to allow states participating in those
sections to extend benefits to students at private nonprofit
institutions of higher education, subject to appropriations.
The Secretary is required to establish eligibility standards
for private nonprofit institutions participating under this
section which must, at a minimum, include benchmarks for the
enrollment of low-income students, a requirement that
participating nonprofit institutions not reduce institutional
need-based aid, and a requirement that the grant funds provided
for students at nonprofit institutions under this section may
not exceed the grants received by students with similar levels
of financial need (as measured by EFC) at public institutions
in the state. Student eligibility requirements under this
section are the same as those established under Secs. 4804 and
4805 of this Act, except that eligibility standards related to
in-state tuition do not apply.
TITLE V--DEVELOPING INSTITUTIONS
Sec. 5001--Hispanic-serving institutions
This section adds a new authorized use for title V which
allows Hispanic-Serving Institutions (HSIs) to use grant funds
to promote opportunities for international education, including
through partnerships with international institutions. Such
flexibility includes allowing institutions that use title V
funds for endowments to count restricted gifts to the endowment
fund toward the current-law matching requirement and reducing
such requirement from a minimum of 100 percent to 50 percent.
This section further allows institutions using title V funds
for endowment growth to use endowment earnings to support
student scholarships.
Sec. 5002--Promoting postbaccalaureate opportunities for Hispanic
Americans
This section amends the Promoting Postbaccalaureate
Opportunities for Hispanic Americans (PPOHA) program by
reorganizing and expanding the program's authorized activities.
This section divides authorized activities into two categories,
the first of which includes all currently authorized activities
other than faculty development (described as PPOHA Activities)
and the second of which includes an expanded list of activities
related to faculty development, support for graduate students,
faculty recruitment, and research support for early-career
faculty (described as Faculty Development Activities). An
individual grant may fund PPOHA Activities or Faculty
Development Activities, but not both. This section directs the
Secretary to devote at least one-third of appropriated funds
toward grants for PPOHA Activities and at least one-third of
appropriated funds towards grants for Faculty Development
Activities.
Sec. 5003--General provisions
This section reauthorizes title V programs. This section
authorizes $350 million for part A and C programs and $115
million for part B programs. All programs are authorized for FY
2021 and each of the five succeeding fiscal years. Further,
this section directs the Secretary to reserve 0.75 percent of
funds appropriated for Part A for technical assistance and
administrative training for staff and faculty.
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
Sec. 6001--International education
This section authorizes graduate students who are at the
beginning level of learning a foreign language as eligible to
receive a Foreign Language and Area or International Studies
Fellowship. This section repeals three program authorizations
and authorizes a program that combines and updates the
principles and activities of the repealed program
authorizations. Such program supports necessary international
and foreign language (FL) education research and innovation
projects to assess and strengthen international education
capacity and coordination. This section requires the Secretary
to conduct research to better understand the country's
international and FL education capacity, structure, and
effectiveness; scale up proven strategies and invest in
promising new ideas to deliver international and FL education
resources; and develop a database that documents such
activities and research.
Sec. 6002--Global business and professional education programs
This section authorizes a program that combines and updates
the principles and activities of programs repealed in this Act.
Such program supports innovative initiatives that give
undergraduate and graduates students the opportunity to gain or
build the skills and perspectives necessary to strengthen the
United States' ability to engage and compete globally.
Institutions or institutions in partnership with a
nonprofit entity are eligible to receive grants authorized by
this section. Such grants shall be used to incorporate foreign
language programs with immersion opportunities, internship
abroad or other opportunities, and economic studies in their
academic programs. Grantees must also work with professional
communities, corporations, and nonprofit organizations to
strengthen programs and ensure relevance for private and
national security needs. Grantees may use funds to develop
specialized instructional materials, provide student
opportunities outside of the traditional school year or over
academic breaks, establish exchange programs, and other
innovative activities for academic and career development. The
Secretary may only award grants authorized by this section for
a fiscal year in which the appropriation for title VI of the
HEA exceeds the annual appropriation for such title in FY 2019
($65,103,000).
Sec. 6003--Repeal of assistance program for Institute for International
Public Policy
This section repeals part C of title VI of the HEA, the
Institute for International Public Policy.
Sec. 6004--General provisions
This section requires the Secretary to provide technical
assistance to HBCUs, TCCUs and other MSIs to help such
institutions submit qualified applications for grants
authorized under title VI of the HEA. This section authorizes
the Secretary to give priority to qualified grant applications
submitted by HBCUs and other MSIs or institutions of higher
education that propose significant and sustained collaborative
activities with one or more HBCU, TCCU, or MSI. This section
authorizes $125 million for FY 2021 and each of the five
succeeding fiscal years.
TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
Sec. 7001--Graduate assistance in areas of national need
This section reauthorizes the Graduate Assistance in Areas
of National Need (GAANN) program which provides fellowships to
graduate students in a field designated as an area of national
need, for FY 2021 and each of the succeeding five fiscal years.
Sec. 7002--Graduate education programs
This section expands the eligible HBCUs and PBIs that can
receive funding to support masters' degree programs to allow
any HBCU or PBI that offers a qualifying masters' degree
program to apply for funding in the future. This section
creates two new subparts in the HEA to establish new grant
programs that support graduate opportunities and faculty
development at AANAPISIs and TCCUs. Grants are for five years
and funds can be used to support graduate program activities
including purchasing scientific equipment, maintenance of
classrooms, purchasing research materials, support for low-
income students through fellowships and scholarships, improving
distance education technology, collaboration with other
institutions, and other activities proposed by the institution.
Funds can also be used to support faculty development
activities including supporting graduate students pursing
academia, developing career services, supporting recruitment
and retention of faculty, supporting research from early-career
faculty, and other activities proposed by the institution. The
grant program for AANAPISIs is authorized at $30 million for FY
2021 and each of the five succeeding fiscal years. The grant
program for TCCUs is authorized at $5 million for FY 2021 and
each of the five succeeding fiscal years.
Sec. 7003--Fund for Improvement of Postsecondary Education
This section reauthorizes the Fund for the Improvement of
Postsecondary Education (FIPSE) for FY 2021 and each of the
five succeeding fiscal years.
Sec. 7004--Minority-serving institutions innovation fund
This section authorizes a program under part C of title VII
of the HEA titled ``Funding Innovations at Minority-Serving
Institutions'' designed to increase recruitment of older low-
income students and students, improve student achievement and
graduation, increase attainment of STEM degrees, expand the use
of technology, and improve employment outcomes.
This section defines an eligible entity for a grant under
this part as an MSI, including HBCUs and TCCUs, or as a
consortium comprised of an MSI and any one or combination of
the following: one or more additional institutions, a private
nonprofit organization, a LEA, or a high school that receives
title I funding under ESEA and has been identified for
comprehensive support and improvement under ESEA.
This section authorizes competitive planning and
implementation grants to eligible entities. Planning grants
shall not exceed $150,000 and shall be awarded to each MSI
designation in proportion to the allocations made in section
757 of the HEA and in the order in which applications are
received. Competitive implementation grants last for five years
except that the Secretary may only provide funds after the
third year if the entity demonstrates satisfactory progress
toward carrying out the grant activities. A grant shall not
exceed $10 million. The section includes requirements for
eligible entities applying as a consortium, including
designation of a fiscal agent, requirements regarding written
agreements, and the ability to make subgrants to members of the
consortium.
This section requires applications for implementation
grants to describe the specific innovations proposed, including
a description of the evidence supporting such innovation, if
applicable; how such innovation will address the purpose of
this section and will further the institutional mission of the
MSI; the specific activities that will be carried out to
implement the innovation; proposed performance metrics to track
progress; planned independent evaluations including interim and
final reports; and plans to sustain the innovation beyond the
grant period.
This section sets competitive priorities the Secretary
shall use in awarding grants under this part. Applicants that
submitted planning grant applications in the prior year but did
not receive an award due to insufficient appropriations receive
priority in subsequent years. For implementation grants,
competitive priority will be awarded to applicants that have
not previously received funds under this part. Competitive
priority will also be awarded to applicants that address issues
of major national need.
This section outlines allowable uses each of the grants.
For planning grants, eligible entities shall conduct a
comprehensive planning process that evaluates the institution's
needs, researches educational innovations, selects appropriate
innovations, assesses the institution's capacity for
implementation, and further develops such capacity for
implementation. For implementation grants, eligible entities
shall develop, pilot, field-test, implement, document,
validate, and, as applicable, scale up and replicate the
innovations proposed to be implemented. Funding can be used on
innovations that create a college-bound culture at secondary
schools to increase college going; improve student achievement;
increase postsecondary degree attainment for minority males;
increase the percentage of students who make progress towards
graduation and graduate on time; promote a positive climate on
campus; increase STEM graduates; support economic development
and entrepreneurship; improve courses; enhance the quality of
teacher and school leader preparation programs; expand the use
of technology; and strengthen postgraduate employment outcomes.
This section authorizes $850 million in appropriations for
FY 2021 and each of the five succeeding fiscal years and
includes a specific funding amount for each MSI designation.
Sec. 7005--Definitions
This section defines terms for grants that support students
with disabilities including comprehensive transition and
postsecondary program for students with intellectual
disabilities, disability (as defined in the Americans with
Disabilities Act), institution of higher education (as defined
in section 101 of the HEA), Office of Accessibility, Recognized
Postsecondary Credential (as defined in section 101 of WIOA),
Student with Intellectual Disability, Universal Design for
Learning, comprehensive transition and postsecondary program
for students with intellectual disabilities, and student with
intellectual disability.
Sec. 7006--Supporting postsecondary faculty, staff, and adinistrators
in providing accessible education
This section reauthorizes competitive grants to support
institutions in providing an accessible education. This section
maintains activities that support teaching methods and
strategies and effective transition practices (with a new
emphasis on implementation and evidence-based methods, as well
as supporting students in the development of self-advocacy
skills to complete postsecondary education as a teaching
method). This section also newly authorizes activities focused
on implementing accommodations and disability career pathways.
This section authorizes grants to support the development
and implementation of training to provide appropriate
accommodations for students with disabilities, including
descriptions of the legal obligations of the institution to
provide accommodations. Additionally, the revised career
pathway guidance allows for the development and implementation
of effective and evidence-based teaching methods to advise
students with disabilities on: internships, apprenticeships, or
work-based learning opportunities; counseling on coursework to
meet the recognized educational credential; developing self-
advocacy skills to advocate for appropriate accommodations once
in the workplace; or supporting the student in selecting a
career pathway that leads to competitive, integrated
employment.
Sec. 7007--Office of Accessibility
This section requires each institution to establish or
maintain an office of accessibility to develop and implement
policies to support students with disabilities. Such office is
required to: inform students during orientation about services
at the institution and continually update such information
through the office's website and other communications; provide
information to students about accommodations and modifications
provided by the institution; and provide information to
students about their legal rights. The office also must adopt
policies that make the following documentation sufficient to
establish an individual has a disability: an individualized
education plan; a 504 plan from the Rehabilitation Act; a plan
or record of service under the American Disabilities Act; a
record or evaluation from a relevant licensed professional; a
plan or record from another institution; or documentation of a
disability due to uniformed services.
This section authorizes grants to institutions for up to a
period of five years to support development and implementation
of Universal Design for Learning across the entire institution,
including or improve distance education courses consistent with
Universal Design for Learning to improve accessibility of
instruction and materials.
Sec. 7008--Postsecondary programs for students with intellectual
disabilities
This section reauthorizes grants to support transition
programs for students with intellectual disabilities into
higher education. This section includes inclusive programs that
promote the successful transition of students with disabilities
in higher education and the earning of a degree, certificate,
or recognized postsecondary credential issued by the
institution in the program purpose. Funds may be used to serve
students with intellectual disabilities, provide individual
supports and services, integrate person-centered planning in
the development of the course study, integrate students into
institutionally owned housing (if applicable), participate with
the coordinating center, partner with one or more local
educational agencies, plan for the sustainability of the
program, and award a degree, certificate, or recognized
postsecondary credential.
This section also requires institutions to collect and
transmit to the coordinating center on an annual basis student-
level information related to the experiences and outcomes of
students who participate in the inclusive higher education
program for students with intellectual disabilities. Further,
each grantee must collect longitudinal outcome data from each
student participating in the program and transmit the data to
the coordinating center, consistent with federal privacy
protections.
Sec. 7009--National Technical Assistance Center and National
Coordinating Center for Inclusion of Students with Intellectual
Disabilities
This section reauthorizes the National Technical Assistance
Center and adds transitioning students with disabilities from
secondary school to postsecondary education as a new
demonstrated expertise in defining eligible entities for the
purpose of programs funded under such center.
This section reauthorizes the National Coordinating Center
for Inclusion of Students with Intellectual Disabilities and
clarifies that technical assistance and evaluations may include
the systematic collection of annual student and program data
and facilitation of outcomes data of students with intellectual
disabilities. This section includes additional cooperative
agreement requirements for the eligible entity to evaluate
programs using qualitative and quantitative methodologies for
measuring program strengths, create and maintain a database of
student and program level data, and create and maintain a
mechanism to consolidate follow-up data on student outcomes.
This section enumerates required activities for when an
eligible entity convenes a working group to develop and
recommend model standards of inclusive higher education. The
activities include conducting outreach to accrediting agencies;
developing a technical guidance document to support
implementation of model standards; developing and implementing
model standards; and updating recommendations for model
standards, criteria, and components of such programs, as
applicable.
Sec. 7010--Formula grants to states to improve higher education
opportunities for foster youth and homeless youth
This section authorizes a program under part F of title VII
of the HEA titled Grants for Improving Access to and Success in
Higher Education for Foster and Homeless Youth. This section
authorizes the Secretary to establish a formula grant program
to enable each state to establish or expand statewide
initiatives that improve the transition between K 12 and higher
education for foster and homeless youth and develop
Institutions of Excellence to serve such youth from entrance to
completion including through financial aid and support
services.
This section authorizes the Secretary to reserve up to 3
percent of funds for tribes and up to 2 percent for
territories. This section authorizes the Secretary to reserve
up to 7 percent of funds to provide technical assistance, in
consultation with the Secretary of Health and Human Services,
and to execute program evaluations, and up to 3 percent of
funds for administrative expenses. This section requires the
Secretary to submit an annual report to Congress about the
progress of the grant program.
This section establishes a minimum state grant amount of
$500,000. Grant size is based on a state's foster and homeless
youth population compared with the number of foster and
homeless youth nationwide. To receive funds, states must submit
a yearly application and an annual report.
This section requires states to use 25 percent of grant
funds to establish intensive, statewide transition initiatives
to improve the college-going culture among foster and homeless
youth and increase their enrollment in colleges and
universities. This section requires states to use 70 percent of
grant funds to develop Institutions of Excellence to serve
foster and homeless youth through campus-based support services
and financial assistance. An eligible institution receiving a
grant must collaborate with the state child welfare agency and
an organization that serves homeless youth. The institution
must use the funds to execute the following activities for
foster and homeless youth: offer flexibility and assistance in
completing the college application process; provide
institutional aid to cover the remaining cost of attendance
beyond federal and state grants; provide outreach to students
to ensure such youth are aware of housing resources during
holiday breaks; subsidize any fees associated with orientation
and offer free transportation to college orientation or move-in
week; hire and provide training for at least one full-time case
manager; establish or enhance comprehensive wraparound
services; establish or expand early alert systems to identify
and support such students; and collect, review, and monitor
data for program improvement.
This section authorizes $150 million for FY 2021 and
authorizes amounts that increase for inflation in each of the
five succeeding fiscal years.
TITLE VIII--ADDITIONAL PROGRAMS
Sec. 8001--Repeals
This section amends title VIII of the HEA to repeal 16
unfunded programs with expired program authorizations.
Sec. 8002--Ronald V. Dellums memorial STEAM scholars program
This section amends section 802 of the HEA to authorize the
Ronald V. Dellums Memorial STEAM Scholars Program. This section
authorizes $5 million for FY 2021 and each of the five
succeeding fiscal years to provide grants to institutions in
support of scholarships for students in pursuit careers in
STEAM fields, with at least 50 percent of such scholarships
awarded to eligible students who attend HBCUs and other MSIs.
Sec. 8003--Teach for America
This section reauthorizes the five-year grant for Teach for
America, Inc. This section authorizes $30 million for FY 2021
and each of the five succeeding fiscal years.
Sec. 8004--Patsy T. Mink Fellowship Program
This section reauthorizes the Patsy T. Mink Fellowship
Program, which provides fellowships to women and people of
color to pursue graduate degrees, including doctorates, in
fields of study where they are underrepresented. This section
authorizes $10 million for FY 2021 and each of the five
succeeding fiscal years.
Sec. 8005--Improving science, technology, engineering, and mathematics
education with a focus on American Indian, Alaska Native, and
Native Hawaiian students
This section amends section 819 of the HEA to authorize $5
million for FY 2021 and each of the five succeeding fiscal
years to develop or expand STEM education programs with a focus
on the educational need of Alaska Native and Native Hawaiian
students.
Sec. 8006--Encouraging campus comprehensive mental health and suicide
prevention plans
This section directs the Secretary to make efforts to
encourage institutions to develop and implement comprehensive
mental health and suicide prevention plans.
Sec. 8007--Grants for rural-serving institutions of higher education
This section reauthorizes grants to rural-serving
institutions of higher education to increase the graduation and
completion rates of students in rural areas. This section
authorizes $20 million for FY 2021 and each of the five
succeeding fiscal years.
Sec. 8008--Training for realtime writers to provide closed captioning
and court reporting services
This section reauthorizes the Program to Promote Training
and Job Placement of Realtime Writers for FY 2021 and each of
the five succeeding fiscal years.
Sec. 8009--Grant program to establish, maintain, and improve veteran
student centers
This section amends the section that authorizes grants for
institutions or a consortium of institutions to establish,
maintain or improve the operation of Veteran Student Centers.
The term `veteran student center' is defined as dedicated space
on-campus for student veterans and members of the Armed Forces.
This section authorizes $15 million for FY 2021 and each of the
five succeeding fiscal years.
To be eligible, an institution must enroll a significant
number of student veterans, members of the Armed Forces or
members of the reserves or enroll a significant percentage of
student veterans, members of the Armed Forces or members of the
reserves. Institutions must also include a sustainability plan
to maintain the veteran student center after the grant funding
expires. Funds must be used to maintain the operation of a
student veteran center. A portion of the funds awarded can be
used to assist veterans in special admissions and transfer of
credit and other activities to help student veterans achieve
their educational and career goals.
Sec. 8010--University Sustainability Program amendments
This section amends section 881 of the HEA to reauthorize
sustainability planning grants for FY 2021 and each of the five
succeeding fiscal years. Such grants are provided to
institutions or nonprofits operating in partnership with
institutions to establish sustainability programs to design and
implement the teaching and practice of sustainability,
including in the areas of staff and faculty professional
development, energy management, greenhouse gas emissions
reductions, green building, waste management, transportation,
resilience, green workforce, and other aspects of
sustainability that integrate the local community with
multidisciplinary academic programs and are applicable to the
private and Government sectors.
Sec. 8011--Modeling and simulation
This section reauthorizes modeling and simulation programs
to promote the study of modeling and simulation at institutions
and authorizes $75 million for FY 2021 and each of the five
succeeding fiscal years.
Sec. 8012--Path to success
This section reauthorizes the Path to Success program for
FY 2021 and each of the five succeeding fiscal years.
Sec. 8013--Mandatory funding for masters and postbaccalaureate programs
This section reauthorizes and appropriates $13.5 million
for FY 2021 and each succeeding fiscal year to provide grants
for master's degree programs at HBCUs and PBIs authorized under
sections 723 and 724 of the HEA. This section reauthorizes and
appropriates $21 million for FY 2021 and each succeeding fiscal
year for the Promoting Postbaccalaureate Opportunities for
Hispanic Americans Program at HSIs. This section authorizes $13
million for FY2021 and each succeeding fiscal year to support
the coordinated administration of graduate programs authorized
under Part A of title VII.
Sec. 8014--Funds for access to open educational resources
This section amends title VIII of the HEA to authorize $5
million for FY 2021 and each of the five succeeding fiscal
years to provide grants to expand the use of open educational
resources. Grants are provided to eligible institutions or a
group of institutions to support projects that expand the use
of high-quality open textbooks in order to achieve savings for
students while improving instruction and student learning
outcomes. An institution or institutions that receive a grant
under this section shall use the grant funds to provide for
professional development; creation or adaptation of high-
quality educational resources that meet accessibility
standards; developing or improving tools and informational
resources to support the use of open textbooks; and research
evaluating the use of open textbooks for achieving savings for
students.
Educational content created through this grant will be
licensed and available to the public free of charge on a fully
accessible website.
TITLE IX--DIRECTIVES TO THE SECRETARY OF EDUCATION
Sec. 9001--Providing that the Secretary of Education may not issue or
enforce certain rules that weaken the enforcement of the
prohibition of sex discrimination applicable under title IX of
the Education Amendments of 1972
This section blocks implementation, enforcement, or effect
of the ``Nondiscrimination on the Basis of Sex in Education
Programs or Activities Receiving Federal Financial Assistance''
rule, proposed by Secretary DeVos on November 29, 2018, or any
substantially similar rule.
Sec. 9002--Study and report on single certification form
This section requires the Secretary to conduct a study and
report to Congress on the feasibility of developing a single
certification form that borrowers may use to electronically
submit information for TEACH grants, loan forgiveness under
income driven repayment, loan cancelation for teachers, and
public service loan forgiveness.
Sec. 9003--Longitudinal study on the effectiveness of student loan
counseling
This section requires the Secretary, acting through the
Director of the Institution of Education Sciences, to conduct a
longitudinal study on the impact and effectiveness of student
loan counseling required under the HEA and provide interim
reports to Congress.
Sec. 9004--Study and procedures on determining family size
This section requires the Secretary, in consultation with
the Secretary of the Treasury, to conduct a study on the effect
of using data from the IRS on the deduction of personal
exemptions as a proxy for family size under an IDR plan. The
Secretary must use the results of the study and the comments
submitted during a public comment period to develop procedures
for determining family size for the automatic recertification
of income under an IBR plan.
Sec. 9005--Universal unique numeric data identifier
This section requires the Secretary to assign a unique
numeric identifier to at least each campus of each institution
that receives funds under title IV of the HEA to be used for
reporting and disaggregating data for purposes required by the
HEA.
Sec. 9006--Questions on food and housing insecurity in national
postsecondary student aid study
This section requires the Secretary to include questions
that measure rates of food and housing insecurity in each
National Postsecondary Student Aid Study conducted after the
date of enactment of this Act.
Sec. 9007--Disaggregation of data using racial groups
This section requires the Secretary to conduct a study on
the feasibility of disaggregating data reported pursuant to the
HEA using the racial groups identified by the American
Community Survey of the Bureau of the Census and issue best
practices with respect to such disaggregation.
Sec. 9008--Disaggregation of data by sexual orientation and gender
identity
This section requires the Secretary to conduct a study on
options for disaggregating data reported pursuant to the HEA by
sexual orientation and gender identity and issue best practices
with respect to such disaggregation.
Sec. 9009--Accessible instructional materials and technology
This section establishes an independent commission to
develop and issue voluntary guidelines for accessible
postsecondary electronic instructional materials and related
technologies to ensure students with disabilities are afforded
the same educational benefits provided to students without
disabilities, improve the selection and use of such materials
and technologies at institutions, and encourage publishers to
make accessible versions of materials and technologies more
readily available. The Speaker of the House of Representatives,
President pro tempore of the Senate, and the Secretary are
required to establish the commission comprising members from
communities of persons with disabilities for whom accessibility
of electronic instructional materials is significant, higher
education leadership, and developers of postsecondary
electronic instructional materials and manufacturers of related
technologies. Administrative support for the commission is
provided by the Secretary through the Office of Postsecondary
Education of the Department. The Secretary is required to
review every five years, through notice for public comment, the
voluntary guidelines issued by the commission. The Secretary is
required to report and make recommendations to Congress,
informed by such review.
Sec. 9010--Serving and supporting students with mental health
disabilities in institutions of higher education
This section directs the Secretary to establish an advisory
committee on serving and supporting students with mental health
disabilities in higher education. The commission with conduct a
study about the issues facing students with mental health
disabilities on campus and will provide recommendations to
improve outcomes with students with mental health disabilities.
This section directs GAO to conduct a study about the
challenges faced by students with mental health disabilities.
Sec. 9011--Federal student loan cancellation commission
This section establishes a commission to study the impact
of federal student loan debt on the short- and long-term
socioeconomic outcomes of individual borrowers and regional and
national economies. The commission is also responsible for
studying the feasibility of canceling federal student loan
debt. The commission has 24 months after the date on which the
last member is appointed to submit a report to Congress
containing findings on debt and recommendations to create a
federal student loan cancellation program. This section
establishes the composition of and appointment to the
commission and outlines the powers of the commission (e.g.
holding hearings and establishing subcommittees).
Sec. 9012--Distribution of resources to prevent incidents of bias on
campus
This section directs the Secretary to disseminate
resources, including best practices information, about
preventing and responding to incidents of bias, including bias
based on actual or perceived race, color, religion, national
origin, sex (including sexual orientation, gender identity,
pregnancy, childbirth, a medical condition related to pregnancy
or childbirth, and sex stereotype), or disability, at
institutions of higher education.
Sec. 9013--GAO study on racial and socioeconomic equity gaps at public
4-year institutions
This section directs the Comptroller General to prepare a
report that examines racial and socioeconomic equity gaps in
outcomes such as enrollment, degree attainment, and federal
student loan repayment rates. The GAO must explore factors that
may contribute to these gaps and efforts by states and
institutions to close these gaps. Additionally, the GAO must
study the racial breakdown of faculty and staff at public four-
year institutions and how retention rates for faculty and staff
of color compare to white faculty and staff.
Sec. 9014--GAO study on license revocations related to student loan
defaults
This section directs the Comptroller General to conduct a
study on State practices related to the denial, suspension, or
revocation of an individual's professional or driver's license
when such individual defaults on their student loans. The study
shall include a review of State laws, the extent to which
borrowers are affected by such laws to deny or revoke licenses,
and the consequences of such denials on student loan borrowers.
TITLE X--AMENDMENTS TO OTHER LAWS
Part A--Education of the Deaf Act of 1986
Sec. 10001--Composition of Board of Trustees
This section amends the Education of the Deaf Act to change
the number of members on the Board of Trustees for Gallaudet
University from 21 to 23 Members and add two United States
Senator to the board.
Sec. 10002--Administrative requirements of Laurent Clerc National Deaf
Education Center
This section aligns activities of the Laurent Clerc
National Deaf Education Center (Clerc Center), which provides
elementary and secondary education programs, with requirements
of the ESEA by requiring the Clerc Center to adopt challenging
State academic standards and academic assessments and implement
an accountability system.
Sec. 10003--Federal endowment programs for Gallaudet University and the
National Technical Institute for the Deaf
This section clarifies a definition relating to the Federal
endowment fund.
Part B--Tribally Controlled Colleges and Universities Assistance Act of
1978
Sec. 10101--Tribally Controlled Colleges and Universities Assistance
Act of 1978
This section makes amendments to the Tribally Controlled
Colleges and Universities Assistance Act (TCCUAA), including
through amending the definition of ``tribally controlled
college or university'' and amending how the Bureau of Indian
Education (BIE) counts Indian students at TCCUs (both in
academic programs and continuing education programs) for
purposes of funding under the TCCUAA. Additionally, this
section requires the BIE to use the Indian student enrollment
data from the prior-prior academic year.
This section also authorizes to be appropriated such sums
as may be necessary for FY 2021 and each of the five succeeding
years to carry out titles I, III, IV and V of the TCCUAA. To
account for this authorization, it makes conforming amendments
to respective sections.
This section amends the TCCUAA section that authorizes
planning grants to help a tribe determine the feasibility of
establishing a tribal college by replacing such authorization
with a requirement that the Secretary of the Interior submit a
report to Congress on inquiries received from federally
recognized Indian Tribes and tribal organization about the
process for establishing a TCCU. Additionally, this section
allows the Secretary of the Interior to pay for the feasibility
study used to determine whether there is justification to start
a TCCU only from the BIE's administrative budget, rather than
the TCCU operating fund.
This section makes other changes to grant programs
authorized under the TCCUAA. It updates the priority used for
grants to TCCUs to institutions that received payments under
title I in FY 2019 or were affiliated with an institution that
received payments. In the case that the sum appropriated for
any fiscal year is insufficient to pay in full the total amount
that approved applicants are eligible to receive, this section
directs the Secretary of the Interior to first allocate funding
to existing TCCUs at a specified amount before payments to new
TCCUs are awarded.
This section replaces the TCCUAA study on vacant or
underutilized facilities owned by the Bureau of Indian Affairs
with a required study on the condition of TCCU facilities that
identifies the need for new construction, renovation, and
infrastructure enhancements at TCCUs. Further, this section
outlines eligible activities for grants provided for such
construction.
This section amends the endowment program authorized under
the TCCUAA to better align the program with the Endowment
Challenge Grant Program administered by the Department. Such
amendments include restricting the grant to 20 years.
This section allows tribally controlled postsecondary
career and technical institutions to be eligible for grant
programs authorized under the TCCUAA.
Part C--Strengthening Program Alignment for Postsecondary Perkins
Career and Technical Education Programs
Sec. 10201--Strengthening program alignment for postsecondary Perkins
Career and Technical Education Programs
This section authorizes $183.52 million in additional
appropriation for FY 2021 and each of the succeeding fiscal
years to postsecondary Perkins Career and Technical Education
(CTE) programs. These funds will support community colleges
that have partnered with secondary schools, area CTE schools,
four-year institutions, and workforce development systems to
create stronger alignment in carrying out CTE programs and
programs of study. Funds will additionally support the
expansion of career pathways, articulation agreements, career
guidance, and academic counseling. Of the $183.52 amount for FY
2021, $1.52 million is authorized to be appropriated to assist
outlying areas and an additional $1 million is authorized to be
appropriated for Tribally Controlled Postsecondary Career and
Technical Institutions.
Part D--General Education Provisions Act
Sec. 10301--Release of education records to facilitate the award of a
recognized postsecondary credential
This section authorizes the release of educational records
to an institution at which a student was previously enrolled in
order to facilitate the awarding of credentials and degrees by
such institution, also known as ``reverse transfer.'' Students
must provide consent prior to receiving a credential.
Part E--Education Sciences Reform Act of 2002
Sec. 10401--Inclusion of racial subgroups in IPEDS data
This section requires the NCES to collect and report data
for the purposes of IPEDS and the postsecondary student data
system created under Sec. 1022 of this Act disaggregated by all
the racial groups specified in the U.S. Census Bureau's
American Community Survey.
Part F--U.S. Institute of Peace
Sec. 10501--Reauthorization of the U.S. Institute of Peace
This section reauthorizes the U.S. Institute of Peace for
FY 2021 and each of the five succeeding fiscal years.
Explanation of Amendments
The amendments, including the amendment in the nature of a
substitute are explained in the descriptive portions of this
report.
Application of Law to the Legislative Branch
Pursuant to section 102(b)(3) of the Congressional
Accountability Act, Pub. L. No. 104-1, H.R. 4674 does not apply
to terms and conditions of employment or to access to public
services or accommodations within the legislative branch.
Unfunded Mandate Statement
Pursuant to Section 423 of the Congressional Budget and
Impoundment Control Act (as amended by Section 101(a)(2) of the
Unfunded Mandates Reform Act, Pub. L. 104-4), the Committee
adopts as its own the estimate of federal mandates regarding
H.R. 4674, as amended, prepared by the Director of the
Congressional Budget Office.
Earmark Statement
In accordance with clause 9 of rule XXI of the Rules of the
House of Representatives, H.R. 4674 does not contain any
congressional earmarks, limited tax benefits, or limited tariff
benefits as described in clauses 9(e), 9(f), and 9(g) of rule
XXI.
Roll Call Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
following roll call votes occurred during the Committee's
consideration of H.R. 4674:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Statement of Performance Goals and Objectives
Pursuant to clause (3)(c) of rule XIII of the Rules of the
House of Representatives, the goals of H.R. 4674 are to lower
the cost of college for students and families, to hold colleges
accountable for students' success, and to give a new generation
of students the opportunity to graduate on-time and transition
to a successful career.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of H.R. 4674 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.
Hearings
Pursuant to section 103(i) of H. Res. 6 for the 116th
Congress, the Committee held five legislative hearings
reflected in the descriptive portions of this report, which
were used to develop H.R. 4674.
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 descriptive portions of this report.
New Budget Authority and CBO Cost Estimate
Pursuant to 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 pursuant to 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. 4674 from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, December 10, 2019.
Hon. Bobby Scott,
Chairman, Committee on Education and Labor,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4674, the College
Affordability Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Justin
Humphrey.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
The bill would:
Increase direct spending for federal student
loan programs by $169.9 billion over the 2020-2029
period
Increase direct spending for the Federal
Pell Grant Program by $83.1 billion over the 2020-2029
period
Increase direct spending for other higher
education programs by $78.8 billion over the 2020-2029
period
Amend and permanently reauthorize the
discretionary portion of the Pell grant program, which
would increase spending subject to appropriation by
$85.4 billion over the 2020-2024 period
Estimated budgetary effects would primarily stem from:
Amending repayment options for federal
student loan programs, eliminating origination fees,
creating a subsidized loan program for graduate
students, and expanding eligibility for Public Service
Loan Forgiveness
Increasing the maximum Pell grant and
indexing the total to inflation
Appropriating funds for America's College
Promise, a grant program that would require
participating states to eliminate tuition and fees at
public two-year institutions
Areas of significant uncertainty include:
Projecting future enrollment in
postsecondary education and participation in the
federal student aid programs
Anticipating responses of students,
postsecondary education institutions, and states to
changes in the bill
Projecting future incomes of borrowers in
income-driven repayment and interest rates on student
loans
Bill summary: H.R. 4674 would reauthorize the Higher
Education Act of 1965 and amend student and institutional
eligibility for several major student aid programs, including
the William D. Ford Federal Direct Loan Program and the Federal
Pell Grant Program. The bill also would reauthorize funding for
most other federal higher education programs.
Estimated Federal cost: The estimated budgetary effect of
H.R. 4674 is shown in Table 1. The costs of the legislation
fall within budget functions 050 (national defense) and 500
(education, training, employment, and social services).
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 4674
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, billions of dollars--
--------------------------------------------------------------------------------------------
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2020-2024 2020-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increases and Decreases (-) in Direct Spending
Student Loans:
Estimated Budget Authority............................. 91.7 9.2 10.7 10.5 10.1 10.2 9.9 10.1 9.6 9.5 132.2 181.5
Estimated Outlays...................................... 89.8 6.9 9.6 9.5 9.3 9.2 9.1 9.1 8.8 8.7 125.1 169.9
Pell Grants:
Estimated Budget Authority............................. * 4.6 6.2 7.6 9.0 10.4 11.9 13.7 15.3 17.1 27.4 95.9
Estimated Outlays...................................... * 1.2 5.0 6.6 8.0 9.3 10.8 12.4 14.1 15.8 20.7 83.1
Other Mandatory Programs:
Estimated Budget Authority............................. 1.8 1.4 5.2 7.2 9.0 10.9 12.1 14.6 17.9 18.6 24.6 98.8
Estimated Outlays...................................... 1.8 -1.3 2.5 5.0 7.0 8.9 10.7 12.3 14.7 17.3 15.0 78.8
Total: Direct Spending:
Estimated Budget Authority............................. 93.5 15.2 22.1 25.3 28.1 31.5 34.0 38.4 42.9 45.2 184.2 376.2
Estimated Outlays...................................... 91.6 6.8 17.1 21.1 24.3 27.4 30.5 33.8 37.7 41.7 160.8 331.9
Increases in Spending Subject to Appropriation
Pell Grants:
Estimated Authorization................................ 0 19.7 28.6 29.6 30.1 n.e. n.e. n.e. n.e. n.e. 108.0 n.e.
Estimated Outlays...................................... 0 5.1 21.8 28.8 29.7 22.3 0.3 n.e. n.e. n.e. 85.4 n.e.
Additional College Affordability Grants:
Estimated Authorization................................ 0.0 2.8 8.9 15.6 19.4 n.e. n.e. n.e. n.e. n.e. 46.7 n.e.
Estimated Outlays...................................... 0.0 0.6 3.5 8.9 14.7 14.4 3.7 1.0 n.e. n.e. 27.6 n.e.
Other Discretionary Programs:
Estimated Authorization................................ 0.6 11.8 12.3 12.9 13.4 n.e. n.e. n.e. n.e. n.e. 50.9 n.e.
Estimated Outlays...................................... * 1.7 9.6 11.7 12.9 11.6 2.4 0.8 n.e. n.e. 35.9 n.e.
Total: Discretionary Spending:
Estimated Authorization................................ 0.6 34.2 49.8 58.0 63.0 n.e. n.e. n.e. n.e. n.e. 205.6 n.e.
Estimated Outlays...................................... * 7.4 34.9 49.3 57.3 48.3 6.4 1.7 n.e. n.e. 148.9 n.e.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding; n.e. = not estimated; *= between -$50 million and $50 million.
Estimated outlays after 2024 are derived from authorizations prior to 2025.
Basis of estimate: For this estimate, CBO assumes that H.R.
4674 will be enacted by July 1, 2020, which coincides with the
upcoming 2020-2021 academic year. CBO estimates that enacting
the bill would increase direct spending by $91.6 billion in
2020, $160.8 billion over the 2020-2024 period, and $331.9
billion over the 2020 2029 period. CBO's estimates are based on
analysis of data from a variety of sources, including the
National Student Loan Data System, data on applications for
federal student aid from the Department of Education, and the
National Postsecondary Student Aid Study.
H.R. 4674 would reauthorize and create many discretionary
programs for higher education through fiscal year 2026.
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 2027 under the General Education Provisions
Act. The bill also would amend several other laws, including
the U.S. Institute of Peace Act and the Tribally Controlled
Colleges and Universities Assistance Act. CBO estimates that
implementing H.R. 4674 would cost $148.9 billion over the 2020-
2024 period, assuming appropriation of the necessary amounts.
The largest amount ($85.4 billion) would result from
reauthorizing and amending the discretionary portion of the
Pell grant program.
Direct spending: CBO estimates that over the 2020-2029
period, enacting H.R. 4674 would increase direct spending by
$331.9 billion.
Federal student loan programs. The federal government
provides loans to undergraduate and graduate students and to
the parents of undergraduates under the William D. Ford Direct
Loan Program, which was created in 1994. 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 2020, the federal government will make about 16 million
new loans to students and parents, totaling about $100 billion.
Under the technical and economic assumptions that underlie
CBO's May 2019 baseline, we project that mandatory and
discretionary spending for the federal student loan programs
will total $31.5 billion over the 2019-2029 period.\2\
---------------------------------------------------------------------------
\1\Before July 1, 2010, the federal government also provided loan
guarantees to financial institutions for student loans made through the
Federal Family Education Loan Program. The Health Care and Education
Reconciliation Act of 2010 required loans originated after July 1,
2010, to be in the direct loan program.
\2\See also Student Loan Programs--CEO's May 2019 Baseline. https:/
/www.cbo.gov/system/files/2019-05/51310-2019-05-studentloan.pdf.
---------------------------------------------------------------------------
As required by the Federal Credit Reform Act of 1990
(FCRA), CBO estimates most of the costs of the federal student
loan programs 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 securities. (For example,
cash flow for a one-year loan is discounted using the rate for
a one-year, zero-coupon Treasury note.)\3\ As required by FCRA,
changes to the estimated costs of outstanding student loans are
shown in the year of enactment; for this estimate, CBO assumes
H.R. 4674 will be enacted in fiscal year 2020. The costs for
the federal administration of student loans are estimated on a
cash basis. The major provisions affecting direct spending for
student loans are described below. In total direct spending for
those loans would total $169.9 billion over the 2020-2029
period.
---------------------------------------------------------------------------
\3\A second approach to estimating the costs of federal credit
programs is called fair value. 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 credit programs. To account for that risk, CBO discounts the
same projected cash flows as under FCRA but uses a market-based
discount rate. CBO has not completed an estimate of the loan provisions
in H.R. 4674 using fair value estimating procedures. For more details
on fair-value accounting, see Congressional Budget Office, Fair-Value
Estimates of the Cost of Federal Credit Programs in 2019 (June 2018)
www.cbo.gov/publication/54095.
---------------------------------------------------------------------------
Borrowers' (Student and Parents) Repayment Options. Under
current law, borrowers select a loan repayment plan from the
following options:
Standard (or default) repayment plan--
borrowers under the standard repayment plan make fixed
monthly payments for 10 years.
Extended repayment or consolidation plans--
in certain circumstances, borrowers may extend the
repayment of a loan for up to 30 years.
Income-driven repayment (IDR) plans--student
borrowers may use these plans, such as the PAYE (Pay as
You Earn) Repayment Plan and the REPAYE (Revised Pay as
You Earn) Repayment Plan, to make monthly payments.
Those payments are calculated as a percentage of
income, and borrowers usually make payments 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. Parent borrowers can only use the Income-
Contingent Repayment Plan, which requires higher
payments for a longer period of time than most income-
driven repayment plans for students.
H.R. 4674 would eliminate those repayment plans and replace
them with two new plans: a fixed-repayment plan (the default
plan) and an income-driven repayment plan. Current borrowers
could remain in their plan or switch into one of the two new
plans.
Under the bill, the fixed-repayment plan would allow
borrowers to make monthly payments for 10, 15, 20, or 25 years,
depending on the amount of their debt when entering repayment.
Under the income-driven repayment plan, borrowers would pay
10 percent of their discretionary income, defined as any amount
above 250 percent of the federal poverty level.\4\ That
percentage would be reduced by 10 percentage points for every
$1,000 that single borrowers' adjusted gross income exceeded
$80,000 or for every $2,000 that married borrowers' income
exceeded $160,000. Any loan balance remaining after 20 years
would be forgiven.
---------------------------------------------------------------------------
\4\In 2019, the federal poverty level is $12,490 for a single
person or $25,750 for a family of four.
---------------------------------------------------------------------------
Based on borrower data from the NSLDS and income
projections derived from the CBO Long-Term model, CBO estimates
that amending the repayment plans would increase direct
spending by $42.0 billion for student borrowers and by $26.8
billion for parent borrowers over the 2020-2029 period (see
Table 2). CBO expects that the majority of that increase would
be for outstanding student loans because borrowers with lower
incomes (who are most likely to see lower payments and more
forgiveness of outstanding balances) would probably switch into
the new income-driven repayment plan. However, as borrowers'
incomes rise over time and more borrowers exceed the income at
which reductions in the discretionary income level occur, CBO
expects that the costs of the new IDR plans would decline.
TABLE 2.--ESTIMATED EFFECTS ON DIRECT SPENDING OUTLAYS UNDER H.R. 4674
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, billions of dollars--
----------------------------------------------------------------------------------------------------
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2020-2024 2020-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
Federal Student Loans
Student Repayment Options.......................... 43.0 1.5 1.0 0.5 0.5 -0.5 -0.5 -1.0 -1.0 -1.5 46.5 42.0
Parent Repayment Options........................... 8.2 2.1 2.1 2.1 2.2 2.1 2.1 2.0 2.0 2.0 16.6 26.8
Subsidized Graduate Loan Program................... 0.0 1.4 2.3 2.4 2.4 2.5 2.6 2.7 2.7 2.8 8.5 21.8
Origination Fees................................... 0.0 0.8 1.6 1.9 2.0 2.1 2.2 2.3 2.3 2.4 6.4 17.7
PSLF for Borrowers Who Consolidate................. 16.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 16.0 16.0
Borrower Defense to Repayment Rule................. 0.5 1.1 1.3 1.4 1.4 1.4 1.5 1.6 1.6 1.7 5.7 13.5
Refinancing Loans:
Federal Loans.................................. 13.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 13.3 13.3
Private Loans.................................. * -2.5 -1.2 -1.0 -0.3 * * * * * -5.0 -5.0
Administrative Costs........................... * * * * * * * * * * 0.1 0.3
Other Loan Policies and Interactions............... 8.8 2.5 2.4 2.2 1.0 1.5 1.2 1.6 1.2 1.3 17.0 23.6
----------------------------------------------------------------------------------------------------
Subtotal....................................... 89.8 6.9 9.6 9.5 9.3 9.2 9.1 9.1 8.8 8.7 125.1 169.9
Pell Grants
Increase the Mandatory Add-on...................... 0.0 1.0 4.0 5.2 6.4 7.6 8.9 10.4 11.9 13.5 16.5 68.7
Other Pell Grant Policies and Interactions......... * 0.2 1.0 1.4 1.6 1.7 1.9 2.0 2.2 2.3 4.3 14.4
----------------------------------------------------------------------------------------------------
Subtotal....................................... * 1.2 5.0 6.6 8.0 9.3 10.8 12.4 14.1 15.8 20.7 83.1
Other Mandatory Programs
America's College Promisea......................... 0.0 0.3 1.6 3.2 4.5 6.2 7.9 9.4 11.8 14.3 9.7 59.3
Other Mandatory Porgram Policies................... 1.8 -1.6 0.9 1.8 2.5 2.7 2.8 2.8 2.9 2.9 5.4 19.5
----------------------------------------------------------------------------------------------------
Subtotal....................................... 1.8 -1.3 2.5 5.0 7.0 8.9 10.7 12.3 14.7 17.3 15.0 78.8
Total, Direct Spending..................... 91.6 6.8 17.1 21.1 24.3 27.4 30.5 33.8 37.7 41.7 160.8 331.9
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding; PSLF = Public Service Loan Forgiveness; * = between -$50 million and $50 million.
aCBO estimates this provision would increase direct spending for Pell grants by $900 million and decrease spending on student loans by $1.1 billion over
the 2021 2029 period. Those totals are included above under the headings for ``Federal Student Loans'' and ``Pell grants.''
Subsidized Graduate Loan Program. Under current law,
graduate students can borrow up to $20,500 annually in
unsubsidized loans, which accrue interest from the date of
origination. Under H.R. 4674, borrowers attending public and
private, not-for-profit institutions would be eligible to
borrow up to $8,500 of that annual amount in subsidized loans,
which would not accrue interest while the borrower is enrolled
at least half-time or during certain periods of deferment.
Under current law, CBO projects that graduate students will
incur about $340 billion worth of loans over the 2021-2029
period. Based on the amount of borrowing in the subsidized loan
program for graduate students that existed until 2012, CBO
expects that approximately 35 percent of that projected loan
amount would move to the subsidized loan program. As a result,
CBO estimates this provision would increase direct spending by
$21.8 billion over the 2021-2029 period.
Origination Fees. Under current law, borrowers with
subsidized and unsubsidized loans pay an origination fee of 1
percent of the loan amount. The fee for parent and GradPLUS
loans is 4 percent.\5\ H.R. 4674 would eliminate all
origination fees, which increases the cost of those loans,
resulting in an increase in direct spending of $17.7 billion
over the 2021-2029 period, CBO estimates.
---------------------------------------------------------------------------
\5\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.
---------------------------------------------------------------------------
Public Service Loan Forgiveness for Borrowers who
Consolidate. Under current law, to be eligible for the Public
Service Loan Forgiveness (PSLF) Program, borrowers' loans must
be in the federal direct loan program and a borrower must be
making payments to an eligible repayment plan, such as an
income-driven repayment plan. Borrowers who have Family Federal
Education Loans or who are making payments in extended
repayment or other repayment plans are not eligible for the
program.
H.R. 4674 would allow borrowers who consolidate their loans
under one of the new repayment plans to count their previous
payments under other prepayment plans toward the 120 payments
required for PSLF. Using data from the Government
Accountability Office and information about borrowers who have
certified their employment for the PSLF Program, CBO estimates
that enacting the provision would increase direct spending by
$16.0 billion in 2020 because it would change the cost of
outstanding loans.
Borrower Defense to Repayment Rule. Under current law,
borrowers who demonstrate financial harm from an institution's
false or misleading statements may apply to have their loans
discharged under what is known as the borrower defense to
repayment.
H.R. 4674 would expand eligibility to borrowers who have
attended an institution that made a substantial
misrepresentation and allow a legal representative to bring
defense claims on behalf of a group of borrowers. Based on the
loan volume at schools that are under investigation for cases
that could fall under borrower defense to repayment, CBO
estimates that enacting those provisions would increase direct
spending by $13.5 billion over the 2020-2029 period.
Refinancing Loans. Under H.R. 4674, eligible borrowers
could apply to have the Department of Education refinance
outstanding federal direct or guaranteed student loans or
private loans at interest rates specified in the bill. The
interest rates under the policy would be equal to the interest
rates that apply to new federal loans issued in academic year
2019-2020. The department would have the authority to limit
refinancing to borrowers who meet income requirements or debt-
to-incomeratios that it established. For private loans, the
bill would prohibit borrowers from refinancing any loan that is
in default and require that borrowers be current on their
payments for the previous six months.
According to the Department of Education, the total amount
in outstanding federal student loans or loan guarantees stands
at nearly $1.5 trillion. More than three-quarters of the
federal student loan volume is in federal direct loans; the
remainder is for federally guaranteed loans issued before July
1, 2010. Using data from the National Student Loan Data System,
CBO estimates that borrowers who account for about 40 percent
of the outstanding loan volume would not benefit from
refinancing because the interest rates on many recently
originated federal loans are lower than or equal to those
specified in the bill. CBO expects that more than half of the
outstanding loans that would benefit would be refinanced, but
borrowers' participation would be greatest for loans with
higher current interest rates and more years left to repay. The
federal government would receive less in interest income over
the life of loans that were refinanced at lower rates. In
total, CBO estimates that allowing students to refinance
federal direct and guaranteed loans would increase direct
spending by $13.3 billion.
According to MeasureOne, a private-sector firm that
analyzes education data, about $123 billion is currently
outstanding in private student loans that are not federally
guaranteed. CBO estimates that a little less than half of that
loan volume would be refinanced under the bill, and using the
procedures specified in FCRA to estimate the cost of loans, CBO
estimates that the interest earned by the government on those
loans would be greater than the cost to finance them on a net-
present-value basis. Accordingly, CBO estimates that borrowers'
refinancing of those private student loans would reduce direct
spending by $5.0 billion over the 2020-2029 period for those
administrative costs.
The cost of administering formerly private and guaranteed
student loans would create additional mandatory spending, which
is recorded on a cash basis. Based on the costs of
administering existing loans, CBO estimates that direct
spending would increase by $250 million over the 2020-2029
period.
Other Loan Policies and Interactions. H.R. 4674 would make
other changes to federal student loan programs, including
amending the list of professions that would make borrowers
eligible for the PSLF Program, reducing the instances in which
outstanding interest is capitalized (added to the loan's
principal to determine interest owed), and automatically
discharging loans for borrowers who attended an institution
that closed while they were enrolled. CBO estimates that those
changes would increase direct spending by $16.1 billion over
the 2020-2029 period. Interactions among all the numerous
provisions related to student loans would increase direct
spending by an additional $7.5 billion.
Federal Pell grant program: The Pell grant program was
created in 1972 to provide need-based grants to postsecondary
undergraduate students. Pell grants are not repaid by students,
and they constitute the largest source of federal grant aid for
postsecondary education. In the upcoming academic year 2019-
2020, CBO projects that 7.1 million students will receive Pell
grants that average $4,200 each, at a total federal cost of
about $30 billion.
Although Pell grants are paid for in part with direct
spending, their funding is mainly provided in annual
discretionary appropriations with a mandatory set-aside that
supports the discretionary portion of the Pell grant
program.\6\ Additional direct spending is provided
automatically on the basis of a formula to support a ``
mandatory add-on'' that increases the award amount above the
maximum set in the annual appropriation act. For the 2020-2021
academic year, which begins July 1, 2020, the total maximum
grant will be $6,195. Of that, $5,135 will be supported with
discretionary funds and the mandatory set-aside, and $1,060
will be supported through the mandatory add-on. Those awards
are the amounts that were the grant levels in the 2019-2020
academic year. The current continuing resolution (Public Law
116-69) will expire on December 20, 2019. However, because CBO
scores continuing resolutions on an annualized basis, CBO has
assumed that those award amounts will be the same for the 2020-
2021 academic year.
---------------------------------------------------------------------------
\6\Provided in section 401(b)7(A)(iv) of the Higher Education Act.
---------------------------------------------------------------------------
Because funding for Pell grants comes from mandatory and
discretionary sources, the budgetary effects of changes made to
Pell grants in H.R. 4674 are discussed in two sections of this
estimate. Changes to the mandatory add-on are discussed in this
section, and discretionary-funding effects are discussed under
``Spending Subject to Appropriation.''
Increase the Mandatory Add-On. H.R. 4674 would increase the
mandatory add-on by $625 (raising the grant amount from $1,060
to $1,685) to increase the 2021 total maximum Pell grant to
$6,820. Beginning in 2022, the total maximum grant would
increase annually with inflation, and any required change would
be reflected by an increase in the mandatory add-on award. In
2029, CBO estimates that the total maximum award would be
$8,250; the average award would increase by $1,420 (or about 33
percent). In addition to increasing the average award, CBO
estimates that enacting this provision would increase the
number of grant recipients in 2029 by about 390,000 and would
increase direct spending by $68.7 billion over the 2020-2029
period.
Other Pell Grant Policies and Interactions. H.R. 4674 would
make several other changes to the Pell grant program that, in
general, would expand eligibility (and thus increase the number
of recipients) or increase award amounts. The bill would
provide grants to previously ineligible students who meet
certain criteria and are enrolled in nonproprietary
institutions. That group includes graduate students,
incarcerated students, and students enrolled in short-term
programs. H.R. 4674 also would change the Free Application for
Federal Student Aid, the application process, the formula for
determining eligibility, and lifetime eligibility.
H.R. 4674 also would place new regulations on proprietary
schools, which CBO estimates would reduce the number of
recipients.
CBO estimates that considered together, including America's
College Promise (as described below), these other provisions
would increase the number of Pell grant recipients by about 1
million (or 11 percent) in 2029 and increase direct spending by
$6.8 billion over the 2020-2029 period. Interactions among all
the numerous provisions related to Pell grants would further
increase direct spending by $7.6 billion.
In total, CBO estimates that implementing H.R. 4674 would
increase the number of Pell grant recipients by 1.4 million in
2029, or 16 percent, and increase direct spending by $83.1
billion over the 2020-2029 period.
Other mandatory programs: In addition to Pell grants, H.R.
4674 would amend and extend funding for current and expired
mandatory programs and appropriate funding for several new
grant programs, the largest of which is the America's College
Promise grant program.
America's College Promise. Beginning in 2021, H.R. 4674
would appropriate specified amounts for annual grants to help
states eliminate resident tuition and fees at public two-year
institutions. All told, $75 billion would be provided over the
2021-2029 period, of which CBO estimates $59 billion would be
spent. Ultimately, CBO estimates, most states would participate
in the grant program.
CBO assumes that the elimination of tuition and fees at
two-year institutions also would indirectly affect other
federal spending on education. CBO estimates that this
provision would increase spending for Pell grants because
eliminating tuition and fees at these institutions would cause
more students to enroll and some of them would be eligible for
Pell grants. However spending for student loans would decrease
because the elimination of tuition and fees would result in
less borrowing. CBO estimates that as a result of this
provision, federal costs for the mandatory portion of the Pell
grant program would increase by about $900 million over the
2021-2029 period and that direct spending on student loans
would be reduced by $1.1 billion over that period.
Other Mandatory Program Policies. H.R. 4674 would increase
direct spending for various other programs. For example, it
would amend the TEACH grant program; extend funding for
existing but expired mandatory grant programs, including those
for Historically Black Colleges and Universities and minority-
serving institutions; and create new programs, such as the
Institutional Pell Bonuses program. CBO estimates that those
provisions would increase direct spending by $19.5 billion over
the 2021-2029 period.
Spending subject to appropriation: CBO estimates that
implementing H.R. 4674 would cost $148.9 billion over the 2020-
2024 period, assuming appropriation of the necessary amounts--
$205.6 billion--and spending consistent with historical
patterns.
The bulk of that spending would be for the Federal Pell
Grant Program ($85.4 billion over the 2020-2024 period) and
grants to support students' unmet need ($27.6 billion over the
2020-2024 period). In addition, the bill would authorize funds
for other grant programs for post-secondary students and
institutions.
Federal Pell grant program: The Pell grant program is by
far the largest grant program authorized by the Higher
Education Act, and although it receives some mandatory funding,
most spending for the program is subject to annual
appropriation. As shown in Table 3, CBO estimates that H.R.
4674 would cost $85.4 billion over the 2020-2024 period.
Beginning in fiscal year 2021, H.R. 4674 would permanently
authorize the appropriation of such sums as may be necessary
for the Pell grant program. CBO estimates that reauthorizing
the program with no other changes would require the
appropriation of $91.4 billion with resulting outlays of $72.2
billion over the 2020-2024 period. (The estimated cost of this
reauthorization represents the cost of the discretionary
program--under the assumption that the maximum grant would be
$5,135--minus 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.) Because the maximum student award under
the discretionary portion of the program is set in annual
appropriation acts, CBO assumes that the maximum award that is
funded with discretionary spending would be $5,135 in each year
over the 2020-2029 period. That is the amount in the most
recent appropriation act and CBO has no basis for estimating a
different amount in future years.
The bill would make other changes to Pell grants (see
Federal Pell Grant Program under the ``Direct Spending''
heading). CBO estimates that the total additional discretionary
cost of implementing those provisions would be $13.3 billion
over the 2020-2024 period.
Additional college affordability grants: H.R. 4674 would
authorize the appropriation of whatever amounts are necessary
to fund the federal share of grants to states to cover eligible
students' unmet need or finance tuition waivers. Unmet need is
defined as the cost of college attendance, after accounting for
expected family contribution and all grant aid. Grants would
only be provided to states that have provided all eligible
grants under the bill's America's College Promise program for
community college grants.
TABLE 3.--SPENDING SUBJECT TO APPROPRIATION IN H.R. 4674, BY TITLE
----------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
--------------------------------------------------------
2020 2021 2022 2023 2024 2020-2024
----------------------------------------------------------------------------------------------------------------
Increases in Spending Subject to Appropriation
Title IV: Student Assistance:
Pell Grants
Estimated Authorization............................ 0 19,660 28,626 29,592 30,121 108,000
Estimated Outlays.................................. 0 5,115 21,795 28,787 29,718 85,415
Additional College Affordability Grants
Estimated Authorization............................ 0 2,812 8,888 15,558 19,439 46,698
Estimated Outlays.................................. 0 562 3,465 8,866 14,697 27,590
Other
Estimated Authorization............................ 0 7,745 8,222 8,713 9,198 33,877
Estimated Outlays.................................. 0 1,381 6,592 7,894 8,744 24,610
Title Ill: Institutional Aid:
Estimated Authorization............................ 0 1,194 1,223 1,253 1,282 4,953
Estimated Outlays.................................. 0 62 873 1,109 1,244 3,289
Title VII: Graduate and Postsecondary Improvement
Programs:
Estimated Authorization............................ 0 1,108 1,102 1,106 1,111 4,426
Estimated Outlays.................................. 0 58 808 1,004 1,106 2,976
Title II: Teacher Quality Enhancement:
Estimated Authorization............................ 569 624 637 650 664 3,144
Estimated Outlays.................................. 30 125 559 629 646 1,989
Title V: Developing Institutions:
Estimated Authorization............................ 0 465 476 488 500 1,930
Estimated Outlays.................................. 0 24 340 432 485 1,281
Title X: Amendments to Other Laws:
Estimated Authorizations........................... 0 325 329 332 335 1,321
Estimated Outlays.................................. 0 17 238 299 331 884
Title VIII: Additional Programs:
Estimated Authorization............................ 0 177 177 178 178 710
Estimated Outlays.................................. 0 9 129 161 178 478
Title VI: International Education Programs:
Estimated Authorization............................ 0 125 128 131 134 519
Estimated Outlays.................................. 0 7 91 116 130 344
Title I: General Provisions:
Authorization Level................................ 0 15 15 15 15 60
Estimated Outlays.................................. 0 1 11 14 15 40
Total:
Estimated Authorization............................ 569 34,250 49,824 58,017 62,978 205,637
Estimated Outlays.................................. 30 7,360 34,901 49,312 57,293 148,896
----------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding.
Participating states could receive federal assistance to
cover the umnet need of eligible students enrolled at least
half-time in in-state public, two- or four-year institutions.
After providing grants to students at public institutions,
states could expand the grant program to cover the unmet need
of students at nonprofit private institutions in the state.
For this estimate, CBO assumes that, over the next five
years, states would choose to cover the unmet need of Pell
grant recipients, as prioritized in the bill, but would not
provide further grants for other students in the state, cover
tuition waivers, or expand the grant program to private
institutions. CBO estimates that implementing this provision
would require the appropriation of $46.7 billion over the 2020-
2024 period and would cost $27.6 billion over the same period.
Other spending subject to appropriation: H.R. 4674 also
would amend and extend the authorizations for many existing
programs under the Higher Education Act and other acts, such as
the Tribally Controlled Colleges and Universities Act, and
authorize new programs. As shown in Table 1, CBO estimates that
implementing the bill would require appropriation of $50.9
billion over the 2020-2024 period, which CBO estimates would
increase spending by $35.9 billion over the same period. Table
3 shows CBO's estimates of spending subject to appropriation by
title.
Uncertainty: CBO's budgetary estimates are uncertain for a
variety of reasons. For example, the ways in which students,
institutions of higher education, federal agencies, and states
would respond to this bill's provisions are all difficult to
predict. In producing these estimates, CBO has tried to
estimate outcomes that are likely to be roughly correct on
average.
In fact, CBO's projections for current-law spending also
are uncertain. For example, in 2017, the first group of student
borrowers became eligible for the Public Service Loan
Forgiveness Program. But data about that group are limited and
therefore cannot yet be used to confidently project future
participation. Actual participation, and the resulting
budgetary changes from expanding the PSLF program, may be
higher or lower than CBO's estimates.
Changes to the underlying economy also could significantly
affect the bill's costs. Fluctuationsin interest rates, for
example, would change the cost of the student loan program and
a sudden change in rates of employment could affect
postsecondary enrollment or the income of borrowers in income-
driven repayment programs, which would increase or decrease the
cost of all federal student aid.
Despite that uncertainty in CBO's assessment, the direction
of the budgetary effects of most of the bill's provisions is
clear. For example, the changes to the federal student loan
programs and the Pell grant program would, on net, almost
certainly increase federal costs by a very significant amount.
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 4.
TABLE 4.--CBO'S ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF H.R. 4674, THE COLLEGE AFFORDABILITY ACT, AS ORDERED REPORTED BY THE HOUSE COMMITTEE
ON EDUCATION AND LABOR ON OCTOBER 31, 2019
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, billions of dollars--
---------------------------------------------------------------------------------------------------------------
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2020-2024 2020-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
Net Increase in the Deficit
Pay-As-You-Go Effect.................... 91.6 6.8 17.1 21.1 24.3 27.4 30.5 33.8 37.7 41.7 160.8 331.9
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increase in long-term deficits: CBO estimates that enacting
H.R. 4674 would increase on-budget deficits by more than $5
billion in all of the four coqsecutive 10-year periods
beginning in 2030.
Mandates: H.R. 4674 contains intergovernmental and private-
sector mandates as defined in the Unfunded Mandates Reform Act
(UMRA). CBO estimates that the aggregate cost of complying with
the mandates would fall below the annual thresholds established
in UMRA ($82 million and $164 million, respectively, in 2019,
adjusted annually for inflation).
Mandate that applies both to public and to private
entities: The bill would require institutions of higher
education to establish an office of accessibility. That office
would provide information to students with disabilities about
their legal rights and accommodations provided by the school,
and specify the documentation needed to establish that a
student is a person with a disability.
Under current law, all institutions of higher education
must provide accommodations to students with disabilities.
Further, universities that receive federal funding are required
to appoint a coordinator for disability services. CBO expects
that institutions receiving federal assistance would incur
minimal costs to comply with the bill' s requirement to
establish an office that centralizes activities already taking
place. Institutions that do not receive federal assistance may
incur higher costs to establish an office of accessibility;
however, using information from industry sources, CBO estimates
that the number of affected institutions would be very small.
Mandate that applies to private entities only: The bill
would require financial institutions to report to federal
agencies and the Congress information related to their
portfolio of education loans. Lenders already provide most of
the information to credit bureaus and other private data
repositories; therefore, CBO estimates the cost to comply with
the new reporting requirement would be small.
Estimate prepared by: Federal Costs: Tia Caldwell, Paul
Holland, Justin Humphrey, Arin Kerstein, Leah Koestner, and
Emily Stern; Mandates: Lilia Ledezma.
Estimate reviewed by: Sheila Dacey, Chief, Income Security
and Education Cost Estimates Unit; Susan Willie, Chief,
Mandates Unit; H. Samuel Papenfuss, Deputy Assistant Director
for Budget Analysis; Theresa Gullo, 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. 4674.
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 of 1974.
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, H.R. 4674, as reported, are shown as follows:
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 italics, and existing law in which no
change is proposed is shown in roman):
HIGHER EDUCATION ACT OF 1965
* * * * * * *
TITLE I--GENERAL PROVISIONS
PART A--DEFINITIONS
* * * * * * *
SEC. 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)] 484(a)(2) 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 or
receivership 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[.] ; and
(F) meets the requirements of paragraph (3).
(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.
(3) Revenue sources.--In order to qualify as a
proprietary institution of higher education under this
subsection, an institution shall derive not less than
15 percent of the institution's revenues from sources
other than Federal education assistance funds, as
calculated in accordance with paragraph (4).
[(1)] (4) Calculation.--In making calculations under
[subsection (a)(24)] paragraph (3), 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; or
(IV) provides industry-
related skills training
pursuant to a contract with an
entity that is an independent
third-party (such as an
employer), except that revenues
from such skills training shall
not exceed 5 percent of the
institution's revenues for the
purposes of the calculation
under this paragraph, if the
institution--
(aa) does not offer
more than 50 percent of
the institution's
courses exclusively
through distance
education;
(bb) ensures that
less than 50 percent of
students enrolled at
the institution are
enrolled exclusively in
courses offered through
distance education; and
(cc) was providing
such skills training
pursuant to such
contract before the
date of enactment of
the College
Affordability Act;
(C) presume that any [funds for a program
under this title] Federal education assistance
funds 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 (including any financing or
credit instrument of which the
institution was a holder or guarantor)
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.
[(3)] (5) Publication on [college navigator]
department of education website.--The Secretary shall
publicly disclose [on the College Navigator] on a
Department of Education website--
(A) the identity of any proprietary
institution of higher education that fails to
meet a requirement of [subsection (a)(24)]
paragraph (3); and
(B) the extent to which the institution
failed to meet such requirement.
[(4)] (6) Report to congress.--Not later than July 1,
2009, and July 1 of each succeeding year, the Secretary
shall submit to the authorizing committees and make
publicly available 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)] paragraph (3)--
(A) the amount and percentage of such
institution's revenues received from [sources
under this title] Federal education assistance
funds; and
(B) the amount and percentage of such
institution's revenues received from other
sources.
(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. 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) 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)] section 3
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.
(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
controlled, 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.
(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) Public institution of higher education.--The
term ``public institution of higher education'' means
an institution of higher education--
(A) for which all obligations of the
institution are valid and binding obligations
of a State (or of an equivalent governmental
entity); and
(B) for which the full faith and credit of
such State (or equivalent governmental entity)
is pledged for the timely payment of such
obligations.
(26) Foster care youth.--The term ``foster care
youth'' means an individual whose care and placement is
the responsibility of the State or tribal agency that
administers a State or tribal plan under part B or E of
title IV of the Social Security Act (42 U.S.C. 621 et
seq.; 670 et seq.), without regard to whether foster
care maintenance payments are made under section 472 of
such Act (42 U.S.C. 672) on behalf of the individual,
including any such individual who was in such care on
or after attaining 13 years of age and without regard
to the reason the individual left such care.
(27) Federal education assistance funds.--The term
``Federal education assistance funds''--
(A) except as provided in subparagraph (B),
means any Federal funds provided, under this
Act or any other Federal law, through a grant,
contract, subsidy, loan, or guarantee, or
through insurance or other means (including
Federal funds disbursed or delivered to an
institution or on behalf of a student or to a
student to be used to attend the institution);
and
(B) does not include any monthly housing
stipend provided under the Post-9/11
Educational Assistance Program under chapter 33
of title 38, United States Code.
(28) Progress period status.--The term ``progress
period status'' means the status of an institution of
higher education that is determined by the Secretary to
be in danger of failing to meet title IV eligibility
criteria relating to student debt because the
institution has an adjusted cohort default rate of not
less than 10 percent and not more than 15 percent.
SEC. 104. PROGRAM OF TRAINING TO PREPARE STUDENTS FOR GAINFUL
EMPLOYMENT IN A RECOGNIZED OCCUPATION.
(a) Gainful Employment Program Defined.--In this Act
(including for purposes of sections 101 and 102), the term
``program of training to prepare students for gainful
employment in a recognized occupation'' means a training
program that--
(1) is in compliance with the performance metrics
(including the eligibility thresholds for each such
metric) established under subsection (b)(1);
(2) is in compliance with the notice requirements
under subsection (b)(1)(C)(i)(II);
(3) is otherwise eligible to receive funds under
title IV; and
(4) is not a training program that is substantially
similar to a training program which, during a period
determined by the Secretary, did not meet one or more
of the performance metrics (such as an eligibility
threshold) described in paragraph (1).
(b) Secretarial Requirements.--
(1) establishment of requirements.--
(A) In general.--Not later than 18 months
after the date of enactment of the College
Affordability Act, the Secretary shall
establish requirements that training programs
shall meet to be programs of training to
prepare students for gainful employment in a
recognized occupation, which shall include--
(i) establishing performance metrics
(including eligibility thresholds for
each such metric) described in
subparagraph (B); and
(ii) developing a disclosure template
and a verification process for
disclosures described in subparagraph
(C).
(B) Performance metrics.--
(i) In general.--In establishing the
performance metrics under subparagraph
(A)(i), the Secretary shall, at a
minimum, establish the requirements for
a debt-to-earnings rate that serves the
best interests of students and
taxpayers, which shall include--
(I) a methodology for
calculating such debt-to-
earnings rate for a training
program, including--
(aa) a definition of
the cohort of
individuals on whom
such rate shall be
based, who shall be
selected from the
individuals who were
enrolled in such
training program
(without regard to
whether the individuals
received a loan for
such enrollment);
(bb) a determination
of the debt amount for
such rate based on the
median annual loan
payment for the loans
made under title IV and
the private education
loans received for such
enrollment by such
cohort;
(cc) a determination
of the earnings amount
for such rate based on
the mean or median of
the actual, student-
level annual earnings
for such cohort; and
(dd) establishing a
process (such as an
appeals process) to
authorize training
programs to use
alternate earnings in
lieu of the mean or
median of the actual,
student-level annual
earnings of a cohort;
and
(II) establishing a threshold
rate that--
(aa) each training
program shall meet to
be eligible to receive
funds under title IV;
and
(bb) is comparable to
the eligibility
thresholds for the
debt-to-earning ratio
established in the
final rule on ``Program
Integrity: Gainful
Employment'' published
by the Department of
Education in the
Federal Register on
October 31, 2014 (Fed.
Reg. 64890 et seq.).
(ii) Earnings data.--In determining
the mean or median of the actual,
student-level annual earnings for
purposes of this subparagraph, the
Secretary shall obtain and use the most
appropriate available Federal data on
such earnings.
(C) Disclosure template.--The Secretary shall
develop--
(i) a disclosure template that--
(I) is consumer tested; and
(II) is used by each
institution of higher education
that offers a training program
to provide enrolled and
prospective students (including
through publication on the
website of such institution of
higher education for such
training program)--
(aa) on an annual
basis, student outcome
information for such
program (including the
debt-to-earnings rate
and whether the
eligibility threshold
for any other
performance metric
established under
subparagraph (A)(i) has
been met); and
(bb) in a case in
which the training
program receives a
notice of determination
under paragraph (2)(B)
that the program may be
ineligible for funds
under title IV, or may
receive other
sanctions, not later
than 30 days after
receipt of such notice,
an explanation of such
notice of
determination; and
(ii) a process to annually verify
that each institution of higher
education that offers a training
program is providing the disclosures
required under clause (i)(II).
(2) Enforcement of requirements.--Not later than 2
years after the Secretary establishes requirements
under paragraph (1), and annually thereafter, the
Secretary shall, with respect to each training program
that seeks to meet the definition in subsection (a),
including each such program that met such definition
for most recent award year for which data are
available--
(A) calculate the debt-to-earnings rate and
assess performance with respect to any other
metric established under paragraph (1)(A)(i)
for the preceding award year, and make such
information publicly available on the website
of the Department;
(B) issue a notice of determination on
whether the program meets the definition in
subsection (a), including whether the program
shall be subject to sanctions (such as loss of
eligibility under title IV); and
(C) enforce the applicable sanctions.
PART B--ADDITIONAL GENERAL PROVISIONS
SEC. 111. ANTIDISCRIMINATION.
(a) In General.--Institutions of higher education receiving
Federal financial assistance may not use such financial
assistance, directly or indirectly, to undertake any study or
project or fulfill the terms of any contract containing an
express or implied provision that any person or persons of a
particular race, religion, sex (including sexual orientation,
gender identity, pregnancy, childbirth, a medical condition
related to pregnancy or childbirth, or sex stereotype), or
national origin be barred from performing such study, project,
or contract, except that nothing in this subsection shall be
construed to prohibit an institution from conducting objective
studies or projects concerning the nature, effects, or
prevention of discrimination, or to have the institution's
curriculum restricted on the subject of discrimination.
(b) Limitations on Statutory Construction.--Nothing in this
Act shall be construed to limit the rights or responsibilities
of any individual under the Americans with Disabilities Act of
1990, the Rehabilitation Act of 1973, or any other law.
* * * * * * *
SEC. 114. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND
INTEGRITY.
(a) Establishment.--There is established in the Department a
National Advisory Committee on Institutional Quality and
Integrity (in this section referred to as the ``Committee'') to
assess the process of accreditation and the institutional
eligibility and certification of institutions of higher
education (as defined in section 102) under title IV.
(b) Membership.--
(1) In general.--The Committee shall have 18 members,
of which--
(A) six members shall be appointed by the
Secretary;
(B) six members shall be appointed by the
Speaker of the House of Representatives, three
of whom shall be appointed on the
recommendation of the majority leader of the
House of Representatives, and three of whom
shall be appointed on the recommendation of the
minority leader of the House of
Representatives; and
(C) six members shall be appointed by the
President pro tempore of the Senate, three of
whom shall be appointed on the recommendation
of the majority leader of the Senate, and three
of whom shall be appointed on the
recommendation of the minority leader of the
Senate.
(2) Qualifications.--Individuals shall be appointed
as members of the Committee--
(A) on the basis of the individuals'
experience, integrity, impartiality, and good
judgment;
(B) from among individuals who are
representatives of, or knowledgeable
concerning, education and training beyond
secondary education, representing all sectors
and types of institutions of higher education
(as defined in section 102); and
(C) on the basis of the individuals'
technical qualifications, professional
standing, and demonstrated knowledge in the
fields of accreditation and administration in
higher education.
(3) Terms of members.--Except as provided in
paragraph (5), the term of office of each member of the
Committee shall be for six years, except that any
member appointed to fill a vacancy occurring prior to
the expiration of the term for which the member's
predecessor was appointed shall be appointed for the
remainder of such term.
(4) Vacancy.--A vacancy on the Committee shall be
filled in the same manner as the original appointment
was made not later than 90 days after the vacancy
occurs. If a vacancy occurs in a position to be filled
by the Secretary, the Secretary shall publish a Federal
Register notice soliciting nominations for the position
not later than 30 days after being notified of the
vacancy.
(5) Initial terms.--The terms of office for the
initial members of the Committee shall be--
(A) three years for members appointed under
paragraph (1)(A);
(B) four years for members appointed under
paragraph (1)(B); and
(C) six years for members appointed under
paragraph (1)(C).
(6) Chairperson.--The members of the Committee shall
select a chairperson from among the members.
(c) Functions.--The Committee shall--
(1) advise the Secretary with respect to
establishment and enforcement of the standards of
accrediting agencies or associations under subpart 2 of
part H of title IV;
(2) advise the Secretary with respect to the
recognition of a specific accrediting agency or
association;
(3) advise the Secretary with respect to the
preparation and publication of the list of nationally
recognized accrediting agencies and associations;
(4) advise the Secretary with respect to the
eligibility and certification process for institutions
of higher education under title IV, together with
recommendations for improvements in such process;
(5) advise the Secretary with respect to the
relationship between--
(A) accreditation of institutions of higher
education and the certification and eligibility
of such institutions; and
(B) State licensing responsibilities with
respect to such institutions; and
(6) carry out such other advisory functions relating
to accreditation and institutional eligibility as the
Secretary may prescribe by regulation.
(d) Meeting Procedures.--
(1) Schedule.--
(A) Biannual meetings.--The Committee shall
meet not less often than twice each year, at
the call of the Chairperson.
(B) Publication of date.--The Committee shall
submit the date and location of each meeting in
advance to the Secretary, and the Secretary
shall publish such information in the Federal
Register not later than 30 days before the
meeting.
(2) Agenda.--
(A) Establishment.--The agenda for a meeting
of the Committee shall be established by the
Chairperson and shall be submitted to the
members of the Committee upon notification of
the meeting.
(B) Opportunity for public comment.--The
agenda shall include, at a minimum, opportunity
for public comment during the Committee's
deliberations.
(3) Secretary's designee.--The Secretary shall
designate an employee of the Department to serve as the
Secretary's designee to the Committee, and the
Chairperson shall invite the Secretary's designee to
attend all meetings of the Committee.
(4) Federal advisory committee act.--The Federal
Advisory Committee Act (5 U.S.C. App.) shall apply to
the Committee, except that section 14 of such Act shall
not apply.
(e) Report and Notice.--
(1) Notice.--The Secretary shall annually publish in
the Federal Register--
(A) a list containing, for each member of the
Committee--
(i) the member's name;
(ii) the date of the expiration of
the member's term of office; and
(iii) the name of the individual
described in subsection (b)(1) who
appointed the member; and
(B) a solicitation of nominations for each
expiring term of office on the Committee of a
member appointed by the Secretary.
(2) Report.--Not later than the last day of each
fiscal year, the Committee shall make available an
annual report to the Secretary, the authorizing
committees, and the public. The annual report shall
contain--
(A) a detailed summary of the agenda and
activities of, and the findings and
recommendations made by, the Committee during
the fiscal year preceding the fiscal year in
which the report is made;
(B) a list of the date and location of each
meeting during the fiscal year preceding the
fiscal year in which the report is made;
(C) a list of the members of the Committee;
and
(D) a list of the functions of the Committee,
including any additional functions established
by the Secretary through regulation.
[(f) Termination.--The Committee shall terminate on September
30, 2019.]
* * * * * * *
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. In this paragraph, the term ``aggregate
dollar amount'' includes the fair market value of staff
members, textbooks, and other in-kind gifts.
(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. In this paragraph, the term ``aggregate
dollar amount'' includes the fair market value of staff
members, textbooks, and other in-kind gifts.
(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,] includes all information required by 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] all the information 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. Not later than 30 days after
receiving a disclosure report under this section, the Secretary
shall make such report electronically available to the public
for downloading on searchable database under which institutions
can be individually identified and compared.
(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.]
(g) Regulations.--
(1) In general.--Not later than 2 years after the
date of the enactment of the College Affordability Act,
the Secretary shall issue regulations to carry out this
section.
(2) Procedure.--Regulations under paragraph (1) shall
be--
(A) developed through the negotiated
rulemaking process under section 492;
(B) developed with consultation from
stakeholders; and
(C) published in the Federal Register in
accordance with section 482.
(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] property, human resources, or payment of any
staff;
(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, institutes, instructional programs,
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.
(i) Treatment of Tuition Payment.--A tuition and related fees
and expenses payment to an institution by a foreign source made
on behalf of a student enrolled at such institution shall not
be considered a gift from or contract with a foreign source
under this subsection.
* * * * * * *
SEC. 120. [DRUG AND ALCOHOL ABUSE] ALCOHOL AND SUBSTANCE MISUSE
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,] an evidence-based program to
prevent alcohol and substance misuse 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]
(C) a description of the health-risks
associated with the use of illicit drugs and
alcohol and substance misuse;
(D) a description of any alcohol or substance
misuse counseling, treatment, rehabilitation,
recovery, re-entry, or recovery support
programs provided by the institution (including
in partnership with a community-based
organization) that are available to employees
or students;
(E) a clear statement [that the institution
will impose] of the policies of the institution
regarding 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[.];
and
(C) compliance assistance to assist
institutions in complying with the requirements
of this section.
(2) Interagency agreement.--Not later than 180 days
after the date of enactment of the College
Affordability Act, the Secretary shall enter into a
interagency agreement with the Secretary of Health and
Human Services to--
(A) determine criteria that satisfy the
requirement of subsection (a) that an
institution of higher education has adopted and
has implemented an evidence-based program
described in such subsection;
(B) establish a process for disseminating the
best practices for adopting and implementing
such an evidence-based program; and
(C) establish a process that promotes
coordination and collaboration between
institutions of higher education and the
respective State agencies that administer the
Substance Abuse Prevention and Treatment Block
Grants pursuant to subpart II of part B of
title XIX of the Public Health Service Act (42
U.S.C. 300x-21).
(3) Guidance.--Not later than 1 year after the date
of enactment of the College Affordability Act, the
Secretary shall, in coordination with the Secretary of
Health and Human Services, issue guidance with respect
to the criteria described in paragraph (2)(A).
[(2)] (4) 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] Substance Misuse 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]
community-based organizations that partner with
institutions of higher education, 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] evidence-based programs of alcohol and substance
misuse prevention and education (including programs to
improve access to treatment, referral for treatment
services, or crisis intervention services) to eliminate
illegal substance use, decrease substance misuse, and
improve public health and safety. Such grants or
contracts may also be used for the support of a higher
education center for [alcohol and drug abuse] substance
use disorder 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) Additional uses.--In addition to the activities
described in paragraph (1), a grant or contract awarded
under paragraph (1) may be used to carry out 1 or more
of the following evidence-based programs or activities:
(A) Providing programs for recovery support
services, and peer-to-peer support services and
counseling for students with a substance use
disorder.
(B) Promoting integration and collaboration
in campus-based health services between primary
care, substance use disorder services, and
mental health services.
(C) Promoting integrated care services for
students related to screening, diagnosis,
prevention, and treatment of mental,
behavioral, and substance use disorders.
(D) Providing re-entry assistance for
students on academic probation due to their
substance use disorder.
(E) Preventing fatal and nonfatal overdoses.
(F) Providing education to students, faculty,
or other personnel on--
(i) recognizing the signs and
symptoms of substance use disorder, and
how to engage and support a person in a
crisis situation;
(ii) resources available in the
community, within the institution of
higher education, and other relevant
resources for individuals with a
substance use disorder; and
(iii) safely de-escalating crisis
situations involving individuals with a
substance use disorder.
[(2)] (3) Awards.--Grants and contracts shall be
awarded under paragraph (1) on a competitive basis.
[(3)] (4) 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)] (5) 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.]
(6) Authorization of appropriations.--There are
authorized to be appropriated to carry out this section
$15,000,000 for fiscal year 2021 and each of the 5
succeeding fiscal years.
* * * * * * *
SEC. 124. EXCEPTION TO REQUIRED REGISTRATION WITH SELECTIVE SERVICE
SYSTEM.
Notwithstanding section 12(f) of the Military Selective
Service Act (50 U.S.C. 3811(f)), a person shall not be
ineligible for assistance or a benefit provided under title IV
if the person is required under section 3 of such Act (50
U.S.C. 3802) to present himself for and submit to registration
under such section, and fails to do so in accordance with any
proclamation, rule, or regulation issued under such section.
SEC. 125. INTEGRITY OF NONPROFIT INSTITUTIONS OF HIGHER EDUCATION.
(a) Determination.--The Secretary may approve the conversion
of an institution of higher education to a nonprofit
institution of higher education only if the Secretary
determines that such institution of higher education meets the
requirements under subsection (b).
(b) Application.--To be eligible to convert and participate
as a nonprofit institution of higher education under this Act,
an institution of higher education shall submit an application
to the Secretary that demonstrates each of the following:
(1) That the institution of higher education that
submits such application is controlled, 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.
(2) That any assets or services acquired by the
institution of higher education that submits such
application from former owners of such institution of
higher education were not acquired for more than the
value of such assets or services.
(3) That no member of the governing board of the
institution of higher education that submits such
application (other than ex officio members serving at
the pleasure of the remainder of the governing board
and receiving a fixed salary), or any person with the
power to appoint or remove members of such governing
board or any immediate family member of such a member
of the board or such a person with power of
appointment, receives any substantial direct or
indirect economic benefit (including a lease,
promissory note, or other contract) from such
institution of higher education.
(4) That the institution of higher education that
submits such application is an organization described
in section 501(c)(3) of the Internal Revenue Code of
1986 and is exempt from taxation under section 501(a)
of such Code.
(5) Subject to subsection (c), that none of the core
functions of the institution of higher education that
submits such application are under the control of, or
subject to significant direction from, an entity that
is not a public institution of higher education or
other nonprofit entity.
(c) Presumption of Significant Direction.--For purposes of
paragraph (5) of subsection (b), in the case of an institution
of higher education that submits an application under such
subsection, there shall be a conclusive presumption that an
entity (other than such institution of higher education)
exercises significant direction over such institution if one or
more of the employees or owners of the entity serves as an
officer, member of the board, or person holding similar
authority for such institution.
(d) Transition Period.--
(1) In general.--In the case of a proprietary
institution of higher education approved for conversion
under subsection (a), for a period of at least 5 years
that begins on the date such institution is approved
for such conversion, the institution shall be--
(A) subject to any provision of this Act and
any regulation that apply to proprietary
institutions of higher education; and
(B) considered a proprietary institution of
higher education for purposes of this Act.
(2) Definition.--The term ``proprietary institution
of higher education'' has the meaning given the term in
section 102(b).
(e) Value.--The term ``value'', with respect to an
acquisition under subsection (b)(2)--
(1) includes the value of any ongoing relationship
(including any contract, agreement, lease or other
arrangement);
(2) subject to paragraph (3), may be demonstrated
through--
(A) a third-party appraisal based on
comparable assets acquired by, or goods or
services procured by, nonprofit corporations in
similar market conditions;
(B) an independent financing of the
acquisition based upon the assets acquired; or
(C) a full and open competition in the
acquisition of services or assets, as such term
is defined in section 2.101(b) of title 48,
Code of Federal Regulations, as in effect on
the date of the enactment of this section; and
(3) shall be subject to such other demonstration
process determined appropriate by the Secretary in a
case in which the Secretary does not accept a
demonstration process described in paragraph (2).
(f) Publication.--
(1) Application.--Before the Secretary may approve
the conversion of an institution of higher education
under subsection (a), the application of such
institution submitted to the Secretary under subsection
(b) shall be published in the Federal Register with an
appropriate notice and comment period.
(2) Determination.--The Secretary shall publish each
determination under this section, and the reasons for
such determination, under the Federal Register.
(g) Public Representation and Marketing of Nonprofit
Status.--An institution of higher education shall not promote
or market itself, in any manner, as a nonprofit institution of
higher education unless--
(1) in the case of an institution of higher education
that seeks to convert to a nonprofit institution of
higher education under this section--
(A) the Secretary has given final approval of
the conversion of the institution to a
nonprofit institution of higher education under
this section;
(B) an accrediting agency or association
recognized by the Secretary pursuant to section
496 has approved the nonprofit status of the
institution; and
(C) the State has given final approval to the
institution as a nonprofit institution of
higher education, as applicable; and
(2) the Commissioner of Internal Revenue has approved
the institution as tax exempt for purposes of the
Internal Revenue Code of 1986.
(h) Office to Monitor Nonprofit Integrity.--Not later than 1
year after the date of enactment of the College Affordability
Act, the Secretary shall establish an office within the
Department with the expertise necessary to carry out this
section.
SEC. 126. REVIEW OF GOVERNANCE.
The Secretary shall review the governance of an institution
of higher education when such institution has engaged in
transactions or arrangements determined by the Secretary as
potential indicators of private inurement, in order to promote
the highest standards of nonprofit integrity.
SEC. 127. SUPPORT AND GUIDANCE FOR HOMELESS INDIVIDUALS AND FOSTER CARE
YOUTH.
(a) Guidance.--Not later than 120 days after the date of
enactment of the College Affordability Act, the Secretary shall
issue revised guidance for institutions of higher education and
financial aid administrators regarding serving homeless
individuals and foster care youth, including the requirements
of the determination process for financial aid administrators
as specified in section 480(d).
(b) Professional Development.--Beginning not later than 1
year after the date of enactment of the College Affordability
Act, the Secretary shall conduct an annual professional
development or training program, such as a webinar, for
liaisons described under section 485(k) and interested faculty
or staff regarding postsecondary education services for such
homeless individuals and foster care youth.
(c) Report.--Not later than 1 year after the date of
enactment of the College Affordability Act, and not less than
once every 5 years thereafter, the Secretary shall prepare and
submit to Congress a report containing strategies used by
institutions, financial aid administrators, and liaisons
described under section 485(k) that were effective in meeting
the needs of such homeless individuals and foster care youth,
including strategies relating to streamlining financial aid
policies and procedures and postsecondary education
recruitment, retention, and completion.
(d) Homeless Individual Defined.--In this section, the term
``homeless individual'' has the meaning given the term in
section 402A.
SEC. 128. CALCULATION OF PERCENTAGE OF ENROLLED STUDENTS RECEIVING OR
ELIGIBLE FOR FEDERAL PELL GRANTS.
Beginning on the date of enactment of the College
Affordability Act, for purposes of calculating under this Act
the percentage of students enrolled at an institution of higher
education or in a program who are receiving Federal Pell Grants
under section 401 or who are eligible to receive such grants,
the total number of students who are counted as enrolled in
such institution or program shall not include students who are
dually or concurrently enrolled in the institution or program
and a secondary school.
SEC. 129. CERTIFICATION REGARDING THE USE OF CERTAIN FEDERAL FUNDS.
(a) Prohibition.--No Federal funds received under this Act by
an institution of higher education or other postsecondary
educational institution may be used to pay any person for
influencing or attempting to influence an officer or employee
of any agency, a Member of Congress, an officer or employee of
Congress, or an employee of a Member of Congress in connection
with any Federal action described in subsection (b).
(b) Applicability.--The prohibition in subsection (a) applies
with respect to the following Federal actions:
(1) The awarding of any Federal contract.
(2) The making of any Federal grant.
(3) The making of any Federal loan.
(4) The entering into of any Federal cooperative
agreement.
(5) The extension, continuation, renewal, amendment,
or modification of any Federal contract, grant, loan,
or cooperative agreement.
(c) Lobbying and Earmarks.--No Federal student aid funding
under this Act may be used to hire a registered lobbyist or pay
any person or entity for securing an earmark.
(d) Certification.--Each institution of higher education or
other postsecondary educational institution receiving Federal
funding under this Act, as a condition for receiving such
funding, shall annually certify to the Secretary that the
requirements of subsections (a) through (c) have been met.
(e) Actions to Implement and Enforce.--The Secretary shall
take such actions as are necessary to ensure that the
provisions of this section are implemented and enforced.
SEC. 130. FREEDOM OF ASSOCIATION.
(a) Non-retaliation Against Students of Single-sex Social
Organizations.--An institution of higher education that
receives funds under this Act shall not--
(1) take any action to require or coerce a student or
prospective student who is a member or prospective
member of a single-sex social organization to waive the
requirements of paragraph (2), including as a condition
of enrolling in the institution; or
(2) take any adverse action against a student who is
a member or a prospective member of a single-sex social
organization based solely on the membership practice of
such organization limiting membership to only
individuals of one sex.
(b) Rules of Construction.--Nothing in this section shall--
(1) require an institution of higher education to
officially recognize a single-sex organization;
(2) prohibit an institution of higher education from
taking an adverse action against a student who joins a
single-sex social organization for a reason including
academic misconduct or nonacademic misconduct, or
because the organization's purpose poses a clear harm
to the students or employees, so long as that adverse
action is not based solely on the membership practice
of the organization of limiting membership to only
individuals of one sex; or
(3) inhibit the ability of the faculty, staff, or
administrators of an institution of higher education to
express an opinion (either individually or
collectively) about membership in a single-sex social
organization, or otherwise inhibit the academic freedom
of such faculty, staff, or administrators to research,
write, or publish material about membership in such an
organization.
(c) Definitions.--In this section:
(1) Adverse action.--The term ``adverse action''
means any of the following actions taken by an
institution of higher education with respect to a
member or prospective member of a single-sex social
organization:
(A) Expulsion, suspension, probation,
censure, condemnation, formal reprimand, or any
other disciplinary action, coercive action, or
sanction taken by an institution of higher
education or administrative unit of such
institution.
(B) An oral or written warning with respect
to an action described in subparagraph (A).
(C) An action to deny participation in any
education program or activity.
(D) An action to withhold, 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, a graduate
fellowship, or on-campus employment.
(E) An action to deny or restrict access to
on-campus housing.
(F) An act to deny any certification,
endorsement, or letter of recommendation that
may be required by a student's current or
future employer, a government agency, a
licensing board, an institution of higher
education, a scholarship program, or a graduate
fellowship to which the student seeks to apply.
(G) An action to deny participation in any
sports team, club, or other student
organization, including a denial of any
leadership position in any sports team, club,
or other student organization.
(H) An action to require any student to
certify that such student is not a member of a
single-sex social organization or to disclose
the student's membership in a single-sex social
organization.
(2) Single-sex social organization.--The term
``single-sex social organization'' means--
(A) a social fraternity or sorority described
in section 501(c) of the Internal Revenue Code
of 1986 which is exempt from taxation under
section 501(a) of such Code; or
(B) an organization that has been
historically single-sex, the active membership
of which consists primarily of students or
alumni of an institution of higher education or
multiple institutions of higher education.
PART C--COST OF HIGHER EDUCATION
* * * * * * *
SEC. 132. TRANSPARENCY IN COLLEGE TUITION FOR CONSUMERS.
(a) Definitions.--In this section:
(1) College navigator website.--The term ``College
Navigator website'' means the College Navigator website
operated by the Department and includes any successor
website.
(2) Cost of attendance.--The term ``cost of
attendance'' means the average annual cost of tuition
and fees, room and board, books, supplies, and
transportation for an institution of higher education
for a first-time, full-time undergraduate student
enrolled in the institution.
(3) Net price.--The term ``net price'' means the
average yearly price actually charged to first-time,
full-time undergraduate students receiving student aid
at an institution of higher education after deducting
such aid, which shall be determined by calculating the
difference between--
(A) the institution's cost of attendance for
the year for which the determination is made;
and
(B) the quotient of--
(i) the total amount of need-based
grant aid and merit-based grant aid,
from Federal, State, and institutional
sources, provided to such students
enrolled in the institution for such
year; and
(ii) the total number of such
students receiving such need-based
grant aid or merit-based grant aid for
such year.
(4) Tuition and fees.--The term ``tuition and fees''
means the average annual cost of tuition and fees for
an institution of higher education for first-time,
full-time undergraduate students enrolled in the
institution.
(b) Calculations for Public Institutions.--In making the
calculations regarding cost of attendance, net price, and
tuition and fees under this section with respect to a public
institution of higher education, the Secretary shall calculate
the cost of attendance, net price, and tuition and fees at such
institution in the manner described in subsection (a), except
that--
(1) the cost of attendance, net price, and tuition
and fees shall be calculated for first-time, full-time
undergraduate students enrolled in the institution who
are residents of the State in which such institution is
located; and
(2) in determining the net price, the average need-
based grant aid and merit-based grant aid described in
subsection (a)(3)(B) shall be calculated based on the
average total amount of such aid received by first-
time, full-time undergraduate students who are
residents of the State in which such institution is
located, divided by the total number of such resident
students receiving such need-based grant aid or merit-
based grant aid at such institution.
(c) College Affordability and Transparency Lists.--
(1) Availability of lists.--Beginning July 1, 2011,
the Secretary shall make publicly available on the
College Navigator website, in a manner that is sortable
and searchable by State, the following:
(A) A list of the five percent of
institutions in each category described in
subsection (d) that have the highest tuition
and fees for the most recent academic year for
which data are available.
(B) A list of the five percent of
institutions in each such category that have
the highest net price for the most recent
academic year for which data are available.
(C) A list of the five percent of
institutions in each such category that have
the largest increase, expressed as a percentage
change, in tuition and fees over the most
recent three academic years for which data are
available, using the first academic year of the
three-year period as the base year to compute
such percentage change.
(D) A list of the five percent of
institutions in each such category that have
the largest increase, expressed as a percentage
change, in net price over the most recent three
academic years for which data are available,
using the first academic year of the three-year
period as the base year to compute such
percentage change.
(E) A list of the ten percent of institutions
in each such category that have the lowest
tuition and fees for the most recent academic
year for which data are available.
(F) A list of the ten percent of institutions
in each such category that have the lowest net
price for the most recent academic year for
which data are available.
(2) Annual updates.--The Secretary shall annually
update the lists described in paragraph (1) on the
College Navigator website.
(d) Categories of Institutions.--The lists described in
subsection (c)(1) shall be compiled according to the following
categories of institutions that participate in programs under
title IV:
(1) Four-year public institutions of higher
education.
(2) Four-year private, nonprofit institutions of
higher education.
(3) Four-year private, for-profit institutions of
higher education.
(4) Two-year public institutions of higher education.
(5) Two-year private, nonprofit institutions of
higher education.
(6) Two-year private, for-profit institutions of
higher education.
(7) Less than two-year public institutions of higher
education.
(8) Less than two-year private, nonprofit
institutions of higher education.
(9) Less than two-year private, for-profit
institutions of higher education.
(e) Reports by Institutions.--
(1) Report to secretary.--If an institution of higher
education is included on a list described in
subparagraph (C) or (D) of subsection (c)(1), the
institution shall submit to the Secretary a report
containing the following information:
(A) A description of the major areas in the
institution's budget with the greatest cost
increases.
(B) An explanation of the cost increases
described in subparagraph (A).
(C) A description of the steps the
institution will take toward the goal of
reducing costs in the areas described in
subparagraph (A).
(D) In the case of an institution that is
included on the same list under subparagraph
(C) or (D) of subsection (c)(1) for two or more
consecutive years, a description of the
progress made on the steps described in
subparagraph (C) of this paragraph that were
included in the institution's report for the
previous year.
(E) If the determination of any cost increase
described in subparagraph (A) is not within the
exclusive control of the institution--
(i) an explanation of the extent to
which the institution participates in
determining such cost increase;
(ii) the identification of the agency
or instrumentality of State government
responsible for determining such cost
increase; and
(iii) any other information the
institution considers relevant to the
report.
(2) Information to the public.--The Secretary shall--
(A) issue an annual report that summarizes
all of the reports by institutions required
under paragraph (1) to the authorizing
committees; and
(B) publish such report on the College
Navigator website.
(f) Exemptions.--
(1) In general.--An institution shall not be placed
on a list described in subparagraph (C) or (D) of
subsection (c)(1), and shall not be subject to the
reporting required under subsection (e), if the dollar
amount of the institution's increase in tuition and
fees, or net price, as applicable, is less than $600
for the three-year period described in such
subparagraph.
(2) Update.--Beginning in 2014, and every three years
thereafter, the Secretary shall update the dollar
amount described in paragraph (1) based on annual
increases in inflation, using the Consumer Price Index
for each of the three most recent preceding years.
(g) State Higher Education Spending Chart.--The Secretary
shall annually report on the College Navigator website, in
charts for each State, comparisons of--
(1) the percentage change in spending by such State
per full-time equivalent student at all public
institutions of higher education in such State, for
each of the five most recent preceding academic years;
(2) the percentage change in tuition and fees for
such students for all public institutions of higher
education in such State for each of the five most
recent preceding academic years; and
(3) the percentage change in the total amount of
need-based aid and merit-based aid provided by such
State to full-time students enrolled in the public
institutions of higher education in the State for each
of the five most recent preceding academic years.
(h) Net Price Calculator.--
(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, and, not
later than 1 year after the date of enactment of the
College Affordability Act, shall meet the requirements
of paragraph (4)(C).
(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. Not later than 1 year after the date
of enactment of the College Affordability Act, such
calculator shall meet the requirements of paragraph
(4). 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 enactment of
the College Affordability Act, a net price calculator
for an institution of higher education shall, at a
minimum, meet the following requirements:
(A) The link for the calculator--
(i) is clearly labeled as a ``net
price calculator'' and prominently,
clearly, and conspicuously (in such
size and contrast (such as shade) that
it is readily noticeable and readable)
posted in locations on the
institution's website where information
on costs and aid is provided (such as
financial aid, prospective students, or
tuition and fees web pages);
(ii) matches in size and font to the
other prominent links on the primary
menu; and
(iii) may also be included on the
institution's compliance web page,
which contains information relating to
compliance with Federal, State, and
local laws.
(B) The input screen for the net price
calculator displays a chart of the net prices
for students receiving Federal student
financial aid under title IV (as required by
subsection (i)(5)) for the most recent academic
year for which data are available,
disaggregated by income categories.
(C) The results screen for the calculator
specifies the following information:
(i) The individual net price (as
calculated under paragraph (2)) for the
individual student, which is the most
visually prominent figure on the
results screen, including a statement
of--
(I) the year for which the
net price applies; and
(II) the year from which the
data was used to determine that
net price.
(ii) Cost of attendance, including--
(I) the total estimated cost
for a student to complete the
program of study, based on
normal time for completion of,
or graduation from, the
student's particular program of
study;
(II) the total annual cost of
attendance;
(III) annual tuition and
fees;
(IV) average annual cost of
room and board for the
institution for a first-time,
full-time undergraduate student
enrolled in the institution;
(V) average annual cost of
books and supplies for a first-
time, full-time undergraduate
student enrolled in the
institution;
(VI) estimated annual cost of
other expenses (including
personal expenses and
transportation) for a first-
time, full-time undergraduate
student enrolled in the
institution; and
(VII) a statement of--
(aa) the year for
which each cost
described in this
clause applies; and
(bb) the year from
which the data was used
to determine each cost
described in this
clause.
(iii) Estimated total need-based
grant aid and merit-based grant aid,
from Federal, State, and institutional
sources, that may be available to the
individual student, showing the
subtotal for each category and the
total of all sources of grant aid, and
disaggregated by academic year for
normal time for completion of, or
graduation from, the student's
particular program of study.
(iv) Percentage of the first-time,
full-time undergraduate students
enrolled in the institution that
received any type of grant aid
described in clause (iii),
disaggregated by their first year and
subsequent years of enrollment up to
the number of years for normal
completion of, or graduation from,
their particular program of study.
(v) The disclaimer described in
paragraph (6).
(vi) In the case of a calculator
that--
(I) includes questions to
estimate a student's (or
prospective student's)
eligibility 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 them 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--
(aa) that certain
students (or
prospective students)
may qualify for such
benefits;
(bb) states why the
institution is not
including questions to
estimate a student's
eligibility for such
benefits; and
(cc) includes a link
to an appropriate
Federal website that
provides information
about such benefits.
(D) The institution populates the calculator
with data from not earlier 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'';
(C) prohibit any personally identifiable
information provided by users from being sold
or made available to third parties; and
(D) clearly state ``Any information that you
provide on this site is confidential. The Net
Price Calculator does not store your responses
or require personal identifying information of
any kind.''.
[(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.
(7) Universal net price calculator.--
(A) In general.--The Secretary may develop a
universal net price calculator that is housed
within the Department of Education, with
Department branding, and that may be based on
or utilize an existing platform developed by a
public or private entity, that--
(i) enables users to answer one set
of questions and receive net prices for
any institution that is required to
have a net price calculator under this
subsection;
(ii) provides the information
required under subparagraphs (C) and
(D) of paragraph (4) for each
institution for which a net price is
being sought;
(iii) is developed in consultation
with the heads of relevant Federal
agencies; and
(iv) before being finalized and
publicly released, is tested in
accordance with subparagraph (B).
(B) Consumer testing.--
(i) In general.--If the Secretary
develops a universal net price
calculator under subparagraph (A), the
Secretary, in consultation with the
heads of relevant Federal agencies,
shall establish a process to submit the
universal net price calculator
developed under this paragraph for
consumer testing among representatives
of students (including low-income
students, first generation college
students, adult students, and
prospective students), students'
families (including low-income
families, families with first
generation college students, and
families with prospective students),
institutions of higher education,
secondary school and postsecondary
counselors, and nonprofit consumer
groups.
(ii) Length of consumer testing.--The
Secretary shall ensure that the
consumer testing lasts no longer than 6
months after the process for consumer
testing is developed under clause (i).
(iii) Use of results.--The results of
consumer testing under clause (i) shall
be used in the final development of the
universal net price calculator.
(iv) Reporting requirement.--Not
later than 3 months after the date the
consumer testing under clause (i)
concludes, the Secretary shall submit
to Congress the final universal net
price calculator and a report detailing
the results of such testing, including
whether the Secretary added any
additional items to the calculator as a
result of such testing.
(v) Authority to modify.--The
Secretary may modify the definitions,
terms, formatting, and design of the
universal net price calculator based on
the results of consumer testing
required under this paragraph and
before finalizing the calculator.
(8) Report from secretary.--Not later than 1 year
after the date of enactment of the College
Affordability Act, the Secretary shall submit a report
to Congress on steps taken to raise awareness of net
price calculators among prospective students and
families, particularly among students in middle school
and high school and students from low-income families.
(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,]
rate and adjusted 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.
(AA) The institution's expenditures on each
of the following:
(i) Instruction.
(ii) Student services.
(iii) Marketing.
(iv) Recruitment.
(v) Advertising.
(vi) Lobbying.
(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.
(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) 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) Postsecondary Student Data System.--
(1) In general.--
(A) Establishment of system.--The
Commissioner of the National Center for
Education Statistics (referred to in this
subsection as the ``Commissioner'') shall
develop and maintain a secure, privacy-
protected postsecondary student-level data
system in order to--
(i) accurately evaluate student
enrollment patterns, progression,
completion, and postcollegiate
outcomes, and higher education costs
and financial aid;
(ii) assist with transparency,
institutional improvement, and analysis
of Federal aid programs;
(iii) provide accurate, complete, and
customizable information for students
and families making decisions about
postsecondary education; and
(iv) reduce the reporting burden on
institutions of higher education, in
accordance with section 1022(b)(2) of
the College Affordability Act.
(B) Avoiding duplicated reporting.--
Notwithstanding any other provision of this
section, to the extent that another provision
of this section requires the same reporting or
collection of data that is required under this
subsection, an institution of higher education,
or the Secretary or Commissioner, may use the
reporting or data required for the
postsecondary student data system under this
subsection to satisfy both requirements.
(C) Development process.--In developing the
postsecondary student data system described in
this subsection, the Commissioner shall--
(i) focus on the needs of--
(I) users of the data system;
and
(II) entities, including
institutions of higher
education, reporting to the
data system;
(ii) take into consideration, to the
extent practicable--
(I) the guidelines outlined
in the U.S. Web Design
Standards maintained by the
General Services Administration
and the Digital Services
Playbook and TechFAR Handbook
for Procuring Digital Services
Using Agile Processes of the
U.S. Digital Service; and
(II) the relevant successor
documents or recommendations of
such guidelines;
(iii) use modern, relevant privacy-
and security-enhancing technology, and
enhance and update the data system as
necessary to carry out the purpose of
this subsection;
(iv) ensure data privacy and security
is consistent with any Federal law
relating to privacy or data security,
including--
(I) the requirements of
subchapter II of chapter 35 of
title 44, United States Code,
specifying security
categorization under the
Federal Information Processing
Standards or any relevant
successor of such standards;
(II) security requirements
that are consistent with the
Federal agency responsibilities
in section 3554 of title 44,
United States Code, or any
relevant successor of such
responsibilities; and
(III) security requirements,
guidelines, and controls
consistent with cybersecurity
standards and best practices
developed by the National
Institute of Standards and
Technology, including
frameworks, consistent with
section 2(c) of the National
Institute of Standards and
Technology Act (15 U.S.C.
272(c)), or any relevant
successor of such frameworks;
(v) follow Federal data minimization
practices to ensure only the minimum
amount of data is collected to meet the
system's goals, in accordance with
Federal data minimization standards and
guidelines developed by the National
Institute of Standards and Technology;
and
(vi) provide notice to students
outlining the data included in the
system and how the data are used.
(2) Data elements.--
(A) In general.--The Commissioner, in
consultation with the Postsecondary Student
Data System Advisory Committee established
under subparagraph (B), shall determine--
(i) the data elements to be included
in the postsecondary student data
system, in accordance with
subparagraphs (C) and (D); and
(ii) how to include the data elements
required under subparagraph (C), and
any additional data elements selected
under subparagraph (D), in the
postsecondary student data system.
(B) Postsecondary student data system
advisory committee.--
(i) Establishment.--The Commissioner
shall establish a Postsecondary Student
Data System Advisory Committee
(referred to in this subsection as the
``Advisory Committee''), whose members
shall include--
(I) the Chief Privacy Officer
of the Department or an
official of the Department
delegated the duties of
overseeing data privacy at the
Department;
(II) the Chief Security
Officer of the Department or an
official of the Department
delegated the duties of
overseeing data security at the
Department;
(III) representatives of
diverse institutions of higher
education, which shall include
equal representation between 2-
year and 4-year institutions of
higher education, and from
public, nonprofit, and
proprietary institutions of
higher education, including
minority-serving institutions;
(IV) representatives from
State higher education
agencies, entities, bodies, or
boards;
(V) representatives of
postsecondary students;
(VI) representatives from
relevant Federal agencies; and
(VII) other stakeholders
(including individuals with
expertise in data privacy and
security, consumer protection,
and postsecondary education
research).
(ii) Requirements.--The Commissioner
shall ensure that the Advisory
Committee--
(I) adheres to all
requirements under the Federal
Advisory Committee Act (5
U.S.C. App.);
(II) establishes operating
and meeting procedures and
guidelines necessary to execute
its advisory duties; and
(III) is provided with
appropriate staffing and
resources to execute its
advisory duties.
(C) Required data elements.--The data
elements in the postsecondary student data
system shall include, at a minimum, the
following:
(i) Student-level data elements
necessary to calculate the information
within the surveys designated by the
Commissioner as ``student-related
surveys'' in the Integrated
Postsecondary Education Data System
(IPEDS), as such surveys are in effect
on the day before the date of enactment
of the College Affordability Act,
except that in the case that collection
of such elements would conflict with
subparagraph (F), such elements in
conflict with subparagraph (F) shall be
included in the aggregate instead of at
the student level.
(ii) Student-level data elements
necessary to allow for reporting
student enrollment, persistence,
retention, transfer, and completion
measures for all credential levels
separately (including certificate,
associate, baccalaureate, and advanced
degree levels), within and across
institutions of higher education
(including across all categories of
institution level, control, and
predominant degree awarded). The data
elements shall allow for reporting
about all such data disaggregated by
the following categories:
(I) Enrollment status as a
first-time student, recent
transfer student, or other non-
first-time student.
(II) Attendance intensity,
whether full-time or part-time.
(III) Credential-seeking
status, by credential level.
(IV) Race or ethnicity (in
accordance with section
153(a)(3)(B) of the Education
Sciences Reform Act (20 U.S.C.
9543(a)(3)(B))).
(V) Age intervals.
(VI) Gender.
(VII) Program of study (as
applicable).
(VIII) Military or veteran
benefit status (as determined
based on receipt of veteran's
education benefits, as defined
in section 480(c)).
(IX) Status as a distance
education student, whether
exclusively or partially
enrolled in distance education.
(X) Federal Pell Grant and
Federal loan recipient status,
provided that the collection of
such information complies with
paragraph (1)(B).
(D) Other data elements.--
(i) In general.--The Commissioner
may, after consultation with the
Advisory Committee and provision of a
public comment period, include
additional data elements in the
postsecondary student data system, such
as those described in clause (ii), if
those data elements--
(I) are necessary to ensure
that the postsecondary data
system fulfills the purposes
described in paragraph (1)(A);
and
(II) are consistent with data
minimization principles,
including the collection of
only those additional elements
that are necessary to ensure
such purposes.
(ii) Data elements.--The data
elements described in clause (i) may
include--
(I) status as a first
generation college student (as
defined in section 402A(h));
(II) economic status;
(III) participation in
postsecondary remedial
coursework or gateway course
completion; or
(IV) other data elements that
are necessary in accordance
with clause (i).
(E) Reevaluation.--Not less than once every 3
years after the implementation of the
postsecondary student data system described in
this subsection, the Commissioner, in
consultation with the Advisory Committee
described in subparagraph (B), shall review the
data elements included in the postsecondary
student data system and may revise the data
elements to be included in such system.
(F) Prohibitions.--The Commissioner shall not
include individual health data (including data
relating to physical health or mental health),
student discipline records or data, elementary
and secondary education data, an exact address,
citizenship status, migrant status, or national
origin status for students or their families,
course grades, postsecondary entrance
examination results, political affiliation, or
religion in the postsecondary student data
system under this subsection.
(3) Periodic matching with other federal data
systems.--
(A) Data sharing agreements.--
(i) The Commissioner shall ensure
secure, periodic data matches by
entering into data sharing agreements
with each of the following Federal
agencies and offices:
(I) The Secretary of the
Treasury and the Commissioner
of the Internal Revenue
Service, in order to calculate
aggregate program- and
institution-level earnings of
postsecondary students.
(II) The Secretary of
Defense, in order to assess the
use of postsecondary
educational benefits and the
outcomes of servicemembers.
(III) The Secretary of
Veterans Affairs, in order to
assess the use of postsecondary
educational benefits and
outcomes of veterans.
(IV) The Director of the
Bureau of the Census, in order
to assess the occupational and
earnings outcomes of former
postsecondary education
students.
(V) The Chief Operating
Officer of the Office of
Federal Student Aid, in order
to analyze the use of
postsecondary educational
benefits provided under this
Act.
(ii) The heads of Federal agencies
and offices described under clause (i)
shall enter into data sharing
agreements with the Commissioner to
ensure secure, periodic data matches as
described in this paragraph.
(B) Categories of data.--The Commissioner
shall, at a minimum, seek to ensure that the
secure periodic data system matches described
in subparagraph (A) permit consistent reporting
of the following categories of data for all
postsecondary students:
(i) Enrollment, retention, transfer,
and completion outcomes for all
postsecondary students.
(ii) Financial indicators for
postsecondary students receiving
Federal grants and loans, including
grant and loan aid by source,
cumulative student debt, loan repayment
status, and repayment plan.
(iii) Post-completion outcomes for
all postsecondary students, including
earnings, employment, and further
education, by program of study and
credential level and as measured--
(I) immediately after leaving
postsecondary education; and
(II) at time intervals
appropriate to the credential
sought and earned.
(C) Periodic data match streamlining and
confidentiality.--
(i) Streamlining.--In carrying out
the secure periodic data system matches
under this paragraph, the Commissioner
shall--
(I) ensure that such matches
are not continuous, but occur
at appropriate intervals, as
determined by the Commissioner;
and
(II) seek to--
(aa) streamline the
data collection and
reporting requirements
for institutions of
higher education;
(bb) minimize
duplicative reporting
across or within
Federal agencies or
departments, including
reporting requirements
applicable to
institutions of higher
education under the
Workforce Innovation
and Opportunity Act (29
U.S.C. 3101 et seq.)
and the Carl D. Perkins
Career and Technical
Education Act of 2006;
(cc) protect student
privacy; and
(dd) streamline the
application process for
student loan benefit
programs available to
borrowers based on data
available from
different Federal data
systems.
(ii) Review.--Not less often than
once every 3 years after the
establishment of the postsecondary
student data system under this
subsection, the Commissioner, in
consultation with the Advisory
Committee, shall review methods for
streamlining data collection from
institutions of higher education and
minimizing duplicative reporting within
the Department and across Federal
agencies that provide data for the
postsecondary student data system.
(iii) Confidentiality.--The
Commissioner shall ensure that any
periodic matching or sharing of data
through periodic data system matches
established in accordance with this
paragraph--
(I) complies with the
security and privacy
protections described in
paragraph (1)(C)(iv) and other
Federal data protection
protocols;
(II) follows industry best
practices commensurate with the
sensitivity of specific data
elements or metrics;
(III) does not result in the
creation of a single standing,
linked Federal database at the
Department that maintains the
information reported across
other Federal agencies; and
(IV) discloses to
postsecondary students what
data are included in the data
system and periodically matched
and how the data are used.
(iv) Correction.--The Commissioner,
in consultation with the Advisory
Committee, shall establish a process
for students to request access to only
their personal information for
inspection and request corrections to
inaccuracies in a manner that protects
the student's personally identifiable
information. The Commissioner shall
respond in writing to every request for
a correction from a student.
(4) Publicly available information.--
(A) In general.--The Commissioner shall make
the summary aggregate information described in
subparagraph (C), at a minimum, publicly
available through a user-friendly consumer
information website and analytic tool that--
(i) provides appropriate mechanisms
for users to customize and filter
information by institutional and
student characteristics;
(ii) allows users to build summary
aggregate reports of information,
including reports that allow
comparisons across multiple
institutions and programs, subject to
subparagraph (B);
(iii) uses appropriate statistical
disclosure limitation techniques
necessary to ensure that the data
released to the public cannot be used
to identify specific individuals; and
(iv) provides users with appropriate
contextual factors to make comparisons,
which may include national median
figures of the summary aggregate
information described in subparagraph
(C).
(B) No personally identifiable information
available.--The summary aggregate information
described in this paragraph shall not include
personally identifiable information.
(C) Summary aggregate information
available.--The summary aggregate information
described in this paragraph shall, at a
minimum, include each of the following for each
institution of higher education:
(i) Measures of student access,
including--
(I) admissions selectivity
and yield; and
(II) enrollment,
disaggregated by each category
described in paragraph
(2)(C)(ii).
(ii) Measures of student progression,
including retention rates and
persistence rates, disaggregated by
each category described in paragraph
(2)(C)(ii).
(iii) Measures of student completion,
including--
(I) transfer rates and
completion rates, disaggregated
by each category described in
paragraph (2)(C)(ii); and
(II) number of completions,
disaggregated by each category
described in paragraph
(2)(C)(ii).
(iv) Measures of student costs,
including--
(I) tuition, required fees,
total cost of attendance, and
net price after total grant
aid, disaggregated by in-State
tuition or in-district tuition
status (if applicable), program
of study (if applicable), and
credential level; and
(II) typical grant amounts
and loan amounts received by
students reported separately
from Federal, State, local, and
institutional sources, and
cumulative debt, disaggregated
by each category described in
paragraph (2)(C)(ii) and
completion status.
(v) Measures of postcollegiate
student outcomes, including employment
rates, mean and median earnings, loan
repayment and default rates, and
further education rates. These measures
shall--
(I) be disaggregated by each
category described in paragraph
(2)(C)(ii) and completion
status; and
(II) be measured immediately
after leaving postsecondary
education and at time intervals
appropriate to the credential
sought or earned.
(D) Development criteria.--In developing the
method and format of making the information
described in this paragraph publicly available,
the Commissioner shall--
(i) focus on the needs of the users
of the information, which will include
students, families of students,
potential students, researchers, and
other consumers of education data;
(ii) take into consideration, to the
extent practicable, the guidelines
described in paragraph (1)(C)(ii)(I),
and relevant successor documents or
recommendations of such guidelines;
(iii) use modern, relevant technology
and enhance and update the
postsecondary student data system with
information, as necessary to carry out
the purpose of this paragraph;
(iv) ensure data privacy and security
in accordance with standards and
guidelines developed by the National
Institute of Standards and Technology,
and in accordance with any other
Federal law relating to privacy or
security, including complying with the
requirements of subchapter II of
chapter 35 of title 44, United States
Code, specifying security
categorization under the Federal
Information Processing Standards, and
security requirements, and setting of
National Institute of Standards and
Technology security baseline controls
at the appropriate level; and
(v) conduct consumer testing to
determine how to make the information
as meaningful to users as possible.
(5) Permissible disclosures of data.--
(A) Data reports and queries.--
(i) In general.--The Commissioner
shall develop and implement a secure
process for making student-level, non-
personally identifiable information,
with direct identifiers removed, from
the postsecondary student data system
available for vetted research and
evaluation purposes approved by the
Commissioner in a manner compatible
with practices for disclosing National
Center for Education Statistics
restricted-use survey data as in effect
on the day before the date of enactment
of the College Affordability Act, or by
applying other research and disclosure
restrictions to ensure data privacy and
security. Such process shall be
approved by the National Center for
Education Statistics' Disclosure Review
Board (or successor body).
(ii) Providing data reports and
queries to institutions and states.--
(I) In general.--The
Commissioner shall provide
feedback reports, at least
annually, to each institution
of higher education, each
postsecondary education system
that fully participates in the
postsecondary student data
system, and each State higher
education body as designated by
the governor.
(II) Feedback reports.--The
feedback reports provided under
this clause shall include
program-level and institution-
level information from the
postsecondary student data
system regarding students who
are associated with the
institution or, for State
representatives, the
institutions within that State,
on or before the date of the
report, on measures including
student mobility and workforce
outcomes, provided that the
feedback aggregate summary
reports protect the privacy of
individuals.
(III) Determination of
content.--The content of the
feedback reports shall be
determined by the Commissioner,
in consultation with the
Advisory Committee.
(iii) Permitting state data
queries.--The Commissioner shall, in
consultation with the Advisory
Committee and as soon as practicable,
create a process through which States
may submit lists of secondary school
graduates within the State to receive
summary aggregate outcomes for those
students who enrolled at an institution
of higher education, including
postsecondary enrollment and college
completion, provided that those data
protect the privacy of individuals and
that the State data submitted to the
Commissioner are not stored in the
postsecondary education system.
(iv) Regulations.--The Commissioner
shall promulgate regulations to ensure
fair, secure, and equitable access to
data reports and queries under this
paragraph.
(B) Disclosure limitations.--In carrying out
the public reporting and disclosure
requirements of this subsection, the
Commissioner shall use appropriate statistical
disclosure limitation techniques necessary to
ensure that the data released to the public
cannot include personally identifiable
information or be used to identify specific
individuals.
(C) Sale of data prohibited.--Data collected
under this subsection, including the public-use
data set and data comprising the summary
aggregate information available under paragraph
(4), shall not be sold to any third party by
the Commissioner, including any institution of
higher education or any other entity.
(D) Limitation on use by other federal
agencies.--
(i) In general.--The Commissioner
shall not allow any other Federal
agency to use data collected under this
subsection for any purpose except--
(I) for vetted research and
evaluation conducted by the
other Federal agency, as
described in subparagraph
(A)(i); or
(II) for a purpose explicitly
authorized by this subsection.
(ii) Prohibition on limitation of
services.--The Secretary, or the head
of any other Federal agency, shall not
use data collected under this
subsection to limit services to
students.
(E) Law enforcement.--Personally identifiable
information collected under this subsection
shall not be used for any Federal, State, or
local law enforcement activity or any other
activity that would result in adverse action
against any student or a student's family,
including debt collection activity or
enforcement of immigration laws.
(F) Limitation of use for federal rankings or
summative rating system.--The comprehensive
data collection and analysis necessary for the
postsecondary student data system under this
subsection shall not be used by the Secretary
or any Federal entity to establish any Federal
ranking system of institutions of higher
education or a system that results in a
summative Federal rating of institutions of
higher education.
(G) Rule of construction.--Nothing in this
paragraph shall be construed to prevent the use
of individual categories of aggregate
information to be used for accountability
purposes.
(H) Rule of construction regarding commercial
use of data.--Nothing in this paragraph shall
be construed to prohibit third-party entities
from using publicly-available information in
this data system for commercial use.
(6) Submission of data.--
(A) Required submission.--Each institution of
higher education participating in a program
under title IV, or the assigned agent of such
institution, shall, in accordance with section
487(a)(17), collect, and submit to the
Commissioner, the data requested by the
Commissioner to carry out this subsection.
(B) Voluntary submission.--Any postsecondary
institution not participating in a program
under title IV may voluntarily participate in
the postsecondary student data system under
this subsection by collecting and submitting
data to the Commissioner, as the Commissioner
may request to carry out this subsection.
(C) Personally identifiable information.--In
accordance with paragraph (2)(C)(i), if the
submission of an element of student-level data
is prohibited under paragraph (2)(F) (or
otherwise prohibited by law), the institution
of higher education shall submit that data to
the Commissioner in the aggregate.
(7) Unlawful willful disclosure.--
(A) In general.--It shall be unlawful for any
person who obtains or has access to personally
identifiable information in connection with the
postsecondary student data system described in
this subsection to willfully disclose to any
person (except as authorized by Federal law)
such personally identifiable information.
(B) Penalty.--Any person who violates
subparagraph (A) shall be subject to a penalty
described under section 3572(f) of title 44,
United States Code and section 183(d)(6) of the
Education Sciences Reform Act of 2002 (20
U.S.C. 9573(d)(6)).
(C) Employee of officer of the united
states.--If a violation of subparagraph (A) is
committed by any officer or employee of the
United States, the officer or employee shall be
dismissed from office or discharged from
employment upon conviction for the violation.
(8) Data security.--The Commissioner shall produce
and update as needed guidance and regulations relating
to privacy, security, and access which shall govern the
use and disclosure of data collected in connection with
the activities authorized in this subsection. The
guidance and regulations developed and reviewed shall
protect data from unauthorized access, use, and
disclosure, and shall include--
(A) an audit capability, including mandatory
and regularly conducted audits;
(B) access controls;
(C) requirements to ensure sufficient data
security, quality, validity, and reliability;
(D) student confidentiality protection in
accordance with the Confidential Information
Protection and Statistical Efficiency Act;
(E) appropriate and applicable privacy and
security protection, including data retention
and destruction protocols and data
minimization, in accordance with the most
recent Federal standards developed by the
National Institute of Standards and Technology;
and
(F) protocols for managing a breach,
including breach notifications, in accordance
with the standards of National Center for
Education Statistics.
(9) Data collection.--The Commissioner shall ensure
that data collection, maintenance, and use under this
subsection complies with section 552a of title 5,
United States Code.
(10) Definitions.--In this subsection:
(A) Institution of higher education.--The
term ``institution of higher education'' has
the meaning given the term in section 102.
(B) Personally identifiable information.--The
term ``personally identifiable information''
has the meaning given the term in section 444
of the General Education Provisions Act (20
U.S.C. 1232g).
[(l)] (m) Regulations.--The Secretary is authorized to issue
such regulations as may be necessary to carry out this section.
(n) Avoiding Duplicative Reporting.--If the Secretary
determines that the same reporting or collection of data that
is required under subsection (l) is required by another
reporting or collection of data requirement under this Act
(other than under subsection (l)), the Secretary may--
(1) use the data reported or collected under
subsection (l); and
(2) waive the other reporting or collection of data
requirement.
(o) Non-instructional Spending Increases.--The Secretary
shall ensure, as part of the data collection and reporting
under this section, that institutions of higher education with
respect to which the amount expended by the institution for
non-instructional spending increases by more than 5 percent
(using year-over-year data) disclose such increase to students
and prospective students, along with an analysis of the
expected impact on tuition.
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, including through the adoption of
innovative tools, for students while supporting the academic
freedom of faculty members to select high quality course
materials for students.
(b) Definitions.--In this section:
(1) Bundle.--The term ``bundle'' means one or more
college textbooks or other supplemental materials that
may be packaged together to be sold as course materials
for one price.
(2) College textbook.--The term ``college textbook''
means a textbook or a set of textbooks, used for, or in
conjunction with, a course in postsecondary education
at an institution of higher education.
(3) Course schedule.--The term ``course schedule''
means a listing of the courses or classes offered by an
institution of higher education for an academic period,
as defined by the institution.
(4) Custom textbook.--The term ``custom textbook''--
(A) means a college textbook that is compiled
by a publisher at the direction of a faculty
member or other person or adopting entity in
charge of selecting course materials at an
institution of higher education; and
(B) may include, alone or in combination,
items such as selections from original
instructor materials, previously copyrighted
publisher materials, copyrighted third-party
works, and elements unique to a specific
institution, such as commemorative editions.
(5) Institution of higher education.--The term
``institution of higher education'' has the meaning
given the term in section 102.
(6) Integrated textbook.--The term ``integrated
textbook'' means a college textbook that is--
(A) combined with materials developed by a
third party and that, by third-party
contractual agreement, may not be offered by
publishers separately from the college textbook
with which the materials are combined; or
(B) combined with other materials that are so
interrelated with the content of the college
textbook that the separation of the college
textbook from the other materials would render
the college textbook unusable for its intended
purpose.
(7) Publisher.--The term ``publisher'' means a
publisher of college textbooks or supplemental
materials involved in or affecting interstate commerce.
(8) Substantial content.--The term ``substantial
content'' means parts of a college textbook such as new
chapters, new material covering additional eras of
time, new themes, or new subject matter.
(9) Supplemental material.--The term ``supplemental
material'' means educational material developed [to
accompany a] to accompany or support a college textbook
that--
(A) may include printed [materials, computer
disks, website access] materials, online and
digital learning platforms and materials,
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]
paperback, digital, 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 accessing
lower-cost digital course materials and digital
textbooks, renting textbooks or for purchasing used
textbooks;
(2) available institutional guaranteed textbook buy-
back programs;
(3) available institutional alternative content
delivery programs, such as inclusive access programs,
subscription models, or digital content distribution
platforms; 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. 134. DATABASE OF STUDENT INFORMATION PROHIBITED.
[(a) Prohibition.--Except as described in subsection (b),
nothing in this Act shall be construed to authorize the
development, implementation, or maintenance of a Federal
database of personally identifiable information on individuals
receiving assistance under this Act, attending institutions
receiving assistance under this Act, or otherwise involved in
any studies or other collections of data under this Act,
including a student unit record system, an education bar code
system, or any other system that tracks individual students
over time.
[(b) Exception.--The provisions of subsection (a) shall not
apply to a system (or a successor system) that--
[(1) is necessary for the operation of programs
authorized by title II, IV, or VII; and
[(2) was in use by the Secretary, directly or through
a contractor, as of the day before the date of
enactment of theHigher Education Opportunity Act.
[(c) State Databases.--Nothing in this Act shall prohibit a
State or a consortium of States from developing, implementing,
or maintaining State-developed databases that track individuals
over time, including student unit record systems that contain
information related to enrollment, attendance, graduation and
retention rates, student financial assistance, and graduate
employment outcomes.]
SEC. 135. IN-STATE TUITION RATES FOR MEMBERS OF THE ARMED FORCES ON
ACTIVE DUTY, SPOUSES, AND DEPENDENT CHILDREN,
HOMELESS YOUTH, AND FOSTER CARE YOUTH.
[(a) Requirement.--] [In the case] (a) Requirement._
(1) Armed forces._In the case of a member of the
armed forces who is on active duty for a period of more
than 30 days and whose domicile or permanent duty
station is in a State that receives assistance under
this Act, such State shall not charge such member (or
the spouse or dependent child of such member) tuition
for attendance at a public institution of higher
education in the State at a rate that is greater than
the rate charged for residents of the State.
(2) Homeless youth and foster care youth.--In the
case of a homeless youth or a foster care youth, such
State shall not charge such individual tuition for
attendance at a public institution of higher education
in the State at a rate that is greater than the rate
charged for residents of the State.
(b) Continuation.--If a member of the armed forces (or the
spouse or dependent child of a member) pays tuition at a public
institution of higher education in a State at a rate determined
by subsection (a), the provisions of subsection (a) shall
continue to apply to such member, spouse, or dependent while
continuously enrolled at that institution, notwithstanding a
subsequent change in the permanent duty station of the member
to a location outside the State.
[(c) Effective Date.--This section shall take effect at each
public institution of higher education in a State that receives
assistance under this Act for the first period of enrollment at
such institution that begins after July 1, 2009.
[(d) Definitions.--In this section, the terms ``armed
forces'' and ``active duty for a period of more than 30 days''
have the meanings given those terms insection 101of title 10,
United States Code.]
(c) Effective date.--
(1) Armed forces.--With respect to an individual
described in subsection (a)(1), this section shall
remain in effect as it was in effect on the day before
the date of enactment of the College Affordability Act.
(2) Homeless youth and foster care youth.--With
respect to an individual described in subsection
(a)(2), this section shall take effect at each public
institution of higher education in a State that
receives assistance under this Act for the first period
of enrollment at such institution that begins during
the first full award year following the date of
enactment of the College Affordability Act.
(d) Definitions.--In this section:
(1) Armed forces.--The terms ``armed forces'' and
``active duty for a period of more than 30 days'' have
the meanings given those terms in section 101 of title
10, United States Code.
(2) Homeless youth.--The term ``homeless youth'' has
the meaning given the term ``homeless children and
youths'' in section 725 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11434a).
[SEC. 136. STATE HIGHER EDUCATION INFORMATION SYSTEM PILOT PROGRAM.
[(a) Purpose.--It is the purpose of this section to carry out
a pilot program to assist not more than five States to develop
State-level postsecondary student data systems to--
[(1) improve the capacity of States and institutions
of higher education to generate more comprehensive and
comparable data, in order to develop better-informed
educational policy at the State level and to evaluate
the effectiveness of institutional performance while
protecting the confidentiality of students' personally
identifiable information; and
[(2) identify how to best minimize the data-reporting
burden placed on institutions of higher education,
particularly smaller institutions, and to maximize and
improve the information institutions receive from the
data systems, in order to assist institutions in
improving educational practice and postsecondary
outcomes.
[(b) Definition of Eligible Entity.--In this section, the
term ``eligible entity'' means--
[(1) a State higher education system; or
[(2) a consortium of State higher education systems,
or a consortium of individual institutions of higher
education, that is broadly representative of
institutions in different sectors and geographic
locations.
[(c) Competitive Grants.--
[(1) Grants authorized.--The Secretary shall award
grants, on a competitive basis, to not more than five
eligible entities to enable the eligible entities to--
[(A) design, test, and implement systems of
postsecondary student data that provide the
maximum benefits to States, institutions of
higher education, and State policymakers; and
[(B) examine the costs and burdens involved
in implementing a State-level postsecondary
student data system.
[(2) Duration.--A grant awarded under this section
shall be for a period of not more than three years.
[(d) Application Requirements.--An eligible entity desiring a
grant under this section shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may reasonably require, including
a description of--
[(1) how the eligible entity will ensure that student
privacy is protected and that individually identifiable
information about students, the students' achievements,
and the students' families remains confidential in
accordance with section 444 of the General Education
Provisions Act (commonly known as the ``Family
Educational Rights and Privacy Act of 1974'') (20
U.S.C. 1232g); and
[(2) how the activities funded by the grant will be
supported after the three-year grant period.
[(e) Use of Funds.--A grant awarded under this section shall
be used to--
[(1) design, develop, and implement the components of
a comprehensive postsecondary student data system with
the capacity to transmit student information within a
State;
[(2) improve the capacity of institutions of higher
education to analyze and use student data;
[(3) select and define common data elements, data
quality, and other elements that will enable the data
system to--
[(A) serve the needs of institutions of
higher education for institutional research and
improvement;
[(B) provide students and the students'
families with useful information for decision-
making about postsecondary education; and
[(C) provide State policymakers with improved
information to monitor and guide efforts to
improve student outcomes and success in higher
education;
[(4) estimate costs and burdens at the institutional
level for the reporting system for different types of
institutions; and
[(5) test the feasibility of protocols and standards
for maintaining data privacy and data access.
[(f) Evaluation; Reports.--Not later than six months after
the end of the projects funded by grants awarded under this
section, the Secretary shall--
[(1) conduct a comprehensive evaluation of the pilot
program authorized by this section; and
[(2) report the Secretary's findings, as well as
recommendations regarding the implementation of State-
level postsecondary student data systems, to the
authorizing committees.
[(g) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.]
* * * * * * *
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 implement an open, common, integrated
system for the delivery of student financial
assistance under title IV; and
[(G) to develop and maintain a student
financial assistance system that contains
complete, accurate, and timely data to ensure
program integrity.]
(2) Purposes.--The purposes of the PBO are as
follows:
(A) To prioritize students and borrowers in
the decision-making processes related to all
aspects of the management and administration of
the Federal student financial assistance
programs authorized under title IV.
(B) To improve service to students and other
participants in the Federal student financial
assistance programs authorized under title IV.
(C) To make such programs more understandable
to students and their families.
(D) To increase the efficiency and
effectiveness of such programs for students and
their families.
(E) To manage the costs of administering such
programs.
(F) To increase the accountability of the
officials responsible for administering the
operational aspects of such programs.
(G) To oversee institutions, contractors, and
third party servicers that participate in the
Federal student financial assistance programs
authorized under title IV.
(H) To provide greater flexibility in the
management and administration of such programs.
(I) To implement open, common, integrated
systems for the delivery of Federal student
financial assistance programs authorized under
title IV.
(J) To develop and maintain a student
financial assistance system that contains
complete, accurate, and timely data to ensure
program integrity.
(K) To increase transparency in the
operations and outcomes of Federal student
financial assistance programs authorized under
title IV.
(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) implement oversight and accountability
measures to ensure that the PBO carries out its
duties under this section efficiently,
effectively, and in a manner that accomplishes
the purposes specified in subsection (a)(2);
[(B)] (C) request cost estimates from the
Chief Operating Officer for system changes
required by specific policies proposed by the
Secretary; and
[(C)] (D) 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.
(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) in accordance with paragraph
(3), the collection, publication, and
sharing of aggregate and longitudinal
data that may be used to evaluate
Federal student financial assistance
programs authorized under title IV,
including the outcomes such programs
achieve;
[(ii)] (iii) the design and technical
specifications for software development
and procurement for systems supporting
the Federal student financial
assistance programs authorized under
title IV;
[(iii)] (iv) all software and
hardware acquisitions and all
information technology contracts
related to the administration and
management of student financial
assistance under title IV;
[(iv)] (v) all aspects of contracting
for the information and financial
systems supporting the Federal student
financial assistance programs
authorized under title IV;
[(v)] (vi) 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)] (vii) ensuring the integrity
of the Federal student financial
assistance programs authorized under
title IV, including oversight of
institutions, contractors, and third
party servicers that participate in
such programs.
(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) Taking action to prevent and address the
improper use of access devices, as described in
section 485B(d)(7), including by--
(i) detecting common patterns of
improper use of any system that
processes payments on Federal Direct
Loans or other Department information
technology systems;
(ii) maintaining a reporting system
for contractors involved in the
processing of payments on Federal
Direct Loans in order to allow those
contractors to alert the Secretary of
potentially improper use of Department
information technology systems;
(iii) proactively contacting Federal
student loan borrowers whose Federal
student loan accounts demonstrate a
likelihood of improper use in order to
warn those borrowers of suspicious
activity or potential fraud regarding
their Federal student loan accounts;
and
(iv) providing clear and simple
disclosures in communications with
borrowers who are applying for or
requesting assistance with Federal
Direct Loan programs (including
assistance or applications regarding
income-driven repayment, forbearance,
deferment, consolidation,
rehabilitation, cancellation, and
forgiveness) to ensure that borrowers
are aware that the Department will
never require borrowers to pay for such
assistance or applications.
(3) Collection, sharing, and publication of data.--
(A) Collection.--The PBO shall collect
student-level data that shall be used to
evaluate Federal student financial assistance
programs authorized under title IV.
(B) Sharing with nces.--The PBO shall make
the data collected under subparagraph (A)
available to the Commissioner of the National
Center for Education Statistics for purposes of
research and policy analysis.
(C) Research.--The Commissioner of the
National Center for Education Statistics shall
ensure the data shared under subparagraph (B)
is made available, with direct identifiers
removed and with appropriate restrictions to
ensure data privacy and security, for vetted
research and evaluation purposes in a manner
consistent with the process under section
132(l)(5)(A)(i).
(D) Publication.--Not less frequently than
once annually, the PBO shall--
(i) aggregate the data collected
under subparagraph (A) in a manner that
excludes--
(I) student-level data; or
(II) any data that would
reveal personally identifiable
information about an individual
student; and
(ii) make available such aggregated
data on a publicly accessible website
of the Department in a format that
enables members of the public to easily
retrieve, sort, and analyze the data.
[(3)] (4) 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)] (5) 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)] (6) 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)] (7) Changes.--
(A) In general.--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) 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, the Secretary
and Chief Operating Officer shall agree on, and
make available to the public, a performance
plan for the PBO for the succeeding 5 years
that establishes measurable goals and
objectives for the organization.
[(B) Consultation.--In developing the 5-year
performance plan and any revision to the plan,
the Secretary and the Chief Operating Officer
shall consult with students, institutions of
higher education, Congress, lenders, 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.
[(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. 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) 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 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.
[(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.
[(E) Recommendations for legislative and
regulatory changes to improve service to
students and their families, and to improve
program efficiency and integrity.
[(F) 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
[(B) to seek suggestions on means to improve
the
delivery system.
[(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.]
(c) Performance Plan, Report, and Briefing.--
(1) Performance plan.--
(A) In general.--Not later than one year
after the date of the enactment of the College
Affordability Act, and not less than once every
five years thereafter, the Secretary and Chief
Operating Officer shall agree on a performance
plan for the PBO for the succeeding 5 years
that--
(i) establishes measurable
quantitative and qualitative goals and
objectives for the organization; and
(ii) aligns such goals and objectives
with the purposes specified in
subsection (a)(2).
(B) Consultation.--In developing the five-
year performance plan and any revision to the
plan, the Secretary and the Chief Operating
Officer shall consult with students,
institutions, Congress, contractors, the
Borrower Advocate, student aid experts,
including consumer advocacy and research
groups, the Director of the Bureau of Consumer
Financial Protection, State attorneys general,
and other relevant parties.
(C) Revisions.--The Secretary and Chief
Operating Officer may annually update the plan
under paragraph (1) to incorporate the
recommendations made pursuant to the
consultation required under subparagraph (B)
that are accepted by the Secretary and the
Chief Operating Officer.
(D) Areas.--The plan developed under
subparagraph (A) shall address the
responsibilities of the PBO in the following
areas:
(i) Improving service to students and
other participants in the Federal
student financial assistance programs
authorized under title IV, including
making those programs more
understandable and accessible to
students and their families.
(ii) Managing the costs and
increasing the efficiency of such
programs.
(iii) Improving, integrating, and
investing in the systems that support
such programs.
(iv) Developing open, common, and
integrated systems for such programs.
(v) The collection, publication, and
sharing of data on such programs as
described in subsection (b)(3).
(vi) Improving performance standards
and outcomes with respect to
institutions, contractors, and third
party servicers that act as agents of
the Department or as agents of
institutions that participate in such
programs.
(vii) Any other areas identified by
the Secretary.
(E) Public availability.--Each plan developed
under subparagraph (A) shall be made available
on a publicly accessible website of the
Department of Education.
(2) Annual report.--
(A) Report required.--Not later than one year
after the date of the enactment of the College
Affordability Act and annually thereafter, the
Secretary, acting through the Chief Operating
Officer, shall submit to Congress an annual
report on the performance of the PBO.
(B) Contents.--The annual report shall
include the following:
(i) An evaluation of the extent to
which the PBO met the goals and
objectives contained in the five-year
performance plan described in paragraph
(1) for the preceding year.
(ii) A summary of the consultation
process under paragraph (1)(B) for the
preceding year, including the
recommendations that were accepted or
denied by the Chief Operating Officer
during such year, and the rationale for
accepting or denying such
recommendations.
(iii) An independent financial audit
of the expenditures of both the PBO and
the programs administered by the PBO.
(iv) A summary of the actions taken
by the PBO to address--
(I) the findings of the audit
described in clause (iii); and
(II) consumer feedback.
(v) Financial and performance
requirements applicable to the PBO
under--
(I) the Chief Financial
Officers Act of 1990 (Public
Law 101-576); or
(II) the Government
Performance and Results Act of
1993 (Public Law 103-62).
(vi) The results achieved by the PBO
during the preceding year and whether
such results met the goals specified in
the performance plan under paragraph
(1).
(vii) With respect to the preceding
year, the evaluation rating of the
performance of the Chief Operating
Officer and senior managers under
subsections (d)(5) and (e)(2),
including the amounts of bonus
compensation awarded to the Chief
Operating Officer and senior managers.
(viii) Recommendations for
legislative and regulatory changes to
improve service to students and their
families, and to improve the efficiency
and integrity of Federal student
financial assistance programs
authorized under title IV.
(ix) Financial statements that
provide a rationale for appropriately
funding the activities of the PBO.
(x) A summary of the management and
compliance of contractors managed by
the PBO in the preceding year,
including corrective actions taken by
the PBO with respect to such
contractors.
(xi) A description of how the PBO
used the authority under paragraph (5)
of subsection (b) for making personnel
and procurement decisions in the
preceding year, including the number of
individuals hired through such
authority and the bonuses provided to
staff during such year.
(xii) A summary of the oversight
activities of institutions,
contractors, and third party servicers
that participate in the Federal student
financial assistance programs
authorized under title IV including--
(I) fines levied on such
institutions, contractors, and
third party servicers,
disaggregated by entity;
(II) instances of fraud or
misrepresentation by such
institutions, contractors, or
third party servicers; and
(III) violations of
provisions in this Act by such
institutions, contractors, or
third party servicers
disaggregated by entity and
type of violation.
(xiii) A summary of any improvements
made with respect to transparency and
any new types of data made available in
the preceding year.
(xiv) A description of the progress
made in the preceding year towards the
specific measurable organization and
individual goals specified in
subsection (d)(5)(A).
(xv) The report submitted to the
Secretary under subsection (f)(7).
(xvi) 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 annual report
described in paragraph (2), shall establish appropriate
means to consult with students, borrowers,
institutions, student aid experts, including consumer
advocacy and research groups, the Director of the
Bureau of Consumer Financial Protection, and others
involved in the delivery and evaluation of student aid
under title IV--
(A) regarding the degree of satisfaction with
the delivery system; and
(B) to seek suggestions on means to improve
the performance of the delivery system.
(4) Briefing on enforcement of program integrity.--
The Secretary shall, at the request of the authorizing
committees, provide to the authorizing committees a
briefing on the steps the Department of Education has
taken to ensure--
(A) the experiences of students and borrowers
are accounted for in decision making; and
(B) that contractors, lenders, and guaranty
agencies and third party servicers are adhering
to the requirements of title IV, the terms of
any contract with the Secretary, consumer
protection laws, Federal regulations and
guidelines, and directives of the PBO.
(5) Coordination with the director of the bureau of
consumer financial protection.--Not later than 180 days
after the date of the enactment of the College
Affordability Act, the Secretary shall enter into a
memorandum of understanding with the Private Education
Loan Ombudsman in accordance with section 1035(c)(2) of
the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5535(c)(2)).
(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.] management ability, including
contractor management, expertise in the Federal student
financial assistance programs authorized under title
IV, experience with financial systems, and knowledge of
consumer financial protection laws, and without regard
to political affiliation or activity.
(2) Restrictions.--
(A) Preservice and in-service restrictions.--
An individual may not serve as the Chief
Operating Officer if such individual--
(i) is employed by, or has a
financial interest in, an entity that
contracts with the PBO; or
(ii) was employed by, or had a
financial interest in, any such entity
in any of the five years preceding the
date of the individual's appointment as
the Chief Operating Officer.
(B) Postservice restrictions.--An individual
who served as the Chief Operating Officer may
not accept employment with an entity that
contracts with the PBO until a period of five
years has elapsed following the date on which
such individual's service as the Chief
Operating Officer terminated.
[(2)] (3) Reappointment.--The Secretary may reappoint
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)] (4) 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)] (5) 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 on the website of the
Department.
[(5)] (6) 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 authorized.--The Secretary may pay
to the Chief Operating Officer a bonus in an
amount that does not exceed 50 percent of such
annual rate of basic pay. The decision to pay
such a bonus, and the amount of the bonus,
shall be based solely on the Secretary's
evaluation of the performance of the Chief
Operating Officer with respect to the goals set
forth in the performance agreement as described
in paragraph (5)(A).
(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.
(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. Performance
agreements for senior management responsible for
procurement shall include metrics that measure ability
to oversee contractors. 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).
(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) 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.]
(f) Borrower Advocate.--
(1) In general.--There is established in the PBO an
``Office of the Borrower Advocate'' (referred to in
this subsection as the ``Office''). The function of the
Office shall be to provide timely assistance to
borrowers of loans made, insured, or guaranteed under
title IV by performing the duties described in
paragraph (6).
(2) Head of office.--There shall be an official known
as the ``Borrower Advocate'' who shall serve as the
head of the Office. The Borrower Advocate shall be
appointed by the Secretary from among individuals who
have worked closely with the Federal student loan
programs authorized under title IV.
(3) Removal.--The Borrower Advocate may be removed
only by the Secretary who shall communicate the reasons
for any such removal to the authorizing committees.
(4) Restrictions.--
(A) Preservice and in-service restrictions.--
An individual may not serve as the Borrower
Advocate if such individual--
(i) is employed by, or has a
financial interest in, an entity that
contracts with the PBO; or
(ii) was employed by, or had a
financial interest in, any such entity
in any of the five years preceding the
date of the individual's appointment as
the Borrower Advocate.
(B) Postservice restrictions.--An individual
who served as the Borrower Advocate may not
accept employment with an entity that contracts
with the PBO until a period of five years has
elapsed following the date on which such
individual's service as the Borrower Advocate
terminated.
(5) Staff.--The Office shall be staffed sufficiently
to carry out the responsibilities of the Office under
this subsection.
(6) Duties of the borrower advocate.--The Office of
the Borrower Advocate shall--
(A) assist borrowers of loans made, insured,
or guaranteed under title IV in resolving
problems with the PBO and its contractors or
other agents, including by--
(i) receiving and reviewing
complaints of such problems from
borrowers;
(ii) working to resolve such
complaints in a manner that is in the
best interests of borrowers; and
(iii) transmitting such complaints to
States and recognized accrediting
agencies or associations, as
appropriate.
(B) attempt to resolve complaints within the
Department of Education and with institutions
of higher education, lenders, guaranty
agencies, loan servicers, and other
participants in the Federal student loan
programs authorized under title IV in a manner
that will improve the experience of the
borrower;
(C) conduct impartial reviews regarding a
student's independence under subparagraph (B)
or (H) of section 480(d)(1), in consultation
with knowledgeable parties, including
institutions of higher education, child welfare
agencies, local educational agency liaisons for
homeless individuals designated under section
722(g)(1)(J)(ii) of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11432(g)(1)(J)(ii)),
or State Coordinators for Education of Homeless
Children and Youth established in accordance
with section 722 of such Act (42 U.S.C. 11432);
(D) compile and analyze data on borrower
complaints and share such data with the
Director of the Bureau of Consumer Financial
Protection;
(E) publish, with any personally identifiable
information redacted, such complaints and
responses of the Secretary to such complaints
on the website of the Department; and
(F) make appropriate recommendations to
Congress, the Chief Operating Officer, and
Secretary with respect to Federal student loan
programs authorized under title IV and the
experiences of borrowers in repayment of loans
under such programs.
(7) Public information.--The Chief Operating Officer
shall establish and maintain a public page on the
website of the Department of Education exclusively to
provide members of the public with information about
the role of the PBO with respect to the oversight of
institutions of higher education, lenders, guaranty
agencies, contractors that contract with the PBO,
subcontractors of such contractors, and third party
servicers.
(8) Report.--On an annual basis, the Borrower
Advocate shall submit to the Chief Operating Officer a
report on the activities of the Office during the
preceding year that--
(A) identifies the activities carried out by
the Borrower Advocate;
(B) summarizes the complaints received from
borrowers, including the number of such
complaints, and explains the activities
undertaken by the PBO to address such
complaints;
(C) proposes changes in the administrative
practices of the PBO to mitigate problems
experienced by borrowers; and
(D) identifies potential legislative changes
which may be appropriate to mitigate such
problems.
(g) 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) 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) Enforcement Unit.--
(1) In general.--Not later than 180 days after the
date of enactment of the College Affordability Act, the
Secretary shall establish within the PBO an enforcement
unit (referred to in this section as the ``Unit'') to
review and investigate violations of this Act and
recommend enforcement actions in accordance with
paragraph (3).
(2) Chief enforcement officer.--
(A) Appointment.--The Secretary shall appoint
an official to be known as the ``Chief
Enforcement Officer'' who shall serve as the
head of the Unit. The Secretary shall appoint
an individual to serve as the Chief Enforcement
Officer solely on the basis of such
individual's integrity and expertise in law and
investigations and without regard to such
individual's political affiliation.
(B) Authority.--The Chief Enforcement Officer
shall report directly to the Secretary without
being required to report through any other
official of the Department of Education.
(C) Term.--The Chief Enforcement Officer
shall be appointed for a term of 6 years and
may be reappointed for additional terms of 6
years at the discretion of the Secretary.
(D) Removal.--
(i) In general.--The Chief
Enforcement Officer may not be removed
during the Officer's term except for
cause.
(ii) Notice to congress.--If the
Secretary removes the Chief Enforcement
Officer before the expiration of the
Officer's term, the Secretary shall
submit to the authorizing committees a
report that explains the reasons for
such removal. The report shall be
submitted to the authorizing committees
not later than 30 days after the date
on which the removal takes effect.
(3) Duties.--The Chief Enforcement Officer shall have
the following duties:
(A) Receive, process, and analyze allegations
that a covered entity has violated Federal law
or has engaged in unfair, deceptive, or abusive
practices.
(B) Review and investigate such allegations
or refer such allegations to an entity
described in subparagraphs (A) through (E) of
paragraph (6).
(C) After reviewing and investigating an
allegation under subparagraph (B), in
consultation with the Chief Operating Officer--
(i) if the covered entity subject to
such allegation is an entity described
in clause (i) or (iii) of paragraph
(8)(A), make recommendations with
respect to such covered entity,
including--
(I) whether such covered
entity should be limited,
suspended, or terminated from
participation in one or more
programs under title IV;
(II) whether such covered
entity should be subject to an
emergency action under section
487(c)(1)(G);
(III) whether such covered
entity should be subject to a
civil penalty described in
section 487(c)(3)(B);
(IV) whether such covered
entity should be subject to a
criminal penalty described in
section 490; or
(V) whether such covered
entity should be subject to a
combination of any of the
actions described in subclauses
(I) though (IV);
(ii) if the covered entity subject to
such allegation is an entity described
in clause (ii) of paragraph (8)(A),
make recommendations with respect to
such covered entity, including whether
such covered entity should be limited,
suspended, or terminated from
administering or providing services
with respect to one or more programs
under title IV; and
(iii) provide the Secretary with such
recommendations.
(4) Secretarial review and action.--After receiving
notice of a determination of the Chief Enforcement
Officer under paragraph (3)(C), the Secretary shall
decide whether or not to pursue enforcement action
against the entity concerned, in accordance with the
procedures established under section 487(c)(3). In a
case in which the Chief Enforcement Officer recommends
enforcement action against an entity, but the Secretary
decides not to pursue such enforcement action, the
Secretary shall notify the Chief Enforcement Officer,
in writing, of the rationale for such decision.
(5) Coordination and staffing.--The Chief Enforcement
Officer shall--
(A) coordinate with relevant Federal and
State agencies and oversight bodies; and
(B) hire staff with the expertise necessary
to conduct investigations, respond to
allegations against covered entities, and
enforce compliance with laws governing Federal
student financial assistance programs under
title IV.
(6) Information sharing.--The Chief Enforcement
Officer shall develop and implement a process for
sharing relevant information about allegations against
covered entities with--
(A) the Borrower Advocate appointed under
subsection (f);
(B) personnel of the Department on
responsible for processing borrower defense
claims submitted under section 493H;
(C) other relevant Federal agencies;
(D) States, including State law enforcement
and regulatory agencies; and
(E) recognized accrediting agencies or
associations.
(7) Report to congress.--On an annual basis, the
Chief Enforcement Officer shall submit to the
authorizing committees a report that includes--
(A) the number of allegations about covered
entities received by Unit in the year covered
by the report;
(B) the number of such allegations
investigated by the Unit;
(C) the number of such allegations that were
referred to the Secretary under paragraph
(3)(C) and a summary of any action taken by the
Secretary with respect to such allegations;
(D) the number of such allegations that were
referred to other Federal agencies and the
names of the agencies to which the allegations
were referred; and
(E) the number of such allegations that
remain under review or investigation as of the
date of the report.
(8) Definitions.--In this subsection:
(A) Covered entity.--In this subsection, the
term ``covered entity'' means--
(i) an institution of higher
education (as defined in section 102)
that participates in the Federal
student financial assistance programs
authorized under title IV;
(ii) a contractor that contracts with
the PBO to provide services relating to
such programs, or a subcontractor of
such contractor; or
(iii) a third party servicer.
(B) Third party servicer.--the term ``third
party servicer'' has the meaning given that
term in section 481(c).
[(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.
* * * * * * *
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.]
SEC. 200. DEFINITIONS.
Except as otherwise provided, 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) Blended learning.--The term ``blended learning''
has the meaning given the term in section 4102 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 7112).
(3) 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 (20 U.S.C.
6333(c)(1)(A)).
(4) Comprehensive literacy instruction.--The term
``comprehensive literacy instruction'' has the meaning
given the term in section 2221(b)(1) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C.
6641(b)(1)).
(5) Digital learning.--The term ``digital learning''
has the meaning given the term in section 4102 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 7112).
(6) Diverse teacher candidates.--The term ``diverse
teacher candidates'' means teacher candidates who are--
(A) members of racial and ethnic groups
underrepresented in the teaching profession; or
(B) linguistically and culturally prepared to
educate students in high-need schools.
(7) 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.
(8) Educational service agency.--The term
``educational service agency'' has the meaning given
the term in section 8101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801).
(9) Educator.--The term ``educator'' means a teacher,
principal or other school leader, specialized
instructional support personnel, or other staff member
who provides or directly supports instruction, such as
a school librarian, counselor, or paraprofessional.
(10) Eligible partnership.--The term ``eligible
partnership'' means an entity--
(A) that--
(i) shall include--
(I) a high-need local
educational agency;
(II)(aa) a high-need school
or a consortium of high-need
schools served by such high-
need local educational agency;
or
(bb) 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; or
(ii) shall include--
(I)(aa) a partner education
institution;
(bb) 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; or
(cc) a school or department
of arts and sciences within
such partner institution; and
(II) a State educational
agency that will serve to place
graduates of partnership
programs into high-need local
educational agencies, schools,
or early childhood programs, or
schools that have been
identified for comprehensive
support and improvement under
section 1111(d)(2) of the
Elementary and Secondary
Education Act of 1965 (20
U.S.C. 6311(d)(2)); and
(B) that 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 public or private nonprofit
educational organization.
(vi) An educational service agency.
(vii) A public school teacher,
principal, or school leader
organization.
(viii) A high-performing local
educational agency, or a consortium of
such local educational agencies, that
can serve as a resource to the
partnership.
(ix) A charter school (as defined in
section 4310 of the Elementary and
Secondary Education Act of 1965 (20
U.S.C. 7221i)).
(x) A school or department within the
partner institution that focuses on
psychology and human development.
(xi) A school or department within
the partner institution for teacher or
school leader preparation with
comparable expertise in the disciplines
of teaching, learning, and child and
adolescent development.
(xii) An entity operating a program
that provides alternative routes to
State certification of teachers or
principals.
(11) English learner.--The term ``English learner''
has the meaning given the term in section 8101 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801).
(12) Evidence-based.--The term ``evidence-based'' has
the meaning given the term in subclauses (I) and (II)
of section 8101(21)(A)(i) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
7801(21)(A)).
(13) Evidence of student learning.--The term
``evidence of student learning'' means multiple
measures of student learning that include the
following:
(A) Valid and reliable student assessment
data, which may include data--
(i) on student learning gains on
statewide academic assessments under
section 1111(b)(2) of the Elementary
and Secondary Education Act of 1965;
(ii) from student academic
achievement assessments used at the
national, State, or local levels, where
available and appropriate for the
curriculum and students taught;
(iii) from classroom-based summative
assessments; and
(iv) from high quality validated
performance-based assessments that are
aligned with challenging State academic
standards adopted under section
1111(b)(1) of the Elementary and
Secondary Education Act of 1965 (20
U.S.C. 6311(b)(1)).
(B) Not less than one of the following
additional measures:
(i) Student work, including measures
of performance criteria and evidence of
student growth.
(ii) Teacher-generated information
about student goals and growth.
(iii) Parental feedback about student
goals and growth.
(iv) Student feedback about learning
and teaching supports.
(v) Assessments of affective
engagement and self-efficacy.
(vi) Other appropriate measures, as
determined by the State.
(14) Foster care.--
(A) In general.--The term ``foster care''
means 24-hour substitute care for a child
placed away from the child's parents or
guardians and for whom the State agency has
placement and care responsibility. The term
includes care through a placement in a foster
family home, a foster home of a relative, a
group home, an emergency shelter, a residential
facility, a child care institution, or a pre-
adoptive home.
(B) Rule.--A child shall be considered to be
in foster care under subparagraph (A) without
regard to whether--
(i) the foster care facility is
licensed and payments are made by the
State or local agency for the care of
the child;
(ii) adoption subsidy payments are
being made prior to the finalization of
an adoption; or
(iii) Federal matching funds for any
payments described in clause (i) or
(ii) are being made.
(15) 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.
(16) High-need local educational agency.--The term
``high-need local educational agency'' means a local
educational agency--
(A)(i) that serves not fewer than 10,000 low-
income children;
(ii) for which not less than 40 percent of
the children served by the agency are low-
income children;
(iii) that meets the eligibility requirements
for funding under the Small, Rural School
Achievement Program under section 5211(b) of
the Elementary and Secondary Education Act of
1965 or the Rural and Low-Income School Program
under section 6221(b) of such Act; or
(iv) that has a percentage of low-income
children that is in the highest quartile among
such agencies in the State; and
(B)(i) for which a significant number of
schools served by the agency is identified by
the State for comprehensive supports and
interventions under section 1111(c)(4)(D)(i) of
the Elementary and Secondary Education Act of
1965; or
(ii) for which a significant number of
schools served by the agency has a high teacher
turnover rate or is experiencing a teacher
shortage in a high-needs field, as determined
by the State.
(17) High-need school.--
(A) In general.--The term ``high-need
school'' means a school that, based on the most
recent data available, is--
(i) an elementary school, in which
not less than 60 percent of students
are eligible for a free or reduced
price school lunch under the Richard B.
Russell National School Lunch Act;
(ii) any other school that is not an
elementary school, in which not less
than 45 percent of students 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
(iii) identified for comprehensive
support and improvement under section
1111(c)(4)(D) of the Elementary and
Secondary Education Act of 1965 (20
U.S.C. 6311(c)(4)(D)), targeted support
and improvement under section
1111(d)(2) of such Act (20 U.S.C.
6311(d)(2)), or additional targeted
support under section 1111(d)(2)(C) of
such Act (20 U.S.C. 6311(d)(2)(C)).
(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 four-year adjusted cohort
graduation rate for such
school.
(18) Highly competent.--The term ``highly
competent'', when used with respect to an early
childhood educator, means an early childhood educator--
(A) with specialized education and training
in development and education of young children
from birth until entry into kindergarten or a
specialization in infants and toddlers or pre-
school children;
(B) with a baccalaureate degree in an
academic major in an early childhood or related
field; 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.
(19) Homeless child.--The term ``homeless child''
means an individual who is a homeless child or youth
under section 725 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11434a).
(20) Induction program.--The term ``induction
program'' means a formalized program for new teachers,
principals, or school leaders, during not less than the
teachers', principals, or school leaders' first 2 years
of, respectively, teaching or leading, that is designed
to provide support for, and improve the professional
performance and increase the retention in the education
field of, beginning teachers, principals, or school
leaders. Such program shall promote effective teaching
or leadership skills and shall include the following
components:
(A) High-quality and structured teacher or
school leader mentoring led by a trained and
expert mentor who has demonstrated high skill
and effectiveness and who teaches or leads, or
has taught or led, in the same or similar
field, grade, or subject as the mentee.
(B) Periodic, structured time for
collaboration, including with mentors, as well
as time for information-sharing among teachers,
principals, other school leaders and
administrators, other appropriate instructional
staff, and participating faculty or program
staff in the partner institution.
(C) The application of evidence-based
instructional practices.
(D) Opportunities for new teachers,
principals, or school leaders to draw directly
on the expertise of mentors, faculty or program
staff, and researchers, including through
mentor observation and feedback, to support the
integration of evidence-based research and
practice.
(E) The development of skills in evidence-
based instructional and behavioral supports and
interventions.
(F) Programs to support the health and well-
being of teachers, particularly in high-need
schools or high-need local educational
agencies. These may include programs that focus
on social emotional learning, organizational
interventions, workplace wellness, and stress
management.
(G) Faculty or program staff who--
(i) model the integration of research
and practice in the classroom and
school; and
(ii) assist new teachers or school
leaders with the effective use and
integration of educational and
accessible technology and universal
design for learning into the classroom
or school.
(H) Interdisciplinary collaboration among
teacher leaders or school leaders, faculty or
program staff, researchers, and other staff who
prepare new teachers or school leaders with
respect to, as applicable, the learning
process, the assessment of learning, or the
leadership of a school.
(I) As applicable to the role, assistance
with understanding of the effective use of
data, particularly student achievement data,
and the applicability of such data to inform
and improve classroom instruction and school
leadership.
(J) Regular and structured observation and
evaluation of new teachers, principals, or
other school leaders that are based in part on
evidence of student learning, shall include
multiple measures of educator performance, and
shall provide clear, timely, and useful
feedback to teachers, principals, or other
school leaders to be used to improve
instruction, as applicable.
(K) With respect to a principal induction
program, the development of local-educational-
agency-wide systems such as rigorous leader
standards, continuous ongoing identification of
goals for improvement, and support for
achieving those goals.
(L) The development of skills in improving
the school culture and climate related to
school leadership and the role of the
principal, including to--
(i) nurture teacher and staff
development to strengthen classroom
practice;
(ii) support teacher health and well-
being, including through programs that
focus on social emotional learning,
organizational interventions, workplace
wellness, and stress management;
(iii) build and sustain an inclusive
culture of learning among adults and
children;
(iv) strengthen communications and
relationships with teachers, parents,
caregivers, paraprofessionals, and
community stakeholders;
(v) facilitate the sharing of
knowledge, insight, and best practices
in the community served by the school,
preschool program, or early childhood
education program, including with youth
serving programs (such as before- and
after-school and summer programs); and
(vi) build relationships and
communicate effectively with State and
local educational agency officials.
(21) Infant or toddler with a disability.--The term
``infant or toddler with a disability'' has the meaning
given the term in section 632 of the Individuals with
Disabilities Education Act (20 U.S.C. 1432).
(22) Mentoring.--The term ``mentoring'' means the
mentoring or coaching of new or prospective teachers,
principals, or school leaders through a program that--
(A) includes clear criteria for the selection
of teacher, principal, or school leader mentors
who may be program staff and who will provide
role model relationships for mentees, which
criteria shall be developed by the eligible
partnership and based on measures of teacher or
school leader effectiveness;
(B) provides high-quality training for such
mentors, including instructional strategies for
culturally relevant teaching practices,
literacy instruction and classroom management
(including approaches that improve the
schoolwide climate for learning, create
inclusive classroom environments, and address
the social and emotional needs of students,
which may include positive behavioral
interventions and supports);
(C) provides regular and ongoing
opportunities for mentors and mentees to
observe each other's teaching or leading
methods in classroom or school 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;
(E) for teachers, provides mentoring to each
mentee by a colleague who teaches in the same
field, grade, or subject as the mentee;
(F) for teachers, promotes empirically-based
practice of, and evidence-based 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, including
trauma-informed practices; 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) as applicable, joint
professional development opportunities.
(23) Parent.--The term ``parent'' has the meaning
given the term in section 8101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801).
(24) Partner institution.--The term ``partner
institution'' means an institution of higher education,
which may include a 2-year institution of higher
education offering a dual program with a 4-year
institution of higher education, participating in an
eligible partnership that has a teacher or school
leader preparation program that is accredited by the
State--
(A) in the case of a teacher preparation
program--
(i) 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) that is not designated
as a low-performing teacher
preparation program in the
State as determined by the
State--
(aa) using criteria
consistent with the
requirements for the
State assessment under
section 207(a) before
the first publication
of such report card;
and
(bb) using the State
assessment required
under section 207(a),
after the first
publication of such
report card and for
every year thereafter;
and
(ii) 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
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 (20 U.S.C.
1412(a)(14)(C)); and
(III) each student in the
program preparing to become an
early childhood educator to
become highly competent; and
(B) in the case of a school leader
preparation program--
(i) whose graduates exhibit a strong
record of successful school leadership
as demonstrated by--
(I) a high percentage of such
graduates taking positions as
assistant principals and
principals within 3 years of
completing the program; and
(II) a high percentage of
such graduates rated effective
or above in State school leader
evaluation and support systems
(as described in section
2101(c)(4)(B)(ii) of the
Elementary and Secondary
Education Act of 1965) or, if
no such ratings are available,
other, comparable indicators of
performance; and
(ii) that requires each student in
the program to participate in an
intensive, high-quality clinical
experience in an authentic setting
(including by assuming substantial
leadership responsibilities) for at
least one full academic semester (or
the equivalent) in which the student
can be evaluated on leadership skills
and the student's effect on student
learning as part of program completion.
(25) 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 U.S.C. 7801).
(26) Profession-ready.--The term ``profession-
ready''--
(A) when used with respect to a principal or
other school leader, means a principal or other
school leader who--
(i) has an advanced degree, or other
appropriate credential;
(ii) has completed a principal or
other school leader preparation process
and is fully certified and licensed by
the State in which the principal or
other school leader is employed;
(iii) has demonstrated instructional
leadership, including the ability to
collect, analyze, and utilize data on
evidence of student learning and
evidence of classroom practice;
(iv) has demonstrated proficiency in
professionally recognized leadership
standards, such as through--
(I) a performance assessment;
(II) completion of a
residency program; or
(III) other measures of
leadership effectiveness, as
determined by the State; and
(v) has demonstrated the ability to
work with students with disabilities
and students who are culturally and
linguistically diverse;
(B) when used with respect to a teacher,
means a teacher who--
(i) has completed a teacher
preparation program and is fully
certified and licensed to teach by the
State in which the teacher is employed;
(ii) has a baccalaureate degree or
higher;
(iii) has demonstrated content
knowledge in the subject or subjects
the teacher teaches;
(iv) has demonstrated the ability to
work with students with disabilities
and students who are culturally and
linguistically diverse;
(v) has demonstrated teaching skills,
such as through--
(I) a teacher performance
assessment; or
(II) other measures of
teaching skills, as determined
by the State; and
(vi) has demonstrated proficiency
with the use of educational and
accessible technology; and
(C) when used with respect to any other
educator not described in subparagraph (A) or
(B), means an educator who has completed an
appropriate preparation program and is fully
certified or licensed by the State in which the
educator is employed.
(27) Residency program.--The term ``residency
program'' means a school-based educator preparation
program, based on models of effective teaching and
leadership residencies, in which a prospective teacher,
principal, or other school leader--
(A) for 1 academic year, works alongside a
mentor teacher, principal, or other school
leader who is--
(i) the educator of record; and
(ii) is rated as effective or above
in the State's school leader evaluation
and support system (as described in
section 2101(c)(4)(B)(ii) of the
Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6611(c)(4)(B)(ii)))
or, if no such ratings are available,
other, on comparable indicators of
performance;
(B) receives concurrent, aligned instruction
during the year described in subparagraph (A)
from the partner institution, which may be
courses taught by local educational agency
personnel or residency program faculty, in, as
applicable--
(i) the teaching of the content area
in which the teacher will become
certified or licensed;
(ii) pedagogical practices, including
the teaching skills defined in
paragraph (33); and
(iii) leadership, management,
organizational, and instructional
skills necessary to serve as a
principal or other school leader;
(C) acquires effective teaching or leadership
skills through the integration of pedagogy,
classroom or school practice, and teacher or
leadership mentoring; and
(D) prior to completion of the program--
(i) demonstrates the prerequisite
skills to advance student learning,
which may be measured by a teacher or
school leader performance assessment;
(ii) attains full State teacher,
principal, or school leader
certification or licensure;
(iii) with respect to special
education teachers, meets the
qualifications described in section
612(a)(14)(C) of the Individuals with
Disabilities Education Act (20 U.S.C.
1412(a)(14)(C)); and
(iv) becomes profession-ready.
(28) School leader.--The term ``school leader'' has
the meaning given the term in section 8101 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801).
(29) School leader preparation entity.--The term
``school leader preparation entity'' means an
institution of higher education or a nonprofit
organization, including those institutions or
organizations that provide alternative routes to
certification, that is approved by the State to prepare
school leaders to be effective.
(30) School leader preparation program.--The term
``school leader preparation program'' means a program
offered by a school leader preparation entity, whether
a traditional or alternative route, that is approved by
the State to prepare school leaders to be effective and
that leads to a specific State certification to be a
school leader.
(31) School leader skills.--The term ``school leader
skills'' refers to evidenced-based competencies for
principals and other school leaders such as--
(A) shaping a vision of academic success for
all students;
(B) creating a safe and inclusive learning
environment;
(C) cultivating leadership in others;
(D) improving instruction; and
(E) managing people, data, and processes to
foster school improvement.
(32) Teacher leader.--The term ``teacher leader''
means an effective educator who carries out formalized
leadership responsibilities based on the demonstrated
needs of the elementary school or secondary school in
which the teacher is employed, while maintaining a role
as a classroom instructor who--
(A) is trained in and practices teacher
leadership; and
(B) fosters a collaborative culture to--
(i) support educator development,
effectiveness, and student learning;
(ii) support access and use research
to improve practice and student
learning;
(iii) promote professional learning
for continuous improvement;
(iv) facilitate improvements in
instruction and student learning;
promote the appropriate use of
assessments and data for school and
district improvement;
(v) improve outreach and
collaboration with families and
community;
(vi) advance the profession by
shaping and implementing policy;
(vii) advocate for increased access
to great teaching and learning for all
students; and
(viii) demonstrate cultural
competencies and provide instruction
and support as such.
(33) 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, explain, and provide
opportunities for students to develop the
skills aligned with the full depth and breadth
of the State challenging academic standards,
including the application of academic subject
matter;
(C) effectively teach higher-order
analytical, evaluation, problem-solving,
critical thinking, social and emotional,
collaboration, and communication skills;
(D) employ strategies grounded in the
disciplines of teaching and learning that--
(i) are based on empirically-based
practice and evidence-based 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 English
learners, students who are gifted and
talented, and students with low
literacy levels, and the tailoring of
academic instruction to such needs;
(E) design and conduct ongoing assessments 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) and use
this information to inform and personalize
instruction;
(F) support the social, emotional, and
academic achievement of all students including
effectively manage a classroom creating a
positive and inclusive classroom environment,
including the ability to implement positive
behavioral interventions, trauma-informed care,
and other support strategies;
(G) support an inclusive learning environment
through culturally responsive teaching;
(H) support accessible technology-rich
instruction, assessment, and learning
management in content areas, accessible
technology literacy, and the use of universal
design;
(I) demonstrate proficiency with the use of
educational and accessible technology;
(J) communicate and work with families, and
involve families in their children's education;
and
(K) use, in the case of an early childhood
educator or an educator at the elementary
school or secondary school level, age-
appropriate and developmentally appropriate
strategies and practices for children and youth
in early childhood education and elementary
school or secondary school programs,
respectively.
(34) Teacher performance assessment.--The term
``teacher performance assessment'' means a pre-service
assessment used to measure teacher performance that is
approved by the State and is--
(A) based on professional teaching standards;
(B) used to measure the effectiveness of a
teacher's--
(i) curriculum planning informed by
an understanding of students' prior
knowledge, experiences, and racial,
linguistic, cultural, and community
assets;
(ii) instruction of students,
including the skills necessary to
advance student learning, and including
appropriate plans, differentiation, and
modifications to support student
learning needs, including English
learners and students with
disabilities;
(iii) assessment of students,
including analysis of evidence of
student learning;
(iv) ability to analyze, reflect on,
and improve teaching practice in
response to student learning; and
(v) demonstrate cultural competencies
through curriculum planning and
instruction.
(C) validated based on professional
assessment standards;
(D) reliably scored by trained evaluators,
with appropriate oversight of the process to
ensure consistency; and
(E) used to support continuous improvement of
educator practice.
(35) Teacher preparation entity.--The term ``teacher
preparation entity'' means an institution of higher
education, a nonprofit organization, or other
organization that is approved by a State to prepare
teachers to be effective in the classroom.
(36) Teacher preparation program.--The term ``teacher
preparation program'' means a program offered by a
teacher preparation entity that leads to a specific
State teacher certification.
(37) Trauma-informed care.--The term ``trauma-
informed care'' is defined as the evidence-based
practices outlined in section 4108(B)(II)(aa) of the
Elementary and Secondary Education Act of 1965.
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], school leaders, including
teacher leaders, and other educators by improving the
preparation of prospective teachers, school leaders,
and other educators and enhancing professional
development activities for new teachers, school
leaders, and other educators;
(3) hold teacher preparation programs at institutions
of higher education accountable for preparing teachers
who 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[; and];
[(4) recruit highly qualified individuals, including
minorities and individuals from other occupations, into
the teaching force.]
(4) hold teacher, principal and school leader, and
other educator preparation programs accountable for
preparing effective teachers, principals and school
leaders, and other educators;
(5) recruit individuals, including members of racial
and ethnic groups underrepresented in the teaching
profession and individuals from other occupations
(including informal education and youth development
fields), as profession-ready teachers and other
educators, ensuring such individuals receive
appropriate training in pedagogy and classroom
management, with an emphasis on areas of State-
identified teacher shortage; and
(6) meet the staffing needs of high-need local
educational agencies and high-need schools through
close partnerships with educator preparation programs
within institutions of higher education.
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, equitable
distribution, 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;]
(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 teachers,
school leaders, and new educators with strong teaching,
school leadership, and other professional skills
necessary to increase learning and academic
achievement;
(3) a description of how such program will prepare
prospective and new teachers, school leaders, and other
educators, 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, school
leader, and other educator 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, school leader, and other educator
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;]
(F) how the partnership will prepare
educators to teach and work with students with
disabilities, including training related to
early identification of students with
disabilities and participation as a member of
individualized education program teams, as
defined in section 614(d)(1)(B) of the
Individuals with Disabilities Education Act to
ensure that students with disabilities receive
effective services, consistent with the
requirements of the Individuals with
Disabilities Education Act, that are needed for
such students to achieve to challenging State
academic standards;
(G) how the partnership will prepare
educators to teach and work with students who
are English learners to ensure that students
who are English learners receive the services
that are needed for such students to achieve to
challenging State academic standards;
(H) in the case of activities related to
principal and school leader preparation
programs, how the partnership will prepare
principals and other school leaders to foster
instruction that supports the success of all
students, including students with disabilities,
students who are English learners, and students
in early childhood education in alignment with
State early learning standards for early
childhood education programs;
(I) how faculty at the partner institution
will work, during the term of the grant, with
mentor educators in the classrooms and
administrators 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 other
educators, including multi-tiered
systems of support and universal design
for learning;
(ii) train other classroom teachers,
principals or other school leaders,
school librarians, and other educators
to implement literacy programs that
incorporate the components of
comprehensive literacy instruction; and
(iii) provide evidence-based, high-
quality professional development
activities to strengthen the
instructional and leadership skills of
elementary school and secondary school
principals or other school leaders and
district superintendents, if the
partner institution has a principal or
school leader preparation program;
[(I)] (J) as applicable how the partnership
will design, implement, or enhance a year-long
and rigorous teaching preservice clinical
program component;
[(J)] (K) how the partnership will support
in-service professional development strategies
and activities; [and]
(L) how faculty at the partner institution
for school leader preparation will work, during
the term of the grant, with their--
(i) State to use rigorous, research-
based leader standards and align
program accreditation criteria and
principal licensure requirements with
those standards; and
(ii) high-needs local education
agencies that hire their graduates to
use rigorous, evidence-based leader
standards and align program content and
local educational agencies' evaluation
systems with those standards; and
[(K)] (M) how the partnership will collect,
analyze, and use data on the retention of all
teachers, principals or other school leaders
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]
under paragraphs (1)(B)(iv) and (3) of subsection (d)--
(A) as applicable, 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] evidence-based 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).]
(c) Use of Grant Funds.--An eligible partnership that
receives a grant under this section--
(1) shall use such grant to carry out --
(A) a program for the pre-baccalaureate or
post-baccalaureate preparation of teachers
described in subsection (d);
(B) a teaching residency program, or a
principal or other school leader residency
program, described in subsection (e);
(C) a high-quality ``Grow Your Own'' program;
or
(D) a combination of such programs; and
(2) may use such grant to carry out other educator
development programs under subsection (f), based upon
the results of the needs assessment in subsection
(b)(1).
(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
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(including
teachers in rural school
districts, special educators,
and teachers of students who
are [limited English
proficient] English learners);
(II) such teachers and, as
applicable, early childhood
educators, to understand
empirically-based practice and
[scientifically valid]
evidence-based 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] evidence-
based 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]
English learners,
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]
comprehensive literacy
instruction using the essential
components of [reading
instruction] comprehensive
literacy 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 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, which may
include training in multiple subjects
to teach multipleg rade levels as may
be needed for individuals preparing to
teach in rural communities and for
individuals preparing to teach students
with disabilities;
(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 who 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 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] students who are English learners;
and
(C) mid-career professionals from other
occupations, paraprofessionals, 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] comprehensive literacy
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.]
(e) Partnership Grants for the Establishment of Teaching and
Principal or Other School Leader Residency Programs.--
(1) In general.--An eligible partnership receiving a
grant to carry out an effective teaching residency
program or principal or other school leader residency
program that meets the following requirements:
(A) Teaching residency program.--An eligible
partnership carrying out a teaching residency
program shall--
(i) support a teaching residency
program described in paragraph (2) for
high-need schools, as determined by the
needs of high-need local educational
agency in the partnership, and in high-
need subjects and areas, as defined by
such local educational agency; and
(ii) place graduates of the teaching
residency program in cohorts that
facilitate professional collaboration,
both among graduates of the residency
program and between such graduates and
mentor teachers in the receiving
school.
(B) Principal or school leader residency
program.--An eligible partnership carrying out
a principal or school leader residency program
shall support a program described in paragraph
(3) for high-need schools, as determined by the
needs of the high-need local educational agency
in the partnership.
(2) Teaching residency program.--
(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 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) The exposure to principles of
child and youth development, and
understanding and applying principles
of learning, behavior, and community
and family engagement.
(iii) The exposure to principles of
universal design for learning and
multi-tiered systems of support.
(iv) Engagement of teaching residents
in rigorous coursework that results in
a baccalaureate or master's degree
while undertaking a guided teaching
clinical experience.
(v) Experience and learning
opportunities alongside a trained and
experienced mentor teacher--
(I) whose teaching shall
complement the residency
program so that school-based
clinical practice is tightly
aligned and integrated 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 or may be
offered a stipend as a result
of such additional
responsibilities.
(vi) The establishment of clear
criteria for the selection of mentor
teachers based on the appropriate
subject area knowledge and measures of
teacher effectiveness, which 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, summative,
and diagnostic assessments to
inform instruction and improve
student learning.
(II) Appropriate instruction
that engages all students.
(III) Collaboration with
colleagues to improve
instruction.
(IV) Analysis of evidence of
student learning.
(V) Collaboration and the
cultivation of relationships
with external stakeholders
(which may include professional
disciplinary organizations and
nonprofit advocacy
organizations) to foster the
sharing of evidence-based
resources to promote high-
quality, effective practices.
(vii) 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
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.
(viii) Continued support for
residents once such residents are hired
as the teachers of record, through an
induction program, evidence-based
professional development, and
networking opportunities to support the
residents through not less than the
residents' first 2 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
4-year institution of higher
education or a mid-career
professional possessing strong
content knowledge or a record
of professional accomplishment;
(II) in the case of an
undergraduate residency,
enrolled as an undergraduate
student in a partner
institution as defined in this
title; and
(III) submit an application
to the 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
assessments.
(III) Other attributes linked
to effective teaching, which
may be determined by interviews
or performance assessments, as
specified by the eligible
partnership.
(3) Partnership grants for the development of
principal and other school leader residency programs.--
(A) Establishment and design.--A principal or
other school leader residency program under
this paragraph shall be a program based upon
models of successful principal or other school
leader residencies, and may include the
development or support of principal pipelines,
that serve as a mechanism to prepare principals
and other school leaders for success in high-
need schools in the eligible partnership and
shall be designed to include the following
characteristics of successful programs:
(i) Engagement of principal or other
school leader residents in rigorous
graduate-level coursework to earn an
appropriate advanced credential while
undertaking a guided principal or other
school leader clinical experience.
(ii) Experience and learning
opportunities, including those that
provide continuous feedback throughout
the program on a participants'
progress, alongside a trained and
experienced mentor principal or other
school leader--
(I) whose mentoring shall be
based on standards of effective
mentoring practice and shall
complement the residence
program so that school-based
clinical practice is tightly
aligned with coursework; and
(II) who may be relieved from
some portion of principal or
other school leader duties or
may be offered a stipend as a
result of such additional
responsibilities.
(iii) The establishment of clear
criteria for the selection of mentor
principals or other school leaders,
which may be based on observations of
the following:
(I) Demonstrating awareness
of, and having experience with,
the knowledge, skills, and
attitudes to--
(aa) establish and
maintain a professional
learning community that
effectively extracts
information from data
to improve the school
culture and climate,
and personalize
instruction for all
students to result in
improved student
achievement;
(bb) create and
maintain a learning
culture within the
school that provides an
inclusive climate
conducive to the
development of all
members of the school
community, including
one of continuous
improvement and
learning for adults
tied to student
learning and other
school goals;
(cc) develop the
professional capacity
and practice of school
personnel and foster a
professional community
of teachers and other
professional staff;
(dd) engage in
continuous professional
development, utilizing
a combination of
academic study,
developmental
simulation exercises,
self-reflection,
mentorship, and
internship;
(ee) understand youth
development appropriate
to the age level served
by the school, and use
this knowledge to set
high expectations and
standards for the
academic, social,
emotional, and physical
development of all
students;
(ff) understand the
science of adverse
childhood experiences
to lead schools that
implement trauma-
informed practices; and
(gg) actively engage
with families and the
community to create
shared responsibility
for student academic
performance and
successful development.
(II) Planning and
articulating a shared and
coherent schoolwide direction
and policy for achieving high
standards of student
performance, and closing gaps
in achievement among subgroups
of students.
(III) Identifying and
implementing the activities and
rigorous curriculum necessary
for achieving such standards of
student performance.
(IV) Supporting a culture of
learning, collaboration, and
professional behavior and
ensuring quality measures of
instructional practice.
(V) Communicating with, and
engaging, parents, families,
and other external communities.
(VI) Cultivating
relationships and collaborating
with external stakeholders,
which may include professional
disciplinary organizations and
nonprofit advocacy
organizations, to foster the
sharing of evidence-based
resources to promote high-
quality, effective practices.
(VII) Collecting, analyzing,
and utilizing data and other
evidence of student learning
and evidence of classroom
practice to guide decisions and
actions for continuous
improvement and to ensure
performance accountability.
(iv) 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
to hire qualified graduates
from the principal residency
program; and
(II) which may include
consideration of applicants who
reflect the communities in
which they will serve and
consideration of individuals
from underrepresented
populations in school
leadership positions.
(v) Continued support for residents
once such residents are hired as
principals or other school leaders,
through an induction program, evidence-
based professional development to
support the knowledge and skills of the
principal or other school leader in a
continuum of learning and content
expertise in developmentally
appropriate or age-appropriate
educational practices, and networking
opportunities to support the residents
through not less than the residents'
first 2 years of serving as principal
or other school leader of a school.
(B) Selection of individuals as principal or
other school leader residents.--
(i) Eligible individual.--In order to
be eligible to be a principal or other
school leader resident in a principal
or other school leader residency
program under this paragraph, an
individual shall--
(I) have prior
prekindergarten through grade
12 teaching experience;
(II) have experience as an
effective leader, manager, and
written and oral communicator;
and
(III) submit an application
to the residency program.
(ii) Selection criteria.--An eligible
partnership carrying out a principal or
other school leader residency program
under this subsection shall establish
criteria for the selection of eligible
individuals to participate in the
principal residency program based on
the following characteristics:
(I) Strong instructional
leadership skills in an
elementary school or secondary
school setting.
(II) Strong verbal and
written communication skills,
which may be demonstrated by
performance on appropriate
assessments.
(III) Other attributes linked
to effective leadership, such
as sound judgment,
organizational capacity,
collaboration, commitment to
equity and inclusiveness, and
openness to continuous
learning, which may be
determined by interviews or
performance assessment, as
specified by the eligible
partnership.
(4) Stipends or salaries; applications; agreements;
and repayments.--
(A) Stipends or salaries.--A teaching
residency program, or a principal or other
school leader residency program, under this
subsection--
(i) shall provide a 1-year living
stipend or salary to residents during
the teaching residency program or the
principal or other school leader
residency program; and
(ii) may provide a stipend to a
mentor teacher or mentor principal.
(B) Applications.--
(i) In general.--Each residency
candidate desiring a stipend or salary
during the period of residency shall
submit an application to the eligible
partnership at such time, in such
manner, and containing such information
and assurances, as the eligible
partnership may require, and which
shall include an agreement to serve
described in clause (ii).
(ii) Agreements to serve.--Each
application submitted under clause (i)
shall contain or be accompanied by an
agreement that the applicant will--
(I) upon successfully
completing the 1-year teaching
residency program, or principal
or other school leader
residency program, serve as a
full-time teacher, principal,
or other school leader for a
total of not less than 3 school
years at--
(aa) a high-need
school served by the
high-need local
educational agency in
the eligible
partnership and, in the
case of a teacher,
teach a subject or area
that is designated as
high-need by the
partnership; or
(bb) in a case in
which no appropriate
position is available
in a high-need school
served by the high-need
local educational
agency in the eligible
partnership, any other
high-need school;
(II) provide to the eligible
partnership a certificate, from
the chief administrative
officer of the local
educational agency in which the
teacher or principal or other
school leader is employed, of
the employment required under
subclause (I) at the beginning
of, and upon completion of,
each year or partial year of
service;
(III) in the case of a
teacher resident, meet the
requirements to be a
profession-ready teacher;
(IV) in the case of a
principal or other school
leader resident, meet the
requirements to be a
profession-ready principal or
other school leader; and
(V) comply with the
requirements set by the
eligible partnership under
subparagraph (C) if the
applicant is unable or
unwilling to complete the
service obligation required by
this subparagraph.
(C) Repayments.--
(i) In general.--An eligible
partnership carrying out a teaching
residency program, or a principal or
other school leader residency program,
under this subsection shall require a
recipient of a stipend or salary under
subparagraph (A) who does not complete,
or who notifies the partnership that
the recipient intends not to complete,
the service obligation required by
subparagraph (B) 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 prorate
repayment of the stipend or salary
described in subparagraph (A) or for
deferral of a resident's service
obligation required by subparagraph
(B), 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 subparagraph to
carry out additional activities that
are consistent with the purposes of
this section.
(f) Teacher Leader Development Program.--
(1) In general.--A teacher leader development program
carried out with a grant awarded under this section
shall provide for the professional development of
teachers, as described in paragraph (2), who maintain
their roles as classroom teachers and who also carry
out formalized leadership responsibilities to increase
the academic achievement of students and promote data-
driven instructional practices that address the
demonstrated needs at the elementary schools and
secondary schools in which the teachers are employed,
such as--
(A) development of curriculum and curricular
resources;
(B) facilitating the work of committees and
teams;
(C) family and community engagement;
(D) school discipline and culture;
(E) peer observations and coaching;
(F) dual enrollment instruction; or
(G) cultural competencies.
(2) Professional development.--The professional
development of teachers in a teacher leader development
program carried out with a grant awarded under this
section shall include--
(A) one year of professional development,
training, and support that may--
(i) include--
(I) the engagement of
teachers in rigorous coursework
and fieldwork relevant to their
role as a teacher leader,
including available teacher
leader standards; and
(II) regular observations and
professional support from--
(aa) a principal,
vice principal, or a
designated
instructional leader of
the school;
(bb) a representative
from the institution of
higher education that
is a partner in the
eligible partnership;
(cc) a representative
from another entity
that is a partner in
the eligible
partnership; and
(dd) another member
of the teacher leader
cohort, if applicable,
or a peer teacher; and
(ii) result in the awarding of a
credential in teacher leadership; and
(B) one or 2 additional years of support from
a principal, vice principal, or a designated
instructional leader of the school, a
representative from the institution of higher
education that is a partner in the eligible
partnership, and a representative from another
entity that is a partner in the eligible
partnership.
(3) Teacher leader development program plan.--In
carrying out a teacher leader development program under
this section, an eligible partnership shall develop a
plan that shall describe--
(A) how the work hours of teacher leaders
will be allocated between their classroom
responsibilities and responsibilities as a
teacher leader, which shall include a
description of whether the teacher leader will
be relieved from teaching duties during their
participation in the teacher leader development
program;
(B) how the partnership will support teacher
leaders after the first year of professional
development in the program; and
(C) how teacher leader activities could be
sustained by the eligible partnership after the
program concludes, which may include a
description of opportunities for the teacher
leaders to assist in the educator preparation
program at the institution of higher education
in the partnership.
(4) Selection of teacher leaders; use of funds.--In
carrying out a teacher leader development program under
this section, an eligible partnership--
(A) shall select a teacher for participation
in the program--
(i) who--
(I) is fully certified to
teach in the State of the high-
need local educational agency
that is a partner in the
eligible partnership;
(II) is employed by such
high-need local educational
agency;
(III) has not less than 3
years of teaching experience;
and
(IV) submits an application
for participation to the
eligible partnership; and
(ii) based on selection criteria that
includes--
(I) demonstration of strong
content knowledge or a record
of accomplishment in the field
or subject area the teacher
will support as a teacher
leader; and
(II) demonstration of
attributes linked to effective
teaching that are determined
through interviews,
observations, other exhibits,
student achievement, or
performance assessments, such
as those leading to an advanced
credential;
(B) may develop admissions goals and
priorities for the teacher leader development
program that--
(i) are aligned with the demonstrated
needs of the school or high-need local
educational agency in which the teacher
is employed;
(ii) considers cultural competencies
that would make the applicant effective
in the applicant's teacher leader role;
and
(iii) considers whether the teacher
has substantial teaching experience in
the school in which the teacher is
employed or in a school that is similar
to the school in which the teacher is
employed;
(C) shall use the grant funds to pay for
costs of training and supporting teacher
leaders for not less than 2 years and not more
than 3 years;
(D) may use the grant funds to pay for a
portion of a stipend for teacher leaders if
such grant funds are matched by additional non-
Federal public or private funds as follows:
(i) during each of the first and
second years of the grant period, grant
funds may pay not more than 50 percent
of such stipend; and
(ii) during the third year of the
grant period, grant funds may pay not
more than 33 percent of such stipend;
and
(E) may require teacher leaders to pay back
the cost of attaining the credential described
in paragraph (2)(A)(ii) if they do not complete
their term of service in the teacher leader
development program.
(g) Partnership Grants for the Establishment of Grow Your Own
Programs.--
(1) In general.--An eligible partnership that
receives a grant under this section may use such grant
to carry out a high-quality ``Grow Your Own'' program
to address subject or geographic areas of teacher or
school leader shortages or to increase the diversity of
the teacher or school leader workforce.
(2) Elements of a grow your own program.--A Grow Your
Own program carried out under this section shall--
(A) integrate career-focused courses on
education topics with school-based learning
experience;
(B) provide opportunities for candidates to
practice and develop the skills and
dispositions that will help them become skilled
educators and leaders;
(C) support candidates as they complete their
associate, baccalaureate, or master's degree
and earn their teaching or school leadership
credential; and
(D) offer financial aid, in addition to
financial assistance that may be received under
title IV, to candidates and work in partnership
with members of the eligible partnership to
provide academic, counseling, and programmatic
supports.
(2) Establishment and design.--To create and enhance
multiple pathways to enter the educator and leadership
workforce, an eligible partnership carrying out a Grow
Your Own program under this section, in collaboration
with organizations representing educators and leaders
and additional stakeholders--
(A) shall--
(i) establish an advisory group to
review barriers impacting
underrepresented populations entering
the teaching and school leadership
profession, identify local teacher and
leader workforce needs, develop
policies on the creation or expansion
of Grow Your Own programs, and provide
guidance and oversight on the
implementation of such programs;
(ii) track and evaluate the
effectiveness of the program,
including, at a minimum, using the data
required under section 204(a)(1);
(iii) require candidates to complete
all State requirements to become fully
certified;
(iv) provide academic and testing
supports, including advising and
financial assistance, to candidates for
admission and completion of education
preparation programs as well as State
licensure assessments;
(v) include efforts, to the extent
feasible, to recruit current
paraprofessionals, as defined under
section 8101 of the Elementary and
Secondary Education Act of 1965 (20
U.S.C. 7801), instructional assistants,
district employees not certified to
teach or lead (such as long-term
substitute teachers), after school and
summer program staff, parent school
volunteers, retired military personnel,
and other career changers with
experience in hard to staff areas who
are not currently certified to teach or
lead with a specific focus on
recruiting individuals who are
reflective of the race, ethnicity, and
native language of the existing
community's student population; and
(vi) provide a year-long clinical
experience or teaching or school
leadership residency in which
candidates teach or lead alongside an
expert mentor teacher or school leader;
and
(B) may include--
(i) a stipend to cover candidate
living expenses or childcare costs; and
(ii) compensation for mentors.
[(g)] (h) 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)] (i) 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)] (j) 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)] (k) 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)] (l) 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.] five-year period, except such partnership may
receive an additional grant during such period if such
grant is used to establish a teaching residency
program, or a principal or other school leader
residency program, if such residency program was not
established with the prior grant. 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] teacher education, school
leader preparation, or educator development
program has a rigorous selection process to
ensure the highest quality of students entering
such program and demonstrated success in having
a diverse set of candidates complete the
program, and entering and remaining in the
profession [; and];
(B) provide a 1-year preservice clinical or
residency experience that includes the
integration of coursework and clinical practice
and offers cohorts of candidates the
opportunity to learn to teach or lead in
partner schools or teaching academies; and
[(B)] (C)(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.]
(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 rigorous, comprehensive, and
measurable performance objectives. The plan shall include
objectives and measures for--
(1) achievement for all prospective and new educators
as measured by the eligible partnership;
(2) after the completion of the partnership program,
educator retention at the end of year 3 and year 5;
(3) pass rates and scaled scores for initial State
certification or licensure of teachers or pass rates
and average scores on valid and reliable teacher
performance assessments; and
(4)(A) the percentage of profession-ready teachers,
principals or other school leaders hired by the high-
need local educational agency participating in the
eligible partnership;
(B) the percentage of profession-ready teachers,
principals, and other educators hired by the high-need
local educational agency who are members of
underrepresented groups;
(C) the percentage of profession-ready teachers hired
by the high-need local educational agency who teach
high-need academic subject areas, such as reading,
science, technology, engineering, mathematics, computer
science, and foreign language (including less commonly
taught languages and critical foreign languages), or
any other well-rounded education subject (as defined in
section 8101 of the Elementary and Secondary Act of
1965 (20 U.S.C. 7801));
(D) the percentage of profession-ready teachers hired
by the high-need local educational agency who teach in
high-need areas, including special education, bilingual
education, language instruction educational programs
for English language learners, and early childhood
education;
(E) the percentage of profession-ready teachers,
principals or other school leaders, and other educators
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 as a result of
participation in the partnership program;
(G) as applicable, the percentage of educators who
have completed the partnership program able to--
(i) integrate technology effectively into
curricula and instruction, including technology
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 improving
student learning outcomes; and
(H) as applicable, the percentage of educators who
have completed the partnership program taking school
leadership positions who, after 3 years in the role,
receive ratings of effective or above in State school
leader evaluation and support systems (as described in
section 2014(c)(4)(B)(ii) of the Elementary and
Secondary Education Act of 1965) or, if no such ratings
are available, other comparable indicators of
performance.
(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] Institutional and Program Report Cards
on the Quality of Teacher and School Leader 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.]
(1) Report card.--Each teacher preparation or school
leader preparation entity approved to operate teacher
preparation or school leader preparation programs in
the State and that receives or enrolls students
receiving Federal assistance shall report annually to
the State and the general public, in a uniform and
comprehensive manner that conforms with the definitions
and methods established by the Secretary, the
following:
(A) Pass rates and scaled scores.--For the
most recent year for which the information is
available for each teacher or school leader
preparation program offered by the teacher
preparation or school leader preparation entity
the following:
(i) Except as provided in clause
(ii), for those students who took the
assessments used for teacher or school
leader certification or licensure by
the State in which the entity is
located and are enrolled in the teacher
or school leader preparation program,
and for those who have taken such
assessments and have completed the
teacher or school preparation program
during the 2-year period preceding such
year, for each of such assessments--
(I) the percentages of
students enrolled in the
preparation program, and those
who have completed such
program, who passed such
assessment;
(II) the percentage of
students who have taken such
assessment who enrolled in and
completed the teacher or school
leader preparation program; and
(III) the average scaled
score for all students who took
such assessment.
(ii) In the case of an entity that
requires a valid and reliable teacher
performance assessment in order to
complete the preparation program, the
entity may submit in lieu of the
information described in clause (i) the
pass rate and average score of students
taking the teacher performance
assessment.
(B) Entity information.--A description of the
following:
(i) The median grade point average
and range of grade point averages for
admitted students.
(ii) The number of students in the
entity, disaggregated by race,
ethnicity, and gender, except that such
disaggregation shall not be required in
a case in which the result would reveal
personally identifiable information
about an individual student.
(iii) The number of hours and types
of supervised clinical preparation
required for each program.
(iv) The total number and percentage
of students who have completed programs
for certification or licensure
disaggregated by subject area and by
race, ethnicity, gender, income status,
and language diversity (graduates who
have bilingual or dual language
immersion endorsements), except that
such disaggregation shall not be
required in a case in which the result
would reveal personally identifiable
information about an individual
student.
(v) The percentage and total number
of program completers who have been
certified or licensed as teachers or
school leaders (disaggregated by
subject area of certification or
licensure and 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).
(vi) The 3- and 5-year teacher or
school leader retention rates,
including, at a minimum, in the same
school and local educational agency,
and within the profession
(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).
(C) Accreditation.--Whether the program or
entity is accredited by a specialized
accrediting agency recognized by the Secretary
for accreditation of professional teacher or
school leader education programs.
(D) Designation as low-performing.--Which
programs (if any) offered by the entity have
been designated as low-performing by the State
under section 207(a).
(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 and school leader
certification and licensure assessments, and
any other certification and licensure
requirements, used by the State, including
teacher performance assessments.
(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.]
(D)(i) Except as provided in clause (ii), for
each of the assessments used by the State for
teacher or school leader certification or
licensure, disaggregated by subject area, race,
ethnicity, and gender, except that such
disaggregation shall not be required in a case
in which the result would reveal personally
identifiable information about an individual
student--
(I) for each entity located in the
State, the percentage of students at
each 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 in all such programs and
entities who have taken the assessment
who pass such assessment;
(III) the percentage of students who
have taken the assessment and who
enrolled in and completed a teacher or
school leader preparation program; and
(IV) the average scaled score of
individuals participating in such a
program, or who have completed such a
program during the 2-year period
preceding the first year for which the
annual State report card is provided,
who took each such assessment.
(ii) In the case of a State that has
implemented a valid and reliable teacher
performance assessment, the State may submit in
lieu of the information described in clause (i)
the pass rate and average score of students
taking the teacher performance assessment,
disaggregated by subject area, race, ethnicity,
and gender, except that such disaggregation
shall not be required in a case in which the
result would reveal personally identifiable
information about an individual student.
(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.]
(G) For each teacher and school leader
preparation program in the State the following:
(i) The programs' admission rate,
median grade point average, and range
of grade point averages for admitted
students.
(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 result would reveal
personally identifiable information
about an individual student.
(iii) The number of hours and types
of supervised clinical preparation
required.
(iv) Whether such program has been
identified as low-performing, as
designated by the State under section
207(a).
(v) For each school leader
preparation program in the State, the
total number and percentage of program
completers placed as principals who are
rated as effective or above on the
State school leader evaluation and
support systems (as described in
section 2101(c)(4)(B)(2) of the
Elementary and Secondary Education Act
of 1965) or, if no such ratings are
available, other comparable indicators
of performance after three years of
leading a school.
(H) For the State as a whole, and for each
teacher preparation entity in the State, the
number of teachers prepared, in the aggregate
and reported separately by the following:
(i) Area of certification or
licensure.
(ii) Route of certification
(traditional versus alternative).
(iii) Academic major.
(iv) Degree type (baccalaureate,
post-baccalaureate, and master's
degrees).
(v) Subject area for which the
teacher has been prepared to teach.
(vi) The relationship of the subject
area and grade span of teachers
graduated by the teacher preparation
entity to identified teacher shortage
areas of the State.
(vii) The percentage of teachers
graduated teaching in high-need
schools.
(viii) Placement in a teaching or
school leadership position within 6
months of program completion.
(ix) Rates of 3- and 5-year teacher
or school leadership retention
including, at a minimum, in the same
school and local educational agency,
and within the profession.
(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.
(3) No requirement for reporting on students not
working in the state.--Nothing in this section shall
require a State to report data on program completers
who do not work as teachers, principals, or school
leaders in such State.
(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.
(D) The relationship of the subject area and
grade span of teachers graduated by teacher
preparation entities across the States to
identified teacher shortage areas.
(E) The number and percentages of such
graduates teaching in high-need schools.
(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] English learner 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] English learner 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. 207. STATE FUNCTIONS.
(a) State Assessment.--
(1) In general.--In order to receive funds under this
Act or under title II of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6601 et seq.), a State
shall conduct an assessment to identify at-risk and
low-performing teacher and school leader preparation
programs in the State and to assist such programs
through the provision of technical assistance.
(2) Provision of low-performing list.--Each State
described in paragraph (1) shall--
(A) provide the Secretary and the general
public an annual list of low-performing teacher
and school leader preparation programs and an
identification of those programs at risk of
being placed on such list, as applicable;
(B) report any teacher and school leader
preparation program that has been closed and
the reasons for such closure; and
(C) describe the assessment, described in
paragraph (1), in the report under section
205(b).
(3) Determination of at-risk and low-performing
programs.--The levels of performance and the criteria
for meeting those levels for purposes of the assessment
under paragraph (1) shall be determined by the State in
consultation with a representative group of community
stakeholders, including, at a minimum, representatives
of leaders and faculty of traditional and alternative
route teacher and school leader preparation programs,
prekindergarten through 12th grade leaders and
instructional staff, current teacher and school leader
candidates participating in traditional and alternative
route teacher or school leader preparation programs,
the State's standards board or other appropriate
standards body, and other stakeholders identified by
the State. In making such determination, the State
shall consider multiple measures and the information
reported by teacher preparation entities under section
205.
(b) Reporting and Improvement.--In order to receive funds
under this Act or under title II of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6601 et seq.), a
State shall--
(1) report to the Secretary and the general public
any programs described in subsection (a);
(2) establish a period of improvement and redesign
(as established by the State) for programs identified
as at-risk under subsection (a);
(3) provide programs identified as at-risk under
subsection (a) with technical assistance for a period
of not longer than 3 years;
(4) identify at-risk programs as low-performing if
there is not sufficient improvement following the
period of technical assistance provided by the State;
and
(5) subject low-performing programs to the provisions
described in subsection (c) (as determined by the
State) not later than 1 year after the date of such
identification as a low-performing program.
(c) Termination of Eligibility.--Any teacher or school leader
preparation program that is projected to close--
(1) shall be ineligible for any funding for
professional development activities awarded by the
Department;
(2) may not be permitted to provide new awards under
subpart 9 of part A of title IV; and
(3) shall provide transitional support, including
remedial services if necessary, for students enrolled
in the program in the year prior to such closure.
(d) Negotiated Rulemaking.--If the Secretary develops any
regulations implementing subsection (c)(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.
(e) Application of 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]
section 205, 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 applicable
State certification and licensure requirements, including any
requirements for certification obtained through alternative
routes 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
the qualifications described in section 612(a)(14)(C) of the
Individuals with Disabilities Education Act, the Secretary
shall--
(1) to the extent practicable, collect data
comparable to the data required under this part from
States, local educational agencies, institutions of
higher education, or other entities that administer
such assessments to teachers or prospective teachers;
and
(2) notwithstanding any other provision of this part,
use such data to carry out requirements of this part
related to assessments, pass rates, and scaled scores.
(c) Release of Information to Teacher Preparation Programs.--
(1) In general.--For the purpose of improving teacher
preparation programs, a State that receives funds under
this Act, or that participates as a member of a
partnership, consortium, or other entity that receives
such funds, shall provide to a teacher preparation
program, upon the request of the teacher preparation
program, any and all pertinent education-related
information that--
(A) may enable the teacher preparation
program to evaluate the effectiveness of the
program's graduates or the program itself; and
(B) is possessed, controlled, or accessible
by the State.
(2) Content of information.--The information
described in paragraph (1)--
(A) shall include an identification of
specific individuals who graduated from the
teacher preparation program to enable the
teacher preparation program to evaluate the
information provided to the program from the
State with the program's own data about the
specific courses taken by, and field
experiences of, the individual graduates; and
(B) may include--
(i) kindergarten through grade 12
academic achievement and demographic
data, without revealing personally
identifiable information about an
individual student, for students who
have been taught by graduates of the
teacher preparation program; and
(ii) teacher effectiveness
evaluations for teachers who graduated
from the teacher preparation program.
SEC. 209. ELEVATION OF THE EDUCATION PROFESSION STUDY.
(a) Purpose.--The purpose of this section is to authorize a
feasibility study on the elevation of the education profession
by examining State policies related to teacher and school
leader education and certification, produce a comprehensive set
of expectations that sets a high bar for entry into the
profession and ensures that all entering teachers and school
leaders are profession-ready, and develop recommendations to
Congress on best practices with respect to elevating the
education profession that are evidence-based, reliable, and
verified by the field.
(b) Establishment.--
(1) In general.--The Secretary of Education shall
establish an Advisory Committee to carry out the
elevation of the education profession study described
in subsection (c) and make recommendations to Congress
on the findings.
(2) Membership of the advisory committee.--The
Advisory Committee shall include representatives or
advocates from the following categories:
(A) Teacher unions.
(B) School leader organizations.
(C) State and local chief executives or their
representatives.
(D) State educational agencies and local
educational agencies.
(E) Teacher and school leader advocacy
organizations.
(F) School administrator organizations.
(G) Institutions of higher education,
including colleges of teacher education.
(H) Civil rights organizations.
(I) Organizations representing students with
disabilities.
(J) Organizations representing English
learners.
(K) Nonprofit organizations representing
subject-fields, such as STEM Educator
organizations, comprehensive literacy Educator
organizations, and arts and humanities educator
organizations.
(L) Professional development organizations.
(M) Educational technology organizations.
(N) Nonprofit research organizations.
(O) Organizations representing nontraditional
pathways into teacher and school leader
education.
(P) Organizations representing parents.
(c) Duties of the Advisory Committee.--
(1) Feasibility study The Advisory Committee shall
conduct a feasibility study to--
(A) assess the state of policies and
practices related to teacher and school leader
education and entry into the profession
including barriers to achieving certification
and licensure, best practices in producing
profession-ready teachers and school leaders,
and recruitment and retention of teachers and
school leaders in schools;
(B) compile best practices for educating and
training profession-ready teachers and school
leaders including evidence-based practices for
training teachers and school leaders to support
diverse learners, developing teacher and school
leaders, and successful pre-service and in-
service educational activities;
(C) review certification and credentialing
practices throughout the Nation including
minimum standards in each State, differences in
types of credentials, and impact of different
certification processes in each State for
teachers and school leaders who relocate; and
(D) recommend a comprehensive set of rigorous
expectations for States standards to elevate
the profession of teaching and to produce
profession-ready teachers and school leaders
prepared to educate diverse learners in
inclusive educational settings.
(2) Reports.--
(A) Not later than 1 year after the Advisory
Committee's first meeting, the Committee shall
submit an interim report to the Secretary and
to the authorizing committees detailing the
methods of the study and progress in developing
the set of comprehensive and rigorous
expectations.
(B) Not later than 3 years after the Advisory
Committee's first meeting, the Committee shall
submit a final report to the Secretary and to
the authorizing committees detailing the
findings, recommendations, and suggested set of
comprehensive and rigorous expectations.
(3) Dissemination of information.--In carrying out
the study under paragraph (1), the Secretary shall,
after the release of the study, disseminate information
found in the study in an accessible format to all
stakeholders.
(4) Database.--Not later than 180 days after the date
of the enactment of this subsection, the Secretary
shall produce an electronically accessible
clearinghouse of State certification procedures and
best State practices for producing and retaining
profession-ready teachers and school leaders.
SEC. [209.] 210. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
part [$300,000,000] $500,000,000 for fiscal year [2009] 2019
and such sums as may be necessary for each of the [two
succeeding] 5 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 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, 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
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, 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 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, 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 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;
[(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
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;
[(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 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.
[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 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.
[(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 B--ENHANCING TEACHER AND SCHOOL LEADER EDUCATION
SEC. 230. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated to
carry out this part $100,000,000 for fiscal year 2020 and each
of the 5 succeeding fiscal years.
(b) Distribution of Funds.--Subparts 1 through 4 of this part
shall each receive a minimum of 20 percent of the amount
appropriated for a fiscal year, and the Secretary shall have
discretion over the distribution under this part of the
remaining amount appropriated for such fiscal year.
Subpart 1--Honorable Augustus F. Hawkins Centers of Excellence
SEC. 231. FINDINGS.
Congress finds the following:
(1) Our Nation's schools are experiencing a severe
teacher diversity gap that negatively impacts student
achievement and school culture--50 percent of current
students are students of color while only 18 percent of
teachers are of color, according to a 2016 study by the
Brookings Institution.
(2) A 2016 report conducted by the Department of
Education shows that teachers of color tend to provide
more culturally relevant teaching and better understand
the situations that students of color may face. These
factors help in the development of trusting teacher-
student relationships. Researchers from Vanderbilt
University also found that greater racial and ethnic
diversity in the principal corps benefits students,
especially students of color.
(3) Teachers and school leaders of color can also
serve as cultural ambassadors who help students feel
more welcome at school or as role models.
(4) Research consistently shows that increasing
diversity in the teaching profession can have positive
impacts on student educational experiences and
outcomes. Students of color demonstrate greater
academic achievement and social-emotional development
in classes with teachers of color. Studies also suggest
that all students, including white students, benefit
from having teachers of color offering their
distinctive knowledge, experiences, and role modeling
to the student body as a whole.
SEC. 232. PURPOSE.
The purpose of this subpart is to strengthen and expand the
recruitment, training, and retention of candidates of color
into the teaching profession.
SEC. 233. ELIGIBLE INSTITUTION DEFINED.
In this subpart, the term ``eligible institution'' means an
institution of higher education that has a teacher or school
leader preparation program that is a accredited by the State
and that is--
(1) a part B institution (as defined in section 322);
(2) a Hispanic-serving institution (as defined in
section 502);
(3) a Tribal college or university (as defined in
section 316);
(4) an Alaska Native-serving institution (as defined
in section 317(b));
(5) a Native Hawaiian-serving institution (as defined
in section 317(b));
(6) a predominantly black institution (as defined in
section 318);
(7) an Asian-American and Native American Pacific
Islander-serving institution (as defined in section
320(b));
(8) a Native American-serving, nontribal institution
(as defined in section 319);
(9) a consortium of any of the institutions described
in paragraphs (1) through (8); or
(10) an institution described in paragraphs (1)
through (8), or a consortium described in paragraph
(9), in partnership with any other institution of
higher education, but only if the center of excellence
established under section 234 is located at an
institution described in paragraphs (1) through (8).
SEC. 234. AUGUSTUS F. HAWKINS CENTERS OF EXCELLENCE.
(a) Program Authorized.--From the amounts provided to carry
out this subpart, the Secretary shall award grants, on a
competitive basis, to eligible institutions to establish
centers of excellence.
(b) Use of Funds.--An eligible institution shall use a grant
received under this subpart to ensure that programs offered at
a center of excellence established by such institution prepare
current and future teachers or school leaders to be profession-
ready, and 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 (20 U.S.C.
1412(a)(14)(C)), by carrying out one or more of the following
activities:
(1) Implementing reforms within teacher or school
leader preparation programs to ensure that such
programs are preparing teachers or school leaders who
meet such applicable State certification and licensure
requirements or qualifications, and are using evidence-
based instructional practices to improve student
academic achievement, by--
(A) retraining or recruiting faculty; and
(B) designing (or redesigning) teacher or
school leader preparation programs that--
(i) prepare teachers or school
leaders to serve in low-performing
schools and close student achievement
gaps; and
(ii) are based on--
(I) rigorous academic
content;
(II) evidence-based research;
and
(III) challenging State
academic standards as described
in section 1111(b)(1) of the
Elementary and Secondary
Education Act of 1965 (20
U.S.C. 6311(b)(1)); and
(iii) promote effective teaching
skills.
(2) Providing sustained and high-quality preservice
clinical experience, which may include through high-
quality teacher or leader residency programs, including
the mentoring of prospective teachers by exemplary
teachers or teacher leaders, substantially increasing
interaction between faculty at institutions of higher
education and new and experienced teachers, principals,
school leaders, 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 meet such applicable
State certification and licensure requirements or
qualifications, and principals and other school
leaders, including teachers, principals, and other
school leaders of color, including programs that
provide--
(A) teacher or principal and other school
leader mentoring; and
(B) induction and support for teachers and
principals and other school leaders during
their first three years of employment as
teachers, principals, or other school leaders,
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 or other
school leader preparation program at the Center of
Excellence, not to exceed the cost of attendance as
defined in section 472.
(5) Disseminating information on effective practices
for teacher or other school leader preparation and
successful teacher or other school leader 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 time, in such manner, and accompanied by such
information as the Secretary may require.
(d) Limitation on Administrative Expenses.--An eligible
institution that receives a grant under this subpart may use
not more than 2 percent of the funds provided to administer the
grant.
(e) Regulations.--The Secretary shall prescribe such
regulations as may be necessary to carry out this subpart.
Subpart 2--Preparing Well-Rounded Teachers
SEC. 241. WELL-ROUNDED TEACHING GRANTS.
(a) Findings.--Congress finds that--
(1) students have diverse learning needs and teachers
must be prepared to provide a high-quality, equitable
education to every child;
(2) improving the pedagogical competencies, behavior
management skills, and cultural competencies of teacher
candidates prepares them to effectively teach students
from diverse backgrounds and increases the likelihood
they will remain in the profession; and
(3) teachers who hold dual certification and receive
training in social and emotional learning competencies
and nonexclusionary, positive behavior management
practices are better prepared to create a supportive
school climate and meet the needs of all students,
including English learners, racially diverse students,
students with disabilities, low-income students, and
students who have experienced trauma.
(b) Purpose.--The purpose of this subpart is to--
(1) strengthen and expand teacher preparation
programs that embed dual certification for teacher
candidates in special education; and
(2) strengthen and expand teacher preparation
programs that embed training on inclusive practices,
culturally responsive teaching, social and emotional
learning competencies, universal design for learning,
and nonexclusionary, positive behavior management
practices to teacher candidates.
(c) Authorization of Program.--
(1) In general.--From the amounts provided to carry
out this subpart, the Secretary shall 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, skills, and credentials
necessary to effectively instruct students with
disabilities in general education classrooms, and an
understanding of positive behavior-management practices
that reduce the use of exclusionary and aversive
disciplinary practices and create a supportive school
climate.
(2) Duration of grants.--A grant under this subpart
shall be awarded for a period of not more than 5 years.
(3) Non-federal share.--An eligible partnership that
receives a grant under this subpart 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.
(d) 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 profession-ready graduates
of which 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 (20 U.S.C.
1412(a)(14)(C));
(B) a department or program that has
expertise in special education at an
institution of higher education; and
(C) a high-need local educational agency; and
(2) may include--
(A) 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; or
(B) a non-profit, research-based
organization.
(e) 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 pedagogy into the general education
curriculum and academic content that results in
applicable dual State certification for teacher
candidates who complete the program;
(B) develop or strengthen an undergraduate,
postbaccalaureate, or master's teacher
preparation program by embedding social and
emotional learning strategies, inclusive
practices, culturally responsive teaching, and
nonexclusionary, positive behavior-management
practices into the general education curriculum
and academic content;
(C) provide teacher candidates participating
in the program under subparagraph (A) with
skills related to--
(i) response to intervention,
positive behavioral interventions and
supports (including eliminating the use
of aversive interventions such as
seclusion and restraints),
differentiated instruction, and data-
driven instruction (including the use
of data to identify and address
disparities in rates of discipline
among student subgroups);
(ii) universal design for learning;
(iii) determining and utilizing
accommodations for instruction and
assessments for students with
disabilities;
(iv) collaborating with stakeholders
such as special educators, related
services providers, out-of-school time
providers, and parents, including
participation in individualized
education program development and
implementation;
(v) appropriately utilizing
technology and assistive technology for
students with disabilities; and
(vi) effectively and equitably using
technology for digital and blended
learning;
(D) provide teacher candidates participating
in the program under subparagraph (B) with
skills related to--
(i) social and emotional learning
competencies;
(ii) positive behavior interventions
and supports or multitiered systems of
support;
(iii) trauma-informed care;
(iv) evidenced-based restorative
justice practices; and
(v) culturally responsive teaching
and anti-bias training that is
evidence-based; and
(E) provide extensive clinical experience for
participants described in subparagraphs (A) and
(B) with mentoring and induction support
throughout the program that continues during
the first 2 years of full-time teaching.
(f) Application.--
(1) Application Requirements.--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--
(A) 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
(B) an assessment of the existing personnel
needs for general education teachers who
instruct students with disabilities, performed
by the high-need local educational agency
described in subsection (d)(1)(C).
(2) Peer review.--
(A) In general.--The Secretary shall convene
a peer review committee to review applications
for grants under this subpart and to make
recommendations to the Secretary regarding the
selection of eligible partnerships for such
grants.
(B) Membership.--Members of the peer review
committee shall be recognized experts in the
fields of special education, social and
emotional learning, teacher preparation, and
general education and shall not be in a
position to benefit financially from any grants
awarded under this section.
(g) Equitable Geographic Distribution.--In awarding grants
under this subpart, the Secretary shall, to the maximum extent
possible, provide for an equitable geographic distribution of
such grants.
(h) Evaluations.--
(1) By the partnership.--
(A) In general.--An eligible partnership
receiving a grant under this subpart 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 for which an
evaluation was conducted under paragraph (1), the
Secretary shall make available to the authorizing
committees 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 3--Preparing Teachers for English-Learner Instruction
SEC. 251. TEACHING ENGLISH LEARNERS GRANT.
(a) Authorization of Program.--The Secretary shall award
grants, on a competitive basis, to eligible partnerships to
improve the preparation of teacher candidates to ensure that
such teacher candidates possess the knowledge and skills
necessary to effectively instruct English learners.
(b) Duration of Grants.--A grant under this section shall be
awarded for a period of not more than 5 years.
(c) 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.
(d) Eligible Partnership.--The term ``eligible partnership''
means an eligible institution of higher education in
partnership with a high-need local educational agency or a
high-need early childhood education program.
(e) Uses of Funds.--An eligible partnership that receives a
grant under this section shall use the grant to--
(1) develop or strengthen an undergraduate,
postbaccalaureate, or master's teacher preparation
program by integrating strategies for teaching English
learners into the education curriculum and academic
content;
(2) provide teacher candidates participating in a
program under paragraph (1) with skills related to--
(A) helping English learners--
(i) achieve at high levels in
prekindergarten programs, and
elementary schools and secondary
schools so that such English learners
can meet the challenging State academic
standards adopted under section
1111(b)(1) of the Elementary and
Secondary Education Act of 1965 (20
U.S.C. 6311(b)(1)) by the State of the
school attended by the English
learners, which all children in the
State are expected to meet; and
(ii) attain English proficiency;
(B) appropriately identifying and meeting the
specific learning needs of children with
disabilities who are English learners;
(C) appropriately using universal design for
learning;
(D) recognizing and addressing the social and
emotional needs of English learners; and
(E) promoting parental, family, and community
engagement in educational programs that serve
English learners;
(3) provide authentic clinical learning opportunities
for teacher candidates participating in the program
involving sustained interactions with teachers and
English learners at public prekindergarten programs, or
elementary schools or secondary schools, to the extent
practicable, or simulated environments at the eligible
institution of higher education involved, that foster
in-depth, first-hand engagement with tasks required of
a teacher providing instruction to English learners;
and
(4) provide teacher candidates with the required
coursework to qualify for an English-as-a-second-
language certification, endorsement, or initial
teaching credential, as recognized by the State of the
eligible partnership.
(f) 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 the needs related
to preparing teacher candidates to instruct English
learners in the manner described in subsection (d)(2);
and
(2) a self-assessment by the eligible partnership of
the personnel needs for teachers who instruct English
learners at local, public prekindergarten programs, and
elementary schools and secondary schools.
(g) Equitable Geographic Distribution.--In awarding grants
under this section, the Secretary shall, to the maximum extent
possible, provide for an equitable geographic distribution of
such grants.
(h) Evaluations.--
(1) Report from eligible partnerships.--An eligible
partnership receiving a grant under this section shall
submit to the Secretary the results of an evaluation
conducted by the partnership at the end of the grant
period to determine--
(A) the effectiveness of teachers who
completed a program under subsection (d)(1)
with respect to instruction of English
learners; and
(B) the systemic impact of the activities
carried out by such grant on how such
partnership prepares teachers to provide
instruction in prekindergarten programs, and
elementary schools and secondary schools.
(2) Report from the secretary.--Not later than 180
days after the last day of the grant period under this
section, the Secretary shall make available to the
authorizing committees and the public--
(A) the findings of the evaluations submitted
under paragraph (1); and
(B) information on best practices related to
effective instruction of English learners.
Subpart 4--Graduate Fellowships To Prepare Faculty in High-Need Areas
at Colleges of Education
SEC. 261. GRADUATE FELLOWSHIPS TO PREPARE FACULTY IN HIGH-NEED AREAS AT
COLLEGES OF EDUCATION.
(a) Grants by Secretary.--From the amounts provided to carry
out this subpart, the Secretary shall award grants, on a
competitive basis, 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 subpart 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 science, technology, engineering, and
math teachers, special education teachers, and teachers
who provide instruction for English-learners, who 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 (20 U.S.C. 1412(a)(14)(C)).
(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,
mathematics, and computer science, and their
related subfields, if the individual has
completed a master's degree in mathematics,
engineering, science, or computer science and
is pursuing a doctoral degree in mathematics,
science, engineering, or education.
(B) Special education.
(C) The instruction of English-learners,
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 subpart--
(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
individual'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 subpart shall award
stipends to individuals who are provided
graduate fellowships under this subpart.
(B) Awards based on need.--A stipend provided
under this subpart 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
subpart and earns a doctoral degree shall teach
for 1 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
subpart 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 3 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.
Subpart 5--General Provisions
SEC. 281. COMPETITIVE PRIORITY.
In awarding grants under subparts 1 through 4, the Secretary
shall award competitive priority to eligible institutions,
eligible partnerships, and eligible entities that demonstrate
in the application for such a grant a plan to--
(1) increase the diversity in the educator workforce
through--
(A) recruiting, enrolling, and preparing
diverse teacher candidates; and
(B) efforts that help retain diverse teacher
candidates in high-needs schools;
(2) address the shortage of teachers in high-needs
fields including science, technology, engineering,
arts, mathematics, or computer science through--
(A) recruiting, enrolling, and preparing
teacher candidates to achieve certification, as
required by the State, to offer instruction in
high-needs fields, including science,
technology, engineering, music, arts,
mathematics, or computer science; and
(B) efforts that help retain teachers of
high-needs fields in high-needs schools;
(3) expand the pipeline of school leaders through
preparing teacher leaders, which may be achieved by
efforts that may include--
(A) embedding pedagogical coursework for
teacher candidates that fosters--
(i) leadership and advocacy skills;
(ii) knowledge of school management
and finance;
(iii) school operations and business
skills;
(iv) effective use and management of
educational and accessible technology;
(v) strategies for community and
family engagement; and
(vi) mentorship and coaching
strategies; and
(B) providing opportunities for teacher
candidates to receive--
(i) exposure to and modeling from
teacher leaders and school leaders; and
(ii) ongoing support and continuation
of professional development on teacher
or other school leadership once exiting
the teacher or other school leader
preparation program; and
(4) recruit candidates with significant cultural and
community competency related to the demographics of the
student body in which the candidate will receive a
placement, as measured by standards, specified in the
plan, which may include--
(A) a candidate's prior record of community
service with school-aged children in the
community;
(B) nominations from members of the
community; and
(C) a candidate's involvement in relevant
community organizations.
* * * * * * *
TITLE III--INSTITUTIONAL AID
* * * * * * *
Part A--Strengthening 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) 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 postsecondary 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, as
defined in section 3(41) of the Carl D. Perkins Career
and Technical Education Act (20 U.S.C. 2302(41)),
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.
[(13)] (17) 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) 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] non-Federal sources (which may
include gifts to the endowment fund restricted for a
specific purpose), in an amount equal to [or greater
than] 50 percent of 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 eligible institution that uses
grant funds provided under this section to establish or
increase an endowment fund may use the interest
proceeds from such endowment to provide scholarships to
students for the purposes of attending such
institution.
* * * * * * *
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;
(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] American Indians and Alaska
Natives are underrepresented, instruction in
Native American language, and instruction to
support tribal governance, tribal public
policy, and tribal history and sovereignty;
(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) 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) 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] outreach and
recruitment activities and programs that
encourage American Indian and Alaska Native
elementary school students, secondary school
students, and adults to develop the academic
skills and the interest to pursue and succeed
in postsecondary education;
(M) developing or improving facilities for
Internet use or other distance education
technologies; and
(N) other activities proposed in the
application submitted pursuant to subsection
(d) that--
(i) contribute to carrying out the
activities described in subparagraphs
(A) through (M); 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]
matching funds (which may include gifts to the
endowment fund restricted for a specific
purpose), in an amount [equal to the Federal
funds] equal to 50 percent of 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).
(D) Scholarships.--An eligible institution
that uses grant funds provided under this
section to establish or increase an endowment
fund may use the interest proceeds from such
endowment to provide scholarships to students
for the purposes of attending such institution.
(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)] (1) Application.--
(A) In general.--A Tribal College or
University desiring to receive assistance under
this section shall submit an application to the
Secretary at such time, in such manner, and
containing such information as the Secretary
may reasonably require.
(B) Streamlined process.--The Secretary shall
establish application requirements in such a
manner as to simplify and streamline the
process for applying for grants under this
section.
[(3)] (2) 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.
(C) 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 5-year period following the date of
the initial grant award, may be carried over
and expended during the succeeding 5-year
period, if such funds were obligated for a
purpose for which the funds were paid during
the 5-year period following the date of the
initial grant award.
[(4)] (3) Special rules.--
(A) Concurrent funding.--No Tribal College or
University that receives funds under this
section shall concurrently receive funds under
any other provision of this part, part B, or
part A of title V.
(B) Exemption.--Section 313(d) shall not
apply to institutions that are eligible to
receive funds under this section.
SEC. 316A. NATIVE AMERICAN LANGUAGE VITALIZATION AND TRAINING PROGRAM.
(a) Establishment.--
(1) In general.--From the amount appropriated under
subsection (d), the Secretary shall establish the
Native American Language Vitalization and Training
Program under which the Secretary shall award grants,
on a competitive basis, to eligible institutions to
promote the preservation, revitalization, relevancy,
and use of Native American languages.
(2) Term.--The term of a grant under this section
shall be not more than 5 years.
(3) Application.--
(A) Streamlined process.--In carrying out the
program under this section, the Secretary shall
establish application requirements in such a
manner as to simplify and streamline the
process for the grant application under this
section.
(B) In general.--To be eligible to receive a
grant under this subsection, an eligible
institution shall submit to the Secretary an
application at such time, in such manner, and
in accordance with any other application
requirements described in subparagraph (A),
that the Secretary may prescribe, and including
the following:
(i) A description of the 5-year
program of the eligible institution for
meeting the needs of American Indians,
Alaska Natives, Native Hawaiians, or
Native American Pacific Islanders, as
appropriate, in the area served by the
institution, and how such plan is
consistent with the purposes described
in paragraph (1).
(ii)(I) An identification of the
population to be served by the eligible
institution; and
(II) an identification of the status
of Native American language
understanding and use within that
population and a description of the
manner in which the program will help
preserve and revitalize the relevant
Native American language.
(iii) A description of the services
to be provided under the program,
including the manner in which the
services will be integrated with other
appropriate language programs available
in the relevant community.
(iv) A description, to be prepared in
consultation with the Secretary, of the
performance measures to be used to
assess the performance of the eligible
institution in carrying out the
program.
(b) Use of Funds.--An eligible institution may use a grant
under this section to carry out activities consistent with the
purposes described in subsection (a)(1), including--
(1) curriculum development and academic instruction,
including educational activities, programs, and
partnerships relating to students in early childhood
education programs through grade 12;
(2) professional development for faculty at the
eligible institution and in-service training programs
for early childhood education programs through grade 12
instructors and administrators; and
(3) innovative Native American language programs for
students in early childhood education programs through
grade 12, including language immersion programs.
(c) Applicability of Other Provisions.--
(1) Concurrent funding.--
(A) Tribal College or University.--An
eligible institution that is a Tribal College
or University may, concurrently, receive a
grant under this section and funds under
section 316.
(B) Alaska Native-serving institution or
Native Hawaiian-serving institution.--An
eligible institution that is an Alaska Native-
serving institution or Native Hawaiian-serving
institution may, concurrently, receive a grant
under this section and funds under section 317.
(C) Asian American and Native American
Pacific Islander-serving institution.--An
eligible institution that is an Asian American
and Native American Pacific Islander-serving
institution may, concurrently, receive a grant
under this section and funds under section 320.
(2) Exemption.--Sections 312(b) and 313(d) shall not
apply to an eligible institution that receives a grant
under this section.
(d) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section $20,000,000 (of which
$15,000,000 shall be available for Tribal Colleges or
Universities and $5,000,000 shall be available for the
institutions described in subparagraphs (B) through (D) of
subsection (e)(1)) for fiscal year 2021 and each of the 5
succeeding fiscal years.
(e) Definitions.--In this section:
(1) Eligible institution.--The term ``eligible
institution'' means--
(A) a Tribal College or University, as
defined in section 316;
(B) an Alaska Native-serving institution, as
defined in section 317;
(C) a Native Hawaiian-serving institution, as
defined in section 317; or
(D) an Asian American and Native American
Pacific Islander-serving institution, as
defined in section 320, which is located in
American Samoa, Guam, or the Commonwealth of
the Northern Mariana Islands.
(2) Native American.--The term ``Native American''
has the meaning given the term in section 371(c)(6).
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.
(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) Applications.--Any institution which is
determined by the Secretary to be an Alaska Native-
serving institution or a Native Hawaiian-serving
institution may submit an application for assistance
under this section to the Secretary. The Secretary
shall, to the extent possible, prescribe a simplified
and streamlined format for such applications that takes
into account the limited number of institutions that
are eligible for assistance under this section. Such
application shall include--
(A) a 5-year plan for improving the
assistance provided by the Alaska Native-
serving institution or the Native Hawaiian-
serving institution to Alaska Native or Native
Hawaiian students; and
(B) such other information and assurance as
the Secretary may require.
(3) 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.]
(A) Eligibility.--No Alaskan Native-serving
institution of Native Hawaiian-serving
institution that receives funds under this
section shall concurrently receive funds under
other provisions of this part, part B, or part
A of title V.
(B) Exemption.--Section 313(d) shall not
apply to institutions that are eligible to
receive funds under this section.
(C) Distribution.--In awarding grants under
this section, the Secretary shall, to the
extent possible and consistent with the
competitive process under which such grants are
awarded, ensure maximum and equitable
distribution among all eligible institutions.
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).
(2) Enrollment of needy students.--The term
``enrollment of needy students'' means the enrollment
at an eligible institution with respect to which not
less than 50 percent of the undergraduate students
enrolled in an academic program leading to a degree--
(A) in the second fiscal year preceding the
fiscal year for which the determination is
made, were Federal Pell Grant recipients for
such year;
(B) come from families that receive benefits
under a means-tested Federal benefit program;
(C) attended a public or nonprofit private
secondary school that--
(i) is in the school district of a
local educational agency that was
eligible for assistance under part A of
title I of the Elementary and Secondary
Education Act of 1965 for any year
during which the student attended such
secondary school; and
(ii) for the purpose of this
paragraph and for such year of
attendance, was determined by the
Secretary (pursuant to regulations and
after consultation with the State
educational agency of the State in
which the school is located) to be a
school in which the enrollment of
children meeting a measure of poverty
under section 1113(a)(5) of such Act
exceeds 30 percent of the total
enrollment of such school; or
(D) are first-generation college students and
a majority of such first-generation college
students are low-income individuals.
(3) First-generation college student.--The term
``first-generation college student'' has the meaning
given the term in section 402A(h).
(4) Low-income individual.--The term ``low-income
individual'' has the meaning given such term in section
402A(h).
(5) Means-tested federal benefit program.--The term
``means-tested Federal benefit program'' means a
program of the Federal Government, other than a program
under title IV, in which eligibility for the program's
benefits, or the amount of such benefits, are
determined on the basis of income or resources of the
individual or family seeking the benefit.
(6) Predominantly black institution.--The term
``Predominantly Black Institution'' means an
institution of higher education, as defined in section
101(a)--
(A) that is an eligible institution with not
less than 1,000 undergraduate students;
(B) at which not less than 50 percent of the
undergraduate students enrolled at the eligible
institution are low-income individuals or
first-generation college students; and
(C) at which not less than 50 percent of the
undergraduate students are enrolled in an
educational program leading to a bachelor's or
associate's degree that the eligible
institution is licensed to award by the State
in which the eligible institution is located.
(7) State.--The term ``State'' means each of the 50
States and the District of Columbia.
(c) Grant Authority.--
(1) In general.--The Secretary is authorized to award
grants, from allotments under subsection (e), to
Predominantly Black Institutions to enable the
Predominantly Black Institutions to carry out the
authorized activities described in subsection (d).
(2) Priority.--In awarding grants under this section
the Secretary shall give priority to Predominantly
Black Institutions with large numbers or percentages of
students described in subsections (b)(1)(A) or
(b)(1)(C). The level of priority given to Predominantly
Black Institutions with large numbers or percentages of
students described in subsection (b)(1)(A) shall be
twice the level of priority given to Predominantly
Black Institutions with large numbers or percentages of
students described in subsection (b)(1)(C).
(d) Authorized Activities.--
(1) Required activities.--Grant funds provided under
this section shall be used--
(A) to assist the Predominantly Black
Institution to plan, develop, undertake, and
implement programs to enhance the institution's
capacity to serve more low- and middle-income
Black American students;
(B) to expand higher education opportunities
for students eligible to participate in
programs under title IV by encouraging college
preparation and student persistence in
secondary school and postsecondary education;
and
(C) to strengthen the financial ability of
the Predominantly Black Institution to serve
the academic needs of the students described in
subparagraphs (A) and (B).
(2) Additional activities.--Grant funds provided
under this section shall be used for one or more of the
following activities:
(A) The activities described in paragraphs
(1) through (12) of section 311(c).
(B) Academic instruction in disciplines in
which Black Americans are underrepresented.
(C) Establishing or enhancing a program of
teacher education designed to qualify students
to teach in a public elementary school or
secondary school in the State that shall
include, as part of such program, preparation
for teacher certification or licensure.
(D) Establishing community outreach programs
that will encourage elementary school and
secondary school students to develop the
academic skills and the interest to pursue
postsecondary education.
(E) Other activities proposed in the
application submitted pursuant to subsection
(f) that--
(i) contribute to carrying out the
purpose of this section; and
(ii) are approved by the Secretary as
part of the review and approval of an
application submitted under subsection
(f).
(3) Endowment fund.--
(A) In general.--A Predominantly Black
Institution may use not more than 20 percent of
the grant funds provided under this section to
establish or increase an endowment fund at the
institution.
(B) Matching requirement.--In order to be
eligible to use grant funds in accordance with
subparagraph (A), a Predominantly Black
Institution shall provide matching funds from
[non-Federal sources] non-Federal sources
(which may include gifts to the endowment fund
restricted for a specific purpose), in an
amount [equal to or greater than the Federal
funds] equal to 50 percent of 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).
(D) Scholarships.--An eligible institution
that uses grant funds provided under this
section to establish or increase an endowment
fund may use the interest proceeds from such
endowment to provide scholarships to students
for the purposes of attending such institution.
(4) Limitation.--Not more than 50 percent of the
grant funds provided to a Predominantly Black
Institution under this section may be available for the
purpose of constructing or maintaining a classroom,
library, laboratory, or other instructional facility.
(e) Allotments to Predominantly Black Institutions.--
(1) Federal pell grant basis.--From the amounts
appropriated to carry out this section for any fiscal
year, the Secretary shall allot to each Predominantly
Black Institution having an application approved under
subsection (f) a sum that bears the same ratio to one-
half of that amount as the number of Federal Pell Grant
recipients in attendance at such institution at the end
of the academic year preceding the beginning of that
fiscal year, bears to the total number of Federal Pell
Grant recipients at all such institutions at the end of
such academic year.
(2) Graduates basis.--From the amounts appropriated
to carry out this section for any fiscal year, the
Secretary shall allot to each Predominantly Black
Institution having an application approved under
subsection (f) a sum that bears the same ratio to one-
fourth of that amount as the number of graduates for
such academic year at such institution, bears to the
total number of graduates for such academic year at all
such institutions.
(3) Graduates seeking a higher degree basis.--From
the amounts appropriated to carry out this section for
any fiscal year, the Secretary shall allot to each
Predominantly Black Institution having an application
approved under subsection (f) a sum that bears the same
ratio to one-fourth of that amount as the percentage of
graduates from such institution who are admitted to and
in attendance at, not later than two years after
graduation with an associate's degree or a
baccalaureate degree, a baccalaureate degree-granting
institution or a graduate or professional school in a
degree program in disciplines in which Black American
students are underrepresented, bears to the percentage
of such graduates for all such institutions.
(4) Minimum allotment.--
(A) In general.--Notwithstanding paragraphs
(1), (2), and (3), the amount allotted to each
Predominantly Black Institution under this
section may not be less than $250,000.
(B) Insufficient amount.--If the amounts
appropriated to carry out this section for a
fiscal year are not sufficient to pay the
minimum allotment provided under subparagraph
(A) for the fiscal year, then the amount of
such minimum allotment shall be ratably
reduced. If additional sums become available
for such fiscal year, such reduced allotment
shall be increased on the same basis as the
allotment was reduced until the amount allotted
equals the minimum allotment required under
subparagraph (A).
(5) Reallotment.--The amount of a Predominantly Black
Institution's allotment under paragraph (1), (2), (3),
or (4) for any fiscal year that the Secretary
determines will not be needed for such institution for
the period for which such allotment is available, shall
be available for reallotment to other Predominantly
Black Institutions in proportion to the original
allotments to such other institutions under this
section for such fiscal year. The Secretary shall
reallot such amounts from time to time, on such date
and during such period as the Secretary determines
appropriate.
(f) Applications.--Each Predominantly Black Institution
desiring a grant under this section shall submit an application
to the Secretary at such time, in such manner, and containing
or accompanied by such information as the Secretary may
reasonably require.
(g) Application Review Process.--Section 393 shall not apply
to applications under this section.
(h) Duration and Carryover.--Any grant funds paid to a
Predominantly Black Institution under this section that are not
expended or used for the purposes for which the funds were paid
within ten years following the date on which the grant was
awarded, shall be repaid to the Treasury.
(i) [Special Rule on Eligibility] Special Rules.--[No
Predominantly]
(1) 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.
(2) Exemption.--Section 313(d) shall not apply to
institutions that are eligible to receive funds under
this section.
* * * * * * *
SEC. 320. ASIAN AMERICAN AND NATIVE AMERICAN PACIFIC ISLANDER-SERVING
INSTITUTIONS.
(a) Program Authorized.--The Secretary shall provide grants
and related assistance to Asian American and Native American
Pacific Islander-serving institutions to enable such
institutions to improve and expand their capacity to serve
Asian Americans and Native American Pacific Islanders and low-
income individuals.
(b) Definitions.--In this section:
(1) Asian american.--The term ``Asian American'' has
the meaning given the term ``Asian'' in the Office of
Management and Budget's Standards for Maintaining,
Collecting, and Presenting Federal Data on Race and
Ethnicity as published on October 30, 1997 (62 Fed.
Reg. 58789).
(2) Asian american and native american pacific
islander-serving institution.--The term ``Asian
American and Native American Pacific Islander-serving
institution'' means an institution of higher education
that--
(A) is an eligible institution under section
312(b); and
(B) at the time of application, has an
enrollment of undergraduate students that is
not less than 10 percent students who are Asian
American or Native American Pacific Islander.
(3) Native american pacific islander.--The term
``Native American Pacific Islander'' means any
descendant of the aboriginal people of any island in
the Pacific Ocean that is a territory or possession of
the United States.
(c) Authorized Activities.--
(1) Types of activities authorized.--Grants awarded
under this section shall be used by Asian American and
Native American Pacific Islander-serving institutions
to assist such institutions to plan, develop,
undertake, and carry out activities to improve and
expand such institutions' capacity to serve Asian
Americans and Native American Pacific Islanders and
low-income individuals.
(2) Examples of authorized activities.--Such programs
may include--
(A) purchase, rental, or lease of scientific
or laboratory equipment for educational
purposes, including instructional and research
purposes;
(B) renovation and improvement in classroom,
library, laboratory, and other instructional
facilities;
(C) support of faculty exchanges, and faculty
development and faculty fellowships to assist
in attaining advanced degrees in the faculty's
field of instruction;
(D) curriculum development and academic
instruction;
(E) purchase of library books, periodicals,
microfilm, and other educational materials;
(F) funds and administrative management, and
acquisition of equipment for use in
strengthening funds management;
(G) joint use of facilities such as
laboratories and libraries;
(H) academic tutoring and counseling programs
and student support services;
(I) establishing community outreach programs
that will encourage elementary school and
secondary school students to develop the
academic skills and the interest to pursue
postsecondary education;
(J) establishing or improving an endowment
fund;
(K) academic instruction in disciplines in
which Asian Americans and Native American
Pacific Islanders are underrepresented;
(L) conducting research and data collection
for Asian American and Native American Pacific
Islander populations and subpopulations;
(M) establishing partnerships with community-
based organizations serving Asian Americans and
Native American Pacific Islanders; and
(N) education or counseling services designed
to improve the financial and economic literacy
of students or the students' families.
(d) Application Process.--
(1) Institutional eligibility.--Each Asian American
and Native American Pacific Islander-serving
institution desiring to receive assistance under this
section shall submit to the Secretary such enrollment
data as may be necessary to demonstrate that the
institution is an Asian American and Native American
Pacific Islander-serving institution as defined in
subsection (b), along with such other information and
data as the Secretary may reasonably require.
(2) Applications.--Any institution that is determined
by the Secretary to be an Asian American and Native
American Pacific Islander-serving institution may
submit an application for assistance under this section
to the Secretary. Such application shall include--
(A) a five-year plan for improving the
assistance provided by the Asian American and
Native American Pacific Islander-serving
institution to Asian American and Native
American Pacific Islander students and low-
income individuals; and
(B) such other information and assurances as
the Secretary may reasonably require.
(3) Special rules.--
(A) Eligibility.--No Asian American and
Native American Pacific Islander-serving
institution that receives funds under this
section shall concurrently receive funds under
any other provision of this part, part B, or
part A of title V.
(B) Exemption.--Section 313(d) shall not
apply to institutions that are eligible to
receive funds under this section.
(C) Distribution.--In awarding grants under
this section, the Secretary shall--
(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.]
(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 students rapidly into core courses
and through program completion.
(7) Funds and administrative management, and
acquisition of technology, services, and equipment for
use in strengthening 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 enhancing a program of [teacher
education] traditional or alternative route teacher
preparation 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] preparation of graduates for
teacher certification or licensure.
(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) Distance education programs and creating or
improving facilities for internet or other distance
learning academic instruction capabilities, including
the purchase or rental of telecommunications technology
equipment or services.
(16) Establishing or improving a program that
produces improved results in the educational outcomes
of African American males.
(17) Scholarships, fellowships, and other financial
assistance for financially needy undergraduate
students, as determined by the institution, to permit
the enrollment and degree completion of such students
in the physical or natural sciences, engineering,
mathematics or other scientific disciplines in which
African Americas are underrepresented, except that not
more than 30 percent of the grant amount may be used
for this purpose.
(18) Establishing or improving an office of sponsored
programs to assist with identifying external funding
opportunities, applying for external funding, and
administering grant awards.
[(15)] (19) 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] non-Federal sources (which may
include gifts to the endowment fund restricted for a
specific purpose), in an amount [equal to or greater
than the Federal funds] equal to 50 percent of 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) Scholarships.--An eligible institution that uses
grant funds provided under this section to establish or
increase an endowment fund may use the interest
proceeds from such endowment to provide scholarships to
students for the purposes of attending such
institution.
(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. 324. ALLOTMENTS TO INSTITUTIONS.
(a) Allotment; Pell Grant Basis.--From the amounts
appropriated to carry out this part for any fiscal year, the
Secretary shall allot to each part B institution a sum which
bears the same ratio to one-half that amount as the number of
Pell Grant recipients in attendance at such institution at the
end of the school year preceding the beginning of that fiscal
year bears to the total number of Pell Grant recipients at all
part B institutions.
(b) Allotment; Graduates Basis.--From the amounts
appropriated to carry out this part for any fiscal year, the
Secretary shall allot to each part B institution a sum which
bears the same ratio to one-fourth that amount as the number of
graduates for such school year at such institution bears to the
total number of graduates for such school year at all part B
institutions.
(c) Allotment; Graduate and Professional Student Basis.--From
the amounts appropriated to carry out this part for any fiscal
year, the Secretary shall allot to each part B institution a
sum which bears the same ratio to one-fourth of that amount as
the percentage of graduates per institution, who are admitted
to and in attendance at, within [5] 6 years of graduation with
a baccalaureate degree, a graduate or professional school in a
degree program in disciplines in which Blacks are
underrepresented, bears to the percentage of such graduates per
institution for all part B institutions.
(d) Minimum Allotment.--(1) Notwithstanding subsections (a)
through (c), and subject to subsection (h), if the amount of an
award under this section for a part B institution, based on the
data provided by the part B institution and the formula under
subsections (a) through (c), would be--
[(A) an amount that is greater than $250,000 but less
than $500,000, the Secretary shall award the part B
institution an allotment in the amount of $500,000; and
[(B) an amount that is equal to or less than
$250,000, the Secretary shall award the part B
institution an allotment in the amount of $250,000.]
(A) less than $500,000 for a part B institution which
has received a grant under this part, the Secretary
shall award the part B institution an allotment in the
amount of $500,000; and
(B) less than $250,000 for a part B institution which
has not received a grant under this part for a fiscal
year prior to fiscal year 2019, the Secretary shall
award the part B institution an allotment in the amount
of $250,000.
(2) If the amount appropriated pursuant to section
399(a)(2)(A) for any fiscal year is not sufficient to pay the
minimum allotment required by paragraph (1) to all part B
institutions, the amount of such minimum allotments shall be
ratably reduced. If additional sums become available for such
fiscal year, such reduced allocations shall be increased on the
same basis as the basis on which they were reduced (until the
amount allotted equals the minimum allotment required by
paragraph (1)).
(e) Reallotment.--The amount of any part B institution's
allotment under subsection (a), (b), (c), or (d) for any fiscal
year which the Secretary determines will not be required for
such institution for the period such allotment is available
shall be available for reallotment from time to time on such
date during such period as the Secretary may determine to other
part B institutions in proportion to the original allotment to
such other institutions under this section for such fiscal
year.
(f) Special Merger Rule.--(1) The Secretary shall permit any
eligible institution for a grant under part B in any fiscal
year prior to the fiscal year 1986 to apply for a grant under
this part if the eligible institution has merged with another
institution of higher education which is not so eligible or has
merged with an eligible institution.
(2) The Secretary may establish such regulations as may be
necessary to carry out the requirement of paragraph (1) of this
subsection.
(g) Special Rule for Certain District of Columbia Eligible
Institutions.--In any fiscal year that the Secretary determines
that Howard University or the University of the District of
Columbia will receive an allotment under subsections (b) and
(c) of this section which is not in excess of amounts received
by Howard University under the Act of March 2, 1867 (14 Stat.
438; 20 U.S.C. 123), relating to annual authorization of
appropriations for Howard University, or by the University of
the District of Columbia under the District of Columbia Self-
Government and Governmental Reorganization Act (87 Stat. 774)
for such fiscal year, then Howard University and the University
of the District of Columbia, as the case may be, shall be
ineligible to receive an allotment under this section.
(h) Conditions for Allotments.--
(1) Student requirements for allotment.--
Notwithstanding any other provision of this section, a
part B institution that would otherwise be eligible for
funds under this part shall not receive an allotment
under this part for a fiscal year, including the
minimum allotment under subsection (d), if the part B
institution, in the academic year preceding such fiscal
year--
(A) did not have any enrolled students who
were Pell Grant recipients;
(B) did not graduate any students; or
(C) where appropriate, did not have any
students who, [within 5 years] within 6 years
of graduation from the part B institution, were
admitted to and in attendance at a graduate or
professional school in a degree program in
disciplines in which Blacks are
underrepresented.
(2) Data requirements for allotments.--
Notwithstanding any other provision of this section, a
part B institution shall not receive an allotment under
this part for a fiscal year, including the minimum
allotment under subsection (d), unless the institution
provides the Secretary with the data required by the
Secretary and for purposes of the formula described in
subsections (a) through (c), including--
(A) the number of Pell Grant recipients
enrolled in the part B institution in the
academic year preceding such fiscal year;
(B) the number of students who earned an
associate or baccalaureate degree from the part
B institution in the academic year preceding
such fiscal year; and
(C) where appropriate, the percentage of
students who, [within 5 years] within 6 years
of graduation from the part B institution, were
admitted to and in attendance at a graduate or
professional school in a degree program in
disciplines in which Blacks are
underrepresented in the academic year preceding
such fiscal year.
(3) Limitation for new institutions.--Notwithstanding
any other provision of this section, no part B
institution that would otherwise be eligible for funds
under this part shall receive an allotment under this
part for a fiscal year, unless--
(A) such institution received an allotment
under this part for fiscal year 2019; or
(B) the amount appropriated under section
399(a)(2)(A) for such fiscal year is not less
than $282,420,000.
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) 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, including goals to enhance student
retention, graduation, and postgraduate outcomes, 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,] equipment, technology, and
services, including software, for use in strengthening
funds and administrative 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]
(11) 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 students rapidly into core courses
and through program completion; and
(12) distance education programs and creating or
improving facilities for internet or other distance
learning academic instruction capabilities, including
the purchase or rental of telecommunications technology
equipment or services; and
[(12)] (13) 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)] through
(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)] through
(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 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, 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] 724, 727, or 729 for a fiscal year shall be
eligible to apply for a grant, or receive grant funds, under
this section for the same fiscal year.
* * * * * * *
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 (except that
loans for the purpose of science, technology,
engineering, or mathematics related academic facilities
shall carry not more than a 1 percent rate of
interest), 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] 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] bond
insurance fund to pay principal and interest on bonds,
subsequent payments on such loan shall be available to
replenish such [escrow account] bond insurance fund;
(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] bond insurance fund
described in subsection (b)(8).
(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] bond insurance fund
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] bond insurance fund.
(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.
SEC. 344. LIMITATIONS ON FEDERAL INSURANCE FOR BONDS ISSUED BY THE
DESIGNATED BONDING AUTHORITY.
(a) Limit on Amount.--At no time shall the aggregate
principal amount of outstanding bonds insured under this part
together with any accrued unpaid interest thereon exceed
[$1,100,000,000] $3,600,000,000, of which--
(1) not more than [$733,333,333] two-thirds shall be
used for loans to eligible institutions that are
private historically Black colleges and universities;
and
(2) not more than [$366,666,667] one-third shall be
used for loans to eligible institutions which are
historically Black public colleges and universities.
For purposes of paragraphs (1) and (2), Lincoln University of
Pennsylvania is an historically Black public institution. No
institution of higher education that has received assistance
under section 8 of the Act of March 2, 1867 (20 U.S.C. 123)
shall be eligible to receive assistance under this part.
(b) Limitation on Credit Authority.--The authority of the
Secretary to issue letters of credit and insurance under this
part is effective only to the extent provided in advance by
appropriations Acts.
(c) Religious Activity Prohibition.--No loan may be made
under this part for any educational program, activity or
service related to sectarian instruction or religious worship
or provided by a school or department of divinity or to an
institution in which a substantial portion of its functions is
subsumed in a religious mission.
(d) Discrimination Prohibition.--No loan may be made to an
institution under this part if the institution discriminates on
account of race, color, religion, national origin, sex (to the
extent provided in title IX of the Education Amendments of
1972), or disabling condition; except that the prohibition with
respect to religion shall not apply to an institution which is
controlled by or which is closely identified with the tenets of
a particular religious organization if the application of this
section would not be consistent with the religious tenets of
such organization.
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
[(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.]
(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) may provide for the modification or deferment of
a loan made under this part based on need of the
institution, as defined by the Secretary, for a period
not to exceed 6 fiscal years, and, during the period of
deferment of such a loan, interest on the loan will not
accrue or be capitalized.
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--
(A) the financial status of the historically
Black colleges and universities described in
paragraph (1)(A);
(B) an overview of all loans awarded under
the program under this part, including the most
recent loans awarded for the fiscal year in
which the report is submitted; and
(C) administrative and legislative
recommendations for addressing the issues
related to construction financing facing
historically Black colleges and universities.
* * * * * * *
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]
appropriated, $300,000,000 for fiscal year 2021
and each succeeding fiscal year. [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] $117,500,000 shall
be available for allocation under
subparagraph (B);
(ii) [$100,000,000] $99,875,000 shall
be available for allocation under
subparagraph (C); [and]
(iii) $17,625,000 shall be available
for allocation under subparagraph (D);
and
[(iii)] (iv) [$55,000,000]
$65,000,000 shall be available for
allocation under subparagraph [(D)](E).
(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.]
(C) Allocation and allotment hbcus.--The
amount made available for allocation under this
subparagraph by subparagraph (A)(ii) for any
fiscal year 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.
(D) Allocation and allotment pbis.--The
amount made available for allocation under this
subparagraph by subparagraph (A)(iii) for any
fiscal year shall be available to eligible
institutions described in subsection (a)(5) and
shall be available for a competitive grant
program to award 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)] (E) 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] $35,000,000 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] $35,000,000
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] $35,000,000 for purposes
described in subsection (c) of such
section;
(ii) [$15,000,000] $18,000,000 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] $18,000,000
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] $18,000,000 for purposes
described in subsection (c) of such
section;
(iii) [$5,000,000] $6,000,000 for
such fiscal year shall be available to
eligible institutions described in
subsection (a)(6) for activities
described in section 311(c); and
(iv) [$5,000,000] $6,000,000 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. 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] $150,000,000 for
fiscal year [2009] 2021, 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] $45,000,000 for fiscal
year [2009] 2021, 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] $25,000,000 for fiscal
year [2009] 2021, 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] $90,000,000 for fiscal
year [2009] 2021 and each of the five succeeding fiscal
years.
(E) There are authorized to be appropriated to carry
out section 319, [$25,000,000] $30,000,000 for fiscal
year [2009] 2021, 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] $60,000,000 for fiscal
year [2009] 2021, 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] $400,000,000 for fiscal year
[2009] 2021, 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] $135,000,000 for fiscal
year [2009] 2021, 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] $220,000,000 for
fiscal year [2009] 2021, 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] $225,000
for fiscal year [2009] 2021, 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] 2021 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] 2021, 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] 2021 and each of the five
succeeding fiscal years.
(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], the Secretary
shall pay to each eligible institution such sums as may be
necessary to pay to each eligible student (defined in
accordance with section 484) for each academic year during
which that student is in attendance at an institution of higher
education, as an undergraduate or as a postbaccalaureate in
accordance with subsection (c)(1)(B), 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)] paragraph (6)(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)] (6) 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, 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
(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) $1,334,000,000 for
fiscal year 2018;
(IX) $1,370,000,000 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.]
(iii) Subsequent award years.--
(I) Award years 2018-2019,
2019-2020 and 2020-2021.--For
each of the award years 2018-
2019, 2019-2020, and 2020-2021
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.
(II) Award year 2021-2022.--
For award year 2021-2022, the
amount determined under this
subparagraph for purposes of
subparagraph (B)(iii) shall be
equal to--
(aa) $6,195 or the
total maximum Federal
Pell Grant for the
preceding award year
(as determined under
clause (iv)(II)),
whichever is greater,
increased by $625;
reduced by
(bb) $5,135 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
(cc) rounded to the
neared $5.
(III) Award year 2022-2023
and each subsequent award
year.--For award year 2022-2023
and each subsequent award year,
the amount determined under
this subparagraph for purposes
of subparagraph (B)(iii) shall
be equal to--
(aa) $6,820 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 the
award year for which
the amount under this
subparagraph is being
determined; reduced by
(bb) $5,135 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
(cc) rounded to the
nearest $5.
(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.
(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.]
(1) Period of eligibility for grants.--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--
(A) 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; and
(B) the period during which a student may
receive Federal Pell Grants shall also include
the period required for the completion of the
first postbaccalaureate course of study at an
eligible institution that meets the definition
of institution of higher education in section
101, in a case in which--
(i) the student received a Federal
Pell Grant during the period required
for the completion of the student's
first undergraduate baccalaureate
course of study for fewer than 14
semesters, or the equivalent of fewer
than 14 semesters, as determined under
paragraph (5);
(ii) the student would otherwise be
eligible for a Federal Pell Grant, but
for the completion of such
baccalaureate course of study; and
(iii) the period during which the
student receives Federal Pell Grants
does not exceed the student's duration
limits under paragraph (5).
(2) Nothing in this section shall exclude from eligibility
courses of study which are noncredit or remedial in nature
(including courses in English language instruction) which are
determined by the institution 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) Maximum period._.--
(A) In general.--[The period] Except as provided in
subparagraph (B), the period during which a student may
receive Federal Pell Grants shall not exceed [12] 14
semesters, or the equivalent of [12] 14 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.
(B) Exception.--
(i) In general.--Any Federal Pell Grant that
a student received during a period described in
subclause (I) or (II) of clause (ii) shall not
count toward the student's duration limits
under this paragraph.
(ii) Applicable periods.--Clause (i) shall
apply with respect to any Federal Pell Grant
awarded to a student to attend an institution--
(I) during a period--
(aa) for which the student
received a loan under this
title; and
(bb) for which the loan
described in item (aa) is
forgiven under--
(AA) section
437(c)(1) or 464(g)(1)
due to the closing of
the institution;
(BB) section 493H due
to the student's
successful assertion of
a defense to repayment
of the loan; or
(CC) section
432(a)(6), section
685.215 of title 34,
Code of Federal
Regulations (or a
successor regulation),
or any other loan
forgiveness provision
or regulation under
this Act, as a result
of a determination by
the Secretary or a
court that the
institution committed
fraud or other
misconduct; or
(II) during a period for which the
student did not receive a loan under
this title but for which, if the
student had received such a loan, the
student would have qualified for loan
forgiveness under subclause (I)(bb).
(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. 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--]
After receiving an application for a Federal Pell Grant under
this subpart, the Secretary (including any contractor of the
Secretary processing applications for Federal Pell Grants under
this subpart) shall, in a timely manner, furnish to the student
financial aid administrator at each institution of higher
education that a student awarded a Federal Pell Grant under
this subpart is attending, the expected family contribution for
each such student. Each such student financial 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, or if
such institution of higher education is subject to an
ineligibility determination under section 435(a)(9) or
493I(b).
(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,
final adjusted cohort default rate, or on-time
repayment 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.
(k) Job Training Federal Pell Grant Program.--
(1) In general.--For the award year beginning on July
1, 2021, and each subsequent award year, the Secretary
shall carry out a program through which the Secretary
shall award job training Federal Pell Grants to
students in eligible job training programs approved by
the Secretary in accordance with paragraph (4).
(2) Terms and conditions.--Each job training Federal
Pell Grant awarded under this subsection shall have the
same terms and conditions, and be awarded in the same
manner, as a Federal Pell Grant awarded under
subsection (a), except as follows:
(A) A student who is eligible to receive a
job training Federal Pell Grant under this
subsection is a student who--
(i) has not yet attained a
postbaccalaureate degree; and
(ii) is enrolled, or accepted for
enrollment, in an eligible job training
program at an institution of higher
education.
(B) The amount of a job training Federal Pell
Grant for an eligible student shall be
determined under subsection (b), except that
subsection (b)(4) shall not apply.
(3) Treatment of job training federal pell grant.--
(A) Inclusion in total eligibility period.--
The period during which a student received a
job training Federal Pell Grant under this
subsection shall be included in calculating the
duration limits with respect to such student
under subsection (c)(5) and to the extent that
such period was a fraction of a semester or the
equivalent, only that same fraction of such
semester or equivalent shall count towards such
duration limits.
(B) Prevention of double benefits.--No
student may for the same payment period receive
both a job training Federal Pell Grant under
this subsection and a Federal Pell Grant under
subsection (a).
(4) Approval of eligible job training programs.--
(A) Eligible job training program.--An
eligible job training program shall be a career
and technical education program at an
institution of higher education that the
Secretary determines meets the following
requirements:
(i) The job training program provides
not less than 150, and less than 600,
clock hours of instructional time over
a period of not less than 8, and less
than 15, weeks.
(ii) The job training program
provides training aligned with the
requirements of high-skill, high-wage,
or in-demand industry sectors or
occupations in the State or local area
in which the job training program is
provided, as determined by an industry
or sector partnership in such State or
local area.
(iii) The job training program has
been determined by the institution of
higher education and by such industry
or sector partnership to provide
academic content, an amount of
instructional time, and a recognized
postsecondary credential that are
sufficient to--
(I) meet the hiring
requirements of potential
employers in the sectors or
occupations described in clause
(ii); and
(II) satisfy any applicable
educational prerequisite
requirement for professional
license or certification, so
that a student who completes
the program and seeks
employment is qualified to take
any licensure or certification
examination needed to practice
or find employment in such
sectors or occupations.
(iv) The job training program
prepares students to pursue related
certificate or degree programs at an
institution of higher education,
including--
(I) by ensuring the
acceptability of the credits
received under the job training
program toward meeting such
certificate or degree program
requirements (such as through
an articulation agreement); and
(II) by ensuring that a
student who completes noncredit
coursework in the job training
program, upon completion of the
job training program and
enrollment in such a related
certificate or degree program,
will receive academic credit
for such noncredit coursework
that will be accepted toward
meeting such certificate or
degree program requirements.
(v) The job training program provides
to the Secretary the annual earnings
expected to be paid in the sectors or
occupations for which the program
provides training not later than 6
months after completion of such program
(in this subsection referred to as the
``expected earnings''), as such
earnings are determined by an industry
or sector partnership in the State or
local area in which the program is
provided, and which shall be--
(I) greater than the average
or median annual earnings paid
to individuals with only a high
school diploma (or the
equivalent) based on the most
recently available data from
the Bureau of Labor Statistics
or the Bureau of the Census
with respect to such State or
local area, or the Nation as a
whole, as selected by such
program;
(II) validated by the
Secretary; and
(III) used to review the job
training program under
subparagraph (C).
(vi) The job training program is part
of a career pathway, and includes
counseling for students to--
(I) support each such student
in achieving the student's
education and career goals; and
(II) ensure that each such
student receives information
on--
(aa) the sectors or
occupations described
in clause (ii) for
which the job training
program provides
training (including the
expected earnings to be
paid, and, if
available, the mean and
median earnings
(described in
subparagraph (C)(ii))
paid, in such sectors
or occupations)); and
(bb) the related
certificate or degree
programs described in
clause (iv) for which
the job training
program provides
preparation.
(vii) The job training program meets
the requirements under section 104 that
are applicable to a program of training
to prepare students for gainful
employment in a recognized occupation.
(viii) The job training program does
not exceed by more than 50 percent the
minimum number of clock hours required
by a State to receive a professional
license or certification in the State.
(ix) The job training program is
provided by an institution of higher
education that--
(I) is approved by an
accrediting agency or
association that meets the
requirements of section
496(a)(4)(C);
(II) during the preceding 5
years, has not been subject to
any adverse actions or negative
actions by the accrediting
agency or association of the
institution, State or Federal
enforcement agencies, or the
Secretary;
(III) is listed on the
provider list under section
122(d) of the Workforce
Innovation and Opportunity Act
(29 U.S.C. 3152(d)); and
(IV) has a designated
official responsible for
engaging with the workforce
development system in the State
or local area in which the job
training program is provided.
(x) The job training program has a
verified completion rate and a verified
annual earnings rate that meets the
requirements of clauses (i) and (iii)
of section 481(b)(2)(A), respectively,
and satisfies the criteria described in
clause (v) of such section.
(xi) The State board representing the
State in which the job training program
is provided certifies to the Secretary
that the program meets the requirements
of clauses (ii), (viii), and (ix)(III).
(B) Initial approval by the secretary.--Not
later than 180 days after the date on which a
job training program is submitted for approval
under this subparagraph, the Secretary shall
make a determination as to whether such job
training program is an eligible job training
program in accordance with subparagraph (A).
(C) Review of approval.--
(i) In general.--Not later than 3
years after the date an eligible job
training program is approved under
subparagraph (B), and not less than
once every 3 years thereafter, the
Secretary shall, using the data
collected under paragraph (5) and such
other information as the Secretary may
require, determine whether such job
training program continues to meet the
requirements of subparagraph (A).
(ii) Requirements.--Subject to clause
(iii), a determination under clause (i)
that a job training program continues
to meet the requirements of
subparagraph (A) shall, at a minimum,
require the Secretary to determine that
the mean or median earnings (whichever
is higher) paid to students not later
than 6 months after completing such
program is equal to or greater than the
expected earnings of the program.
(iii) Exception and appeals.--
(I) Exception.--The Secretary
may extend, by not more than an
additional 6 months, the period
by when, after completion of
the job training program, the
mean or median earnings
(whichever is higher) paid to
students meets the requirements
of clause (ii), in a case in
which the job training program
requesting such extension
provides sufficient
justification for such
extension (as determined by the
Secretary).
(II) Appeals.--Not later than
60 days after receiving
notification from the Secretary
of the loss of eligibility
resulting from the review under
subparagraph (C), a job
training program may appeal any
loss of eligibility under this
subparagraph by demonstrating
extenuating circumstances.
(III) Secretarial
requirements.--The Secretary
shall issue a decision on any
appeal submitted by a job
training program under
subclause (II) not later than
45 days after its submission.
(5) Data collection.--Using the postsecondary student
data system established under section 132(l) or a
successor system (whichever includes the most recent
data) to streamline reporting requirements and minimize
reporting burdens, and in coordination with the
National Center for Education Statistics, the Secretary
of Labor, and each institution of higher education
offering an eligible job training program under this
subsection, the Secretary shall, on at least an annual
basis, collect data with respect to each such eligible
job training program, including the following:
(A) The number and demographics of students
who enroll in the program.
(B) The number of credits attempted and
accumulated annually by students enrolled in
the program.
(C) The share of such students who cease
enrollment on or before the completion of 60
percent of the payment period or period of
enrollment.
(D) The verified completion rate and the
verified annual earnings rate described in
clauses (i) and (iii) of section 481(b)(2)(A),
respectively, for the program.
(E) The number and demographics of--
(i) students who complete the
program; and
(ii) students who do not complete the
program.
(F) The outcomes of the students who complete
the program, including--
(i) the share of such students who
continue enrollment at the institution
of higher education offering the
program;
(ii) the share of such students who
transfer to another institution of
higher education;
(iii) the share of such students who
complete a subsequent certificate or
degree program;
(iv) the share of such students who
secure employment 6 months and 1 year,
respectively--
(I) after completion of such
program; or
(II) in the case of a program
that prepares students for a
professional license or
certification exam, after
acquiring such license or
certification;
(v) the expected earnings in the
sectors or occupations for which the
program provides training;
(vi) the mean and median earnings
paid in such sectors or occupations to
such students not later than 6 months
after completing such program (as
described in paragraph (4)(C)(ii)); and
(vii) in the case of a job training
program that prepares students for a
professional license or certification
exams, the share of such students who
pass such exams.
(6) Title of job training federal pell grant.--Grants
made under this subsection shall be known as ``job
training Federal Pell Grants''.
(7) Definitions.--In this subsection:
(A) Articulation agreement.--The term
``articulation agreement'' has the meaning
given the term in section 486A.
(B) Career and technical education.--The term
``career and technical education'' has the
meaning given the term in section 3 of the Carl
D. Perkins Career and Technical Education Act
(20 U.S.C. 2302).
(C) Institution of higher education.--The
term ``institution of higher education'' means
an eligible institution for purposes of this
subpart that is an institution of higher
education (as defined in section 101) or a
postsecondary vocational institution (as
defined in section 102(c)).
(D) WIOA definitions.--The terms ``career
pathway'', ``industry or sector partnership'',
``in-demand industry sector or occupation'',
``recognized postsecondary credential'',
``State board'', and ``workforce development
system'' have the meanings given such terms in
section 3 of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3102).
(l) Scholarships for Veteran's Dependents.--
(1) Definition of eligible veteran's dependent.--In
this subsection, the term ``eligible veteran's
dependent'' means a dependent or an independent
student--
(A) whose parent or guardian was a member of
the Armed Forces of the United States and died
as a result of performing military service in
Iraq or Afghanistan after September 11, 2001;
and
(B) who, at the time of the parent or
guardian's death, was--
(i) less than 24 years of age; or
(ii) enrolled at an institution of
higher education on a part-time or
full-time basis.
(2) Grants.--
(A) In general.--The Secretary shall award a
Federal Pell Grant, as modified in accordance
with the requirements of this subsection, to
each eligible veteran's dependent to assist in
paying the eligible veteran's dependent's cost
of attendance at an institution of higher
education.
(B) Designation.--Federal Pell Grants made
under this subsection may be known as ``Iraq
and Afghanistan Service Grants''.
(3) Prevention of double benefits.--No eligible
veteran's dependent may receive a grant under both this
subsection and subsection (a) or (k).
(4) Terms and conditions.--The Secretary shall award
Iraq and Afghanistan Service Grants under this
subsection in the same manner and with the same terms
and conditions, including the length of the period of
eligibility, as the Secretary awards Federal Pell
Grants under subsection (a), except that--
(A) the award rules and determination of need
applicable to the calculation of Federal Pell
Grants under subsection (a) shall not apply to
Iraq and Afghanistan Service Grants;
(B) the provisions of paragraph (2)(A)(iii)
and (3) of subsection (b), and subsection (f),
shall not apply;
(C) the maximum period determined under
subsection (c)(5) shall be determined by
including all Iraq and Afghanistan Service
Grants received by the eligible veteran's
dependent, including such Grants received under
subpart 10 before the date of enactment of the
College Affordability Act; and
(D) an Iraq and Afghanistan Service Grant to
an eligible veteran's dependent for any award
year shall equal the maximum Federal Pell Grant
available under subsection (b)(5) for that
award year, except that an Iraq and Afghanistan
Service Grant--
(i) shall not exceed the cost of
attendance of the eligible veteran's
dependent for that award year; and
(ii) shall be adjusted to reflect the
attendance by the eligible veteran's
dependent on a less than full-time
basis in the same manner as such
adjustments are made for a Federal Pell
Grant under subsection (a).
(5) Estimated financial assistance.--For purposes of
determinations of need under part F, an Iraq and
Afghanistan Service Grant shall not be treated as
estimated financial assistance as described in sections
471(3) and 480(j).
(m) Prevention of Fraud.--
(1) Report.--Not later than December 31 of each year,
the Secretary shall prepare and submit a report to the
authorizing committees that includes the following
information with respect to unusual enrollment history:
(A) The number and percentage of total
applicants who were flagged for an unusual
enrollment history in the preceding award year.
(B) The number and percentage of institutions
that have had fewer than 2 percent of
applicants flagged for an unusual enrollment
history in the preceding award year.
(C) The name of each institution that has had
more than 2 percent of total applicants flagged
for an unusual enrollment history in the
preceding award year.
(D) If the percentage of total applicants in
subparagraph (A) is greater than 2 percent, a
detailed plan from the Secretary as to how to
reduce that percentage below 2 percent by the
following award year.
(2) Definition.--For the purposes of this subsection
the term ``unusual enrollment history'' means, with
respect to the application for Federal student aid--
(A) a pattern in which a student attends an
institution long enough to receive a
disbursement of credit balance funds authorized
by this title, does not complete the enrollment
period, enrolls at another institution and
repeats this pattern to collect an additional
credit balance of funds authorized by this
title without earning academic credit; or
(B) any other enrollment pattern that the
Department believes may signal an attempt by a
student to receive funds authorized under this
title in a fraudulent manner.
(n) Federal Pell Grants on Behalf of Incarcerated
Individuals.--
(1) Institutional requirements.--An eligible
institution may not award a Federal Pell Grant to an
incarcerated individual or on behalf of such
individual, unless the institution meets the following:
(A) The institution is approved to enroll
incarcerated individuals by--
(i) the Secretary in accordance with
paragraph (2); and
(ii) an accrediting agency or
association that meets the requirements
of section 496(a)(4)(D).
(B) The institution--
(i) is an institution of higher
education (as defined in section 101)
or a postsecondary vocational
institution (as defined in section
102(c)); and
(ii) during the preceding 5 years,
has not been subject to the denial,
withdrawal, suspension, or termination
of accreditation.
(C) The institution provides each
incarcerated individual, upon completion of a
course offered by the institution, with
academic credits that are the equivalent to
credits earned by non-incarcerated students for
an equivalent course of study.
(D) The institution provides to the Secretary
confirmation from each facility involved that
the course of study offered by the institution
at such facility is accessible to incarcerated
individuals (including such individuals who are
individuals with disabilities).
(E) The institution does not enroll
incarcerated individuals in a course of study
offered primarily as a distance education
program, except in a case in which the
institution provides to the Secretary--
(i) confirmation that the distance
education program offers levels of
faculty interaction, peer engagement,
and student support sufficient to
enable incarcerated individuals to
successfully participate in such a
program; and
(ii) evidence of the institution's
success in offering other distance
education programs;
(F) The institution develops and carries out
a process to allow each incarcerated individual
to access the transcripts and any other
educational records of such individual held by
the institution, without regard to the facility
at which the individual is being held or
whether the individual has been released from
such a facility.
(G) The institution develops and carries out
a process to allow each incarcerated individual
an opportunity to provide feedback on courses
that is comparable to the opportunity to
provide such feedback that the institution
offers to non-incarcerated students.
(H) The institution does not directly charge
an incarcerated individual--
(i) in the case of such an individual
who is an individual with a disability,
for any cost of the provision of
reasonable accommodations for the
individual to participate in a course
of study offered by the institution;
(ii) in the case of such an
individual with an expected family
contribution for an award year that
would not disqualify the individual
from receiving a Federal Pell Grant,
for any amount of the cost of
attendance not covered by the Federal
Pell Grant or other Federal assistance
received by the institution on behalf
of the individual by ensuring that any
such amount is offset--
(I) by a State or
institutional grant; or
(II) other non-Federal
financial assistance that does
not have to be repaid by such
individual; or
(iii) in the case of such an
individual with an expected family
contribution for an award year that
would disqualify the individual from
receiving a Federal Pell Grant, an
amount that exceeds such expected
family contribution.
(I) The institution makes available to
incarcerated individuals who are considering
enrolling in a course of study offered by the
institution, in simple and understandable
terms, the following:
(i) Information with respect to each
course of study at the institution for
which such an individual may receive a
Federal Pell Grant, including--
(I) the cost of attendance;
(II) the mode of instruction
(such as distance education,
in-person instruction, or a
combination of such modes);
(III) how enrollment in such
course of study will impact the
period of eligibility for
Federal Pell Grants for such an
individual, including in a case
in which the individual is
transferred to another facility
or released before the
completion of such course;
(IV) the transferability of
credits earned, and the
acceptability of such credits
toward a certificate or degree
program offered by the
institution;
(V) the process for
continuing postsecondary
education--
(aa) upon transfer to
another facility; or
(bb) after the
student's period of
incarceration or
confinement; and
(VI) the process for
continuing enrollment at the
institution after the student's
period of incarceration or
confinement, including any
barriers to admission (such as
criminal history questions on
applications for admission to
such institution).
(ii) In the case of an institution
that offers a program to prepare
incarcerated individuals for gainful
employment in a recognized occupation
(as such term is defined in section
104)--
(I) information on any
applicable State licensure and
certification requirements,
including the requirements of
the State in which the facility
involved is located and each
State in which such individuals
permanently reside; and
(II) restrictions related to
the employment of formerly
incarcerated individuals for
each recognized occupation for
which the course of study
prepares students, including
such restrictions--
(aa) in Federal law;
and
(bb) in the laws of
the State in which the
facility involved is
located and each State
in which such
individuals permanently
reside.
(J) The institution submits the information
described in subparagraph (I) to each facility
involved, the Secretary, and the accrediting
agency or association described in subparagraph
(A)(ii).
(2) Approval by the secretary.--
(A) Initial eligibility.--With respect to an
institution that seeks to award Federal Pell
Grants to incarcerated individuals under this
subsection, the Secretary shall make an initial
determination about whether such institution
meets the requirements of this subsection,
which shall include a confirmation that the
institution--
(i) has secured the approval required
under paragraph (1)(A)(ii); and
(ii) meets the requirements of
paragraph (1)(B).
(B) Ongoing eligibility.--Not later than 5
years after the Secretary makes an initial
determination under subparagraph (A) that an
institution meets the requirements of this
subsection, and not less than every 5 years
thereafter, the Secretary shall determine
whether such institution continues to meet the
requirements of this subsection, based on--
(i) a review of the data collected
under paragraph (3) with respect to the
courses of study offered by such
institution in which incarcerated
individuals are enrolled, and other
applicable information that may be
available to the Secretary; and
(ii) whether such institution meets
the requirements of paragraph (1).
(3) Data collection.--The Secretary shall, on at
least an annual basis, collect data with respect to
each course of study offered by each institution at
which incarcerated individuals are enrolled,
including--
(A) the demographics of such individuals;
(B) the share of such individuals receiving
Federal Pell Grants;
(C) information on the academic outcomes of
such individuals (such as credits attempted and
earned, and credential and degree completion);
(D) to the extent practicable, information on
post-release outcomes of such individuals (such
as continued postsecondary enrollment,
employment, and recidivism); and
(E) any data from student satisfaction
surveys conducted by the institution or the
facility involved regarding such course of
study.
(4) Best practices in educating incarcerated
individuals.--Not later than 3 years after the date of
enactment of the College Affordability Act, and at
least once every 3 years thereafter, the Secretary
shall collect and disseminate to institutions awarding
Federal Pell Grants to incarcerated individuals under
this subsection, best practices with respect to the
postsecondary education of such individuals.
(5) Definitions.--In this subsection:
(A) Facility.--The term ``facility'' means--
(i) a place used for the confinement
of individuals convicted of a criminal
offense that is owned by, or under
contract to, the Bureau of Prisons, a
State, or a unit of local government;
or
(ii) a facility to which an
individual subject to involuntary civil
confinement is committed.
(B) Facility involved.--The term ``facility
involved'' means, when used with respect to an
institution of higher education, a facility at
which a course of study of the institution is
offered to incarcerated individuals.
(C) Incarcerated individual.--The term
``incarcerated individual'' means an individual
who is incarcerated in a facility or who is
subject to an involuntary civil commitment.
(D) Non-incarcerated student.--The term
``non-incarcerated student'' means a student at
an institution of higher education who is not
an incarcerated individual.
* * * * * * *
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.]
$220,000, except that for any fiscal year for which
such minimum individual grant amount would result in
fewer than 2,780 grants awarded under this chapter, an
individual grant authorized under this chapter shall be
awarded in an amount that would result in not fewer
than 2,780 grants awarded under this chapter for such
fiscal year.
(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
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.
(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), 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 in accordance with paragraph (2) of this
subsection.
(B) 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
coordination of programs assisted under this chapter
with other programs for disadvantaged students operated
by the sponsoring institution or agency, regardless of
the funding source of such programs. The Secretary
shall not limit an entity's eligibility to receive
funds under this chapter because such entity sponsors a
program similar to the program to be assisted under
this chapter, regardless of the funding source of such
program. The Secretary shall permit the Director of a
program receiving funds under this chapter to
administer one or more additional programs for
disadvantaged students operated by the sponsoring
institution or agency, regardless of the funding
sources of such programs. [The Secretary shall, as
appropriate, require each applicant for funds under the
programs authorized by this chapter to identify and
make available services under such program, including
mentoring, tutoring, and other services provided by
such program, to foster care youth (including youth in
foster care and youth who have left foster care after
reaching age 13) or to homeless children and youths as
defined in section 725 of the McKinney-Vento Homeless
Assistance Act.]
(7) Inclusion of homeless and foster students.--The
Secretary shall, as appropriate, require each applicant
for funds under the programs authorized by this chapter
(other than the programs authorized under section 402E
or 402G) to identify and conduct outreach to foster
care youth and homeless individuals and make available
to foster care youth and homeless individuals services
under such programs, including mentoring, tutoring, and
other services provided by such programs.
[(7)] (8) 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)] (9) 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 less than 90 days before
the date on which a competition for a grant
under this chapter begins, 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]
accountability for outcomes points for
high quality service delivery are
awarded in an accurate and transparent
manner;
(iv) steps the Secretary will take to
ensure the quality and integrity of the
peer review process, including
assurances that peer reviewers will
consider applications for grants under
this chapter in a thorough and complete
manner consistent with applicable
Federal law; and
(v) steps the Secretary will take to
ensure that the final score of an
application, including [prior
experience] accountability for outcomes
points for high quality service
delivery and points awarded through the
peer review process, is determined in
an accurate and transparent manner.
[(B) Updated guidance.--Not later than 45
days before the date of the commencement of
each competition for a grant under this chapter
that is held after the expiration of the 180-
day period described in subparagraph (A), the
Secretary shall update and publish the guidance
described in such subparagraph.]
[(C)] (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
high quality service delivery or to the
final score of an application, the
Secretary shall--
(I) review such evidence and
provide a timely response to
the applicant; and
(II) if the Secretary
determines that a scoring error
was made by the Department or a
peer reviewer, adjust the prior
experience points or final
score of the application
appropriately and quickly, so
as not to interfere with the
timely awarding of grants for
the applicable grant
competition.
(iv) Error in peer review process.--
(I) Referral to secondary
review.--In the case of a peer
review process error listed in
clause (i)(I), if the Secretary
determines that points were
withheld for criteria not
required in Federal statute,
regulation, or guidance
governing a program assisted
under this chapter or the
application for a grant for
such program, or determines
that information pertaining to
selection criteria was wrongly
determined 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.
(vii) Technical components of
applications.--
(I) Treatment of
nonsubstantive technical
components of applications.--
With respect to any competition
for a grant under this chapter,
the Secretary may not reject
grant applications on the sole
basis of a failure to meet page
limits and formatting standards
(including with respect to font
size, font style, font type,
line spacing, paragraph
justification, and page
margins).
(II) Treatment of technical
budget errors in
applications.--
(aa) In general.--
With respect to any
competition for a grant
under this chapter, the
Secretary may not
reject grant
applications on the
sole basis of a
typographical or
rounding error in a
proposed budget until
the Secretary has given
the applicant an
opportunity for
correction in
accordance with item
(bb).
(bb) Notice and
opportunity for
correction.--The
Secretary shall provide
notice and
identification of an
error described in item
(aa) to the applicant
before awarding grants
for each competition
and shall allow the
applicant to submit a
revised application
that corrects the
identified error.
(cc) Treatment of
revised applications.--
The Secretary shall
treat the revised
application in the same
manner as a timely
submitted application.
(dd) Failure to
correct.--If an
applicant has received
a notice and
opportunity for
correction of a
typographical or
rounding error in a
proposed budget in
accordance with item
(bb) and the applicant
fails to correct the
error and submit a
revised application,
the Secretary may
reject or penalize that
grant application.
(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
training 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[.];
(E) documentation that the student has been
determined eligible for a Federal Pell Grant authorized
under section 401; or
(F) for a grant authorized under section 402B or 402F
of this chapter, documentation that a student is
attending a school that--
(i) elects, or for which the local
educational agency serving the school elects on
behalf of the school, to receive special
assistance payment under section
11(a)(1)(F)(ii) of the Richard B. Russell
National School Lunch Act (42 U.S.C.
1759a(a)(1)(F)(ii)); or
(ii) had a percentage of enrolled students
who were identified students (defined in clause
(i) of section 11(a)(1)(F) of such Act (42
U.S.C. 1759a(a)(1)(F))) that meets or exceeds
the threshold described in clause (viii) of
such section (42 U.S.C. 1759a(a)(1)(F)) during
the school year that ends prior to the first
period for which such grant is awarded.
(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[.];
(E) documentation that the student has been
determined to be eligible for a Federal Pell Grant
authorized under section 401; or
(F) for a grant authorized under section 402B or 402F
of this chapter, documentation that a student is
attending a school that--
(i) elects, or for which the local
educational agency serving the school elects on
behalf of the school, to receive special
assistance payment under section
11(a)(1)(F)(ii) of the Richard B. Russell
National School Lunch Act (42 U.S.C.
1759a(a)(1)(F)(ii)); or
(ii) had a percentage of enrolled students
who were identified students (defined in clause
(i) of section 11(a)(1)(F) of such Act (42
U.S.C. 1759a(a)(1)(F))) that meets or exceeds
the threshold described in clause (viii) of
such section (42 U.S.C. 1759a(a)(1)(F)) during
the school year that ends prior to the first
period for which such grant is awarded.
(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] homeless
individuals, shall be eligible to participate in programs under
sections 402B, 402C, 402D, and 402F.
(f) Outcome Criteria.--
(1) Use for [prior experience] accountability in
outcomes determination.--For competitions for grants
under this chapter that begin [on or after January 1,
2009] on or after the date of enactment of the College
Affordability Act, 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] college students, foster care youth,
homeless individuals, 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] includes at least 4 years of
mathematics, 3 years of science, and 2
years of a foreign language;
(v) the completion of financial aid
applications, including the Free
Application for Federal Student Aid
described in section 483(a) and college
admissions 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, except in the case of programs that
specifically target veterans, the extent to
which the eligible entity met or exceeded the
entity's objectives for such program
regarding--
(i) the delivery of service to a
total number of students served by the
program, as agreed upon by the entity
and the Secretary for the period;
(ii) such students' school
performance, as measured by the grade
point average, or its equivalent;
(iii) such students' academic
performance, as measured by
standardized tests, including tests
required by the students' State;
(iv) the retention in, and graduation
from, secondary school of such
students;
(v) the completion by such students
of a rigorous secondary school program
of study that [will make such students
eligible for programs such as the
Academic Competitiveness Grants
Program] includes at least 4 years of
mathematics, 3 years of science, and 2
years of a foreign language;
(vi) the completion of financial aid
applications, including the Free
Application for Federal Student Aid
described in section 483(a) and college
admission applications;
[(vi)] (vii) the enrollment of such
students in an institution of higher
education; and
[(vii)] (viii) to the extent
practicable, the postsecondary
education completion of such students.
(C) 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 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 of the
program;
(ii) such students' academic
performance as measured by standardized
tests;
(iii) the retention and completion of
participants in the program;
(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 completion of such
students.
[(C)] (D) 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] at any baccalaureate granting
institution within 6 years of initial
enrollment in the project; or
(II) in the case of an entity that is
an institution of higher education that
does not offer a baccalaureate degree,
the extent to which such students met
or exceeded the entity's objectives
regarding--
[(aa) the completion of a
degree or certificate by such
students; and
[(bb) the transfer of such
students to institutions of
higher education that offer
baccalaureate degrees;]
(aa) the transfer of such
students to institutions of
higher education that offer
baccalaureate degrees,
regardless of whether the
transferring student completes
a degree or certificate; or
(bb) the completion of a
degree or certificate by such
students at any accredited
institution within 4 years of
initial enrollment in the
project;
(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)] (E) 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 2 years of receiving the
baccalaureate degree;
(iv) the continued enrollment of such
students in [graduate study and the
attainment of doctoral degrees by
former program participants.] graduate
study; and
(v) the attainment of doctoral
degrees by former program participants
within 10 years of receiving the
baccalaureate degree.
[(E)] (F) 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
within 2 years of service;
(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 each of the five
succeeding fiscal years.] $1,120,000,000 for fiscal year 2021,
and each of the 5 succeeding fiscal years. The amount
authorized to be appropriated in the preceding sentence for
fiscal year 2022 and each of the 4 succeeding fiscal years
shall be deemed increased by the annual adjustment percentage.
For purposes of this subsection, the term ``adjustment
percentage'' as applied to a fiscal year, means 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 before the beginning of that
fiscal year. Of the amount appropriated under this chapter, the
Secretary may use no more than [\1/2\ of] 1 percent of such
amount to obtain additional qualified readers and additional
staff to review applications, to increase the level of
oversight monitoring, to support impact studies, program
assessments and reviews[, and to provide], to provide technical
assistance to potential applicants and [current grantees. In
expending these funds, the Secretary shall give priority to the
additional administrative requirements provided in the Higher
Education Amendments of 1992, to outreach activities, and to
obtaining additional readers.] current grantees, and to carry
out the requirements of subsection (c)(9)(A).
(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.]
(4) Homeless individual.--The term ``homeless
individual'' has the meaning given the term ``homeless
children and youth'' under section 725 of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11434a).
(5) Low-income individual.--The term ``low-income
individual'' means--
(A) an individual from a family whose taxable
income for the preceding year did not exceed
150 percent of the poverty line applicable to
the individual's family size as determined
under section 673(2) of the Community Services
Block Grant Act (42 U.S.C. 9902(2));
(B) an individual whose taxable income as
reported on the individual's most recently
completed Free Application for Federal Student
Aid under section 483(a) did not exceed 150
percent of such poverty line;
(C) an individual who has been determined to
be eligible for a Federal Pell Grant authorized
under section 401; or
(D) for grants authorized under 402B and 402F
of this chapter, a student who is attending a
school that--
(i) elects, or for which the local
educational agency serving the school
elects on behalf of the school, to
receive special assistance payment
under section 11(a)(1)(F)(ii) of the
Richard B. Russell National School
Lunch Act (42 U.S.C.
1759a(a)(1)(F)(ii)); or
(ii) had a percentage of enrolled
students who were identified students
(defined in clause (i) of section
11(a)(1)(F) of such Act (42 U.S.C.
1759a(a)(1)(F))) that meets or exceeds
the threshold described in clause
(viii) of such section (42 U.S.C.
1759a(a)(1)(F)) during the school year
that ends prior to the first year of
the period for which such grant is
awarded.
[(5)] (i) Veteran eligibility.--No veteran shall be deemed
ineligible to participate in any program under this chapter by
reason of such individual's age who--
[(A)] (1) served on active duty for a period of more
than 180 days and was discharged or released therefrom
under conditions other than dishonorable;
[(B)] (2) served on active duty and was discharged or
released therefrom because of a service connected
disability;
[(C)] (3) 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)] (4) 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)] (j) Waiver.--The Secretary may waive the service
requirements in [subparagraph (A), (B), or (C) of paragraph
(5)] paragraph (1), (2), or (3) of subsection (i) 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 regarding the postsecondary
education selection process, including consideration of
financial aid awards offered, potential Federal loan
burden, and likelihood of graduating; 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, 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) education or counseling services to assist
students and their families regarding career choice;
and
(7) connections to programs providing financial
literacy and economic literacy so that students and
their families are able to make informed choices
regarding postsecondary education, including
considering degree choices and potential Federal loan
burdens.
(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))] homeless
individuals, 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 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) 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
402F; [and]
(4) require an assurance that the project will be
located in a setting accessible to the persons proposed
to be served by the project[.];
(5) require an assurance that the entity carrying out
the project has reviewed and revised policies and
practices as needed to remove barriers to the
participation and retention in the project of homeless
individuals, including unaccompanied youth and foster
care youth;
(6) require that such entity submit, as part of the
application for the project, a description of the
activities that will be undertaken to reach out to such
homeless individuals and foster care youth as part of
the project; and
(7) require an assurance that such entity will
prepare and submit the report required under section
402H(e) at the conclusion of the project regarding such
homeless individuals and foster care youth.
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;
(2) advice and assistance in secondary and
postsecondary course selection;
(3) assistance in preparing for college entrance
examinations and completing college admission
applications;
(4)(A) information on the full range of Federal
student financial aid programs and benefits (including
Federal Pell Grant awards and loan forgiveness) and
resources for locating public and private scholarships;
and
(B) assistance in completing financial aid
applications, including the Free Application for
Federal Student Aid described in section 483(a);
[(5) guidance on and assistance in--
[(A) secondary school reentry;
[(B) alternative education programs for
secondary school dropouts that lead to the
receipt of a regular secondary school diploma;
[(C) entry into general educational
development (GED) programs; or
[(D) postsecondary education; and
[(6) education or counseling services designed to
improve the financial literacy and economic literacy of
students or the students' parents, including financial
planning for postsecondary education.]
(5) assistance to students and their families
regarding career choice;
(6) education or counseling services designed to
improve the financial literacy and economic literacy of
students or the students' parents in order to aid them
in making informed decisions about the postsecondary
education selection process and assist students and
their families in making informed choices regarding the
postsecondary education selection process; and
(7) in the case of such a project that is not
specifically designed for veterans, as part of core
curriculum, instruction in mathematics through pre-
calculus, science, foreign language, language arts, and
literature, and in the case of such a project that is
specifically designed for veterans, instruction in
mathematics through pre-calculus, science, foreign
language, and language arts.
[(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)] (c) 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;] participants;
(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] 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))] homeless individuals, students who are in
foster care or are aging out of the foster care system,
or other disconnected students.
[(e)] (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 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 no student will be
denied participation in a project assisted under this
section because the student will enter the project
after the 9th grade[.];
(6) require an assurance that the entity carrying out
the project has reviewed and revised policies and
practices as needed to remove barriers to the
participation and retention in the project of homeless
individuals, including unaccompanied youth and foster
care youth;
(7) require that such entity submit, as part of the
application, a description of the activities that will
be undertaken to reach out to such homeless individuals
and foster care youth regarding the project; and
(8) require an assurance that such entity will
prepare and submit the report required under section
402H(e) at the conclusion of the project regarding such
homeless individuals and foster care youth.
[(f)] (e) Maximum Stipends.--Youths participating in a
project proposed to be carried out under any application may be
paid stipends not in excess of [$60] $90 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] $450 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] $60 per month during the remaining
period of the year. Adults participating in a project
specifically targeting veterans under this section may be paid
stipends not in excess of $100 per month during 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)] (f) 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 students who are [limited English
proficient] low-income and first generation college
students, including limited English proficient
students, 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))] homeless individuals, 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 planning for
postsecondary education;] including--
(A) financial planning for postsecondary
education, including loan burdens required,
repayment options, and expected earnings in
potential career fields;
(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[.]; and
(7) basic and emergency supplemental living
assistance grants in accordance with subsection (f).
(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))] homeless individuals 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))] homeless
individuals, 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) 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[.];
(7) require an assurance that the entity carrying out
the project has reviewed and revised policies and
practices as needed to remove barriers to the
participation and retention in the project of homeless
individuals, including unaccompanied youth and foster
care youth;
(8) require that such entity submit, in the
application for the project, a description of the
activities that will be undertaken to reach out to such
homeless individuals and foster care youth, who are
enrolled or accepted for enrollment at the institution;
and
(9) require an assurance that such entity will
prepare and submit the report required under section
402H(e) at the conclusion of the project regarding such
homeless individuals and foster care youth.
(f) Basic and Emergency Supplemental Living Assistance
Grants.--
(1) In general.--In carrying out the activities
required under subsection (b)(7) with a grant received
under this section, the recipient of such grant shall
provide basic and emergency supplemental living
assistance grants to assist students who are current
participants in the student support services program
offered by the institution (in this subsection referred
to as ``eligible students'')--
(A) in the case of a basic supplemental
living assistance grant, in covering
reasonable, anticipated expenses necessary for
the completion of an academic year of the
students' first undergraduate baccalaureate
course of study; and
(B) in the case of an emergency supplemental
living assistance grant, in covering
reasonable, unanticipated expenses necessary
for the students to persist in college during
such academic year.
(2) Amount of grants.--The recipient may determine--
(A) the appropriate division of the funds
between basic and emergency supplemental
assistance grants, except that funds shall be
provided for both basic and emergency grants;
(B) the amount of each such grant and the
total grant funds that an eligible student may
receive, except that a student may not receive
more than a total of $500 in emergency
supplemental assistance grants per academic
year; and
(C) the anticipated and unanticipated
expenses referred to in paragraph (1) that such
grants will cover based on the needs of
eligible students, which--
(i) may vary by factors including
academic year, housing, parental
status, location in urban or rural
area, or other circumstances; and
(ii) for an individual student, may
cover--
(I) any component of the cost
of attendance for the student;
(II) an allowance for actual
or expected expenses incurred
for dependent care that exceeds
such expenses determined for
the student under section
472(8);
(III) an allowance for actual
or expected expenses for
transportation that exceeds
such expenses determined for
the student under section 472;
and
(IV) personal items or
expenses not otherwise covered
by the cost of attendance for
the student.
(3) Percentage of total funds.--The recipient may use
not more than 2 percent of the funds awarded under this
section for grants under this subsection.
(4) Determination of need.--A grant provided to a
student under this subsection 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 by more than $500.
(5) Consultation.--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.
(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.
(7) Funds.--For a fiscal year for which the funds
allocated for projects authorized under this section
from the amounts appropriated pursuant to the authority
of section 402A(g) exceeds the funds allocated for such
purpose for fiscal year 2020, not more than 2 percent
of such excess funds may be made available for grants
under this subsection.
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 or 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 or faculty-led experiences who
have stipends have completed their sophomore year in
postsecondary education.
(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]
$4,000 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.
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] begin 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, 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, including student loan debt,
repayment options, and expected earnings in
potential career fields;
(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))] homeless individuals, 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 that such participants be persons who are
at least nineteen years of age, unless the imposition
of such limitation with respect to any person would
defeat the purposes of this section or the purposes of
section 402B; [and]
(3) require an assurance that individuals
participating in the project proposed in the
application do not have access to services from another
project funded under this section or under section
402B[.];
(4) require an assurance that the entity carrying out
the project has reviewed and revised policies and
practices as needed to remove barriers to the
participation and retention in the project of homeless
individuals, including unaccompanied youth and foster
care youth;
(5) require that such entity submit, as part of the
application, a description of the activities that will
be undertaken to reach out to such homeless individuals
and foster care youth regarding the project; and
(6) require an assurance that such entity will
prepare and submit the report required under section
402H(e) at the conclusion of the project regarding such
homeless individuals and foster care youth.
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, 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 and
program management for new directors of programs funded
under this chapter.
[(1)] (2) Legislative and regulatory requirements for
the operation of programs for continuing directors and
staff of programs funded under this chapter.
[(2)] (3) Assisting students in receiving adequate
financial aid from programs assisted under this title
and other programs.
[(3)] (4) The design and operation of [model
programs] innovations for projects funded under this
chapter.
[(4)] (5) The use of appropriate educational
technology in the operation of projects assisted under
this chapter.
[(5)] (6) 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))] homeless
individuals, 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]
The issues such evaluations shall measure shall
include the effectiveness of programs and
projects assisted under this chapter in--
(i) meeting or exceeding the stated
objectives regarding the outcome
criteria under section 402A(f);
(ii) enhancing the access of low-
income individuals and first-generation
college students to postsecondary
education;
(iii) preparing individuals for
postsecondary education; and
(iv) comparing students who
participate in the programs funded
under this chapter with students who do
not participate in such programs with
respect to--
(I) level of education
completed;
(II) retention rates;
(III) graduation rates;
(IV) college admission and
completion rates; and
(V) other issues as the
Secretary considers
appropriate. .
(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 and take into account the
agreed upon target determined under section
402A(f)(4).
[(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.]
(2) Practices.--The evaluations described in
paragraph (1) shall identify institutional, community,
and program or project practices that are effective
in--
(A) enhancing the access of low-income
individuals and first-generation college
students to postsecondary education;
(B) the preparation of such individuals and
students for postsecondary education;
(C) fostering the success of the individuals
and students in postsecondary education; and
(D) for programs and projects assisted under
section 402C, the characteristics of students
who benefit most from such programs and
projects.
(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.
(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, including the authorizing
committees.
(e) Report Regarding Homeless Individuals and Foster Care
Youth.--Each entity carrying out a project under section 402B,
402C, 402D, or 402F shall, at the conclusion of the project,
prepare and submit a report to the Secretary that includes--
(1) where available, data on the number of homeless
individuals and foster care youth served through the
project; and
(2) a description of any strategies or program
enhancements that were used in the project and that
were effective in meeting the needs of such homeless
individuals and foster care youth.
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, including
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 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
[(B) ensure that students served under this
chapter on the day before the date of enactment
of the Higher Education Opportunity Act
continue to receive assistance through the
completion of secondary school.]
(3) Priority.--In making awards to eligible entities
described in subsection (c), the Secretary may give a
competitive priority--
(A) to eligible entities that--
(i) on the day before the date of
enactment of the College Affordability
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 and readiness
through collaboration and replication
of successful strategies; or
(B) to eligible entities that ensure that
students that received assistance under this
chapter on the day before the date of enactment
of the College Affordability Act continue to
receive such assistance through the completion
of secondary school.
(4) Multiple award prohibition.--
(A) In general.--An eligible entity described
in subsection (c)(1) that receives a grant
under this chapter shall not be eligible to
receive an additional grant under this chapter
until after the date on which the grant period
with respect to such grant expires.
(B) Exception for no-cost extension.--
Notwithstanding subparagraph (A), an eligible
entity described in subsection (c)(1) that
receives a grant under this chapter that has
been extended under section 75.261 of title 34,
Code of Federal Regulations may receive an
additional grant under this chapter prior to
the date on which the grant period applicable
to such extension 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. 404B. REQUIREMENTS.
(a) Funding Rules.--In awarding grants (except with respect
to continuation awards under this chapter) from the amount
appropriated under section 404H for a fiscal year, the
Secretary shall make available--
(1) to eligible entities described in section
404A(c)(1), not less than 33 percent of such amount;
(2) to eligible entities described in section
404A(c)(2), not less than 33 percent of such amount;
and
(3) to eligible entities described in paragraph (1)
or (2) of section 404A(c), the remainder of such amount
taking into consideration the number, quality, and
promise of the applications for the grants, and, to the
extent practicable--
(A) the geographic distribution of such grant
awards; and
(B) the distribution of such grant awards
between urban and rural applicants.
(b) Coordination.--Each eligible entity shall ensure that the
activities assisted under this chapter are, to the extent
practicable, coordinated with, and complement and enhance--
(1) services under this chapter provided by other
eligible entities serving the same school district or
State; and
(2) related services under other Federal or non-
Federal programs.
(c) Designation of Fiscal Agent.--An eligible entity
described in section 404A(c)(2) shall designate an institution
of higher education or a local educational agency as the fiscal
agent for the eligible entity.
(d) Cohort Approach.--
(1) In general.--The Secretary shall require that
eligible entities described in section 404A(c)(2)--
(A) provide services under this chapter to at
least one grade level of students, beginning
not later than 7th grade, in a participating
school that has a 7th grade and 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 (or, if an eligible entity determines that
it would promote the effectiveness of a
program, an entire grade level of students,
beginning not later than the 7th grade, who
reside in public housing as defined in section
3(b)(1) of the United States Housing Act of
1937); and
(B) ensure that the services are provided
through the 12th grade to students in the
participating grade level and provide the
option of continued services through the
student's first year of attendance at an
institution of higher education to the extent
the provision of such services was described in
the eligible entity's application for
assistance under this chapter[; and].
[(C) provide services under this chapter to
students who have received services under a
previous GEAR UP grant award but have not yet
completed the 12th grade.]
(2) Coordination requirement.--In order for the
Secretary to require the cohort approach described in
paragraph (1), the Secretary shall, where applicable,
ensure that the cohort approach is done in coordination
and collaboration with existing early intervention
programs and does not duplicate the services already
provided to a school or community.
(e) Supplement, Not Supplant.--Grant funds awarded under this
chapter shall be used to supplement, and not supplant, other
Federal, State, and local funds that would otherwise be
expended to carry out activities assisted under this chapter.
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;
(C) describe, in the case of an eligible
entity described in section 404A(c)(2) that
requests a reduced match percentage under
subsection (b)(2), how such reduction will
assist the entity to provide the scholarships
described in subsection (b)(2)(A)(ii);
(D) provide assurances that adequate
administrative and support staff will be
responsible for coordinating the activities
described in section 404D;
(E) provide assurances that activities
assisted under this chapter will not displace
an employee or eliminate a position at a school
assisted under this chapter, including a
partial displacement such as a reduction in
hours, wages, or employment benefits;
(F) describe, in the case of an eligible
entity described in section 404A(c)(1) that
chooses to use a cohort approach, or an
eligible entity described in section
404A(c)(2), how the eligible entity will define
the cohorts of the students served by the
eligible entity pursuant to section 404B(d),
and how the eligible entity will serve the
cohorts through grade 12, including--
(i) how vacancies in the program
under this chapter will be filled; and
(ii) how the eligible entity will
serve students attending different
secondary schools;
(G) describe how the eligible entity will
coordinate programs under this chapter with
other existing Federal, State, or local
programs to avoid duplication and maximize the
number of students served;
(H) provide such additional assurances as the
Secretary determines necessary to ensure
compliance with the requirements of this
chapter;
(I) provide information about the activities
that will be carried out by the eligible entity
to support systemic changes from which future
cohorts of students will benefit; [and]
(J) describe the sources of matching funds
that will enable the eligible entity to meet
the matching requirement described in
subsection (b)[.];
(K) provide an assurance that the eligible
entity has reviewed and revised policies and
practices as needed to remove barriers to the
participation and retention of homeless
individuals (as defined in section 402A) in the
program, including unaccompanied youth and
foster care youth;
(L) describe the activities that will be
undertaken to reach out to such homeless
individuals and foster care youth as part of
the program; and
(M) provide an assurance that the eligible
entity will prepare and submit the report
required under section 404G(c) at the
conclusion of the grant regarding such homeless
individuals and foster care youth.
(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 matching funds, from State, local,
institutional, or private funds, equaling not
less than 50 percent of [the cost of the
program, which matching funds] the total
Federal grant award under this chapter, which
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.
(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 at any point during the grant award period
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.]
(d) Peer Review Panels and Competitions.--The Secretary
shall--
(1) convene peer review panels to assist in making
determinations regarding the awarding of grants under
this chapter; and
(2) host a grant competition to make new awards under
this chapter in any year in which there are funds
available to make new awards.
SEC. 404D. ACTIVITIES.
(a) Required Activities.--Each eligible entity receiving a
grant under this chapter shall provide comprehensive mentoring,
outreach, and supportive services to students participating in
the programs under this chapter. Such activities shall include
the following:
(1) Providing information regarding financial aid for
postsecondary education to participating students in
the cohort described in section 404B(d)(1)(A) or to
priority students described in subsection (d).
(2) Encouraging student enrollment in rigorous and
challenging curricula and coursework, in order to
reduce the need for remedial coursework at the
postsecondary level.
(3) Improving the number of participating students
who--
(A) obtain a secondary school diploma; and
(B) complete applications for and enroll in a
program of postsecondary education.
(4) In the case of an eligible entity described in
section 404A(c)(1), providing for the scholarships
described in section 404E.
(b) Permissible Activities for States and Partnerships.--An
eligible entity that receives a grant under this chapter may
use grant funds to carry out one or more of the following
activities:
(1) Providing tutors and mentors, who may include
adults [or former participants of a program under this
chapter], former participants of a program under this
chapter, or peers and near peers, for eligible
students.
(2) Conducting outreach activities to recruit
priority students described in subsection (d) to
participate in program activities.
(3) Providing supportive academic, social, and
postsecondary planning services to eligible students.
(4) Supporting the development or implementation of
rigorous academic curricula, which may include college
preparatory, Advanced Placement, or International
Baccalaureate programs, and providing participating
students access to rigorous core academic courses that
reflect challenging State academic standards.
(5) Supporting dual or concurrent enrollment programs
between the secondary school and institution of higher
education partners of an eligible entity described in
section 404A(c)(2), and other activities that support
participating students in--
(A) meeting challenging State academic
standards;
(B) successfully applying for postsecondary
education;
(C) successfully applying for student
financial aid; and
(D) developing graduation and career plans.
(6) Providing special programs or tutoring in
science, technology, engineering, or mathematics.
(7) In the case of an eligible entity described in
section 404A(c)(2), providing support for scholarships
described in section 404E.
(8) Introducing eligible students to institutions of
higher education, through trips and school-based
sessions.
(9) Providing an intensive extended school day,
school year, or summer program that offers--
(A) additional academic classes; or
(B) assistance with college admission
applications.
(10) Providing other activities designed to ensure
secondary school completion and postsecondary education
enrollment of at-risk children, such as--
(A) the identification of at-risk children;
(B) after-school and summer tutoring;
(C) assistance to at-risk children in
obtaining summer jobs;
(D) academic counseling;
(E) 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)] (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 educational agencies.
(11) Enabling eligible students to enroll in Advanced
Placement or International Baccalaureate courses, or
college entrance examination preparation courses.
(12) Providing services to eligible students in the
participating cohort described in section
404B(d)(1)(A), through the first year of attendance at
an institution of higher education.
(13) Fostering and improving parent and family
involvement in elementary and secondary education by
promoting the advantages of a college education, and
emphasizing academic admission requirements and the
need to take college preparation courses, through
parent engagement and leadership activities.
(14) Disseminating information that promotes the
importance of higher education, explains college
preparation and admission requirements, and raises
awareness of the resources and services provided by the
eligible entities to eligible students, their families,
and communities.
(15) In the event that matching funds described in
the application are no longer available, engaging
entities described in section 404A(c)(2) in a
collaborative manner to provide matching resources and
participate in other activities authorized under this
section.
(16) Creating or expanding secondary school drop-out
recovery programs that allow students who have dropped
out of secondary school to complete a regular secondary
school diploma and begin college-level work.
(17) Establishing data collection and data sharing
agreements to obtain, analyze, and report postsecondary
outcome data for eligible students for a period of not
more than 72 months after the end of the grant award
period, which may include postsecondary enrollment,
persistence, and completion data.
(18) Establishing or maintaining an agreement with a
consortium of eligible entities described in section
404A(c) to--
(A) foster collaborative approaches to
research and evaluation;
(B) improve the quality of data collection,
data sharing, analysis and reporting; and
(C) apply evidence to improve programs and
evaluation under this chapter.
(19) Facilitating the recruitment, participation, and
retention of homeless individuals (as defined in
section 402A) and foster care youth in the services
provided under this chapter, including--
(A) establishing partnerships with community-
based organizations, child welfare agencies,
homeless shelters, and local educational agency
liaisons for homeless individuals to identify
such individuals and youth, improve policies
and practices, and to establish data sharing
agreements;
(B) carrying out activities (consistent with
the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11301 et seq.)) to facilitate continued
participation of students who are no longer
enrolled in a school served under this chapter
due to changes in residence resulting from
homelessness or foster care placement,
including--
(i) allowing continued participation
when such a student is no longer
enrolled, on a temporary basis, in a
school served under this chapter; or
(ii) providing transitional services
and referrals when such a student is no
longer enrolled, on a permanent basis,
in a school served under this chapter;
and
(C) carrying out other activities to meet the
needs of such homeless individuals and foster
care youth.
(20) Providing services under this chapter to
students who have received services under a previous
grant award under this chapter but have not yet
completed grade 12.
(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) eligible for free or reduced-price lunch under
the Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.); or
[(4)] (5) 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 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) Application requirements.--
(A) Plan for maintenance of financial
assistance.--An eligible entity proposing to
establish or maintain a financial assistance
program providing scholarships for students
assisted by the program of the eligible entity
under this chapter shall include a plan
regarding the financial application program
with the application submitted under section
404C.
(B) Scholarship details.--Under a plan
described in subparagraph (A), an eligible
entity--
(i) may elect to offer 1 or more
types of scholarships; and
(ii) shall describe, for each type of
scholarship--
(I) the minimum and maximum
awards for the scholarships,
consistent with subsection (d),
based on criteria and
disbursement priorities
established by the eligible
entity;
(II) the duration of the
scholarships, which may be
single-year or multi-year
awards;
(III) the enrollment
requirements for participating
students, which may include
providing scholarships for
participating students who are
enrolled in an institution of
higher education on less than a
full-time basis during any
award year; and
(IV) any additional student
eligibility criteria
established by the eligible
entity for earning and
maintaining scholarships under
this section, including--
(aa) financial need;
(bb) meeting
participation
milestones in the
activities offered by
the eligible entity
under section 404D;
(cc) meeting and
maintaining
satisfactory academic
milestones; and
(dd) other criteria
aligned with State and
local goals to
incentivize
postsecondary
readiness, access, and
success.
[(2)] (3) Partnerships.--An eligible entity described
in section 404A(c)(2) [may award] may use not less than
10 percent and not more than 50 percent of funds made
available under this chapter to award scholarships to
eligible students in accordance with the requirements
of this section.
(b) [Limitation] State 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.] eligible
entity--
(A) demonstrates that the eligible entity has
another means of providing the students with
the financial assistance described in this
section or eligible students have reasonable
access to State and local financial assistance
programs; and
(B) describes such means or access 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).]
(1) In general.--
(A) Scholarship plan.--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 estimated amount that is based on the
eligible entity's scholarship plan described in
subsection (a)(1).
(B) Interest use.--Interest earned on funds
held in reserve under subparagraph (A) may be
used by the eligible entity to administer the
scholarship program during the award period and
through the post-award period described in
paragraph (4).
(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, or been accepted for
enrollment, 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) the costs associated with enrolling in an
institution of higher education; and
[(B)] (C) 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 or, if the eligible entity chooses,
in another program of study or credential program for
which an individual could use funds received under a
Federal Pell Grant to attend, that is located within
the State's boundaries, [except that, at the State's
option] except that, at the eligible entity'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) and qualifies for an award, consistent
with the eligible entity's scholarship plan as
described in subsection (a)(2).
* * * * * * *
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 under
section 483.
(B) If applicable, the number of students
receiving a scholarship under section 404E.
(C) The graduation rate of participating
students from high school.
(D) The enrollment of participating students
in postsecondary education.
(E) Such other metrics as the Secretary may
require.
(c) Report on Homeless Individuals and Foster Care Youth.--
Each eligible entity that receives a grant under section 404A
shall, at the conclusion of such grant, prepare and submit a
report to the Secretary that includes--
(1) where available, the number of homeless
individuals (as defined in section 402A) and foster
care youth served through the program; and
(2) a description of any strategies or program
enhancements that were used by the eligible entity in
carrying out the program that were effective in meeting
the needs of such homeless individuals and foster care
youth.
[(c)] (d)In order to evaluate and improve the impact of the
activities assisted under this chapter, the Secretary shall,
after consultation with the community of eligible entities
receiving grants under this chapter and from not more than
[0.75] 1 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) provide pre-application technical assistance
workshops for eligible entities and potential
applicants in any year in which new awards are expected
to be made;
(2) support initiatives designed to improve the
research, data collection and infrastructure, and
evaluation capacity of eligible entities; and
(3) evaluate the effectiveness of the program and, as
appropriate, disseminate the results of the evaluation.
Such evaluation may include a separate analysis of--
[(1)] (A) the implementation of the
scholarship component described in section
404E; and
[(2)] (B) the use of methods for complying
with matching requirements described in
paragraphs (1) and (2) of section 404C(c).
[(d)] (e) 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] $500,000,000 for
fiscal year 2021 and such sums as may be necessary for 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.]
(a) Purpose of Subpart.--It is the purpose of this subpart
to--
(1) 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;
and
(2) to establish grant programs at various
institutions of higher education, as defined in section
101, to determine best practices and policies regarding
the distribution of emergency grant aid to assist
students in completing their program of study,
notwithstanding aid they may have received 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.] appropriated--
(A) $1,150,000,000 for fiscal year 2021;
(B) $1,300,000,000 for fiscal year 2022;
(C) $1,450,000,000, for fiscal year 2023;
(D) $1,600,000,000 for fiscal year 2024; and
(E) $1,750,000,000 for fiscal year 2025 and each
succeeding fiscal year.
(2) For the purpose of enabling the Secretary to fund
emergency grant aid programs under section 420DD, there are
allocated, from funds authorized under paragraph (b)(1),
$12,500,000 for fiscal year 2021 and each of the 5 succeeding
fiscal years.
[(2)] (3) 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. 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] except as provided in paragraph (4),
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]
(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[.]; and
(4) agrees that the Federal share of an award under
this subpart to an institution eligible for assistance
under title III or title V shall equal 100 percent of
such award.
(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. 413D. ALLOCATION OF FUNDS.
(a) Allocation Formula for Fiscal Years 2021 Through 2025.--
(1) In general.--From the amount appropriated under
section 413A(b)(1) for a fiscal year, the Secretary
shall allocate to each institution--
(A) for fiscal year 2021, an amount equal to
the greater of--
(i) 90 percent of the amount the
institution received under subsection
(a) for fiscal year 2020, as such
subsection was in effect with respect
to such fiscal year (in this
subparagraph referred to as ``the 2020
amount for the institution''); or
(ii) the fair share amount for the
institution determined under subsection
(c);
(B) for fiscal year 2022, an amount equal to
the greater of--
(i) 80 percent of the 2020 amount for
the institution; or
(ii) the fair share amount for the
institution determined under subsection
(c);
(C) for fiscal year 2023, an amount equal to
the greater of--
(i) 60 percent of the fiscal year
2020 amount for the institution; or
(ii) the fair share amount for the
institution determined under subsection
(c);
(D) for fiscal year 2024, an amount equal to
the greater of--
(i) 40 percent of the 2020 amount for
the institution; or
(ii) the fair share amount for the
institution determined under subsection
(c); and
(E) for fiscal year 2025, an amount equal to
the greater of--
(i) 20 percent of the 2020 amount for
the institution; or
(ii) the fair share amount for the
institution determined under subsection
(c).
(2) Ratable reduction.--
(A) In general.--If the amount appropriated
under section 413A(b)(1) for a fiscal year 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).
(b) Allocation Formula for Fiscal Year 2026 and Each
Succeeding Fiscal Year.--From the amount appropriated under
section 413A(b)(1) for fiscal year 2026 and each succeeding
fiscal year, the Secretary shall allocate to each institution
the fair share amount for the institution determined under
subsection (c).
(c) Determination of Fair Share Amount.--
(1) In general.--Subject to paragraph (2), the fair
share amount for an institution for a fiscal year shall
be equal to the sum of the institution's undergraduate
student need described in paragraph (2) for the
preceding fiscal year.
(2) Institutional undergraduate student need
calculation.--The institutional undergraduate student
need 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 awarded 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.
(3) Eligibility for fair share amount.--The Secretary
may not allocate funds under this subpart to any
institution that, for 2 or more fiscal years during any
3 fiscal year period beginning not earlier than the
first day of the first fiscal year that is 2 years
after the date of the enactment of this paragraph, has
a student population with less than 7 percent of
undergraduate students who are recipients of Federal
Pell Grants.
(d) Definitions.--In this section:
(1) Average cost of attendance.--The term ``average
cost of attendance'' has the meaning given the term in
section 4202(e)(5)(B).
(2) Undergraduate student need.--The term
``undergraduate student need'' means, with respect to
an undergraduate student for an award year, the lesser
of the following:
(A) 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 award year, minus
(ii) such undergraduate student's
expected family contribution (computed
in accordance with part F of this
title) for the preceding award year.
(B) The total loan annual limit for a Federal
Direct Unsubsidized Stafford Loan and a Federal
Direct Loan.
* * * * * * *
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 Innovation and
Opportunity Act; 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 Innovation
and Opportunity Act, 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] 2021 and such sums as may be necessary for the 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] Except as
provided in subparagraph (C), the amount of a
grant awarded to an institution of higher
education under this section for a fiscal year
shall not exceed [1 percent] 2 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)] subsection (h) 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.
(C) Performance bonus.--
(i) In general.--Notwithstanding
subparagraph (A), for any fiscal year
for which the amount appropriated under
subsection (h) is not less than
$140,000,000, the Secretary may pay a
performance bonus to an eligible
institution of higher education.
(ii) Maximum amount.--A bonus paid to
an eligible institution of higher
education under clause (i) for a fiscal
year shall not exceed an amount equal
to 20 percent of the amount of the
annual grant payment received by the
institution under paragraph (3)(B) for
the fiscal year preceding the fiscal
year for which the bonus is paid.
(iii) Use of bonus.--A bonus received
by an institution under clause (i)
shall be used by the institution in the
same manner as a grant under this
section and shall be treated as grant
funds for purposes of the application
of paragraph (5), except that the
Secretary may extend the grant period
as necessary for the institution to use
such bonus.
(iv) Eligible institution of higher
education.--In this subparagraph, the
term ``eligible institution of higher
education'' means an institution of
higher education that--
(I) has received a grant
under this section for not less
than the period of three
consecutive fiscal years
preceding the fiscal year in
which the bonus is paid under
clause (i);
(II) for each such preceding
fiscal year, has met or
exceeded the performance levels
established by the institution
for such year under subsection
(e)(1)(B)(v); and
(III) has demonstrated the
need for such bonus.
(3) Duration; renewal; and payments.--
(A) Duration.--The Secretary shall award a
grant under this section for a period of [4
years] 5 years.
(B) Payments.--Subject to [subsection (e)(2)]
subsection (e)(3), 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.]
(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 the
following services to the extent necessary to enable
low-income students enrolled at the institution of
higher education to pursue postsecondary education--
(A) evening, summer, weekend and before and
after school services; and
(B) services to expectant parents, such as
the provision of information regarding the
relationship between prenatal health and early
child development and the administration of a
home visit closely following the birth of the
child.
(6) 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)] 484(a)(2)
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, 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 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 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, or registration requirements;
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.]
(c) Applications.--
(1) In general.--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. Such application shall--
(A) demonstrate that the institution is an
eligible institution described in subsection
(b)(4);
(B) specify the amount of funds requested;
(C) demonstrate the need of low-income
students at the institution for campus-based
child care services by including in the
application--
(i) information regarding student
demographics, including the share of
students enrolled full-time;
(ii) an assessment of child care
capacity on or near campus;
(iii) information regarding the
waiting lists for child care services
on or near campus;
(iv) information regarding additional
needs created by concentrations of
poverty or by geographic isolation;
(v) information about the number of
low-income student parents being served
through campus-based child care
services; and
(vi) other relevant data;
(D) specify the estimated percentage of the
institution's grant that will be used directly
to subsidize the fee charged for on-campus and
off-campus childcare, respectively, for low-
income students;
(E) contain a description of the activities
to be assisted, including whether the grant
funds will support an existing child care
program or a new child care program;
(F) identify the resources, including
technical expertise and financial support, that
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 resources will not result
in increases in student tuition;
(G) 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;
(H) 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;
(I) in the case of an institution seeking
assistance for a new child care program--
(i) 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;
(ii) 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
(iii) 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;
(J) contain an assurance that any child care
facility assisted under this section will meet
the applicable State and local government
licensing, certification, approval, or
registration requirements;
(K) in the case of an institution that is
awarded a grant under this section after the
date of the enactment of the College
Affordability Act, provide an assurance that,
not later than three years after the date on
which such grant is awarded, any child care
facility assisted with such grant will--
(i) meet Head Start performance
standards under subchapter B of chapter
13 of title 45, Code of Federal
Regulations (as in effect on the date
of enactment of the College
Affordability Act) and any successor
regulations;
(ii) be in the top tier of the
quality rating improvement system for
such facilities used by the State in
which the facility is located;
(iii) meet the licensing requirements
of the State in which the facility is
located and the quality requirements
under the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858
et seq.); or
(iv) be accredited by a national
early childhood accrediting body with
demonstrated valid and reliable program
quality standards;
(L) contain an assurance that the
institution, when applicable, will make
information available to students receiving
child care services provided under this section
about the eligibility of such students and
their dependents for assistance under the
supplemental nutrition assistance program under
the Food and Nutrition Act of 2008 (7 U.S.C.
2011 et seq.), the special supplemental
nutrition program for women, infants, and
children under the Child Nutrition Act of 1966
(42 U.S.C. 1786), and 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.);
(M) contain an abstract summarizing the
contents of such application and how the
institution intends to achieve the purpose
under subsection (a); and
(N) contain an assurance that the institution
will provide information on the institution's
website regarding the availability of child
care subsidies for student parents and the
dependent care cost allowance available to
parents with dependent children in accordance
with section 472.
(2) Technical assistance.--The Secretary may provide
technical assistance to eligible institutions to help
such institutions qualify for, apply for, and maintain
a grant 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 or institutional
resources, including in-kind contributions, to support
the activities assisted under this section; and]
(1) based on the extent to which institutions of
higher education that submit applications for such a
grant leverage local or institutional resources,
including in-kind contributions, to support the
activities assisted under this section;
(2) to institutions of higher education that,
compared to other institutions of higher education that
submit applications for such a grant, demonstrate a
high likelihood of need for campus-based child care
based on student demographics (such as a high
proportion of low-income students or independent
students); and
[(2)] (3) to institutions of higher education that
submit applications describing programs that 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.
(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[;] which shall
include--
(I) the number of full- and
part-time students,
respectively, receiving child
care services under this
section at least once per week
during the academic year;
(II) the number of credits
accumulated by students
receiving such child care
services; and
(III) the number of students
receiving child care services
under this section at least
once per week during the
academic year who--
(aa) remain enrolled
at the institution
during the academic
year for which they
received such services;
(bb) enroll at the
institution for the
following academic
year; and
(cc) graduate or
transfer within--
(AA) 150
percent of the
normal time for
completion of a
student's four-
year degree
granting
program; or
(BB) 200
percent of the
normal time for
completion of a
student's two-
year degree-
granting
program;
(ii) with respect to the total
student enrollment at the institution
and the total enrollment of low-income
students at the institution,
respectively--
(I) the rate at which
students who complete an
academic year at the
institution re-enroll in the
institution for the following
academic year; and
(II) the percentage of
students graduating or
transferring within--
(aa) 150 percent of
the normal time for
completion of a
student's four-year
degree granting
program; or
(bb) 200 percent of
the normal time for
completion of a
student's two-year
degree granting
program;
(iii) the percentage of the
institution's grant that was used
directly to subsidize the fee charged
for on-campus and off-campus childcare,
respectively, for low-income students;
(iv) whether the institution
restricts eligibility for child care
services to only full-time students;
(v) the sufficiently ambitious levels
of performance established for such
year by the institution that
demonstrate meaningful progress and
allow for meaningful evaluation of
program quality based on the
information in clauses (i)(III) and
(iii);
[(ii)] (vi) information on campus and
community resources and funding used to
help low-income students access child
care services;
[(iii)] (vii) information on progress
made toward accreditation of any child
care facility; and
[(iv)] (viii) information on the
impact of the grant on the quality,
availability, and affordability of
campus-based child care services.
(2) Report.--
(A) Report required.--On an annual basis, the
Secretary shall submit to the authorizing
committees a report that includes--
(i) a summary of the information
described in paragraph (1); and
(ii) each abstract submitted under
subsection (c)(1)(M) by an institution
of higher education that receives a
grant under this section.
(B) Public availability.--The Secretary shall
make each report submitted under subparagraph
(A) publicly available.
[(2)] (3) 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) (other than the information provided
under subparagraph (B)(v) of such paragraph), 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.
(4) Technical assistance.--The Secretary shall
provide technical assistance to institutions of higher
education receiving grants under this section to help
such institutions meet the reporting requirements under
this subsection.
(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] $200,000,000 for fiscal year
2021 and each of the five succeeding fiscal years.
Subpart 8--Jumpstart to College
SEC. 419O. DEFINITIONS.
In this subpart:
(1) Eligible entity.--The term ``eligible entity''
means an institution of higher education in partnership
with one or more local educational agencies (which may
be an educational service agency). Such partnership may
also include other entities such as nonprofit
organizations or businesses, and schools in juvenile
detention centers.
(2) Institution of higher education.--The term
``institution of higher education'' has the meaning
given the term in section 101 (20 U.S.C. 1001).
(3) ESEA terms.--The terms ``dual or concurrent
enrollment program'', ``early college high school'',
``educational service agency'', ``four-year adjusted
cohort graduation rate'', ``local educational agency'',
``secondary school'', and ``State'' have meanings given
the terms in section 8101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801).
(4) Low-income student.--The term ``low-income
student'' means a student counted under section 1124(c)
of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6333(c)).
(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).
SEC. 419P. AUTHORIZATION OF APPROPRIATIONS; RESERVATIONS.
(a) In General.--To carry out this subpart, there are
authorized to be appropriated $250,000,000 for fiscal year 2021
and each of the five succeeding fiscal years.
(b) Reservations.--From the funds appropriated under
subsection (a) for each fiscal year, the Secretary shall
reserve--
(1) not less than 40 percent for grants to eligible
entities under section 419Q;
(2) not less than 55 percent for grants to States
under section 419R; and
(3) not less than 5 percent for national activities
under section 419T.
SEC. 419Q. GRANTS TO ELIGIBLE ENTITIES.
(a) In General.--The Secretary shall award grants to eligible
entities, on a competitive basis, to assist such entities in
establishing or supporting an early college high school or dual
or concurrent enrollment program in accordance with this
section.
(b) Duration.--Each grant under this section shall be awarded
for a period of 6 years.
(c) Grant Amount.--The Secretary shall ensure that the amount
of each grant under this section is sufficient to enable each
grantee to carry out the activities described in subsection
(h), except that a grant under this section may not exceed
$2,000,000.
(d) Matching Requirement.--
(1) In general.--For each year that an eligible
entity receives a grant under this section, the entity
shall contribute matching funds, in the amounts
described in paragraph (2), for the activities
supported by the grant.
(2) Amounts described.--The amounts described in this
paragraph are--
(A) for each of the first and second years of
the grant period, 20 percent of the grant
amount;
(B) for each of the third and fourth years of
the grant period, 30 percent of the grant
amount;
(C) for the fifth year of the grant period,
40 percent of the grant amount; and
(D) for the sixth year of the grant period,
50 percent of the grant amount.
(3) Determination of amount contributed.--
(A) In-kind contributions.--The Secretary
shall allow an eligible entity to meet the
requirements of this subsection through in-kind
contributions.
(B) Non-federal sources.--Not less than half
of each amount described in paragraph (2) shall
be provided by the eligible entity from non-
Federal sources.
(e) Supplement, Not Supplant.--An eligible entity shall use a
grant received under this section only to supplement funds that
would, in the absence of such grant, be made available from
other Federal, State, or local sources for activities supported
by the grant, not to supplant such funds.
(f) Priority.--In awarding grants under this section, the
Secretary shall give priority to eligible entities that--
(1) propose to establish or support an early college
high school or other dual or concurrent enrollment
program that will serve a student population of which
not less than 51 percent are low-income students;
(2) include a local educational agency which serves a
high school that is--
(A) identified for comprehensive support and
improvement under section 1111(c)(4)(D)(i) of
the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6311(c)(4)(D)(i)); or
(B) implementing a targeted support and
improvement plan as described in section
1111(d)(2) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6311(d)(2));
(3) are from States that provide assistance to early
college high schools or other dual enrollment programs,
such as assistance to defray the costs of higher
education (including costs of tuition, fees, and
textbooks); and
(4) propose to establish or support an early college
high school or dual or concurrent enrollment program
that meets quality standards established by--
(A) a nationally recognized accrediting
agency or association that offers accreditation
specifically for such programs; or
(B) a State process specifically for the
review and approval of such programs.
(g) Equitable Distribution.--The Secretary shall ensure, to
the extent practicable, that eligible entities receiving grants
under this section--
(1) are from a representative cross section of--
(A) urban, suburban, and rural areas; and
(B) regions of the United States; and
(2) include both two-year and four-year institutions
of higher education.
(h) Uses of Funds.--
(1) Mandatory activities.--
(A) In general.--An eligible entity shall use
grant funds received under this section--
(i) to support the activities
described in its application under
subsection (i);
(ii) to create and maintain a
coherent system of supports for
students, teachers, principals, and
faculty under the program, including--
(I) college and career
readiness, academic, and social
support services for students;
and
(II) professional development
for secondary school teachers,
faculty, and principals, and
faculty from the institution of
higher education, including--
(aa) joint
professional
development activities;
and
(bb) activities to
assist such teachers,
faculty, and principals
in using effective
parent and community
engagement strategies
and to help ensure the
success of students
academically at risk of
not enrolling in or
completing
postsecondary
education, first-
generation college
students, and students
described in section
1111(b)(2)(B)(xi) of
the Elementary and
Secondary Education Act
of 1965 (20 U.S.C.
6311(b)(2)(B)(xi));
(iii) to carry out liaison activities
among the partners that comprise the
eligible entity pursuant to an
agreement or memorandum of
understanding documenting commitments,
resources, roles, and responsibilities
of the partners consistent with the
design of the program;
(iv) for outreach programs to ensure
that secondary school students and
their families, including students
academically at risk of not enrolling
in or completing postsecondary
education, first-generation college
students, and students described in
section 1111(b)(2)(B)(xi) of the
Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6311(b)(2)(B)(xi)),
are--
(I) aware of, and recruited
into, the early college high
school or dual or concurrent
enrollment program; and
(II) assisted with the
process of enrolling and
succeeding in the early college
high school or dual or
concurrent enrollment program,
which may include providing
academic support;
(v) to collect, share, and use data
(in compliance with section 444 of the
General Education Provisions Act (20
U.S.C. 1232g)) for program improvement
and program evaluation; and
(vi) to review and strengthen its
program to maximize the potential that
students participating in the program
will eventually complete a recognized
postsecondary credential, including by
optimizing--
(I) the curriculum of the
program;
(II) the use of high-quality
assessments of student
learning, such as performance-
based, project-based, or
portfolio assessments that
measure higher-order thinking
skills;
(III) the sequence of courses
offered by the program; and
(IV) the alignment of
academic calendars between the
secondary schools and the
institution of higher education
participating in the program.
(B) New programs.--In the case of an eligible
entity that uses a grant under this section to
establish an early college high school or dual
or concurrent enrollment program, the entity
shall use such funds during the first year of
the grant period--
(i) to design the curriculum and
sequence of courses in collaboration
with, at a minimum--
(I) faculty from the
institution of higher
education;
(II) teachers and faculty
from the local educational
agency; and
(III) in the case of a career
and technical education
program, employers or workforce
development entities to ensure
that the program is aligned
with labor market demand;
(ii) to develop and implement an
articulation agreement between the
institution of higher education and the
local educational agency that governs
how secondary and postsecondary credits
will be awarded under the program; and
(iii) to carry out the activities
described in subparagraph (A).
(2) Allowable activities.--An eligible entity may use
grant funds received under this section to support the
activities described in its application under
subsection (i), including by--
(A) purchasing textbooks and equipment that
support the program's curriculum;
(B) pursuant to the assurance provided by the
eligible entity under subsection (i)(3)(A),
paying tuition and fees for postsecondary
courses taken by students under the program;
(C) incorporating work-based learning
opportunities (other than by paying wages of
students) into the program (which may include
partnering with entities that provide such
opportunities), including--
(i) internships;
(ii) career-based capstone projects;
(iii) pre-apprenticeships and
registered apprenticeships provided by
eligible providers of apprenticeship
programs described in section
122(a)(2)(B) of the Workforce
Innovation and Opportunity Act (29
U.S.C. 3152(a)(2)(B)); and
(iv) work-based learning
opportunities provided under chapters 1
and 2 of subpart 2 of part A of title
IV of the Higher Education Act of 1965
(20 U.S.C. 1070a-11 et seq.);
(D) providing students with transportation to
and from the program;
(E) paying costs for--
(i) high school teachers to obtain
the skills, credentials, or industry
certifications necessary to teach for
the institution of higher education
participating in the program; or
(ii) postsecondary faculty to become
certified to teach high school; or
(F) providing time during which secondary
school teachers and faculty and faculty from an
institution of higher education can
collaborate, which may include professional
development, the planning of team activities
for such teachers and faculty and curricular
design and student assessment
(i) Application.--
(1) In general.--To be eligible to receive a grant
under this section, an eligible entity shall submit to
the Secretary an application at such time, in such
manner, and containing such information as the
Secretary may require.
(2) Contents of application.--The application under
paragraph (1) shall include, at minimum, a description
of--
(A) the partnership that comprises the
eligible entity, including documentation of
partner commitments, resources and budget,
roles, and responsibilities;
(B) how the partners that comprise the
eligible entity will coordinate to carry out
the mandatory activities described in
subsection (h)(1);
(C) the number of students intended to be
served by the program and demographic
information relating to such students;
(D) how the eligible entity's curriculum and
sequence of courses form a program of study
leading to a recognized postsecondary
credential;
(E) how postsecondary credits earned will be
transferable to institutions of higher
education within the State, including any
applicable statewide transfer agreements and
any provisions of such agreements that are
specific to dual or concurrent enrollment
programs;
(F) how the eligible entity will conduct
outreach to students;
(G) how the eligible entity will determine
the eligibility of students for postsecondary
courses, including an explanation of the
multiple factors the entity will take into
account to assess the readiness of students for
such courses; and
(H) the sustainability plan for the early
college high school or other dual or concurrent
enrollment program.
(3) Assurances.--The application under paragraph (1)
shall include assurances from the eligible entity
that--
(A) students participating in a program
funded with a grant under this section will not
be required to pay tuition or fees for
postsecondary courses taken under the program;
(B) postsecondary credits earned by students
under the program will be transcribed upon
completion of the required course work; and
(C) instructors of postsecondary courses
under the program will meet the same standards
applicable to other faculty at the institution
of higher education that is participating in
the program.
SEC. 419R. GRANTS TO STATES.
(a) In General.--The Secretary shall award grants to States,
on a competitive basis, to assist States in supporting or
establishing early college high schools or dual or concurrent
enrollment programs.
(b) Duration.--Each grant under this section shall be awarded
for a period of 6 years.
(c) Grant Amount.--The Secretary shall ensure that the amount
of each grant under this section is sufficient to enable each
grantee to carry out the activities described in subsection
(f).
(d) Matching Requirement.--For each year that a State
receives a grant under this section, the State shall provide,
from non-Federal sources, an amount equal to 50 percent of the
amount of the grant received by the State for such year to
carry out the activities supported by the grant.
(e) Supplement, Not Supplant.--A State shall use a grant
received under this section only to supplement funds that
would, in the absence of such grant, be made available from
other Federal, State, or local sources for activities supported
by the grant, not to supplant such funds.
(f) Uses of Funds.--
(1) Mandatory activities.--A State shall use grant
funds received under this section to--
(A) support the activities described in its
application under subsection (g);
(B) plan and implement a statewide strategy
for expanding access to early college high
schools and dual or concurrent enrollment
programs for students who are underrepresented
in higher education to raise statewide rates of
secondary school graduation, readiness for
postsecondary education, and completion of
recognized postsecondary credentials, with a
focus on students academically at risk of not
enrolling in or completing postsecondary
education;
(C) identify any obstacles to such a strategy
under State law or policy;
(D) provide technical assistance (either
directly or through a knowledgeable
intermediary) to early college high schools and
other dual or concurrent enrollment programs,
which may include--
(i) brokering relationships and
agreements that forge a strong
partnership between elementary and
secondary and postsecondary partners;
and
(ii) offering statewide training,
professional development, and peer
learning opportunities for school
leaders, instructors, and counselors or
advisors;
(E) identify and implement policies that will
improve the effectiveness and ensure the
quality of early college high schools and dual
or concurrent enrollment programs, such as
eligibility and access, funding, data and
quality assurance, governance, accountability,
and alignment policies;
(F) update the State's requirements for a
student to receive a regular high school
diploma to align with the challenging State
academic standards and entrance requirements
for credit-bearing coursework as described in
subparagraphs (A) and (D) of section 1111(b)(1)
of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6311(b)(1));
(G) incorporate indicators regarding student
access to and completion of early college high
schools and dual or concurrent enrollment
programs into the school quality and student
success indicators included in the State system
of annual meaningful differentiation as
described under section 1111(c)(4)(B)(v)(I) of
the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6311(c)(4)(B)(v)(I));
(H) disseminate best practices for early
college high schools and dual or concurrent
enrollment programs, which may include best
practices from programs in the State or other
States;
(I) facilitate statewide secondary and
postsecondary data collection, research and
evaluation, and reporting to policymakers and
other stakeholders; and
(J) conduct outreach programs to ensure that
secondary school students, their families, and
community members are aware of early college
high schools and dual or concurrent enrollment
programs in the State.
(2) Allowable activities.--A State may use grant
funds received under this section to--
(A) establish a mechanism to offset the costs
of tuition, fees, standardized testing and
performance assessment costs, and support
services for low-income students, and students
from underrepresented populations enrolled in
early college and high schools or dual or
concurrent enrollment;
(B) establish formal transfer systems within
and across State higher education systems,
including two-year and four-year public and
private institutions, to maximize the
transferability of college courses;
(C) provide incentives to school districts
that--
(i) assist high school teachers in
getting the credentials needed to
participate in early college high
school programs and dual or concurrent
enrollment; and
(ii) encourage the use of college
instructors to teach college courses in
high schools;
(D) support initiatives to improve the
quality of early college high school and dual
or concurrent enrollment programs at
participating institutions, including by
assisting such institutions in aligning
programs with the quality standards described
in section 419Q(f)(3);
(E) support the development, implementation,
and strengthening of Advanced Placement and
International Baccalaureate programs especially
at high schools with low levels of
participation by low-income students and
underrepresented students in such programs; and
(F) reimburse low-income students to cover
part or all of the costs of an Advanced
Placement or International Baccalaureate
examination.
(g) State Applications.--
(1) Application.--To be eligible to receive a grant
under this section, a State shall submit to the
Secretary an application at such time, in such manner,
and containing such information as the Secretary may
require.
(2) Contents of application.--The application under
paragraph (1) shall include, at minimum, a description
of--
(A) how the State will carry out the
mandatory State activities described in
subsection (f)(1);
(B) how the State will ensure that any
programs funded with a grant under this section
are coordinated with programs under--
(i) the Carl D. Perkins Career and
Technical Education Act of 2006 (20
U.S.C. 2301 et seq.);
(ii) the Workforce Innovation and
Opportunity Act (29 U.S.C. 3101 et
seq.);
(iii) the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6301
et seq.); and
(iv) the Individuals with
Disabilities Education Act (20 U.S.C.
1400 et seq.);
(C) how the State intends to use grant funds
to address achievement gaps for each category
of students described in section
1111(b)(2)(B)(xi) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
6311(b)(2)(B)(xi));
(D) how the State will access and leverage
additional resources necessary to sustain early
college high schools or other dual or
concurrent enrollment programs;
(E) how the State will identify and eliminate
barriers to implementing effective early
college high schools and dual or concurrent
enrollment programs after the grant expires,
including by engaging businesses and nonprofit
organizations; and
(F) such other information as the Secretary
determines to be appropriate.
SEC. 419S. REPORTING AND OVERSIGHT.
(a) In General.--Not less frequently than once annually, each
State and eligible entity that receives a grant under this
subpart shall submit to the Secretary a report on the progress
of the State or eligible entity in carrying out the programs
supported by such grant.
(b) Form of Report.--The report under subsection (a) shall be
submitted to the Secretary at such time, in such manner, and
containing such information as the Secretary may require. The
Secretary shall issue uniform guidelines describing the
information that shall be reported by grantees under such
subsection.
(c) Contents of Report.--
(1) In general.--The report under subsection (a)
shall include, at minimum, the following:
(A) The number of students enrolled in the
early college high school or dual or concurrent
enrollment program.
(B) The number and percentage of students
reimbursed by the State for part or all of the
costs of an Advanced Placement or International
Baccalaureate examination and the student test
scores.
(C) The number and percentage of students
enrolled in the early college high school or
dual or concurrent enrollment program who earn
a recognized postsecondary credential
concurrently with a high school diploma.
(D) The number of postsecondary credits
earned by eligible students while enrolled in
the early college high school or dual or
concurrent enrollment program that may be
applied toward a recognized postsecondary
credential.
(E) The number and percentage of students who
earn a high school diploma.
(F) The number and percentage of graduates
who enroll in postsecondary education.
(2) Categories of students.--The information
described in each of subparagraphs (A) through (G) of
paragraph (1) shall be set forth separately for each
category of students described in section
1111(b)(2)(B)(xi) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6311(b)(2)(B)(xi)).
SEC. 419T. NATIONAL ACTIVITIES.
(a) Reporting by Secretary.--Not less frequently than once
annually, the Secretary shall submit to Congress a report that
includes--
(1) an analysis of the information received from
States and eligible entities under section 419S;
(2) an identification of best practices for carrying
out programs supported by grants under this subpart;
and
(3) the results of the evaluation under subsection
(b).
(b) National Evaluation.--Not later than 6 months after the
date of the enactment of the College Affordability Act, the
Secretary shall seek to enter into a contract with an
independent entity to perform an evaluation of the grants
awarded under this subtitle. Such evaluation shall apply
rigorous procedures to obtain valid and reliable data
concerning student outcomes by social and academic
characteristics and monitor the progress of students from
secondary school to and through postsecondary education.
(c) Technical Assistance.--The Secretary shall provide
technical assistance to States and eligible entities concerning
best practices and quality improvement programs in early
college high schools and dual or concurrent enrollment programs
and shall disseminate such best practices among eligible
entities, States, and local educational agencies.
(d) Administrative Costs.--From amounts reserved to carry out
this section under section 419P(b)(3), the Secretary may
reserve such sums as may be necessary for the direct
administrative costs of carrying out the Secretary's
responsibilities under this subtitle.
SEC. 419U. RULES OF CONSTRUCTION.
(a) Employees.--Nothing in this subpart shall be construed to
alter or otherwise affect the rights, remedies, and procedures
afforded to the employees of local educational agencies
(including schools) or institutions of higher education 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.
(b) Graduation Rate.--A student who graduates from an early
college high school supported by a grant under section 419Q
within 100 percent of the normal time for completion described
in the eligible entity's application under such section shall
be counted in the four-year adjusted cohort graduation rate for
such high school.
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, 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).
(4) Teacher preparation program.--The term ``teacher
preparation program'' means a State-approved course of
study provided by an institution of higher education,
the completion of which signifies that an enrollee has
met all the State's educational or training
requirements for initial certification or licensure to
teach in the State's elementary schools or secondary
schools.
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] a Free Application for Federal Student Aid
authorized under section 483(a) 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.]
except as provided in subsection (d)(4), in the amount
of--
(A) $8,000, to be available to a teacher
candidate who is enrolled as an undergraduate
junior at the eligible institution;
(B) $8,000, to be available to a teacher
candidate who is enrolled as an undergraduate
senior at the eligible institution; and
(C) $4,000, to be available to a teacher
candidate who is enrolled in the first or
second year of an associate's degree program
and intends to teach in an early childhood
education program.
(2) References.--Grants made under paragraph (1)
shall be known as ``Teacher Education Assistance for
College and Higher Education Grants'' or ``TEACH
Grants''.
(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] associate,
undergraduate, or post-baccalaureate student may
receive grants under this subpart shall be the period
required for the completion of the first
[undergraduate] associate, 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] associate, 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.
(4) Associate degree students.--
(A) Maximum amount for associate degree
study.--The period during which an associate
degree student intending to teach in an early
childhood education program may receive grants
under this subpart shall be the period required
for the completion of an associate'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 an
associate's degree course of study shall not
exceed $8,000.
(B) Effect on further undergraduate or post-
baccalaureate study.--In the case of a teacher
candidate intending to teach in an early
childhood education program who receives a
grant under this subpart for an associate's
degree course of study and who seeks to receive
a grant described in subparagraph (A) or (B) of
subsection (a)(1), the amount of such grant
shall be equal to--
(i) one half of the amount that is
equal to $16,000, minus the amount the
teacher candidate received under this
subpart for the associate's degree
course of study of such candidate, to
be available to a teacher candidate who
is enrolled as an undergraduate junior
at the eligible institution; and
(ii) one half of the amount that is
equal to $16,000, minus the amount the
teacher candidate received under this
subpart for the associate's degree
course of study of such candidate, to
be available to a teacher candidate who
is enrolled as an undergraduate senior
at the eligible institution.
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] 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]
assessments used for admission
to an undergraduate, post-
baccalaureate, or graduate
school program; 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]
early childhood education, 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) or in a high-need early childhood
education program (as defined in section
200(15));
(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) early childhood education; or
[(vii)] (viii) another field
documented as high-need by the Federal
Government, State government, or local
educational agency, and approved by the
Secretary; and
(D) submit evidence of such employment in the
form of a certification by the chief
administrative officer of the school or early
childhood education program 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[.]; and
(4) the Secretary will--
(A) notify, or ensure that the applicable
loan servicer will notify, the applicant of--
(i) the date on which submission of
the certification under paragraph
(1)(D) is required; and
(ii) any failure to submit such
certification; and
(B) allow employers and borrowers to use
electronic signatures to certify such
employment.
(c) Repayment for Failure to Complete Service.--[In the
event]
(1) In general._Subject to paragraph (2), 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, 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.
(2) Clarification.--
(A) Application.--Paragraph (1) may only
apply with respect to a recipient of a grant
under this subpart if--
(i) after completing the course of
study for which the recipient received
the grant, such recipient does not
serve as a full-time teacher as
required under subsection (b)(1) for at
least--
(I) 1 year, as certified
under subsection (b)(1)(D) on a
date that is not later than 5
years after the date such
course of study was completed;
(II) 2 years, as certified
under subsection (b)(1)(D) on a
date that is not later than 6
years after the date such
course of study was completed;
(III) 3 years, as certified
under subsection (b)(1)(D) on a
date that is not later than 7
years after the date such
course of study was completed;
or
(IV) 4 years, as certified
under subsection (b)(1)(D) on a
date that is not later than 8
years after the date such
course of study was completed;
or
(ii) the recipient elects to have
such grant treated as a loan in
accordance with such paragraph (1).
(B) Appeal.--A recipient of a grant may
appeal a decision to convert a loan under
paragraph (1).
(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)] subsection (b)(1)(C)(viii), 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) Change of school description or program
definition.--If a recipient of an initial grant under
this subpart teaches in a school or an early childhood
education program for an academic year during which the
school is identified as a school described in section
465(a)(2)(A) or a program that meets the definition of
section 200(15), but the school or program no longer
meets such description or definition during a
subsequent academic year, the grant recipient may
fulfill the service obligation described in subsection
(b)(1) by continuing to teach at that school or
program.
(3) Change of teacher duties or assignment.--If a
recipient of an initial grant under this subpart
teaches as a full-time teacher described in subsection
(b)(1)(A), but the recipient no longer meets such
description during a subsequent academic year due to
switching academic roles to that of a full-time co-
teacher, teacher leader, instructional or academic
coach, department chairperson, special education case
manager, guidance counselor, or school administrator
within a school or program, the grant recipient may
fulfill the service obligation described in subsection
(b)(1) by continuing to work in any such academic role
on a full-time basis at that school or program.
(4) Change in high-need field status.--If a recipient
of an initial grant under this subpart teaches in a
field at a school or an early childhood education
program for an academic year during which the field is
designated under subsection (b)(1)(C)(viii), but the
field no longer is so designated during a subsequent
academic year, the grant recipient may fulfill the
service obligation described in subsection (b)(1) by
continuing to teach in such field at such school or
early childhood education program.
[(2)] (5) 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. 420P. PROGRAM REPORT
[Not later than two years after the date of enactment of the
Higher Education Opportunity Act and every two years
thereafter, the Secretary shall prepare and submit to the
authorizing committees a report on TEACH grants with respect to
the schools and students served by recipients of such grants.
Such report shall take into consideration information related
to--
[(1) the number of TEACH grant recipients;
[(2) the degrees obtained by such recipients;
[(3) the location, including the school, local
educational agency, and State, where the recipients
completed the service agreed to under section 420N(b)
and the subject taught;
[(4) the duration of such service; and
[(5) any other data necessary to conduct such
evaluation.]
SEC. 420P. DATA COLLECTION AND REPORTING.
(a) Data Collection.--
(1) Aggregate student data.--On an annual basis,
using the postsecondary student data system established
under section 132(l) or a successor system (whichever
includes the most recent data) to streamline reporting
requirements and minimize reporting burdens, and in
coordination with the National Center for Education
Statistics, the Secretary shall determine, disaggregate
in accordance with paragraph (2), and make available to
the public in accordance with paragraph (3), with
respect to each institution (and each category of
institution listed in section 132(d)) that received a
payment under this subpart in the previous academic
year, the following information:
(A) The number and mean dollar amount of
TEACH Grants awarded to students at the
institution.
(B) The number and proportion of TEACH Grant
recipients who exit their program of study
before completing the program.
(C) The number and proportion of TEACH Grant
recipients who complete their program of study
and begin employment as a teacher in the first
academic year following the year of such
completion.
(D) The number and proportion of individuals
employed as teachers who received a TEACH Grant
and whose TEACH Grants are converted into loans
during the 8-year period following the year in
which the recipient completed the recipient's
program of study, set forth separately for each
year in such period.
(E) The number and proportion of TEACH Grant
recipients who fulfill the terms of their
agreement to serve under section 420N(b) during
the 8-year period following the year in which
the recipient completed the recipient's program
of study, set forth separately for each year in
such period.
(2) Disaggregation.--The information determined under
paragraph (1)--
(A) except in cases in which such
disaggregation would reveal personally
identifiable information about an individual
student, shall be disaggregated by--
(i) race;
(ii) ethnicity;
(iii) gender;
(iv) socioeconomic status;
(v) Federal Pell Grant eligibility
status;
(vi) status as a first-generation
college student (as defined in section
402A(h));
(vii) military or veteran status;
(viii) disability status;
(ix) level of study (associate,
undergraduate, postbaccalaureate, or
graduate, as applicable); and
(x) each teacher preparation program
offered by an institution; and
(B) may be disaggregated by any combination
of subgroups or descriptions described in
subparagraph (A).
(3) Availability of data.--The information determined
under paragraph (1) shall--
(A) remain available to the public for a
period of not less than 10 years after its
initial release by the Secretary; and
(B) be updated as necessary to reflect the
most accurate and up-to-date information for
each institution for each year of data
collection.
(b) Information From Institutions.--Each institution that
receives a payment under this subpart shall provide to the
Secretary, on an annual basis, such information as may be
necessary for the Secretary to carry out subsection (a).
(c) Reports and Dissemination.--
(1) Initial and interim reports.--Not later than 3
years after the date on which the first TEACH Grant is
awarded under this subpart after the date of enactment
of the College Affordability Act, and at least once
every 3 years thereafter, the Secretary shall submit to
the authorizing committees a report that includes the
information required under paragraph (2).
(2) Elements.--Each report under this subsection
shall include, based on information determined under
subsection (a), the following:
(A) A review of the utilization of TEACH
Grants at teacher preparation programs at
institutions that received a payment under this
subpart.
(B) A review of TEACH Grant practices that
correlate with higher rates of completion of
agreements under section 420N(b).
(C) Guidance and recommendations on how
effective utilization of TEACH Grants can be
replicated.
(3) Availability.--Each report under this subsection
shall be made available to the public in an accessible
format--
(A) on a website of the Department of
Education; and
(B) in any other format determined to be
appropriate by the Secretary.
[Subpart 10--Scholarships for Veteran's Dependents
[SEC. 420R. SCHOLARSHIPS FOR VETERAN'S DEPENDENTS.
[(a) Definition of Eligible Veteran's Dependent.--The term
``eligible veteran's dependent'' means a dependent or an
independent student--
[(1) whose parent or guardian was a member of the
Armed Forces of the United States and died as a result
of performing military service in Iraq or Afghanistan
after September 11, 2001; and
[(2) who, at the time of the parent or guardian's
death, was--
[(A) less than 24 years of age; or
[(B) enrolled at an institution of higher
education on a part-time or full-time basis.
[(b) Grants.--
[(1) In general.--The Secretary shall award a grant
to each eligible veteran's dependent to assist in
paying the eligible veteran's dependent's cost of
attendance at an institution of higher education.
[(2) Designation.--Grants made under this section
shall be known as ``Iraq and Afghanistan Service
Grants''.
[(c) Prevention of Double Benefits.--No eligible veteran's
dependent may receive a grant under both this section and
section 401.
[(d) Terms and Conditions.--The Secretary shall award grants
under this section in the same manner, and with the same terms
and conditions, including the length of the period of
eligibility, as the Secretary awards Federal Pell Grants under
section 401, except that--
[(1) the award rules and determination of need
applicable to the calculation of Federal Pell Grants,
shall not apply to grants made under this section;
[(2) the provisions of subsection (a)(3), subsection
(b)(1), the matter following subsection (b)(2)(A)(v),
subsection (b)(3), and subsection (f), of section 401
shall not apply; and
[(3) a grant made under this section to an eligible
veteran's dependent for any award year shall equal the
maximum Federal Pell Grant available for that award
year, except that such a grant under this section--
[(A) shall not exceed the cost of attendance
of the eligible veteran's dependent for that
award year; and
[(B) shall be adjusted to reflect the
attendance by the eligible veteran's dependent
on a less than full-time basis in the same
manner as such adjustments are made under
section 401.
[(e) Estimated Financial Assistance.--For purposes of
determinations of need under part F, a grant awarded under this
section shall not be treated as estimated financial assistance
as described in sections 471(3) and 480(j).
[(f) Authorization and Appropriations of Funds.--There are
authorized to be appropriated, and there are appropriated, out
of any money in the Treasury not otherwise appropriated, for
the Secretary to carry out this section, such sums as may be
necessary for fiscal year 2010 and each succeeding fiscal
year.]
Subpart 10--Northern Mariana Islands and American Samoa College Access
SEC. 420R. PUBLIC SCHOOL GRANTS.
(a) Purpose.--It is the purpose of this subpart to establish
a program that enables college-bound residents of the Northern
Mariana Islands and American Samoa to have greater choices
among institutions of higher education.
(b) Grants.--
(1) In general.--From amounts appropriated under
subsection (j), the Secretary shall provide--
(A) 50 percent of such amount to the Northern
Mariana Islands for the Governor to award
grants to eligible institutions that enroll
eligible students to pay the difference between
the tuition and fees charged for in-State
students and the tuition and fees charged for
out-of-State students on behalf of each
eligible student enrolled in the eligible
institution; and
(B) 50 percent of such amount to the American
Samoa for the Governor to award grants to
eligible institutions that enroll eligible
students to pay the difference between the
tuition and fees charged for in-State students
and the tuition and fees charged for out-of-
State students on behalf of each eligible
student enrolled in the eligible institution.
(2) Maximum student amounts.--The amount paid on
behalf of an eligible student under this section shall
be--
(A) not more than $15,000 for any one award
year (as defined in section 481); and
(B) not more than $45,000 in the aggregate.
(3) Proration.--The Governor shall prorate payments
under this section for students who attend an eligible
institution on less than a full-time basis.
(c) Reduction for Insufficient Appropriations.--
(1) In general.--If the funds appropriated pursuant
to subsection (j) for any fiscal year are insufficient
to award a grant in the amount determined under
subsection (a) on behalf of each eligible student
enrolled in an eligible institution, then the Governor,
in consultation with the Secretary of Education,
shall--
(A) first, ratably reduce the amount of the
tuition and fee payment made on behalf of each
eligible student who has not received funds
under this section for a preceding year; and
(B) after making reductions under
subparagraph (A), ratably reduce the amount of
the tuition and fee payments made on behalf of
all other eligible students.
(2) Adjustments.--The Governor, in consultation with
the Secretary of Education, may adjust the amount of
tuition and fee payments made under paragraph (1) based
on--
(A) the financial need of the eligible
students to avoid undue hardship to the
eligible students; or
(B) undue administrative burdens on the
Governor.
(3) Further adjustments.--Notwithstanding paragraphs
(1) and (2), the Governor may prioritize the making or
amount of tuition and fee payments under this
subsection based on the income and financial need of
eligible students.
(d) Definitions.--In this subpart:
(1) Eligible institution.--The term ``eligible
institution'' means an institution that--
(A) is a public four-year institution of
higher education located in one of the several
States, the District of Columbia, Puerto Rico,
the United States Virgin Islands, or Guam;
(B) is eligible to participate in the student
financial assistance programs under title IV;
and
(C) enters into an agreement with the
Governors of the Northern Mariana Islands and
American Samoa containing such conditions as
each Governor may specify, including a
requirement that the institution use the funds
made available under this section to supplement
and not supplant assistance that otherwise
would be provided to eligible students from the
Northern Mariana Islands and American Samoa.
(2) Eligible student.--The term ``eligible student''
means an individual who--
(A) graduated from a public institution of
higher education located in the Northern
Mariana Islands or American Samoa;
(B) begins the individual's course of study
within the 3 calendar years (excluding any
period of service on active duty in the Armed
Forces or service under the Peace Corps Act (22
U.S.C. 2501 et seq.) or subtitle D of title I
of the National and Community Service Act of
1990 (42 U.S.C. 12571 et seq.)) of graduation
from a public institution of higher education
located in the Northern Mariana Islands or
American Samoa;
(C) is enrolled or accepted for enrollment,
on at least a half-time basis, in a
baccalaureate degree or other program
(including a program of study abroad approved
for credit by the institution at which such
student is enrolled) leading to a recognized
educational credential at an eligible
institution;
(D) if enrolled in an eligible institution,
is maintaining satisfactory progress in the
course of study the student is pursuing in
accordance with section 484(c); and
(E) has not completed the individual's first
undergraduate baccalaureate course of study.
(3) Institution of higher education.--The term
``institution of higher education'' has the meaning
given the term in section 101.
(4) Governor.--The term ``Governor'' means the
Governor of the Commonwealth of the Northern Mariana
Islands or American Samoa.
(e) Construction.--Nothing in this subpart shall be construed
to require an institution of higher education to alter the
institution's admissions policies or standards in any manner to
enable an eligible student to enroll in the institution.
(f) Applications.--Each student desiring a tuition payment
under this section shall submit an application to the eligible
institution at such time, in such manner, and accompanied by
such information as the eligible institution may require.
(g) Administration of Program.--
(1) In general.--Each Governor shall carry out the
program under this section in consultation with the
Secretary. Each Governor may enter into a grant,
contract, or cooperative agreement with another public
or private entity to administer the program under this
section if the Governor determines that doing so is a
more efficient way of carrying out the program.
(2) Policies and procedures.--Each Governor, in
consultation with institutions of higher education
eligible for participation in the program authorized
under this section, shall develop policies and
procedures for the administration of the program.
(3) Memorandum of agreement.--Each Governor and the
Secretary shall enter into a Memorandum of Agreement
that describes--
(A) the manner in which the Governor shall
consult with the Secretary with respect to
administering the program under this section;
and
(B) any technical or other assistance to be
provided to the Governor by the Secretary for
purposes of administering the program under
this section (which may include access to the
information in the common financial reporting
form developed under section 483).
(h) Governor's Report.--Each Governor shall report to the
Secretary and the authorizing committees annually regarding--
(1) the number of eligible students attending each
eligible institution and the amount of the grant awards
paid to those institutions on behalf of the eligible
students;
(2) the extent, if any, to which a ratable reduction
was made in the amount of tuition and fee payments made
on behalf of eligible students; and
(3) the progress in obtaining recognized academic
credentials of the cohort of eligible students for each
year.
(i) GAO Report.--Not later than 24 months of the date of the
enactment of this College Affordability Act, the Comptroller
General of the United States shall report on the effect of the
program assisted under this section on educational
opportunities for eligible students. The Comptroller General
shall analyze whether eligible students had difficulty gaining
admission to eligible institutions because of any preference
afforded to in-State residents by eligible institutions, and
shall expeditiously report any findings regarding such
difficulty to Congress. In addition the Comptroller General
shall--
(1) analyze and identify any challenges eligible
students face in gaining admission to eligible
institutions, including admission aided by assistance
provided under this subpart, due to--
(A) caps on the number of out-of-State
students the institution will enroll;
(B) significant barriers imposed by academic
entrance requirements (such as grade point
average and standardized scholastic admissions
tests); and
(C) absence of admission programs benefitting
minority students; and
(2) report the findings of the analysis described in
paragraph (1) and the assessment described in paragraph
(2) to Congress and the Governor.
(j) Authorization of Appropriations.--There are authorized to
be appropriated to the Commonwealth of the Northern Mariana
Islands and American Samoa to carry out this subpart
$5,000,000, to be available until expended, for fiscal year
2021 and each of the 5 succeeding fiscal years.
(k) Effective Date.--This subpart shall take effect with
respect to payments for periods of instruction that begin on or
after January 1, 2021.
SEC. 420S. GENERAL REQUIREMENTS.
(a) Personnel.--The Secretary shall arrange for the
assignment of an individual, pursuant to subchapter VI of
chapter 33 of title 5, United States Code, to serve as an
adviser to each Governor with respect to the programs assisted
under this subpart.
(b) Administrative Expenses.--Each Governor may use not more
than 5 percent of the funds made available for a program under
section 420R for a fiscal year to pay the administrative
expenses of a program under section 420R for the fiscal year.
(c) Inspector General Review.--Each of the programs assisted
under this subpart shall be subject to audit and other review
by the Inspector General of the Department of Education in the
same manner as programs are audited and reviewed under the
Inspector General Act of 1978 (5 U.S.C. App.).
(d) Gifts.--The Governor may accept, use, and dispose of
donations of services or property for purposes of carrying out
this subpart.
(e) Maximum Student Amount Adjustments.--Each Governor shall
establish rules to adjust the maximum student amounts described
in section 440S(b)(2) for eligible students described in
section 440S(d)(2) who transfer between the eligible
institutions described in section 440S(d)(1).
Subpart 11--Community College Student Success
SEC. 420T. COMMUNITY COLLEGE STUDENT SUCCESS GRANT PROGRAM AUTHORIZED.
From the amounts appropriated under 420BB, the Secretary of
Education shall establish and carry out the community college
student success grant program to award grants under sections
420U and 420V, on a competitive basis, to eligible institutions
to plan and implement community college student success
programs designed to increase--
(1) the rate at which program participants graduate
from a program of study at such eligible institution
within 150 percent of the normal time for graduation;
and
(2) transfer rates of program participants.
SEC. 420U. GRANTS TO PLAN COMMUNITY COLLEGE STUDENT SUCCESS PROGRAMS.
(a) Planning Grants Authorized.--From the amounts
appropriated to carry out this section under section 420BB for
a fiscal year, the Secretary shall award planning grants for
such fiscal year, on a competitive basis, to eligible
institutions to develop plans for community college student
success programs.
(b) Duration.--A grant awarded under this section shall be
for a 1-year period.
(c) Peer Review Process; Priority.--In awarding grants under
this section for a fiscal year, the Secretary shall--
(1) carry out a peer review process that--
(A) requires that each application submitted
under subsection (d) be peer reviewed by a
panel of readers composed of individuals
selected by the Secretary, which shall
include--
(i) not less than 50 percent of
readers--
(I) who are not employees of
the Federal Government; and
(II) who have relevant
research or practical
experience with respect to
student support programs
designed to increase graduation
rates and transfer rates at
public 2-year institutions of
higher education; and
(ii) to the maximum extent
practicable, individuals who are
members of groups underrepresented in
higher education, including African
Americans, Hispanics, Native Americans,
Alaska Natives, Asian Americans, Native
American Pacific Islanders (including
Native Hawaiians), and individuals with
disabilities; and
(B) ensures that no individual assigned under
subparagraph (A) to review an application has
any conflict of interest with regard to that
application that may make the individual unable
to impartially conduct such review; and
(2) give priority to eligible institutions that are
eligible to receive funding under title III or V.
(d) Application.--An eligible institution 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, which shall include--
(1) the graduation rate and transfer rate for the
most recent academic year for which data are available
for eligible students and all students, respectively;
(2) an analysis of how implementing a community
college student success program may improve the
graduation rate or transfer rate for eligible students;
and
(3) a description of the methods the eligible
institution has previously used to improve the
graduation rate or transfer rate with respect to
eligible students and all students, respectively.
(e) Use of Funds.--An eligible institution that receives a
grant under this section shall use the grant to develop a plan
to implement a community college student success program at the
eligible institution.
(f) Report.--Not later than 1 year after the date on which an
eligible institution receives a grant under this section, such
eligible institution shall submit to the Secretary a report
that includes--
(1) a plan for implementing a community college
student success program at the eligible institution,
including--
(A) the sufficiently ambitious outcome goals
for achieving significant improvements in
graduation rates and transfer rates for program
participants, as such rates are defined by the
eligible institution, in consultation with the
Secretary, before the end of the grant period;
(B) the number of such eligible students who
will participate in such program, including how
such eligible students will be identified,
referred, and selected, in cases where the
interest in the program is larger than the
budget for the program;
(C) based on the most recent academic year
for which data are available, disaggregated by
full-time students and all students--
(i) graduation rates; and
(ii) transfer rates;
(D) an analysis of the financial needs of the
full-time students;
(E) a description of how the eligible
institution will effectively staff a community
college student success program; and
(F) a timeline for the implementation of such
program;
(2) a budgetary analysis that includes--
(A) a description of how the eligible
institution will provide non-Federal funds for
such program under subsection (d) of section
420V; and
(B) a description of how the eligible
institution will continue to fund such program
after the end of the grant period for the grant
awarded to the institution under section 420V;
and
(3) such other information as the Secretary may
require.
SEC. 420V. GRANTS TO IMPLEMENT COMMUNITY COLLEGE STUDENT SUCCESS
PROGRAMS.
(a) Implementation Grants Authorized.--
(1) In general.--From the amounts appropriated to
carry out this section under section 420BB for a fiscal
year, the Secretary shall award grants for such fiscal
year, on a competitive basis, to eligible institutions
awarded a grant under section 420U to implement
community college student success programs.
(2) Consultation.--In awarding grants under this
section for a fiscal year, the Secretary shall consult
with the independent evaluator before finalizing which
eligible institutions will receive such a grant for
such fiscal year.
(b) Requirements for Selection.--To be eligible to receive a
grant under this section, an eligible institution shall meet
the following requirements:
(1) The eligible institution was awarded a grant
under section 420U at least 1 year before such eligible
institution submits an application under subsection
(e).
(2) The eligible institution submits an application
under subsection (e).
(3) The eligible institution demonstrates, on the
date of the application described in subsection (e),
the availability of non-Federal funding for the
matching funds required under subparagraphs (A), (B),
and (C) of subsection (d)(1).
(c) Duration.--A grant awarded under this section shall be
for a 5-year period.
(d) Non-Federal Contribution.--
(1) In general.--Except as provided in paragraph (2),
an eligible institution awarded a grant under this
section shall contribute in cash from non-Federal
sources, the following:
(A) For the second year of the grant period,
an amount equal to 20 percent of the cost of
carrying out the community college student
success program at the institution for such
year.
(B) For the third year of the grant period,
an amount equal to 30 percent of the cost of
carrying out such program for such year.
(C) For the fourth year of the grant period,
an amount equal to 40 percent of the cost of
carrying out such program for such year.
(D) For the fifth year of the grant period,
an amount equal to 50 percent of the cost of
carrying out such program for such year.
(2) Exception.--
(A) In general.--Notwithstanding paragraph
(1), with respect to an exempt institution
awarded a grant under this section, for each
year of the grant period beginning with the
second year through the fifth year, the
Secretary shall not require the institution to
make a cash contribution from non-Federal
sources in an amount that is greater than the
amount equal to 5 percent of the cost of
carrying out the community college student
success program at the institution for such
year.
(B) Definitions.--For purposes of this
paragraph:
(i) Exempt institution.--The term
``exempt institution'' means an
eligible institution that is a--
(I) Tribal college or
university; or
(II) an institution located
in the Commonwealth of Puerto
Rico, Guam, American Samoa, the
United States Virgin Islands,
the Commonwealth of the
Northern Mariana Islands, the
Republic of the Marshall
Islands, the Federated States
of Micronesia, or the Republic
of Palau.
(ii) Tribal college or university.--
The term ``Tribal college or
university'' has the meaning given the
term in section 316 of the Higher
Education Act of 1965 (20 U.S.C.
1059c).
(e) Application.--An eligible institution 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, which shall include a copy of the
report described in 420U(e).
(f) Required Use of Funds.--An eligible institution that
receives a grant under this section shall use the grant funds
to--
(1) implement a community college student success
program; and
(2) regularly review--
(A) data to monitor the academic progress of
eligible students participating in such
program; and
(B) the meeting and program participation
requirements described in section 420AA(1).
(g) Permissible Use of Funds.--An eligible institution that
receives a grant under this section may use the grant to--
(1) establish or expand a data tracking system that
includes early alerts to complete the regular reviews
required under subsection (f)(2);
(2) provide eligible students participating in the
community college student success program for which the
grant is awarded with financial assistance to cover the
costs described in paragraph (2), (3), or (8) of
section 472;
(3) establish or expand career development services
for such students, such as career workshops or career
counseling;
(4) establish or expand tutoring services for such
students;
(5) cover the employment of administrators for the
program whose sole job shall be to administer the
program, without regard to whether the employment is
full-time or less than full-time; and
(6) provide financial support for eligible students
participating in such program to enroll in courses
offered during enrollment periods that are outside the
fall and spring semesters (or equivalent terms).
(h) Reports.--Using the postsecondary student data system
established under section 132(l) or a successor system
(whichever includes the most recent data) to streamline
reporting requirements and minimize reporting burdens, and in
coordination with the National Center for Education Statistics,
the Secretary shall, on at least an annual basis, collect data
with respect to each community college student success program,
including the following:
(1) Each eligible institution that receives a grant
under this subpart shall, on an annual basis, provide
to the Secretary such information as may be necessary
for the Secretary to collect such data, including--
(A) the demographic characteristics of the
students participating in the community college
student success program;
(B) the average number of credits attempted
and average number of credits earned, rate of
retention, rate of degree completion, and rates
of transfer of such eligible students; and
(C) the graduation rate of such eligible
students.
(2) Each such eligible institution shall, not less
than once for each year of the grant period, submit to
the Secretary an annual performance report for such
year of the grant period that includes--
(A) an analysis of the implementation and
progress of such program based on the
sufficiently ambitious outcome goals described
in the report submitted by the institution
under section 420U(e)(1)(A), including
challenges to and changes made to such program;
(B) if according to the analysis under
subparagraph (A), the program is not on track
to meet such sufficiently ambitious outcome
goals, a description of the plans to adjust the
program to improve the performance of the
program;
(C) the participation of such eligible
students in tutoring, career services (which
can include benefit counseling), and meetings
with program advisors; and
(D) when data is available, which shall
compare the data collected for such year under
this paragraph with such data collected for
each of the 2 years preceding the date on which
the grant was awarded.
(3) Not later than 6 years after the date on which
the eligible institution received such grant, submit a
final report to the Secretary that includes an analysis
of--
(A) the factors that contributed to the
success or failure of the community college
student success program in meeting the
ambitious outcome goals described in the report
submitted by the institution under section
3(e)(1)(A);
(B) the challenges faced in attempting to
implement such program;
(C) information on how to improve such
program;
(D) whether the program has created an
institution-wide reform with respect to
graduation rates and transfer rates for all
students, and if so, how such reform was
created; and
(E) how the eligible institution will
continue to fund such program after the end of
the grant period.
SEC. 420W. EVALUATIONS.
(a) Independent Evaluations.--Before finalizing which
eligible institutions will receive grants under section 420V
for a fiscal year, the Secretary, acting through the Director
of the Institute of Education Sciences, shall enter into a
contract with an independent evaluator--
(1) to consult with the Secretary on which eligible
institutions should receive the grants; and
(2) to use the What Works Clearinghouse Standards
(without reservations) to evaluate, throughout the
duration of the grant period of such grants--
(A) each community college student success
program for which such grant is awarded,
including whether the program met its ambitious
outcome goals described in the report submitted
by the institution under section 420U(e)(1)(A);
(B) the average impact of community college
student success programs on graduation rates
and transfer rates for eligible students;
(C) the variation in program impact across
eligible institutions with respect to such
rates; and
(D) whether such programs lead to higher
graduation rates and transfer rates of eligible
students per dollar spent for such students by
such institutions compared with such rates at
eligible institutions without such programs.
(b) Results of Evaluations.--The results of the evaluations
under subsection (a) shall be made publicly available on the
website of the Department of Education.
(c) Funding for Evaluations.--The Secretary may reserve not
more than 15 percent of the funds appropriated under section
420BB for a fiscal year to carry out this section for such
fiscal year.
SEC. 420X. OUTREACH AND TECHNICAL ASSISTANCE.
(a) Outreach.--The Secretary shall conduct outreach
activities to notify eligible institutions of the availability
of grants under this subpart.
(b) Technical Assistance.--The Secretary shall provide
technical assistance--
(1) to eligible institutions that may be interested
in applying for grants under this subpart, including
assistance with applications for such grants; and
(2) to eligible institutions awarded grants under
this subpart, including assistance with--
(A) establishing ambitious outcome goals
described in section 420U(e)(1)(A); and
(B) the implementation of a community college
student success program.
(c) Funding for Technical Assistance for Evaluations.--The
Secretary may reserve not more than 7 percent of the funds
appropriated under section 420BB for a fiscal year for
technical assistance under this section for such fiscal year.
SEC. 420Y. REPORT TO CONGRESS.
Not later than 1 year after the date on which the Secretary
receives the final evaluation results under section 420W for
eligible institutions that were awarded grants under section
420V for the same fiscal year, the Secretary shall submit to
Congress a report that includes--
(1) the number of grants awarded under section 420V
for such fiscal year, and the amount of such grants;
(2) the number of grants awarded under section 420U
to eligible institutions that received the grants
described in paragraph (1), and the amount of such
grants;
(3) the number of grants awarded under section 420U
to eligible institutions that would have been eligible
but did not receive the grants in paragraph (1);
(4) such final evaluation results; and
(5) any other information the Secretary may deem
relevant.
SEC. 420Z. SUPPLEMENT, NOT SUPPLANT.
Funds awarded to an eligible institution under this subpart
shall be used only to supplement the amount of funds that
would, in the absence of the Federal funds provided under this
subpart, be made available from non-Federal sources or other
Federal sources to carry out the activities under this subpart,
and not to supplant such funds.
SEC. 420AA. DEFINITIONS.
In this subpart:
(1) Community college student success program.--The
term ``community college student success program''
means a program carried out by an eligible institution
under which the institution carries out the following:
(A) Provides eligible students participating
in such program with an amount that covers the
cost of tuition and fees that are not covered
by any Federal, State, or institutional
financial assistance received by the student.
(B) Requires eligible students participating
in such program to--
(i) be enrolled in the eligible
institution and carry a full-time
academic workload during each fall and
spring semester (or equivalent terms)
during which the student participates
in such program;
(ii) if the eligible student is
referred to remedial courses or is on
academic probation, meet, on at least a
weekly basis or under an alternate
schedule, as determined by the
institution, with a tutor, except that
in the case of an eligible student who
is academically struggling, but who is
not referred to remedial courses or on
academic probation, the student may
meet with a tutor as often as the
program advisor for such student
requires or under an alternate
schedule, as determined by the
institution;
(iii) meet with a program advisor--
(I) twice each month during
the first semester (or
equivalent term) of
participation in such program;
and
(II) as directed by the
program advisor in subsequent
semesters (or equivalent terms)
under subparagraph (C)(ii); and
(iv) meet with an on-campus career
advisor or participate in a career
services event once each semester (or
equivalent term) or under an alternate
schedule, as determined by the
institution.
(C) Provides a program advisor to each
eligible student participating in such program
who--
(i) provides comprehensive academic
and personal advising to the eligible
student, including--
(I) the creation and
implementation of an academic
plan for the student to
graduate from a program of
study at the eligible
institution within 150 percent
of the normal time for
graduation from such program;
(II) if an eligible student
is referred to remedial
courses, encouraging such
student to complete such
courses as quickly as possible;
and
(III) assisting the eligible
student with developing and
achieving academic goals,
including creating strong
transfer pathways that
demonstrate programmatic
transfer for students
interested in transferring to a
4-year institution of higher
education;
(ii) after the eligible student
participating in such program completes
a semester (or equivalent term),
creates for the eligible student a
needs-based advising schedule that
indicates, based on the eligible
student's academic performance, the
frequency with which such eligible
student shall be required to meet with
a program advisor for each subsequent
semester (or equivalent term) of
program participation;
(iii) has a caseload of not more than
150 eligible students;
(iv) tracks the attendance of the
eligible student at the meetings
described in clauses (ii), (iii), and
(iv) of subparagraph (B);
(v) monitors the academic progress of
the eligible student; and
(vi) provides each eligible student
who meets the requirements of
subparagraph (B), on at least a monthly
basis, with financial incentives, such
as a transportation pass or a gas card.
(D) Provides free tutoring and career
services (which can include benefit counseling)
to eligible students participating in such
program, and may reserve places in select
courses for such eligible students in order to
create a community within cohorts of eligible
students.
(E) Provides information to eligible students
participating in such program about the
eligibility of such students for assistance
under the supplemental nutrition assistance
program under the Food and Nutrition Act of
2008 (7 U.S.C. 2011 et seq.) and 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.).
(2) Eligible institution.--The term ``eligible
institution'' means a public 2-year institution of
higher education.
(3) Eligible student.--The term ``eligible student''
means a student enrolled at an eligible institution
who--
(A) on the date such eligible student would
begin participation in a community college
student success program at such eligible
institution--
(i) is enrolled in a program of study
leading to an associate degree;
(ii) is enrolled at such institution
and carrying a full-time academic
workload during each fall and spring
semester (or equivalent terms) during
which the student participates in such
program;
(iii) is--
(I) a first-time
undergraduate student; or
(II) a continuing or transfer
student with not more than 15
credits and a minimum grade
point average of 2.0 (or its
equivalent); and
(iv) is considered by the eligible
institution to need no more than two
remedial courses; and
(B) if the student is eligible for financial
aid under title IV, has completed the Free
Application for Federal Student Aid or other
common financial reporting form under section
483(a); and
(C) meets any other requirements established
by the institution.
(4) Full-time academic workload.--The term ``full-
time academic workload'', when used with respect to a
semester or equivalent term, means at least 12 credits
(or the equivalent).
(5) Institution of higher education.--The term
``institution of higher education'' has the meaning
given the term under section 101.
(6) Transfer rate.--The term ``transfer rate'', when
used with respect to students enrolled in a program of
study at an eligible institution, means the rate at
which such students transfer to a 4-year institution of
higher education.
SEC. 420BB. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
subpart $1,000,000,000, to be available until expended for
fiscal year 2021 and each of the 5 succeeding fiscal years.
Subpart 12--Federal Pell Grant Bonus Program
SEC. 420CC. FEDERAL PELL GRANT BONUS PROGRAM.
(a) In General.--The Secretary shall allot funds in an amount
determined under subsection (b) to each eligible institution to
support the attainment of bachelor's degrees among low-income
students, which may include providing financial aid and student
support services to such students.
(b) Allotment Formula.--For each fiscal year, each eligible
institution shall be allotted an amount under subsection (a)
that bears the same proportion to the amount appropriated under
subsection (c) for such fiscal year as the number of bachelor's
degrees awarded by the institution for the award year ending
prior to the beginning of the preceding fiscal year to students
who, during such award year, received a Federal Pell Grant and
graduated from the program in which such students were enrolled
in the normal time for completion of such program (within the
meaning of section 132(i)(1)(J)(i)) bears to the total number
of bachelor's degrees awarded to such students by all eligible
institutions for such award year.
(c) Data.--In determining the allotments under subsection
(b), the Secretary may request from eligible institutions any
data that may be necessary.
(d) Authorization of Appropriations.--There are authorized to
be appropriated, and there are appropriated, to carry out this
section $500,000,000 for fiscal year 2021 and each succeeding
fiscal year. Any amounts appropriated under this subsection
shall be available until expended.
(e) Definitions.--In this section:
(1) Eligible institution.--The term ``eligible
institution'' means an institution of higher education
(as defined in section 101)--
(A) in which, for the 3 most recent award
years, the average percentage of undergraduate
students enrolled at the institution who
received Federal Pell Grants is not less than
25 percent of the total number of undergraduate
students enrolled at such institution; and
(B) that has not opted out of receiving an
allotment under this section.
(2) Low-income student.--The term ``low-income
student'' has the meaning given such term in section
499R(3).
Subpart 13--Emergency Financial Aid Grants
SEC. 420DD. EMERGENCY FINANCIAL AID GRANT PROGRAM.
(a) Emergency Financial Aid Grant Programs Authorized.--The
Secretary shall carry out a grant program to make grants, in
accordance with subsection (c), to eligible entities to provide
emergency financial aid grants to students in accordance with
subsection (d).
(b) Matching Funds.--
(1) Limitation on amount of federal share.--Except as
provided in paragraph (3), the Federal share of the
cost of any emergency grant aid program carried out
under this section may not exceed 50 percent.
(2) Limitation.--Matching funds provided by an
eligible entity under this subsection may not include
in-kind contributions.
(3) Exceptions.--The Federal share of the cost of an
emergency grant aid program carried out under this
section shall equal 100 percent if the institution
carrying out the emergency grant aid is an institution
of higher education eligible for assistance under title
III or V.
(c) Application.--
(1) In general.--Each eligible entity desiring to
carry out an emergency grant aid program 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) Outreach.--The Secretary shall, at least 30 days
before each deadline to submit applications under
paragraph (1), conduct outreach to institutions of
higher education described in subsection (b)(3) to
provide such institutions with information on the
opportunity to apply under paragraph (1) to carry out
an emergency grant aid program under this section.
(3) Contents.--Each application under paragraph (1)
shall include a description of the emergency grant aid
program to be carried out by the eligible entity,
including--
(A) an estimate of the number of emergency
financial aid grants that such entity will make
in an award year and how such eligible entity
assessed such estimate;
(B) the criteria the eligible entity will use
to determine an emergency for which an eligible
student will be eligible to receive an
emergency financial aid grant;
(C) an assurance that an emergency for which
an eligible student will be eligible to receive
an emergency financial aid grant will include
financial challenges that would directly impact
the ability of an eligible student to continue
and complete the course of study of such
student, including--
(i) a loss of employment,
transportation, child care, utilities,
or housing of the student;
(ii) a medical condition (including
pregnancy) of the student, or a
dependent of the student;
(iii) with respect to the eligible
student, food insecurity; and
(iv) in the case of an eligible
student who is a dependent student--
(I) the death of a parent or
guardian of such eligible
student; or
(II) a medical condition of
the parent or guardian of such
eligible student which results
in the loss of employment of
such parent or guardian;
(D) a description of the process by which an
eligible student may apply and receive an
emergency financial aid grant;
(E) an assurance that the eligible entity,
when applicable, will make information
available to eligible students about the
eligibility of such students and their
dependents for assistance under the
supplemental nutrition assistance program under
the Food and Nutrition Act of 2008 (7 U.S.C.
2011 et seq.), the special supplemental
nutrition program for women, infants, and
children under the Child Nutrition Act of 1966
(42 U.S.C. 1786), and 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.);
(F) how the eligible entity will administer
the emergency grant aid program, including the
processes the eligible entity will use to
respond to applications, approve applications,
and disburse emergency financial aid grants
outside of normal business hours;
(G) an assurance that the process by which an
eligible student applies for an emergency
financial aid grant includes--
(i) to the extent practicable, an
interview; and
(ii) at least one opportunity to
appeal a denial of such a grant;
(H) an assurance that the eligible entity
will acknowledge receipt of a student's request
and distribute funds in a timely manner as
determined by the Secretary;
(I) a description of how the school intends
to limit fraud or abuse; and
(J) any other information the Secretary may
require.
(4) Priority.--In selecting eligible entities to
carry out an emergency grant aid program under this
section, the Secretary shall give priority to an
eligible entity in which at least 30 percent of the
students enrolled at such eligible entity are eligible
to receive a Federal Pell Grant.
(d) Use of Funds.--
(1) In general.--An eligible entity may only use
funds provided under this section to make emergency
financial aid grants to eligible students.
(2) Limitations.--
(A) Amount.--An emergency financial aid grant
to an eligible student may not be in an amount
greater than $750.
(B) Total amount.--The total amount of the
Federal share of emergency financial aid grants
that an eligible student may receive from an
eligible entity may not exceed $2,000. An
eligible student may 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 of higher education in which the
student is enrolled.
(e) Reporting and Oversight.--
(1) In general.--Not less frequently than once
annually, each eligible entity that receives a grant
under this subpart shall submit to the Secretary a
report on the progress of the eligible entity in
carrying out the programs supported by such grant.
(2) Form of report.--The report under paragraph (1)
shall be submitted to the Secretary at such time, in
such manner, and containing such information as the
Secretary may require. The Secretary shall issue
uniform guidelines describing the information that
shall be reported by grantees under such paragraph.
(3) Content of report.--The report under paragraph
(1) shall include, at minimum, the following:
(A) The number of students that received a
grant, including the number of students who
received more than one grant.
(B) The average award amount awarded to
eligible students.
(C) The types of emergencies declared and
frequencies emergencies declared by eligible
students.
(D) The number of students that applied for
emergency grant aid.
(E) The number of students that were denied
such grants.
(F) The average amount of time it took an
eligible entity to respond to requests for
emergency grant aid and average amount of time
it took the eligible entity to award or deny
the emergency grant aid.
(G) Outcomes of the eligible students that
received emergency grant aid, including rates
of persistence, retention, and completion, and
a comparison of such rates for such students as
compared to such rates for Federal Pell
recipients at the institution.
(f) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity''
means an institution of higher education that on the
date such entity receives a grant under this section,
is participating in the FSEOG program under subpart 3.
(2) Eligible student.--The term ``eligible student''
means a student who--
(A) is enrolled in an eligible entity on an
at least half-time basis; and
(B) who is making satisfactory academic
progress.
(3) Institution of higher education.--The term
``institution of higher education'' has the meaning
given the term in section 101.
Part B--Federal Family Education Loan Program
* * * * * * *
SEC. 428. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS.
(a) Federal Interest Subsidies.--
(1) Types of loans that qualify.--Each student who
has received a loan for study at an eligible
institution for which the first disbursement is made
before July 1, 2010, and--
(A) which is insured by the Secretary under
this part; or
(B) which is insured under a program of a
State or of a nonprofit private institution or
organization which was contracted for, and paid
to the student, within the period specified in
paragraph (5), and which--
(i) in the case of a loan insured
prior to July 1, 1967, was made by an
eligible lender and is insured under a
program which meets the requirements of
subparagraph (E) of subsection (b)(1)
and provides that repayment of such
loan shall be in installments beginning
not earlier than 60 days after the
student ceases to pursue a course of
study (as described in subparagraph (D)
of subsection (b)(1)) at an eligible
institution, or
(ii) in the case of a loan insured
after June 30, 1967, was made by an
eligible lender and is insured under a
program covered by an agreement made
pursuant to subsection (b),
shall be entitled to have paid on his or her behalf and
for his or her account to the holder of the loan a
portion of the interest on such loan under
circumstances described in paragraph (2).
(2) Additional requirements to receive subsidy.--(A)
Each student qualifying for a portion of an interest
payment under paragraph (1) shall--
(i) have provided to the lender a statement
from the eligible institution, at which the
student has been accepted for enrollment, or at
which the student is in attendance, which--
(I) sets forth the loan amount for
which the student shows financial need;
and
(II) sets forth a schedule for
disbursement of the proceeds of the
loan in installments, consistent with
the requirements of section 428G;
(ii) meet the requirements of subparagraph
(B); and
(iii) have provided to the lender at
the time of application for a loan
made, insured, or guaranteed under this
part, the student's driver's number, if
any.
(B) For the purpose of clause (ii) of subparagraph
(A), a student shall qualify for a portion of an
interest payment under paragraph (1) if the eligible
institution has determined and documented the student's
amount of need for a loan based on the student's
estimated cost of attendance, estimated financial
assistance, and, for the purpose of an interest payment
pursuant to this section, expected family contribution
(as determined under part F), subject to the provisions
of subparagraph (D).
(C) For the purpose of this paragraph--
(i) a student's cost of attendance shall be
determined under section 472;
(ii) a student's estimated financial
assistance means, for the period for which the
loan is sought--
(I) the amount of assistance such
student will receive under subpart 1 of
part A (as determined in accordance
with section 484(b)), subpart 3 of part
A, and parts C and E; plus
(II) other scholarship, grant, or
loan assistance, but excluding--
(aa) any national service
education award or post-service
benefit under title I of the
National and Community Service
Act of 1990; and
(bb) any veterans' education
benefits as defined in section
480(c); and
(iii) the determination of need and of the
amount of a loan by an eligible institution
under subparagraph (B) with respect to a
student shall be calculated in accordance with
part F.
(D) An eligible institution may not, in carrying out
the provisions of subparagraphs (A) and (B) of this
paragraph, provide a statement which certifies the
eligibility of any student to receive any loan under
this part in excess of the maximum amount applicable to
such loan.
(E) For the purpose of subparagraphs (B) and (C) of
this paragraph, any loan obtained by a student under
section 428A or 428H or a parent under section 428B of
this Act or under any State-sponsored or private loan
program for an academic year for which the
determination is made may be used to offset the
expected family contribution of the student for that
year.
(3) Amount of interest subsidy.--(A)(i) Subject to
section 438(c), the portion of the interest on a loan
which a student is entitled to have paid, on behalf of
and for the account of the student, to the holder of
the loan pursuant to paragraph (1) of this subsection
shall be equal to the total amount of the interest on
the unpaid principal amount of the loan--
(I) which accrues prior to
the date the student ceases to
carry at least one-half the
normal full-time academic
workload (as determined by the
institution), or
(II) which accrues during a period in which
principal need not be paid (whether or not such
principal is in fact paid) by reason of a
provision described in subsection (b)(1)(M) of
this section or in section 427(a)(2)(C).
(ii) Such portion of the interest on a loan shall not
exceed, for any period, the amount of the interest on
that loan which is payable by the student after taking
into consideration the amount of any interest on that
loan which the student is entitled to have paid on his
or her behalf for that period under any State or
private loan insurance program.
(iii) The holder of a loan with respect to which
payments are required to be made under this section
shall be deemed to have a contractual right, as against
the United States, to receive from the Secretary the
portion of interest which has been so determined
without administrative delay after the receipt by the
Secretary of an accurate and complete request for
payment pursuant to paragraph (4).
(iv) The Secretary shall pay this portion of the
interest to the holder of the loan on behalf of and for
the account of the borrower at such times as may be
specified in regulations in force when the applicable
agreement entered into pursuant to subsection (b) was
made, or, if the loan was made by a State or is insured
under a program which is not covered by such an
agreement, at such times as may be specified in
regulations in force at the time the loan was paid to
the student.
(v) A lender may not receive interest on a loan for
any period that precedes the date that is--
(I) in the case of a loan disbursed by check,
10 days before the first disbursement of the
loan;
(II) in the case of a loan disbursed by
electronic funds transfer, 3 days before the
first disbursement of the loan; or
(III) in the case of a loan disbursed through
an escrow agent, 3 days before the first
disbursement of the loan.
(B) If--
(i) a State student loan insurance program is
covered by an agreement under subsection (b),
(ii) a statute of such State limits the
interest rate on loans insured by such program
to a rate which is less than the applicable
interest rate under this part, and
(iii) the Secretary determines that
subsection (d) does not make such statutory
limitation inapplicable and that such statutory
limitation threatens to impede the carrying out
of the purpose of this part,
then the Secretary may pay an administrative cost
allowance to the holder of each loan which is insured
under such program and which is made during the period
beginning on the 60th day after the date of enactment
of the Higher Education Amendments of 1968 and ending
120 days after the adjournment of such State's first
regular legislative session which adjourns after
January 1, 1969. Such administrative cost allowance
shall be paid over the term of the loan in an amount
per year (determined by the Secretary) which shall not
exceed 1 percent of the unpaid principal balance of the
loan.
(4) Submission of statements by holders on amount of
payment.--Each holder of a loan with respect to which
payments of interest are required to be made by the
Secretary shall submit to the Secretary, at such time
or times and in such manner as the Secretary may
prescribe, statements containing such information as
may be required by or pursuant to regulation for the
purpose of enabling the Secretary to determine the
amount of the payment which he must make with respect
to that loan.
(5) Duration of authority to make interest subsidized
loans.--The period referred to in subparagraph (B) of
paragraph (1) of this subsection shall begin on the
date of enactment of this Act and end at the close of
June 30, 2010.
(6) Assessment of borrower's financial condition not
prohibited or required.--Nothing in this or any other
Act shall be construed to prohibit or require, unless
otherwise specifically provided by law, a lender to
evaluate the total financial situation of a student
making application for a loan under this part, or to
counsel a student with respect to any such loan, or to
make a decision based on such evaluation and counseling
with respect to the dollar amount of any such loan.
(7) Loans that have not been consummated.--Lenders
may not charge interest or receive interest subsidies
or special allowance payments for loans for which the
disbursement checks have not been cashed or for which
electronic funds transfers have not been completed.
(b) Insurance Program Agreements To Qualify Loans for
Interest Subsidies.--
(1) Requirements of insurance program.--Any State or
any nonprofit private institution or organization may
enter into an agreement with the Secretary for the
purpose of entitling students who receive loans which
are insured under a student loan insurance program of
that State, institution, or organization to have made
on their behalf the payments provided for in subsection
(a) if the Secretary determines that the student loan
insurance program--
(A) authorizes the insurance in any academic
year, as defined in section 481(a)(2), or its
equivalent (as determined under regulations of
the Secretary) for any student who is carrying
at an eligible institution or in a program of
study abroad approved for credit by the
eligible home institution at which such student
is enrolled at least one-half the normal full-
time academic workload (as determined by the
institution) in any amount up to a maximum of--
(i) in the case of a student at an
eligible institution who has not
successfully completed the first year
of a program of undergraduate
education--
(I) $3,500, if such student
is enrolled in a program whose
length is at least one academic
year in length; and
(II) if such student is
enrolled in a program of
undergraduate education which
is less than 1 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) as the length of such
program measured in semester,
trimester, quarter, or clock
hours bears to 1 academic year;
(ii) in the case of a student at an
eligible institution who has
successfully completed such first year
but has not successfully completed the
remainder of a program of undergraduate
education--
(I) $4,500; or
(II) if such student is
enrolled in a program of
undergraduate education, the
remainder of which 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) as
such remainder measured in
semester, trimester, quarter,
or clock hours bears to one
academic year;
(iii) in the case of a student at an
eligible institution 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--
(I) $5,500; or
(II) if such student is
enrolled in a program of
undergraduate education, the
remainder of which 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) as
such remainder measured in
semester, trimester, quarter,
or clock hours bears to one
academic year;
(iv) in the case of a student who has
received an associate or baccalaureate
degree and is enrolled in an eligible
program for which the institution
requires such degree for admission, the
number of years that a student has
completed in a program of undergraduate
education shall, for the purposes of
clauses (ii) and (iii), include any
prior enrollment in the eligible
program of undergraduate education for
which the student was awarded such
degree;
(v) in the case of a graduate or
professional student (as defined in
regulations of the Secretary) at an
eligible institution, $8,500; and
(vi) in the case of a student
enrolled in coursework specified in
sections 484(b)(3)(B) and
484(b)(4)(B)--
(I) $2,625 for coursework
necessary for enrollment in an
undergraduate degree or
certificate program, and, in
the case of a student who has
obtained a baccalaureate
degree, $5,500 for coursework
necessary for enrollment in a
graduate or professional degree
or certification program; and
(II) in the case of a student
who has obtained a
baccalaureate degree, $5,500
for coursework necessary for a
professional credential or
certification from a State
required for employment as a
teacher in an elementary school
or secondary school;
except in cases where the Secretary determines,
pursuant to regulations, that a higher amount
is warranted in order to carry out the purpose
of this part with respect to students engaged
in specialized training requiring exceptionally
high costs of education, but the annual
insurable limit per student shall not be deemed
to be exceeded by a line of credit under which
actual payments by the lender to the borrower
will not be made in any years in excess of the
annual limit;
(B) provides that the aggregate insured
unpaid principal amount for all such insured
loans made to any student shall be any amount
up to a maximum of--
(i) $23,000, in the case of any
student who has not successfully
completed a program of undergraduate
education, excluding loans made under
section 428A or 428B; and
(ii) $65,500, in the case of any
graduate or professional student (as
defined by regulations of the
Secretary), and (I) including any loans
which are insured by the Secretary
under this section, or by a guaranty
agency, made to such student before the
student became a graduate or
professional student, but (II)
excluding loans made under section 428A
or 428B,
except that the Secretary may increase the
limit applicable to students who are pursuing
programs which the Secretary determines are
exceptionally expensive;
(C) authorizes the insurance of loans to any
individual student for at least 6 academic
years of study or their equivalent (as
determined under regulations of the Secretary);
(D) provides that (i) the student borrower
shall be entitled to accelerate without penalty
the whole or any part of an insured loan, (ii)
the student borrower [may annually change the
selection of a repayment plan under this part,]
may at any time after July 1, 2021, change the
selection of a repayment plan under this part
to one of the 2 repayment plans described in
paragraph (9)(C), and (iii) the note, or other
written evidence of any loan, may contain such
reasonable provisions relating to repayment in
the event of default by the borrower as may be
authorized by regulations of the Secretary in
effect at the time such note or written
evidence was executed, and shall contain a
notice that repayment may, following a default
by the borrower, [be subject to income
contingent repayment in accordance with
subsection (m);] be subject to income-based
repayment in accordance with section 493C(f);
(E) subject to subparagraphs (D) and (L), and
except as provided by subparagraph (M),
provides that--
(i) not more than 6 months prior to
the date on which the borrower's first
payment is due, the lender shall offer
the borrower of a loan made, insured,
or guaranteed under this section or
section 428H, [the option of repaying
the loan in accordance with a standard,
graduated, income-sensitive, or
extended repayment schedule (as
described in paragraph (9)) established
by the lender in accordance with
regulations of the Secretary; and] the
option of repaying the loan in
accordance with a repayment plan
described in paragraph (9)(C)
established by the lender in accordance
with regulations of the Secretary; and
(ii) repayment of loans shall be in
installments in accordance with the
repayment plan selected under paragraph
(9) and commencing at the beginning of
the repayment period determined under
paragraph (7);
(F) authorizes interest on the unpaid balance
of the loan at a yearly rate not in excess
(exclusive of any premium for insurance which
may be passed on to the borrower) of the rate
required by section 427A;
(G) insures 98 percent of the unpaid
principal of loans insured under the program,
except that--
(i) such program shall insure 100
percent of the unpaid principal of
loans made with funds advanced pursuant
to section 428(j);
(ii) for any loan for which the first
disbursement of principal is made on or
after July 1, 2006, and before July 1,
2010, the preceding provisions of this
subparagraph shall be applied by
substituting ``97 percent'' for ``98
percent''; and
(iii) notwithstanding the preceding
provisions of this subparagraph, such
program shall insure 100 percent of the
unpaid principal amount of exempt
claims as defined in subsection
(c)(1)(G);
(H) provides--
(i) for loans for which the date of
guarantee of principal is before July
1, 2006, for the collection of a single
insurance premium equal to not more
than 1.0 percent of the principal
amount of the loan, by deduction
proportionately from each installment
payment of the proceeds of the loan to
the borrower, and ensures that the
proceeds of the premium will not be
used for incentive payments to lenders;
or
(ii) for loans for which the date of
guarantee of principal is on or after
July 1, 2006, and that are first
disbursed before July 1, 2010, for the
collection, and the deposit into the
Federal Student Loan Reserve Fund under
section 422A of a Federal default fee
of an amount equal to 1.0 percent of
the principal amount of the loan, which
fee shall be collected either by
deduction from the proceeds of the loan
or by payment from other non-Federal
sources, and ensures that the proceeds
of the Federal default fee will not be
used for incentive payments to lenders;
(I) provides that the benefits of the loan
insurance program will not be denied any
student who is eligible for interest benefits
under subsection (a) (1) and (2);
(J) provides that a student may obtain
insurance under the program for a loan for any
year of study at an eligible institution;
(K) in the case of a State program, provides
that such State program is administered by a
single State agency, or by one or more
nonprofit private institutions or organizations
under supervision of a single State agency;
(L) provides that the total of the payments
by a borrower--
(i) except as otherwise provided by a
repayment plan selected by the borrower
under clause (ii), (iii), or (v) of
paragraph (9)(A), during any year of
any repayment period with respect to
the aggregate amount of all loans to
that borrower which are insured under
this part shall not, unless the
borrower and the lender 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 payment plan under
paragraph (9)(A)); and
(ii) for a monthly or other similar
payment period with respect to the
aggregate of all loans held by the
lender 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;
(M) provides that periodic installments of
principal need not be paid, but interest shall
accrue and be paid by the Secretary, during any
period--
(i) during which the borrower--
(I) is pursuing at least a
half-time course of study as
determined by an eligible
institution, except that no
borrower, notwithstanding the
provisions of the promissory
note, shall be required to
borrow an additional loan under
this title in order to be
eligible to receive a deferment
under this clause; 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
(other than a loan made under section
428B or 428C), 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,
except that no borrower who provides
evidence of eligibility for
unemployment benefits shall be required
to provide additional paperwork for a
deferment under this clause;
(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
receiving treatment for cancer and the
6 months after such period;
(N) provides that funds borrowed by a
student--
(i) are disbursed to the institution
by check or other means that is payable
to, and requires the endorsement or
other certification by, such student;
(ii) in the case of a student who is
studying outside the United States in a
program of study abroad that is
approved for credit by the home
institution at which such student is
enrolled, and only after verification
of the student's enrollment by the
lender or guaranty agency, are, at the
request of the student, disbursed
directly to the student by the means
described in clause (i), unless such
student requests that the check be
endorsed, or the funds transfer be
authorized, pursuant to an authorized
power-of-attorney; or
(iii) in the case of a student who is
studying outside the United States in a
program of study at an eligible foreign
institution, are, at the request of the
foreign institution, disbursed directly
to the student, only after verification
of the student's enrollment by the
lender or guaranty agency by the means
described in clause (i).
(O) provides that the proceeds of the loans
will be disbursed in accordance with the
requirements of section 428G;
(P) requires the borrower to notify the
institution concerning any change in local
address during enrollment and requires the
borrower and the institution at which the
borrower is in attendance promptly to notify
the holder of the loan, directly or through the
guaranty agency, concerning (i) any change of
permanent address, (ii) when the student ceases
to be enrolled on at least a half-time basis,
and (iii) any other change in status, when such
change in status affects the student's
eligibility for the loan;
(Q) provides for the guarantee of loans made
to students and parents under sections 428A and
428B;
(R) with respect to lenders which are
eligible institutions, provides for the
insurance of loans by only such institutions as
are located within the geographic area served
by such guaranty agency;
(S) provides no restrictions with respect to
the insurance of loans for students who are
otherwise eligible for loans under such program
if such a student is accepted for enrollment in
or is attending an eligible institution within
the State, or if such a student is a legal
resident of the State and is accepted for
enrollment in or is attending an eligible
institution outside that State;
(T) authorizes (i) the limitation of the
total number of loans or volume of loans, made
under this part to students attending a
particular eligible institution during any
academic year; and (ii) the emergency action,
limitation, suspension, or termination of the
eligibility of an eligible institution if--
(I) such institution is ineligible
for the emergency action, limitation,
suspension, or termination of eligible
institutions under regulations issued
by the Secretary or is ineligible
pursuant to criteria, rules, or
regulations issued under the student
loan insurance program which are
substantially the same as regulations
with respect to emergency action,
limitation, suspension, or termination
of such eligibility issued by the
Secretary;
(II) there is a State constitutional
prohibition affecting the eligibility
of such an institution;
(III) such institution fails to make
timely refunds to students as required
by regulations issued by the Secretary
or has not satisfied within 30 days of
issuance a final judgment obtained by a
student seeking such a refund;
(IV) such institution or an owner,
director, or officer of such
institution is found guilty in any
criminal, civil, or administrative
proceeding, or such institution or an
owner, director, or officer of such
institution is found liable in any
civil or administrative proceeding,
regarding the obtaining, maintenance,
or disbursement of State or Federal
grant, loan, or work assistance funds;
or
(V) such institution or an owner,
director, or officer of such
institution has unpaid financial
liabilities involving the improper
acquisition, expenditure, or refund of
State or Federal financial assistance
funds;
except that, if a guaranty agency limits,
suspends, or terminates the participation of an
eligible institution, the Secretary shall apply
that limitation, suspension, or termination to
all locations of such institution, unless the
Secretary finds, within 30 days of notification
of the action by the guaranty agency, that the
guaranty agency's action did not comply with
the requirements of this section;
(U) provides (i) for the eligibility of all
lenders described in section 435(d)(1) under
reasonable criteria, unless (I) that lender is
eliminated as a lender under regulations for
the emergency action, limitation, suspension,
or termination of a lender under the Federal
student loan insurance program or is eliminated
as a lender pursuant to criteria issued under
the student loan insurance program which are
substantially the same as regulations with
respect to such eligibility as a lender issued
under the Federal student loan insurance
program, or (II) there is a State
constitutional prohibition affecting the
eligibility of a lender, (ii) assurances that
the guaranty agency will report to the
Secretary concerning changes in such criteria,
including any procedures in effect under such
program to take emergency action, limit,
suspend, or terminate lenders, and (iii) for
(I) a compliance audit of each lender that
originates or holds more than $5,000,000 in
loans made under this title for any lender
fiscal year (except that each lender described
in section 435(d)(1)(A)(ii)(III) shall annually
submit the results of an audit required by this
clause), 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 lender that is audited under chapter 75 of
title 31, United States Code, such audit shall
be deemed to satisfy the requirements of
subclause (I) for the period covered by such
audit, except that the Secretary may waive the
requirements of this clause (iii) if the lender
submits to the Secretary the results of an
audit conducted for other purposes that the
Secretary determines provides the same
information as the audits required by this
clause;
(V) provides authority for the guaranty
agency to require a participation agreement
between the guaranty agency and each eligible
institution within the State in which it is
designated, as a condition for guaranteeing
loans made on behalf of students attending the
institution;
(W) provides assurances that the agency will
implement all requirements of the Secretary for
uniform claims and procedures pursuant to
section 432(l);
(X) provides information to the Secretary in
accordance with section 428(c)(9) and maintains
reserve funds determined by the Secretary to be
sufficient in relation to such agency's
guarantee obligations; and
(Y) provides that--
(i) the lender shall determine the
eligibility of a borrower for a
deferment described in subparagraph
(M)(i) based on--
(I) receipt of a request for
deferment from the borrower and
documentation of the borrower's
eligibility for the deferment;
(II) receipt of a newly
completed loan application that
documents the borrower's
eligibility for a deferment;
(III) receipt of student
status information documenting
that the borrower is enrolled
on at least a half-time basis;
or
(IV) the lender's
confirmation of the borrower's
half-time enrollment status
through use of the National
Student Loan Data System, if
the confirmation is requested
by the institution of higher
education;
(ii) the lender will notify the
borrower of the granting of any
deferment under clause (i)(II) or (III)
of this subparagraph and of the option
to continue paying on the loan; and
(iii) the lender shall, at the time
the lender grants a deferment to a
borrower who received a loan under
section 428H and is eligible for a
deferment under subparagraph (M) of
this paragraph, provide information to
the borrower to assist the borrower in
understanding the impact of the
capitalization of interest on the
borrower's loan principal and on the
total amount of interest to be paid
during the life of the loan.
(2) Contents of insurance program agreement.--Such an
agreement shall--
(A) provide that the holder of any such loan
will be required to submit to the Secretary, at
such time or times and in such manner as the
Secretary may prescribe, statements containing
such information as may be required by or
pursuant to regulation for the purpose of
enabling the Secretary to determine the amount
of the payment which must be made with respect
to that loan;
(B) include such other provisions as may be
necessary to protect the United States from the
risk of unreasonable loss and promote the
purpose of this part, including such provisions
as may be necessary for the purpose of section
437, and as are agreed to by the Secretary and
the guaranty agency, as the case may be;
(C) provide for making such reports, in such
form and containing such information, including
financial information, as the Secretary may
reasonably require to carry out the Secretary's
functions under this part and protect the
financial interest of the United States, and
for keeping such records and for affording such
access thereto as the Secretary may find
necessary to assure the correctness and
verification of such reports;
(D) provide for--
(i) conducting, except as provided in
clause (ii), financial and compliance
audits of the guaranty agency 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; or
(ii) with regard to a guaranty
program of a State 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 of time covered by such
audit;
(E)(i) provide that any guaranty agency may
transfer loans which are insured under this
part to any other guaranty agency with the
approval of the holder of the loan and such
other guaranty agency; and
(ii) provide that the lender (or the holder
of the loan) shall, not later than 120 days
after the borrower has left the eligible
institution, notify the borrower of the date on
which the repayment period begins; and
(F) provide that, if the sale, other
transfer, or assignment of a loan made under
this part to another holder will result in a
change in the identity of the party to whom the
borrower must send subsequent payments or
direct any communications concerning the loans,
then--
(i) the transferor and the transferee
will be required, not later than 45
days from the date the transferee
acquires a legally enforceable right to
receive payment from the borrower on
such loan, either jointly or separately
to provide a notice to the borrower
of--
(I) the sale or other
transfer;
(II) the identity of the
transferee;
(III) the name and address of
the party to whom subsequent
payments or communications must
be sent;
(IV) the telephone numbers of
both the transferor and the
transferee;
(V) the effective date of the
transfer;
(VI) the date on which the
current servicer (as of the
date of the notice) will stop
accepting payments; and
(VII) the date on which the
new servicer will begin
accepting payments; and
(ii) the transferee will be required
to notify the guaranty agency, and,
upon the request of an institution of
higher education, the guaranty agency
shall notify the last such institution
the student attended prior to the
beginning of the repayment period of
any loan made under this part, of--
(I) any sale or other
transfer of the loan; and
(II) the address and
telephone number by which
contact may be made with the
new holder concerning repayment
of the loan,
except that this subparagraph (F) shall only
apply if the borrower is in the grace period
described in section 427(a)(2)(B) or 428(b)(7)
or is in repayment status.
(3) Restrictions on inducements, payments, mailings,
and advertising.--A guaranty agency shall not--
(A) offer, directly or indirectly, premiums,
payments, stock or other securities, prizes,
travel, entertainment expenses, tuition payment
or reimbursement, or other inducements to--
(i) any institution of higher
education, any employee of an
institution of higher education, or any
individual or entity in order to secure
applicants for loans made under this
part; or
(ii) any lender, or any agent,
employee, or independent contractor of
any lender or guaranty agency, in order
to administer or market loans made
under this part (other than a loan made
as part of the guaranty agency's
lender-of-last-resort program pursuant
to section 428(j)), for the purpose of
securing the designation of the
guaranty agency as the insurer of such
loans;
(B) conduct unsolicited mailings, by postal
or electronic means, of student loan
application forms to students enrolled in
secondary schools or postsecondary educational
institutions, or to the families of such
students, except that applications may be
mailed, by postal or electronic means, to
students or borrowers who have previously
received loans guaranteed under this part by
the guaranty agency;
(C) perform, for an institution of higher
education participating in a program under this
title, any function that such institution is
required to perform under this title, except
that the guaranty agency may perform functions
on behalf of such institution in accordance
with section 485(b) or 485(l);
(D) pay, on behalf of an institution of
higher education, another person to perform any
function that such institution is required to
perform under this title, except that the
guaranty agency may perform functions on behalf
of such institution in accordance with section
485(b) or 485(l); or
(E) conduct fraudulent or misleading
advertising concerning loan availability,
terms, or conditions.
It shall not be a violation of this paragraph for a
guaranty agency to provide technical assistance to
institutions of higher education comparable to the
technical assistance provided to institutions of higher
education by the Department.
(4) Special rule.--With respect to the graduate
fellowship program referred to in paragraph
(1)(M)(i)(II), the Secretary shall approve 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.
Requests for deferment of repayment of loans under this
part 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.
(5) Guaranty agency information transfers.--(A) Until
such time as the Secretary has implemented section 485B
and is able to provide to guaranty agencies the
information required by such section, any guaranty
agency may request information regarding loans made
after January 1, 1987, to students who are residents of
the State for which the agency is the designated
guarantor, from any other guaranty agency insuring
loans to such students.
(B) Upon a request pursuant to subparagraph (A), a
guaranty agency shall provide--
(i) the name and the social security number
of the borrower; and
(ii) the amount borrowed and the cumulative
amount borrowed.
(C) Any costs associated with fulfilling the request
of a guaranty agency for information on students shall
be paid by the guaranty agency requesting the
information.
(6) State guaranty agency information request of
state licensing boards.--Each guaranty agency is
authorized to enter into agreements with each
appropriate State licensing board under which the State
licensing board, upon request, will furnish the
guaranty agency with the address of a student borrower
in any case in which the location of the student
borrower is unknown or unavailable to the guaranty
agency.
(7) Repayment period.--(A) In the case of a loan made
under section 427 or 428, the repayment period shall
exclude any period of authorized deferment or
forbearance and shall begin 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).
(B) In the case of a loan made under section 428H,
the repayment period shall exclude any period of
authorized deferment or forbearance, and shall begin as
described in subparagraph (A), but interest shall begin
to accrue or be paid by the borrower on the day the
loan is disbursed.
(C) In the case of a loan made under section 428B or
428C, the repayment period shall begin on the day the
loan is disbursed, or, if the loan is disbursed in
multiple installments, on the day of the last such
disbursement, and shall exclude any period of
authorized deferment or forbearance.
(D) 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.
(8) Means of disbursement of loan proceeds.--Nothing
in this title shall be interpreted to prohibit the
disbursement of loan proceeds by means other than by
check or to allow the Secretary to require checks to be
made co-payable to the institution and the borrower.
(9) Repayment plans.--
(A) Design and selection.--In accordance with
regulations promulgated by the Secretary, the
lender shall offer a borrower of a loan made
under this part the plans described in this
subparagraph for repayment of such loan,
including principal and interest thereon. No
plan may require a borrower to repay a loan in
less than 5 years unless the borrower, during
the 6 months immediately preceding the start of
the repayment period, specifically requests
that repayment be made over of a shorter
period. The borrower may choose from--
(i) a standard repayment plan, with a
fixed annual repayment amount paid over
a fixed period of time, not to exceed
10 years;
(ii) a graduated repayment plan paid
over a fixed period of time, not to
exceed 10 years;
(iii) an income-sensitive repayment
plan, with income-sensitive repayment
amounts paid over a fixed period of
time, not to exceed 10 years, except
that the borrower's scheduled payments
shall not be less than the amount of
interest due;
(iv) for new borrowers on or after
the date of enactment of the Higher
Education Amendments of 1998 who
accumulate (after such date)
outstanding loans under this part
totaling more than $30,000, an extended
repayment plan, with a fixed annual or
graduated repayment amount paid over an
extended period of time, not to exceed
25 years, except that the borrower
shall repay annually a minimum amount
determined in accordance with paragraph
(1)(L)(i); and
(v) beginning July 1, 2009, an
income-based repayment plan that
enables a borrower who has a partial
financial hardship to make a lower
monthly payment in accordance with
section 493C, except that the plan
described in this clause shall not be
available to a borrower for a loan
under section 428B made on behalf of a
dependent student or for a
consolidation loan under section 428C,
if the proceeds of such loan were used
to discharge the liability of a loan
under section 428B made on behalf of a
dependent student.
(B) Lender selection of option if borrower
does not select.--If a borrower of a loan made
under this part does not select a repayment
plan described in subparagraph (A), the lender
shall provide the borrower with a repayment
plan described in subparagraph (A)(i).
(C) Selection of repayment plans on and after
july 1, 2021.--Notwithstanding any other
provision of this paragraph, or any other
provision of law, and in accordance with
regulations, beginning on July 1, 2021, the
lender shall offer a borrower of a loan made,
insured, or guaranteed under this part the
opportunity to change repayment plans, and to
enroll in one of the following repayment plans:
(i) A fixed repayment plan described
in section 493E.
(ii) The income-based repayment plan
under section 493C(f).
(c) Guaranty Agreements for Reimbursing Losses.--
(1) Authority to enter into agreements.--(A) The
Secretary may enter into a guaranty agreement with any
guaranty agency, whereby the Secretary shall undertake
to reimburse it, under such terms and conditions as the
Secretary may establish, with respect to losses
(resulting from the default of the student borrower) on
the unpaid balance of the principal and accrued
interest of any insured loan. The guaranty agency
shall, be deemed to have a contractual right against
the United States, during the life of such loan, to
receive reimbursement according to the provisions of
this subsection. Upon receipt of an accurate and
complete request by a guaranty agency for reimbursement
with respect to such losses, the Secretary shall pay
promptly and without administrative delay. Except as
provided in subparagraph (B) of this paragraph and in
paragraph (7), the amount to be paid a guaranty agency
as reimbursement under this subsection shall be equal
to 100 percent of the amount expended by it in
discharge of its insurance obligation incurred under
its loan insurance program. A guaranty agency shall
file a claim for reimbursement with respect to losses
under this subsection within 30 days after the guaranty
agency discharges its insurance obligation on the loan.
(B) Notwithstanding subparagraph (A)--
(i) if, for any fiscal year, the amount of
such reimbursement payments by the Secretary
under this subsection exceeds 5 percent of the
loans which are insured by such guaranty agency
under such program and which were in repayment
at the end of the preceding fiscal year, the
amount to be paid as reimbursement under this
subsection for such excess shall be equal to 85
percent of the amount of such excess; and
(ii) if, for any fiscal year, the amount of
such reimbursement payments exceeds 9 percent
of such loans, the amount to be paid as
reimbursement under this subsection for such
excess shall be equal to 75 percent of the
amount of such excess.
(C) For the purpose of this subsection, the amount of
loans of a guaranty agency which are in repayment shall
be the original principal amount of loans made by a
lender which are insured by such a guaranty agency
reduced by--
(i) the amount the insurer has been required
to pay to discharge its insurance obligations
under this part;
(ii) the original principal amount of loans
insured by it which have been fully repaid; and
(iii) the original principal amount insured
on those loans for which payment of the first
installment of principal has not become due
pursuant to subsection (b)(1)(E) of this
section or such first installment need not be
paid pursuant to subsection (b)(1)(M) of this
section.
(D) Notwithstanding any other provisions of this
section, in the case of a loan made pursuant to a
lender-of-last-resort program, the Secretary shall
apply the provisions of--
(i) the fourth sentence of subparagraph (A)
by substituting ``100 percent'' for ``95
percent'';
(ii) subparagraph (B)(i) by substituting
``100 percent'' for ``85 percent''; and
(iii) subparagraph (B)(ii) by substituting
``100 percent'' for ``75 percent''.
(E) Notwithstanding any other provisions of this
section, in the case of an outstanding loan transferred
to a guaranty agency from another guaranty agency
pursuant to a plan approved by the Secretary in
response to the insolvency of the latter such guarantee
agency, the Secretary shall apply the provision of--
(i) the fourth sentence of subparagraph (A)
by substituting ``100 percent'' for ``95
percent'';
(ii) subparagraph (B)(i) by substituting ``90
percent'' for ``85 percent''; and
(iii) subparagraph (B)(ii) by substituting
``80 percent'' for ``75 percent''.
(F)(i) Notwithstanding any other provisions of this
section, in the case of exempt claims, the Secretary
shall apply the provisions of--
(I) the fourth sentence of subparagraph (A)
by substituting ``100 percent'' for ``95
percent'';
(II) subparagraph (B)(i) by substituting
``100 percent'' for ``85 percent''; and
(III) subparagraph (B)(ii) by substituting
``100 percent'' for ``75 percent''.
(ii) For purposes of clause (i) of this subparagraph,
the term ``exempt claims'' means claims with respect to
loans for which it is determined that the borrower (or
the student on whose behalf a parent has borrowed),
without the lender's or the institution's knowledge at
the time the loan was made, provided false or erroneous
information or took actions that caused the borrower or
the student to be ineligible for all or a portion of
the loan or for interest benefits thereon.
(G) Notwithstanding any other provision of this
section, the Secretary shall exclude a loan made
pursuant to a lender-of-last-resort program when making
reimbursement payment calculations under subparagraphs
(B) and (C).
(2) Contents of guaranty agreements.--The guaranty
agreement--
(A) shall set forth such administrative and
fiscal procedures as may be necessary to
protect the United States from the risk of
unreasonable loss thereunder, to ensure proper
and efficient administration of the loan
insurance program, and to assure that due
diligence will be exercised in the collection
of loans insured under the program, including
(i) a requirement that each beneficiary of
insurance on the loan submit proof that the
institution was contacted and other reasonable
attempts were made to locate the borrower (when
the location of the borrower is unknown) and
proof that contact was made with the borrower
(when the location is known) and (ii)
requirements establishing procedures to
preclude consolidation lending from being an
excessive proportion of guaranty agency
recoveries on defaulted loans under this part;
(B) shall provide for making such reports, in
such form and containing such information, as
the Secretary may reasonably require to carry
out the Secretary's functions under this
subsection, and for keeping such records and
for affording such access thereto as the
Secretary may find necessary to assure the
correctness and verification of such reports;
(C) shall set forth adequate assurances that,
with respect to so much of any loan insured
under the loan insurance program as may be
guaranteed by the Secretary pursuant to this
subsection, the undertaking of the Secretary
under the guaranty agreement is acceptable in
full satisfaction of State law or regulation
requiring the maintenance of a reserve;
(D) shall provide that if, after the
Secretary has made payment under the guaranty
agreement pursuant to paragraph (1) of this
subsection with respect to any loan, any
payments are made in discharge of the
obligation incurred by the borrower with
respect to such loan (including any payments of
interest accruing on such loan after such
payment by the Secretary), there shall be paid
over to the Secretary (for deposit in the fund
established by section 431) such proportion of
the amounts of such payments as is determined
(in accordance with paragraph (6)(A)) to
represent his equitable share thereof, but (i)
shall provide for subrogation of the United
States to the rights of any insurance
beneficiary only to the extent required for the
purpose of paragraph (8); and (ii) except as
the Secretary may otherwise by or pursuant to
regulation provide, amounts so paid by a
borrower on such a loan shall be first applied
in reduction of principal owing on such loan;
(E) shall set forth adequate assurance that
an amount equal to each payment made under
paragraph (1) will be promptly deposited in or
credited to the accounts maintained for the
purpose of section 422(c);
(F) set forth adequate assurances that the
guaranty agency will not engage in any pattern
or practice which results in a denial of a
borrower's access to loans under this part
because of the borrower's race, sex, color,
religion, national origin, age, handicapped
status, income, attendance at a particular
eligible institution within the area served by
the guaranty agency, length of the borrower's
educational program, or the borrower's academic
year in school;
(G) shall prohibit the Secretary from making
any reimbursement under this subsection to a
guaranty agency when a default claim is based
on an inability to locate the borrower, unless
the guaranty agency, at the time of filing for
reimbursement, certifies to the Secretary that
diligent attempts, including contact with the
institution, have been made to locate the
borrower through the use of reasonable skip-
tracing techniques in accordance with
regulations prescribed by the Secretary; and
(H) set forth assurances that--
(i) upon the request of an eligible
institution, the guaranty agency shall,
subject to clauses (ii) and (iii),
furnish to the institution information
with respect to students (including the
names and addresses of such students)
who received loans made, insured, or
guaranteed under this part for
attendance at the eligible institution
and for whom default aversion
assistance activities have been
requested under subsection (l);
(ii) the guaranty agency shall not
require the payment from the
institution of any fee for such
information; and
(iii) the guaranty agency will
require the institution to use such
information only to assist the
institution in reminding students of
their obligation to repay student loans
and shall prohibit the institution from
disseminating the information for any
other purpose.
(I) may include such other provisions as may
be necessary to promote the purpose of this
part.
(3) Forbearance.--A guaranty agreement under this
subsection--
(A) shall contain provisions providing that--
(i) upon request, a lender shall
grant a borrower forbearance, renewable
at 12-month intervals, on terms agreed
to by the parties to the loan with the
approval of the insurer and documented
in accordance with paragraph (10), and
otherwise consistent with the
regulations of the Secretary, if the
borrower--
(I) 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,
provided that if the borrower
qualifies for a deferment under
section 427(a)(2)(C)(vii) or
subsection (b)(1)(M)(vii) of
this section as in effect prior
to the enactment of the Higher
Education Amendments of 1992,
or section 427(a)(2)(C) or
subsection (b)(1)(M) of this
section as amended by such
amendments, the borrower has
exhausted his or her
eligibility for such deferment;
(II) has a debt burden under
this title that equals or
exceeds 20 percent of income;
(III) is serving in a
national service position for
which the borrower receives a
national service educational
award under the National and
Community Service Trust Act of
1993; or
(IV) 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 is
being paid on such loan under
subsection (o);
(ii) the length of the forbearance
granted by the lender--
(I) under clause (i)(I) shall
equal the length of time
remaining in the borrower's
medical or dental internship or
residency program, if the
borrower is not eligible to
receive a deferment described
in such clause, or such length
of time remaining in the
program after the borrower has
exhausted the borrower's
eligibility for such deferment;
(II) under clause (i)(II) or
(IV) shall not exceed 3 years;
or
(III) under clause (i)(III)
shall not exceed the period for
which the borrower is serving
in a position described in such
clause; and
(iii) no administrative or other fee
may be charged in connection with the
granting of a forbearance under clause
(i), and no adverse information
regarding a borrower may be reported to
a consumer reporting agency solely
because of the granting of such
forbearance;
(B) may, to the extent provided in
regulations of the Secretary, contain
provisions that permit such forbearance for the
benefit of the student borrower as may be
agreed upon by the parties to an insured loan
and approved by the insurer;
(C) shall contain provisions that specify
that--
(i) the form of forbearance granted
by the lender pursuant to this
paragraph, other than subparagraph
(A)(i)(IV), shall be temporary
cessation of payments, unless the
borrower selects forbearance in the
form of an extension of time for making
payments, or smaller payments than were
previously scheduled;
(ii) the form of forbearance granted
by the lender pursuant to subparagraph
(A)(i)(IV) shall be the temporary
cessation of all payments on the loan
other than payments of interest on the
loan that are made under subsection
(o);
(iii) the lender shall, at the time
of granting a borrower forbearance,
provide information to the borrower to
assist the borrower in understanding
the impact of capitalization of
interest on the borrower's loan
principal and total amount of interest
to be paid during the life of the loan,
and with respect to a forbearance
granted to a borrower on or after the
date of enactment of the College
Affordability Act on a loan made,
insured or guaranteed under this
section, provide information to the
borrower to assist the borrower in
understanding that interest shall
accrue on the loan but not be
capitalized at the expiration of such
period of forbearance; and
(iv) the lender shall contact the
borrower not less often than once every
180 days during the period of
forbearance to inform the borrower of--
(I) the amount of unpaid
principal and the amount of
interest that has accrued since
the last statement of such
amounts provided to the
borrower by the lender;
(II) the fact that interest
will accrue on the loan for the
period of forbearance;
(III) the amount of interest
that will be capitalized, and
the date on which
capitalization will occur,
except that this subclause
shall not apply with respect to
any period of forbearance
beginning on or after the date
of enactment of the College
Affordability Act;
(IV) the option of the
borrower to pay the interest
that has accrued before the
interest is capitalized except
that this subclause shall not
apply with respect to any
period of forbearance beginning
on or after the date of
enactment of the College
Affordability Act; and
(V) the borrower's option to
discontinue the forbearance at
any time; and
(D) shall contain provisions that specify
that--
(i) forbearance for a period not to
exceed 60 days may be granted if the
lender reasonably determines that such
a suspension of collection activity is
warranted following a borrower's
request for deferment, forbearance, a
change in repayment plan, or a request
to consolidate loans, in order to
collect or process appropriate
supporting documentation related to the
request, and
(ii) during such period interest
shall accrue but not be capitalized.
Guaranty agencies shall not be precluded from
permitting the parties to such a loan from entering
into a forbearance agreement solely because the loan is
in default. The Secretary shall permit lenders to
exercise administrative forbearances that do not
require the agreement of the borrower, under conditions
authorized by the Secretary. Such forbearances shall
include (i) forbearances for borrowers who are
delinquent at the time of the granting of an authorized
period of deferment under section 428(b)(1)(M) or
427(a)(2)(C), and (ii) if the borrower is less than 60
days delinquent on such loans at the time of sale or
transfer, forbearances for borrowers on loans which are
sold or transferred.
(4) Definitions.--For the purpose of this subsection,
the terms ``insurance beneficiary'' and ``default''
have the meanings assigned to them by section 435.
(5) Applicability to existing loans.--In the case of
any guaranty agreement with a guaranty agency, the
Secretary may, in accordance with the terms of this
subsection, undertake to guarantee loans described in
paragraph (1) which are insured by such guaranty agency
and are outstanding on the date of execution of the
guaranty agreement, but only with respect to defaults
occurring after the execution of such guaranty
agreement or, if later, after its effective date.
(6) Secretary's equitable share.--(A) For the purpose
of paragraph (2)(D), the Secretary's equitable share of
payments made by the borrower shall be that portion of
the payments remaining after the guaranty agency with
which the Secretary has an agreement under this
subsection has deducted from such payments--
(i) a percentage amount equal to the
complement of the reinsurance percentage in
effect when payment under the guaranty
agreement was made with respect to the loan;
and
(ii) an amount equal to 24 percent of
such payments for use in accordance
with section 422B, except that--
(I) beginning October 1, 2003
and ending September 30, 2007,
this clause shall be applied by
substituting ``23 percent'' for
``24 percent''; and
(II) beginning October 1,
2007, this clause shall be
applied by substituting ``16
percent'' for ``24 percent''.
(B) A guaranty agency shall--
(i) on or after October 1, 2006--
(I) not charge the borrower
collection costs in an amount in excess
of 18.5 percent of the outstanding
principal and interest of a defaulted
loan that is paid off through
consolidation by the borrower under
this title; and
(II) remit to the Secretary a portion
of the collection charge under
subclause (I) equal to 8.5 percent of
the outstanding principal and interest
of such defaulted loan; and
(ii) on and after October 1, 2009, remit to
the Secretary the entire amount charged under
clause (i)(I) with respect to each defaulted
loan that is paid off with excess consolidation
proceeds.
(C) For purposes of subparagraph (B), the term
``excess consolidation proceeds'' means, with respect
to any guaranty agency for any Federal fiscal year
beginning on or after October 1, 2009, the proceeds of
consolidation of defaulted loans under this title that
exceed 45 percent of the agency's total collections on
defaulted loans in such Federal fiscal year.
(7) New programs eligible for 100 percent
reinsurance.--(A) Notwithstanding paragraph (1)(C), the
amount to be paid a guaranty agency for any fiscal
year--
(i) which begins on or after October 1, 1977
and ends before October 1, 1991; and
(ii) which is either the fiscal year in which
such guaranty agency begins to actively carry
on a student loan insurance program which is
subject to a guaranty agreement under
subsection (b) of this section, or is one of
the 4 succeeding fiscal years,
shall be 100 percent of the amount expended by such
guaranty agency in discharge of its insurance
obligation insured under such program.
(B) Notwithstanding the provisions of paragraph
(1)(C), the Secretary may pay a guaranty agency 100
percent of the amount expended by such agency in
discharge of such agency's insurance obligation for any
fiscal year which--
(i) begins on or after October 1, 1991; and
(ii) is the fiscal year in which such
guaranty agency begins to actively carry on a
student loan insurance program which is subject
to a guaranty agreement under subsection (b) or
is one of the 4 succeeding fiscal years.
(C) The Secretary shall continuously monitor the
operations of those guaranty agencies to which the
provisions of subparagraph (A) or (B) are applicable
and revoke the application of such subparagraph to any
such guaranty agency which the Secretary determines has
not exercised reasonable prudence in the administration
of such program.
(8) Assignment to protect federal fiscal interest.--
If the Secretary determines that the protection of the
Federal fiscal interest so requires, a guaranty agency
shall assign to the Secretary any loan of which it is
the holder and for which the Secretary has made a
payment pursuant to paragraph (1) of this subsection.
(9) Guaranty agency reserve level.--(A) Each guaranty
agency which has entered into an agreement with the
Secretary pursuant to this subsection shall maintain in
the agency's Federal Student Loan Reserve Fund
established under section 422A a current minimum
reserve level of at least 0.25 percent of the total
attributable amount of all outstanding loans guaranteed
by such agency. For purposes of this paragraph, such
total attributable amount does not include amounts of
outstanding loans transferred to the guaranty agency
from another guaranty agency pursuant to a plan of the
Secretary in response to the insolvency of the latter
such guaranty agency.
(B) The Secretary shall collect, on an annual basis,
information from each guaranty agency having an
agreement under this subsection to enable the Secretary
to evaluate the financial solvency of each such agency.
The information collected shall include the level of
such agency's current reserves, cash disbursements and
accounts receivable.
(C) If (i) any guaranty agency falls below the
required minimum reserve level in any 2 consecutive
years, (ii) any guaranty agency's Federal reimbursement
payments are reduced to 85 percent pursuant to
paragraph (1)(B)(i), or (iii) the Secretary determines
that the administrative or financial condition of a
guaranty agency jeopardizes such agency's continued
ability to perform its responsibilities under its
guaranty agreement, then the Secretary shall require
the guaranty agency to submit and implement a
management plan acceptable to the Secretary within 45
working days of any such event.
(D)(i) If the Secretary is not seeking to terminate
the guaranty agency's agreement under subparagraph (E),
or assuming the guaranty agency's functions under
subparagraph (F), a management plan described in
subparagraph (C) shall include the means by which the
guaranty agency will improve its financial and
administrative condition to the required level within
18 months.
(ii) If the Secretary is seeking to terminate the
guaranty agency's agreement under subparagraph (E), or
assuming the guaranty agency's functions under
subparagraph (F), a management plan described in
subparagraph (C) shall include the means by which the
Secretary and the guaranty agency shall work together
to ensure the orderly termination of the operations,
and liquidation of the assets, of the guaranty agency.
(E) The Secretary may terminate a guaranty agency's
agreement in accordance with subparagraph (F) if--
(i) a guaranty agency required to submit a
management plan under this paragraph fails to
submit a plan that is acceptable to the
Secretary;
(ii) the Secretary determines that a guaranty
agency has failed to improve substantially its
administrative and financial condition;
(iii) the Secretary determines that the
guaranty agency is in danger of financial
collapse;
(iv) the Secretary determines that such
action is necessary to protect the Federal
fiscal interest; or
(v) the Secretary determines that such action
is necessary to ensure the continued
availability of loans to student or parent
borrowers.
(F) If a guaranty agency's agreement under this
subsection is terminated pursuant to subparagraph (E),
then the Secretary shall assume responsibility for all
functions of the guaranty agency under the loan
insurance program of such agency. In performing such
functions the Secretary is authorized to--
(i) permit the transfer of guarantees to
another guaranty agency;
(ii) revoke the reinsurance agreement of the
guaranty agency at a specified date, so as to
require the merger, consolidation, or
termination of the guaranty agency;
(iii) transfer guarantees to the Department
of Education for the purpose of payment of such
claims and process such claims using the claims
standards of the guaranty agency, if such
standards are determined by the Secretary to be
in compliance with this Act;
(iv) design and implement a plan to restore
the guaranty agency's viability;
(v) provide the guaranty agency with
additional advance funds in accordance with
section 422(c)(7), with such restrictions on
the use of such funds as is determined
appropriate by the Secretary, in order to--
(I) meet the immediate cash needs of
the guaranty agency;
(II) ensure the uninterrupted payment
of claims; or
(III) ensure that the guaranty agency
will make loans as the lender-of-last-
resort, in accordance with subsection
(j);
(vi) use all funds and assets of the guaranty
agency to assist in the activities undertaken
in accordance with this subparagraph and take
appropriate action to require the return, to
the guaranty agency or the Secretary, of any
funds or assets provided by the guaranty
agency, under contract or otherwise, to any
person or organization; or
(vii) take any other action the Secretary
determines necessary to ensure the continued
availability of loans made under this part to
residents of the State or States in which the
guaranty agency did business, the full honoring
of all guarantees issued by the guaranty agency
prior to the Secretary's assumption of the
functions of such agency, and the proper
servicing of loans guaranteed by the guaranty
agency prior to the Secretary's assumption of
the functions of such agency, and to avoid
disruption of the student loan program.
(G) Notwithstanding any other provision of Federal or
State law, if the Secretary has terminated or is
seeking to terminate a guaranty agency's agreement
under subparagraph (E), or has assumed a guaranty
agency's functions under subparagraph (F)--
(i) no State court may issue any order
affecting the Secretary's actions with respect
to such guaranty agency;
(ii) any contract with respect to the
administration of a guaranty agency's reserve
funds, or the administration of any assets
purchased or acquired with the reserve funds of
the guaranty agency, that is entered into or
extended by the guaranty agency, or any other
party on behalf of or with the concurrence of
the guaranty agency, after the date of
enactment of this subparagraph shall provide
that the contract is terminable by the
Secretary upon 30 days notice to the
contracting parties if the Secretary determines
that such contract includes an impermissible
transfer of the reserve funds or assets, or is
otherwise inconsistent with the terms or
purposes of this section; and
(iii) no provision of State law shall apply
to the actions of the Secretary in terminating
the operations of a guaranty agency.
(H) Notwithstanding any other provision of law, the
Secretary's liability for any outstanding liabilities
of a guaranty agency (other than outstanding student
loan guarantees under this part), the functions of
which the Secretary has assumed, shall not exceed the
fair market value of the reserves of the guaranty
agency, minus any necessary liquidation or other
administrative costs.
(I) The Secretary shall not take any action under
subparagraph (E) or (F) without giving the guaranty
agency notice and the opportunity for a hearing that,
if commenced after September 24, 1998, shall be on the
record.
(J) Notwithstanding any other provision of law, the
information transmitted to the Secretary pursuant to
this paragraph shall be confidential and exempt from
disclosure under section 552 of title 5, United States
Code, relating to freedom of information, or any other
Federal law.
(K) The Secretary, within 6 months after the end of
each fiscal year, shall submit to the authorizing
committees a report specifying the Secretary's
assessment of the fiscal soundness of the guaranty
agency system.
(10) Documentation of forbearance agreements.--For
the purposes of paragraph (3), the terms of forbearance
agreed to by the parties shall be documented by
confirming the agreement of the borrower by notice to
the borrower from the lender, and by recording the
terms in the borrower's file.
(d) Usury Laws Inapplicable.--No provision of any law of the
United States (other than this Act and section 207 of the
Servicemembers Civil Relief Act (50 U.S.C. App. 527)) or of any
State (other than a statute applicable principally to such
State's student loan insurance program) which limits the rate
or amount of interest payable on loans shall apply to a loan--
(1) which bears interest (exclusive of any premium
for insurance) on the unpaid principal balance at a
rate not in excess of the rate specified in this part;
and
(2) which is insured (i) by the United States under
this part, or (ii) by a guaranty agency under a program
covered by an agreement made pursuant to subsection (b)
of this section.
(f) Payments of Certain Costs.--
(1) Payment for certain activities.--
(A) In general.--The Secretary--
(i) for loans originated during
fiscal years beginning on or after
October 1, 1998, and before October 1,
2003, and in accordance with the
provisions of this paragraph, shall,
except as provided in subparagraph (C),
pay to each guaranty agency, a loan
processing and issuance fee equal to
0.65 percent of the total principal
amount of the loans on which insurance
was issued under this part during such
fiscal year by such agency; and
(ii) for loans originated on or after
October 1, 2003, and first disbursed
before July 1, 2010, and in accordance
with the provisions of this paragraph,
shall, except as provided in
subparagraph (C), pay to each guaranty
agency, a loan processing and issuance
fee equal to 0.40 percent of the total
principal amount of the loans on which
insurance was issued under this part
during such fiscal year by such agency.
(B) Payment.--The payment required by
subparagraph (A) shall be paid on a quarterly
basis. The guaranty agency shall be deemed to
have a contractual right against the United
States to receive payments according to the
provisions of this paragraph. Payments shall be
made promptly and without administrative delay
to any guaranty agency submitting an accurate
and complete application under this
subparagraph.
(C) Requirement for payment.--No payment may
be made under this paragraph for loans for
which the disbursement checks have not been
cashed or for which electronic funds transfers
have not been completed.
(g) Action on Insurance Program and Guaranty Agreements.--If
a nonprofit private institution or organization--
(1) applies to enter into an agreement with the
Secretary under subsections (b) and (c) with respect to
a student loan insurance program to be carried on in a
State with which the Secretary does not have an
agreement under subsection (b), and
(2) as provided in the application, undertakes to
meet the requirements of section 422(c)(6)(B) (i),
(ii), and (iii),
the Secretary shall consider and act upon such application
within 180 days, and shall forthwith notify the authorizing
committees of his actions.
(i) Multiple Disbursement of Loans.--
(1) Escrow accounts administered by escrow agent.--
Any guaranty agency or eligible lender (hereafter in
this subsection referred to as the ``escrow agent'')
may enter into an agreement with any other eligible
lender that is not an eligible institution or an agency
or instrumentality of the State (hereafter in this
subsection referred to as the ``lender'') for the
purpose of authorizing disbursements of the proceeds of
a loan to a student. Such agreement shall provide that
the lender will pay the proceeds of such loans into an
escrow account to be administered by the escrow agent
in accordance with the provisions of paragraph (2) of
this subsection. Such agreement may allow the lender to
make payments into the escrow account in amounts that
do not exceed the sum of the amounts required for
disbursement of initial or subsequent installments to
borrowers and to make such payments not more than 10
days prior to the date of the disbursement of such
installment to such borrowers. Such agreement shall
require the lender to notify promptly the eligible
institution when funds are escrowed under this
subsection for a student at such institution.
(2) Authority of escrow agent.--Each escrow agent
entering into an agreement under paragraph (1) of this
subsection is authorized to--
(A) make the disbursements in accordance with
the note evidencing the loan;
(B) commingle the proceeds of all loans paid
to the escrow agent pursuant to the escrow
agreement entered into under such paragraph
(1);
(C) invest the proceeds of such loans in
obligations of the Federal Government or
obligations which are insured or guaranteed by
the Federal Government;
(D) retain interest or other earnings on such
investment; and
(E) return to the lender undisbursed funds
when the student ceases to carry at an eligible
institution at least one-half of the normal
full-time academic workload as determined by
the institution.
(j) Lenders-of-Last-Resort.--
(1) General requirement.--In each State, the guaranty
agency or an eligible lender in the State described in
section 435(d)(1)(D) of this Act shall, before July 1,
2010, make loans directly, or through an agreement with
an eligible lender or lenders, to eligible students and
parents who are otherwise unable to obtain loans under
this part (except for consolidation loans under section
428C) or who attend an institution of higher education
in the State that is designated under paragraph (4).
Loans made under this subsection shall not exceed the
amount of the need of the borrower, as determined under
subsection (a)(2)(B), nor be less than $200. No loan
under section 428, 428B, or 428H that is made pursuant
to this subsection shall be made with interest rates,
origination or default fees, or other terms and
conditions that are more favorable to the borrower than
the maximum interest rates, origination or default
fees, or other terms and conditions applicable to that
type of loan under this part. The guaranty agency shall
consider the request of any eligible lender, as defined
under section 435(d)(1)(A) of this Act, to serve as the
lender-of-last-resort pursuant to this subsection.
(2) Rules and operating procedures.--The guaranty
agency shall develop rules and operating procedures for
the lender-of-last-resort program designed to ensure
that--
(A) the program establishes operating hours
and methods of application designed to
facilitate application by students and ensure a
response within 60 days after the student's
original complete application is filed under
this subsection;
(B) consistent with standards established by
the Secretary, students applying for loans
under this subsection shall not be subject to
additional eligibility requirements or requests
for additional information beyond what is
required under this title in order to receive a
loan under this part from an eligible lender,
nor, in the case of students and parents
applying for loans under this subsection
because of an inability to otherwise obtain
loans under this part (except for consolidation
loans under section 428C), be required to
receive more than two rejections from eligible
lenders in order to obtain a loan under this
subsection;
(C) information about the availability of
loans under the program is made available to
institutions of higher education in the State;
and
(D) appropriate steps are taken to ensure
that borrowers receiving loans under the
program are appropriately counseled on their
loan obligation.
(3) Advances to guaranty agencies for lender-of-last-
resort services.--(A) In order to ensure the
availability of loan capital, the Secretary is
authorized to provide a guaranty agency designated for
a State with additional advance funds in accordance
with subparagraph (C) and section 422(c)(7), with such
restrictions on the use of such funds as are determined
appropriate by the Secretary, in order to ensure that
the guaranty agency will make loans as the lender-of-
last-resort. Such agency shall make such loans in
accordance with this subsection and the requirements of
the Secretary.
(B) Notwithstanding any other provision in this part,
a guaranty agency serving as a lender-of-last-resort
under this paragraph shall be paid a fee, established
by the Secretary, for making such loans in lieu of
interest and special allowance subsidies, and shall be
required to assign such loans to the Secretary on
demand. Upon such assignment, the portion of the
advance represented by the loans assigned shall be
considered repaid by such guaranty agency.
(C) The Secretary shall exercise the authority
described in subparagraph (A) only if the Secretary
determines that eligible borrowers are seeking and are
unable to obtain loans under this part or designates an
institution of higher education for participation in
the program under this subsection under paragraph (4),
and that the guaranty agency designated for that State
has the capability to provide lender-of-last-resort
loans in a timely manner, in accordance with the
guaranty agency's obligations under paragraph (1), but
cannot do so without advances provided by the Secretary
under this paragraph. If the Secretary makes the
determinations described in the preceding sentence and
determines that it would be cost-effective to do so,
the Secretary may provide advances under this paragraph
to such guaranty agency. If the Secretary determines
that such guaranty agency does not have such
capability, or will not provide such loans in a timely
fashion, the Secretary may provide such advances to
enable another guaranty agency, that the Secretary
determines to have such capability, to make lender-of-
last-resort loans to eligible borrowers in that State
who are experiencing loan access problems or to
eligible borrowers who attend an institution in the
State that is designated under paragraph (4).
(4) Institution-wide student qualification.--Upon the
request of an institution of higher education and
pursuant to standards developed by the Secretary, the
Secretary shall designate such institution for
participation in the lender-of-last-resort program
under this paragraph. If the Secretary designates an
institution under this paragraph, the guaranty agency
designated for the State in which the institution is
located shall make loans, in the same manner as such
loans are made under paragraph (1), to students and
parent borrowers of the designated institution,
regardless of whether the students or parent borrowers
are otherwise unable to obtain loans under this part
(other than a consolidation loan under section 428C).
(5) Standards developed by the secretary.--In
developing standards with respect to paragraph (4), the
Secretary may require--
(A) an institution of higher education to
demonstrate that, despite due diligence on the
part of the institution, the institution has
been unable to secure the commitment of
eligible lenders willing to make loans under
this part to a significant number of students
attending the institution;
(B) that, prior to making a request under
such paragraph for designation for
participation in the lender-of-last-resort
program, an institution of higher education
shall demonstrate that the institution has met
a minimum threshold, as determined by the
Secretary, for the number or percentage of
students at such institution who have received
rejections from eligible lenders for loans
under this part; and
(C) any other standards and guidelines the
Secretary determines to be appropriate.
(6) Expiration of authority.--The Secretary's
authority under paragraph (4) to designate institutions
of higher education for participation in the program
under this subsection shall expire on June 30, 2010.
(7) Expiration of designation.--The eligibility of an
institution of higher education, or borrowers from such
institution, to participate in the program under this
subsection pursuant to a designation of the institution
by the Secretary under paragraph (4) shall expire on
June 30, 2010. After such date, borrowers from an
institution designated under paragraph (4) shall be
eligible to participate in the program under this
subsection as such program existed on the day before
the date of enactment of the Ensuring Continued Access
to Student Loans Act of 2008.
(8) Prohibition on inducements and marketing.--Each
guaranty agency or eligible lender that serves as a
lender-of-last-resort under this subsection--
(A) shall be subject to the prohibitions on
inducements contained in subsection (b)(3) and
the requirements of section 435(d)(5); and
(B) shall not advertise, market, or otherwise
promote loans under this subsection, except
that nothing in this paragraph shall prohibit a
guaranty agency from fulfilling its
responsibilities under paragraph (2)(C).
(9) Dissemination and reporting.--
(A) In general.--The Secretary shall--
(i) broadly disseminate information
regarding the availability of loans
made under this subsection;
(ii) during the period beginning July
1, 2008 and ending June 30, 2011,
provide to the authorizing committees
and make available to the public--
(I) copies of any new or
revised plans or agreements
made by guaranty agencies or
the Department related to the
authorities under this
subsection;
(II) quarterly reports on--
(aa) the number and
amounts of loans
originated or approved
pursuant to this
subsection by each
guaranty agency and
eligible lender; and
(bb) any related
payments by the
Department, a guaranty
agency, or an eligible
lender; and
(III) a budget estimate of
the costs to the Federal
Government (including subsidy
and administrative costs) for
each 100 dollars loaned, of
loans made pursuant to this
subsection between the date of
enactment of the Ensuring
Continued Access to Student
Loans Act of 2008 and June 30,
2010, disaggregated by type of
loan, compared to such costs to
the Federal Government during
such time period of comparable
loans under this part and part
D, disaggregated by part and by
type of loan; and
(iii) beginning July 1, 2011, provide
to the authorizing committees and make
available to the public--
(I) copies of any new or
revised plans or agreements
made by guaranty agencies or
the Department related to the
authorities under this
subsection; and
(II) annual reports on--
(aa) the number and
amounts of loans
originated or approved
pursuant to this
subsection by each
guaranty agency and
eligible lender; and
(bb) any related
payments by the
Department, a guaranty
agency, or an eligible
lender.
(B) Separate reporting.--The information
required to be reported under subparagraph
(A)(ii)(II) shall be reported separately for
loans originated or approved pursuant to
paragraph (4), or payments related to such
loans, for the time period in which the
Secretary is authorized to make designations
under paragraph (4).
(k) Information on Defaults.--
(1) Provision of information to eligible
institutions.--Notwithstanding any other provision of
law, in order to notify eligible institutions of former
students who are in default of their continuing
obligation to repay student loans, each guaranty agency
shall, upon the request of an eligible institution,
furnish information with respect to students who were
enrolled at the eligible institution and who are in
default on the repayment of any loan made, insured, or
guaranteed under this part. The information authorized
to be furnished under this subsection shall include the
names and addresses of such students.
(2) Public dissemination not authorized.--Nothing in
paragraph (1) of this subsection shall be construed to
authorize public dissemination of the information
described in paragraph (1).
(3) Borrower location information.--Any information
provided by the institution relating to borrower
location shall be used by the guaranty agency in
conducting required skip-tracing activities.
(4) Provision of information to borrowers in
default.--Each guaranty agency that has received a
default claim from a lender regarding a borrower, shall
provide the borrower in default, on not less than two
separate occasions, with a notice, in simple and
understandable terms, of not less than the following
information:
(A) The options available to the borrower to
remove the borrower's loan from default.
(B) The relevant fees and conditions
associated with each option.
(l) Default Aversion Assistance.--
(1) Assistance required.--Upon receipt of a complete
request from a lender received not earlier than the
60th day of delinquency, a guaranty agency having an
agreement with the Secretary under subsection (c) shall
engage in default aversion activities designed to
prevent the default by a borrower on a loan covered by
such agreement.
(2) Reimbursement.--
(A) In general.--A guaranty agency, in
accordance with the provisions of this
paragraph, may transfer from the Federal
Student Loan Reserve Fund under section 422A to
the Agency Operating Fund under section 422B a
default aversion fee. Such fee shall be paid
for any loan on which a claim for default has
not been paid as a result of the loan being
brought into current repayment status by the
guaranty agency on or before the 300th day
after the loan becomes 60 days delinquent.
(B) Amount.--The default aversion fee shall
be equal to 1 percent of the total unpaid
principal and accrued interest on the loan at
the time the request is submitted by the
lender. A guaranty agency may transfer such
fees earned under this subsection not more
frequently than monthly. Such a fee shall not
be paid more than once on any loan for which
the guaranty agency averts the default unless--
(i) at least 18 months has elapsed
between the date the borrower entered
current repayment status and the date
the lender filed a subsequent default
aversion assistance request; and
(ii) during the period between such
dates, the borrower was not more than
30 days past due on any payment of
principal and interest on the loan.
(C) Definition.--For the purpose of earning
the default aversion fee, the term ``current
repayment status'' means that the borrower is
not delinquent in the payment of any principal
or interest on the loan.
(m) [Income Contingent and] Income-Based Repayment.--
[(1) Authority of secretary to require.--The
Secretary may require borrowers who have defaulted on
loans made under this part that are assigned to the
Secretary under subsection (c)(8) to repay those loans
under an income contingent repayment plan or income-
based repayment plan, the terms and conditions of which
shall be established by the Secretary and the same as,
or similar to, an income contingent repayment plan
established for purposes of part D of this title or an
income-based repayment plan under section 493C, as the
case may be.]
(1) Authority of secretary to require.--The Secretary
may require borrowers who have defaulted on loans made
under this part that are assigned to the Secretary
under subsection (c)(8) to repay those loans under the
income-based repayment plan under section 493C(f).
(2) Loans for which [income contingent or] income-
based repayment may be required.--A loan made under
this part may be required to be repaid under this
subsection if the note or other evidence of the loan
has been assigned to the Secretary pursuant to
subsection (c)(8).
(n) Blanket Certificate of Loan Guaranty.--
(1) In general.--Subject to paragraph (3), any
guaranty agency that has entered into or enters into
any insurance program agreement with the Secretary
under this part may--
(A) offer eligible lenders participating in
the agency's guaranty program a blanket
certificate of loan guaranty that permits the
lender to make loans without receiving prior
approval from the guaranty agency of individual
loans for eligible borrowers enrolled in
eligible programs at eligible institutions; and
(B) provide eligible lenders with the ability
to transmit electronically data to the agency
concerning loans the lender has elected to make
under the agency's insurance program via
standard reporting formats, with such reporting
to occur at reasonable and standard intervals.
(2) Limitations on blanket certificate of guaranty.--
(A) An eligible lender may not make a loan to a
borrower under this section after such lender receives
a notification from the guaranty agency that the
borrower is not an eligible borrower.
(B) A guaranty agency may establish limitations or
restrictions on the number or volume of loans issued by
a lender under the blanket certificate of guaranty.
(3) Participation level.--During fiscal years 1999
and 2000, the Secretary may permit, on a pilot basis, a
limited number of guaranty agencies to offer blanket
certificates of guaranty under this subsection.
Beginning in fiscal year 2001, any guaranty agency that
has an insurance program agreement with the Secretary
may offer blanket certificates of guaranty under this
subsection.
(4) Report required.--The Secretary shall, at the
conclusion of the pilot program under paragraph (3),
provide a report to the authorizing committees on the
impact of the blanket certificates of guaranty on
program efficiency and integrity.
(o) 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 and any
special allowance on a loan to a member of the Armed
Forces that is made, insured, or guaranteed under this
part, the Secretary shall pay the interest and special
allowance on such loan as due for a period not in
excess of 36 consecutive months. The Secretary may not
pay interest or any special allowance 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 lender shall grant the borrower forbearance in
accordance with the guaranty agreement under subsection
(c)(3)(A)(i)(IV).
(3) Special allowance defined.--For the purposes of
this subsection, the term ``special allowance'', means
a special allowance that is payable with respect to a
loan under section 438.
* * * * * * *
SEC. 428B. FEDERAL PLUS LOANS.
(a) Authority To Borrow.--
(1) Authority and eligibility.--Prior to July 1,
2010, a graduate or professional student or the parents
of a dependent student shall be eligible to borrow
funds under this section in amounts specified in
subsection (b), if--
(A) the graduate or professional student or
the parents do not have an adverse credit
history as determined pursuant to regulations
promulgated by the Secretary;
(B) in the case of a graduate or professional
student or 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 graduate or professional student or
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; and
(C) the graduate or professional student or
the parents meet such other eligibility
criteria as the Secretary may establish by
regulation, after consultation with guaranty
agencies, eligible lenders, and other
organizations involved in student financial
assistance.
(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) Special rules.--
(A) Parent borrowers.--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.
(B)(i) Extenuating circumstances.--An
eligible lender may determine that extenuating
circumstances exist under the regulations
promulgated pursuant to paragraph (1)(A) if,
during the period beginning January 1, 2007,
and ending December 31, 2009, an applicant for
a loan under this section--
(I) is or has been delinquent for 180
days or fewer on mortgage loan payments
or on medical bill payments during such
period; and
(II) does not otherwise have an
adverse credit history, as determined
by the lender in accordance with the
regulations promulgated pursuant to
paragraph (1)(A), as such regulations
were in effect on the day before the
date of enactment of the Ensuring
Continued Access to Student Loans Act
of 2008.
(ii) Definition of mortgage loan.--In this
subparagraph, the term ``mortgage loan'' means
an extension of credit to a borrower that is
secured by the primary residence of the
borrower.
(iii) Rule of construction.--Nothing in this
subparagraph shall be construed to limit an
eligible lender's authority under the
regulations promulgated pursuant to paragraph
(1)(A) to determine that extenuating
circumstances exist.
(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 graduate or professional student or any parent
under this section for any academic year in excess of (A) the
student's estimated cost of attendance, minus (B) other
financial aid as certified by the eligible institution under
section 428(a)(2)(A). The annual insurable limit on account of
any student shall not be deemed to be exceeded by a line of
credit under which actual payments to the borrower will not be
made in any year in excess of the annual limit.
(c) PLUS Loan Disbursement.--All loans made under this
section shall be disbursed in accordance with the requirements
of section 428G 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 graduate or professional student or 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 lender, subject to deferral--
(A)(i) during any period during which the
parent borrower or the graduate or professional
student borrower meets the conditions required
for a deferral under section 427(a)(2)(C) or
428(b)(1)(M); and
(ii) upon the request of the parent borrower,
during any period during which the student on
whose behalf the loan was borrowed by the
parent borrower meets the conditions required
for a deferral under section 427(a)(2)(C)(i)(I)
or 428(b)(1)(M)(i)(I); and
(B)(i) in the case of a parent borrower, upon
the request of the parent borrower, during the
6-month period beginning on the later of--
(I) the day after the date the
student on whose behalf the loan was
borrowed ceases to carry at least one-
half the normal full-time academic
workload (as determined by the
institution); or
(II) if the parent borrower is also a
student, the day after the date such
parent borrower ceases to carry at
least one-half such a workload; and
(ii) in the case of a graduate or
professional student borrower, during the 6-
month period beginning on the day after the
date such student ceases to carry at least one-
half the normal full-time academic workload (as
determined by the institution).
(2) Capitalization of interest.--
(A) In general.--[Interest on] Subject to
subparagraph (C), interest on loans made under
this section for which payments of principal
are deferred pursuant to paragraph (1) shall,
if agreed upon by the borrower and the lender--
(i) be paid monthly or quarterly; or
(ii) be added to the principal amount
of the loan not more frequently than
quarterly by the lender.
(B) Insurable limits.--Capitalization of
interest under this paragraph shall not be
deemed to exceed the annual insurable limit on
account of the borrower.
(C) Interest capitalization.--Interest shall
not be added to the principal amount of a loan
made under this section at the expiration of
any period that begins on or after the date of
enactment of the College Affordability Act,
of--
(i) deferment described in clause
(i)(II), (ii), (iii), or (iv) of
section 427(a)(2)(C) or clause (i)(II),
(ii), (iii), (iv), or (v) of section
428(b)(1)(M); or
(ii) forbearance.
(3) Subsidies prohibited.--No payments to reduce
interest costs shall be paid pursuant to section 428(a)
of this part on loans made pursuant to this section.
(4) Applicable rates of interest.--Interest on loans
made pursuant to this section shall be at the
applicable rate of interest provided in section 427A
for loans made under this section.
(5) Amortization.--The amount of the periodic payment
and the repayment schedule for any loan made pursuant
to this section shall be established by assuming an
interest rate equal to the applicable rate of interest
at the time the repayment of the principal amount of
the loan commences. At the option of the lender, the
note or other written evidence of the loan may require
that--
(A) the amount of the periodic payment will
be adjusted annually, or
(B) the period of repayment of principal will
be lengthened or shortened,
in order to reflect adjustments in interest rates
occurring as a consequence of section 427A(c)(4).
(e) Refinancing.--
(1) Refinancing to secure combined payment.--An
eligible lender may at any time consolidate loans held
by it which are made under this section to a borrower,
including loans which were made under section 428B as
in effect prior to the enactment of the Higher
Education Amendments of 1986, under a single repayment
schedule which provides for a single principal payment
and a single payment of interest, and shall calculate
the repayment period for each included loan from the
date of the commencement of repayment of the most
recent included loan. Unless the consolidated loan is
obtained by a borrower who is electing to obtain
variable interest under paragraph (2) or (3), such
consolidated loan shall bear interest at the weighted
average of the rates of all included loans. The
extension of any repayment period of an included loan
pursuant to this paragraph shall be reported (if
required by them) to the Secretary or guaranty agency
insuring the loan, as the case may be, but no
additional insurance premiums shall be payable with
respect to any such extension. The extension of the
repayment period of any included loan shall not require
the formal extension of the promissory note evidencing
the included loan or the execution of a new promissory
note, but shall be treated as an administrative
forbearance of the repayment terms of the included
loan.
(2) Refinancing to secure variable interest rate.--An
eligible lender may reissue a loan which was made under
this section before July 1, 1987, or under section 428B
as in effect prior to the enactment of the Higher
Education Amendments of 1986 in order to permit the
borrower to obtain the interest rate provided under
section 427A(c)(4). A lender offering to reissue a loan
or loans for such purpose may charge a borrower an
amount not to exceed $100 to cover the administrative
costs of reissuing such loan or loans, not more than
one-half of which shall be paid to the guarantor of the
loan being reissued to cover costs of reissuance.
Reissuance of a loan under this paragraph shall not
affect any insurance applicable with respect to the
loan, and no additional insurance fee may be charged to
the borrower with respect to the loan.
(3) Refinancing by discharge of previous loan.--A
borrower who has applied to an original lender for
reissuance of a loan under paragraph (2) and who is
denied such reissuance may obtain a loan from another
lender for the purpose of discharging the loan from
such original lender. A loan made for such purpose--
(A) shall bear interest at the applicable
rate of interest provided under section
427A(c)(4);
(B) shall not result in the extension of the
duration of the note (other than as permitted
under subsection (d)(5)(B));
(C) may be subject to an additional insurance
fee but shall not be subject to the
administrative cost charge permitted by
paragraph (2) of this subsection; and
(D) shall be applied to discharge the
borrower from any remaining obligation to the
original lender with respect to the original
loan.
(4) Certification in lieu of promissory note
presentation.--Each new lender may accept certification
from the original lender of the borrower's original
loan in lieu of presentation of the original promissory
note.
(f) 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).
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)[.];
(dd) for the purpose of
separating a joint
consolidation loan into 2
separate Federal Direct
Consolidation Loans under
section 455(g)(2); or
(ee) for the purpose of
section 455(m)(9)(A)(ii),
493C(f)(2)(G), or 493E(c).
(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;
(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--
(I) that if a borrower
includes a Federal Perkins Loan
under part E in the
consolidation loan, the
borrower will lose all
interest-free periods that
would have been available for
the Federal Perkins Loan, such
as--
(aa) the periods
during which no
interest accrues on
such loan while the
borrower is enrolled in
school at least half-
time;
(bb) the grace period
under section
464(c)(1)(A); and
(cc) the periods
during which the
borrower's student loan
repayments are deferred
under section
464(c)(2);
(II) that if a borrower
includes a Federal Perkins Loan
in the consolidation loan, the
borrower will no longer be
eligible for cancellation of
part or all of the Federal
Perkins Loan under section
465(a); and
(III) the occupations listed
in section 465 that qualify for
Federal Perkins Loan
cancellation under section
465(a);
(iii) the repayment plans that are
available to the borrower;
(iv) the options of the borrower to
prepay the consolidation loan, to pay
such loan on a shorter schedule, and to
change repayment plans;
(v) that borrower benefit programs
for a consolidation loan may vary among
different lenders;
(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),
except that with respect to a period of
deferment described in clause (i)(II),
(ii), (iii), (iv), or (v) of section
428(b)(1)(M), or any period of
forbearance, beginning on or after the
date of enactment of the College
Affordability Act on such a
consolidation loan, interest shall not
be capitalized at the expiration of
such period of deferment or
forbearance;
(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] to remove any
adverse item of information relating to such
loan 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 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. 428G. REQUIREMENTS FOR DISBURSEMENT OF STUDENT LOANS.
(a) Multiple Disbursement Required.--
(1) Two disbursements required.--The proceeds of any
loan made, insured, or guaranteed under this part that
is made for any period of enrollment shall be disbursed
in 2 or more installments, none of which exceeds one-
half of the loan.
(2) Minimum interval required.--The interval between
the first and second such installments shall be not
less than one-half of such period of enrollment, except
as necessary to permit the second installment to be
disbursed at the beginning of the second semester,
quarter, or similar division of such period of
enrollment.
(3) Special rule.--An institution whose cohort
default rate (as determined under section 435(m)) for
each of the 3 most recent fiscal years for which data
are available is less than 10 percent may disburse any
loan made, insured, or guaranteed under this part in a
single installment for any period of enrollment that is
not more than 1 semester, 1 trimester, 1 quarter, or 4
months. Notwithstanding section 422(d) of the Higher
Education Amendments of 1998, this paragraph shall be
effective beginning on the date of enactment of the
Higher Education Reconciliation Act of 2005.
(4) Amendment to special rule.--Beginning on October
1, 2011, the special rule under paragraph (3) shall be
applied by substituting ``15 percent'' for ``10
percent''.
(5) Adjusted cohort default rate.--Beginning on the
date on which the final adjusted cohort default rates
are published by the Secretary for not less than 3
fiscal years under section 435(m), an institution whose
adjusted cohort default rate (as determined under
section 435(m)) for each of the 3 most recent fiscal
years for which data are available is less than 5
percent may disburse any loan made, insured, or
guaranteed under this part in a single installment for
any period of enrollment that is not more than 1
semester, 1 trimester, 1 quarter, or 4 months.
(b) Disbursement and Endorsement Requirements.--
(1) First year students.--The first installment of
the proceeds of any loan made, insured, or guaranteed
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
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. An institution whose cohort default rate
(as determined under section 435(m)) for each of the
three most recent fiscal years for which data are
available is less than 10 percent shall be exempt from
the requirements of this paragraph. Notwithstanding
section 422(d) of the Higher Education Amendments of
1998, the second sentence of this paragraph shall be
effective beginning on the date of enactment of the
Higher Education Reconciliation Act of 2005.
(2) Other students.--The proceeds of any loan made,
insured, or guaranteed under this part that is made to
any student other than a student described in paragraph
(1) shall not be disbursed more than 30 days prior to
the beginning of the period of enrollment for which the
loan is made.
(3) Amendment to cohort default rate exemption.--
Beginning on October 1, 2011, the exemption to the
requirements of paragraph (1) in the second sentence of
such paragraph shall be applied by substituting ``15
percent'' for ``10 percent''.
(c) Method of Multiple Disbursement.--Disbursements under
subsection (a)--
(1) shall be made in accordance with a schedule
provided by the institution (under section
428(a)(2)(A)(i)(II)) that complies with the
requirements of this section;
(2) may be made directly by the lender or, in the
case of a loan under sections 428 and 428A, may be
disbursed pursuant to the escrow provisions of section
428(i); and
(3) notwithstanding subsection (a)(2), may, with the
permission of the borrower, be disbursed by the lender
on a weekly or monthly basis, provided that the
proceeds of the loan are disbursed by the lender in
substantially equal weekly or monthly installments, as
the case may be, over the period of enrollment for
which the loan is made.
(d) Withholding of Second Disbursement.--
(1) Withdrawing students.--A lender or escrow agent
that 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 shall withhold such disbursement. Any
disbursement which is so withheld shall be credited to
the borrower's loan and treated as a prepayment
thereon.
(2) Students receiving over-awards.--If the sum of a
disbursement for any student and the other financial
aid obtained by such student exceeds the amount of
assistance for which the student is eligible under this
title, the institution such student is attending shall
withhold and return to the lender or escrow agent the
portion (or all) of such installment that exceeds such
eligible amount, except that overawards permitted
pursuant to section 443(b)(4) of the Act shall not be
construed to be overawards for purposes of this
paragraph. 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
thereon.
(e) Exclusion of Consolidation and Foreign Study Loans.--The
provisions of this section shall not apply in the case of a
loan made under section 428C, or made to a student to cover the
cost of attendance in a program of study abroad approved by the
home eligible institution if the home eligible institution has
a cohort default rate (as calculated under section 435(m)) of
less than 5 percent, or beginning on the date on which the
final adjusted cohort default rates are published by the
Secretary for fiscal year 2018 under section 435(m), an
adjusted cohort default rate (as determined under section
435(m)) of less than 2 percent.
(f) Beginning of Period of Enrollment.--For purposes of this
section, a period of enrollment begins on the first day that
classes begin for the applicable period of enrollment.
(g) Sales Prior to Disbursement Prohibited.--An eligible
lender shall not sell or transfer a promissory note for any
loan made, insured, or guaranteed under this part until the
final disbursement of such loan has been made, except that the
prohibition of this subsection shall not apply if--
(1) the sale of the loan does not result in a change
in the identity of the party to whom payments will be
made for the loan; and
(2) the first disbursement of such loan has been
made.
SEC. 428H. UNSUBSIDIZED STAFFORD LOANS FOR MIDDLE-INCOME BORROWERS.
(a) In General.--It is the purpose of this section to
authorize insured loans under this part that are first
disbursed before July 1, 2010, for borrowers who do not qualify
for Federal interest subsidy payments under section 428 of this
Act. Except as provided in this section, all terms and
conditions for Federal Stafford loans established under section
428 shall apply to loans made pursuant to this section.
(b) Eligible Borrowers.--Prior to July 1, 2010, any student
meeting the requirements for student eligibility under section
484 (including graduate and professional students as defined in
regulations promulgated by the Secretary) shall be entitled to
borrow an unsubsidized Federal Stafford Loan for which the
first disbursement is made before such date if the eligible
institution at which the student has been accepted for
enrollment, or at which the student is in attendance, has--
(1) determined and documented the student's need for
the loan based on the student's estimated cost of
attendance (as determined under section 472) and the
student's estimated financial assistance, including a
loan which qualifies for interest subsidy payments
under section 428; and
(2) provided the lender a statement--
(A) certifying the eligibility of the student
to receive a loan under this section and the
amount of the loan for which such student is
eligible, in accordance with subsection (c);
and
(B) setting forth a schedule for disbursement
of the proceeds of the loan in installments,
consistent with the requirements of section
428G.
(c) Determination of Amount of Loan.--The determination of
the amount of a loan by an eligible institution under
subsection (b) shall be calculated by subtracting from the
estimated cost of attendance at the eligible institution any
estimated financial assistance reasonably available to such
student. An eligible institution may not, in carrying out the
provisions of subsection (b) of this section, provide a
statement which certifies the eligibility of any student to
receive any loan under this section in excess of the amount
calculated under the preceding sentence.
(d) Loan Limits.--
(1) In general.--Except as provided in paragraphs
(2), (3), and (4), the annual and aggregate limits for
loans under this section shall be the same as those
established under section 428(b)(1), less any amount
received by such student pursuant to the subsidized
loan program established under section 428.
(2) Limits for graduate, professional, and
independent postbaccalaureate students.--
(A) Annual limits.--The maximum annual amount
of loans under this section a graduate or
professional student, or a student described in
clause (ii), may borrow in any academic year
(as defined in section 481(a)(2)) or its
equivalent shall be the amount determined under
paragraph (1), plus--
(i) in the case of such a student who
is a graduate or professional student
attending an eligible institution,
$12,000; and
(ii) notwithstanding paragraph (4),
in the case of an independent student,
or a dependent student whose parents
are unable to borrow under section 428B
or the Federal Direct PLUS Loan
Program, who has obtained a
baccalaureate degree and who is
enrolled in coursework specified in
paragraph (3)(B) or (4)(B) of section
484(b)--
(I) $7,000 for coursework
necessary for enrollment in a
graduate or professional
program; and
(II) $7,000 for coursework
necessary for a professional
credential or certification
from a State required for
employment as a teacher in an
elementary or secondary school,
except in cases where the Secretary determines
that a higher amount is warranted in order to
carry out the purpose of this part with respect
to students engaged in specialized training
requiring exceptionally high costs of
education, but the annual insurable limit per
student shall not be deemed to be exceeded by a
line of credit under which actual payments by
the lender to the borrower will not be made in
any years in excess of the annual limit.
(B) Aggregate limit.--The maximum aggregate
amount of loans under this section a student
described in subparagraph (A) may borrow shall
be the amount described in paragraph (1),
adjusted to reflect the increased annual limits
described in subparagraph (A), as prescribed by
the Secretary by regulation.
(3) Limits for undergraduate dependent students.--
(A) Annual limits.--The maximum annual amount
of loans under this section an undergraduate
dependent student (except an undergraduate
dependent student whose parents are unable to
borrow under section 428B or the Federal Direct
PLUS Loan Program) may borrow in any academic
year (as defined in section 481(a)(2)) or its
equivalent shall be the sum of the amount
determined under paragraph (1), plus $2,000.
(B) Aggregate limits.--The maximum aggregate
amount of loans under this section a student
described in subparagraph (A) may borrow shall
be $31,000.
(4) Limits for undergraduate independent students.--
(A) Annual limits.--The maximum annual amount
of loans under this section an undergraduate
independent student, or an undergraduate
dependent student whose parents are unable to
borrow under section 428B or the Federal Direct
PLUS Loan Program, may borrow in any academic
year (as defined in section 481(a)(2)) or its
equivalent shall be the sum of the amount
determined under paragraph (1), plus--
(i) in the case of such a student
attending an eligible institution who
has not completed such student's first
2 years of undergraduate study--
(I) $6,000, if such student
is enrolled in a program whose
length is at least one academic
year in length; or
(II) if such student is
enrolled in a program of
undergraduate education which
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) as the length of such
program measured in semester,
trimester, quarter, or clock
hours bears to one academic
year;
(ii) in the case of such a student at
an eligible institution who has
successfully completed such first and
second years but has not successfully
completed the remainder of a program of
undergraduate education--
(I) $7,000; or
(II) if such student is
enrolled in a program of
undergraduate education, the
remainder of which 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) as
such remainder measured in
semester, trimester, quarter,
or clock hours bears to one
academic year; and
(iii) in the case of such a student
enrolled in coursework specified in--
(I) section 484(b)(3)(B),
$6,000; or
(II) section 484(b)(4)(B),
$7,000.
(B) Aggregate limits.--The maximum aggregate
amount of loans under this section a student
described in subparagraph (A) may borrow shall
be $57,500.
(5) Capitalized interest.--Interest capitalized shall
not be deemed to exceed a maximum aggregate amount
determined under subparagraph (B) of paragraph (2),
(3), or (4).
(e) Payment of Principal and Interest.--
(1) Commencement of repayment.--Repayment of
principal on loans made under this section shall begin
at the beginning of the repayment period described in
section 428(b)(7). Not less than 30 days prior to the
anticipated commencement of such repayment period, the
holder of such loan shall provide notice to the
borrower that interest will accrue before repayment
begins and of the borrower's option to begin loan
repayment at an earlier date.
(2) Capitalization of interest.--(A) Except as
provided in subparagraph (C), interest on loans made
under this section for which payments of principal are
not required during the in-school and grace periods or
for which payments are deferred under sections
427(a)(2)(C) and 428(b)(1)(M) shall, if agreed upon by
the borrower and the lender--
(i) be paid monthly or quarterly; or
(ii) be added to the principal amount of the
loan by the lender only--
(I) when the loan enters repayment;
(II) at the expiration of a grace
period, in the case of a loan that
qualifies for a grace period;
(III) at the expiration of a period
of deferment or forbearance, except
that with respect to a period of
deferment described in clause (i)(II),
(ii), (iii), or (iv) of section
427(a)(2)(C) or clause (i)(II), (ii),
(iii), (iv), or (v) of section
428(b)(1)(M), or any period of
forbearance, beginning on or after the
date of enactment of the College
Affordability Act on a loan made,
insured, or guaranteed under this
section, interest shall not be added to
the principal amount of the loan at the
expiration of such period of deferment
or forbearance; or
(IV) when the borrower defaults.
(B) The capitalization of interest described in
subparagraph (A) shall not be deemed to exceed the
annual insurable limit on account of the student.
(C) Interest shall not accrue on a loan deferred
under section 428(b)(1)(M)(v) or 427(a)(2)(C)(iv).
(3) Subsidies prohibited.--No payments to reduce
interest costs shall be paid pursuant to section 428(a)
of this part on loans made pursuant to this section.
(4) Applicable rates of interest.--Interest on loans
made pursuant to this section shall be at the
applicable rate of interest provided in section 427A.
(5) Amortization.--The amount of the periodic payment
and the repayment schedule for any loan made pursuant
to this section shall be established by assuming an
interest rate equal to the applicable rate of interest
at the time the repayment of the principal amount of
the loan commences. At the option of the lender, the
note or other written evidence of the loan may require
that--
(A) the amount of the periodic payment will
be adjusted annually; or
(B) the period of repayment of principal will
be lengthened or shortened,
in order to reflect adjustments in interest rates
occurring as a consequence of section 427A(c)(4).
(6) Repayment period.--For purposes of calculating
the repayment period under section 428(b)(9), such
period shall commence at the time the first payment of
principal is due from the borrower.
(7) Qualification for forbearance.--A lender may
grant the borrower of a loan under this section a
forbearance for a period not to exceed 60 days if the
lender reasonably determines that such a forbearance
from collection activity is warranted following a
borrower's request for forbearance, deferment, or a
change in repayment plan, or a request to consolidate
loans in order to collect or process appropriate
supporting documentation related to the request. During
any such period, interest on the loan shall accrue but
not be capitalized.
[(f) Repealed]
(g) Single Application Form and Loan Repayment Schedule.--A
guaranty agency shall use a single application form and a
single repayment schedule for subsidized Federal Stafford loans
made pursuant to section 428 and for unsubsidized Federal
Stafford loans made pursuant to this section.
(h) Insurance Premium.--Each State or nonprofit private
institution or organization having an agreement with the
Secretary under section 428(b)(1) may charge a borrower under
this section an insurance premium equal to not more than 1.0
percent of the principal amount of the loan, if such premium
will not be used for incentive payments to lenders. Effective
for loans for which the date of guarantee of principal is on or
after July 1, 2006, and that are first disbursed before July 1,
2010, in lieu of the insurance premium authorized under the
preceding sentence, each State or nonprofit private institution
or organization having an agreement with the Secretary under
section 428(b)(1) shall collect and deposit into the Federal
Student Loan Reserve Fund under section 422A, a Federal default
fee of an amount equal to 1.0 percent of the principal amount
of the loan, which fee shall be collected either by deduction
from the proceeds of the loan or by payment from other non-
Federal sources. The Federal default fee shall not be used for
incentive payments to lenders.
* * * * * * *
SEC. 432. LEGAL POWERS AND RESPONSIBILITIES.
(a) General Powers.--In the performance of, and with respect
to, the functions, powers, and duties, vested in him by this
part, the Secretary may--
(1) prescribe such regulations as may be necessary to
carry out the purposes of this part, including
regulations applicable to third party servicers
(including regulations concerning financial
responsibility standards for, and the assessment of
liabilities for program violations against, such
servicers) to establish minimum standards with respect
to sound management and accountability of programs
under this part, except that in no case shall damages
be assessed against the United States for the actions
or inactions of such servicers;
(2) 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 action
instituted under this subsection by or against the
Secretary shall survive notwithstanding any change in
the person occupying the office of Secretary or any
vacancy in that office; but no attachment, injunction,
garnishment, or other similar process, mesne or final,
shall be issued against the Secretary or property under
the Secretary's control and nothing herein shall be
construed to except litigation arising out of
activities under this part from the application of
sections 509, 517, 547, and 2679 of title 28 of the
United States Code;
(3) include in any contract for Federal loan
insurance such terms, conditions, and covenants
relating to repayment of principal and payment of
interest, relating to the Secretary's obligations and
rights to those of eligible lenders, and borrowers in
case of default, and relating to such other matters as
the Secretary determines to be necessary to assure that
the purposes of this part will be achieved; and any
term, condition, and covenant made pursuant to this
paragraph or pursuant to any other provision of this
part may be modified by the Secretary, after notice and
opportunity for a hearing, if the Secretary finds that
the modification is necessary to protect the United
States from the risk of unreasonable loss;
(4) subject to the specific limitations in this part,
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 or other instrument
evidencing a loan which has been insured by the
Secretary under this part;
(5) enforce, pay, or compromise, any claim on, or
arising because of, any such insurance or any guaranty
agreement under section 428(c); and
(6) enforce, pay, compromise, waive, or release any
right, title, claim, lien, or demand, however acquired,
including any equity or any right of redemption.
(b) Financial Operations Responsibilities.--The Secretary
shall, with respect to the financial operations arising by
reason of this part prepare annually and submit a budget
program as provided for wholly owned Government corporations by
chapter 91 of title 31, United States Code. The transactions of
the Secretary, including the settlement of insurance claims and
of claims for payments pursuant to section 428, and
transactions related thereto and vouchers approved by the
Secretary in connection with such transactions, shall be final
and conclusive upon all accounting and other officers of the
Government. The Secretary may not enter into any settlement of
any claim under this title that exceeds $1,000,000 unless--
(1) the Secretary requests a review of the proposed
settlement of such claim by the Attorney General; and
(2) the Attorney General responds to such request,
which may include, at the Attorney General's
discretion, a written opinion related to such proposed
settlement.
(c) Data Collection.--
(1) Collection by category of loan.--(A) For loans
insured after December 31, 1976, or in the case of each
insurer after such earlier date where the data required
by this subsection are available, the Secretary and all
other insurers under this part shall collect and
accumulate all data relating to (i) loan volume insured
and (ii) defaults reimbursed or default rates according
to the categories of loans listed in subparagraph (B)
of this paragraph.
(B) The data indicated in subparagraph (A) of this
paragraph shall be accumulated according to the
category of lender making the loan and shall be
accumulated separately for lenders who are (i) eligible
institutions, (ii) State or private, nonprofit direct
lenders, (iii) commercial financial institutions who
are banks, savings and loan associations, or credit
unions, and (iv) all other types of institutions or
agencies.
(C) The Secretary may designate such additional
subcategories within the categories specified in
subparagraph (B) of this paragraph as the Secretary
deems appropriate.
(D) The category or designation of a loan shall not
be changed for any reason, including its purchase or
acquisition by a lender of another category.
(2) Collection and reporting requirements.--(A) The
Secretary shall collect data under this subsection from
all insurers under this part and shall publish not less
often than once every fiscal year a report showing loan
volume guaranteed and default data for each category
specified in subparagraph (B) of paragraph (1) of this
subsection and for the total of all lenders.
(B) The reports specified in subparagraph (A) of this
paragraph shall include a separate report for each
insurer under this part including the Secretary, and
where an insurer insures loans for lenders in more than
one State, such insurer's report shall list all data
separately for each State.
(3) Institutional, public, or nonprofit lenders.--For
purposes of clarity in communications, the Secretary
shall separately identify loans made by the lenders
referred to in clause (i) and loans made by the lenders
referred to in clause (ii) of paragraph (1)(B) of this
subsection.
(d) Delegation.--
(1) Regional offices.--The functions of the Secretary
under this part listed in paragraph (2) of this
subsection may be delegated to employees in the
regional office of the Department.
(2) Delegable functions.--The functions which may be
delegated pursuant to this subsection are--
(A) reviewing applications for loan insurance
under section 429 and issuing contracts for
Federal loan insurance, certificates of
insurance, and certificates of comprehensive
insurance coverage to eligible lenders which
are financial or credit institutions subject to
examination and supervision by an agency of the
United States or of any State;
(B) receiving claims for payments under
section 430(a), examining those claims, and
pursuant to regulations of the Secretary,
approving claims for payment, or requiring
lenders to take additional collection action as
a condition for payment of claims; and
(C) certifying to the central office when
collection of defaulted loans has been
completed, compromising or agreeing to the
modification of any Federal claim against a
borrower (pursuant to regulations of the
Secretary issued under section 432(a)), and
recommending litigation with respect to any
such claim.
(e) Use of Information on Borrowers.--Notwithstanding any
other provision of law, the Secretary may provide to eligible
lenders, and to any guaranty agency having a guaranty agreement
under section 428(c)(1), 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.
(f) Audit of Financial Transactions.--
(1) Comptroller General and Inspector General
authority.--The Comptroller General and the Inspector
General of the Department of Education shall each have
the authority to conduct an audit of the financial
transactions of--
(A) any guaranty agency operating under an
agreement with the Secretary pursuant to
section 428(b);
(B) any eligible lender as defined in section
435(d)(1); and
(C) a representative sample of eligible
lenders under this part, upon the request of
either of the authorizing committees, with
respect to the payment of the special allowance
under section 438 in order to evaluate the
program authorized by this part.
(2) Access to records.--For the purpose of carrying
out this subsection, the records of any entity
described in subparagraph (A), (B), (C), or (D) of
paragraph (1) shall be available to the Comptroller
General and the Inspector General of the Department of
Education. For the purpose of section 716(c) of title
31, United States Code, such records shall be
considered to be records to which the Comptroller
General has access by law, and for the purpose of
section 6(a)(4) of the Inspector General Act of 1978,
such records shall be considered to be records
necessary in the performance of functions assigned by
that Act to the Inspector General.
(3) Definition of records.--For the purpose of this
subsection, the term ``record'' includes any
information, document, report, answer, account, paper,
or other data or documentary evidence.
(4) Audit procedures.--In conducting audits pursuant
to this subsection, the Comptroller General and the
Inspector General of the Department of Education shall
audit the records to determine the extent to which
they, at a minimum, comply with Federal statutes, and
rules and regulations prescribed by the Secretary, in
effect at the time that the record was made, and in no
case shall the Comptroller General or the Inspector
General apply subsequently determined standards,
procedures, or regulations to the records of such
agency, lender, or Authority.
(g) Civil Penalties.--
(1) Authority to impose penalties.--Upon
determination, after reasonable notice and opportunity
for a hearing, that a lender or a guaranty agency--
(A) has violated or failed to carry out any
provision of this part or any regulation
prescribed under this part, or
(B) has engaged in substantial
misrepresentation of the nature of its
financial charges,
the Secretary may impose a civil penalty upon such
lender or agency of not to exceed $25,000 for each
violation, failure, or misrepresentation.
(2) Limitations.--No civil penalty may be imposed
under paragraph (1) of this subsection unless the
Secretary determines that--
(A) the violation, failure, or substantial
misrepresentation referred to in that paragraph
resulted from a violation, failure, or
misrepresentation that is material; and
(B) the lender or guaranty agency knew or
should have known that its actions violated or
failed to carry out the provisions of this part
or the regulations thereunder.
(3) Correction of failure.--A lender or guaranty
agency has no liability under paragraph (1) of this
subsection if, prior to the notification by the
Secretary under that paragraph, the lender or guaranty
agency cures or corrects the violation or failure or
notifies the person who received the substantial
misrepresentation of the actual nature of the financial
charges involved.
(4) Consideration as single violation.--For the
purpose of paragraph (1) of this subsection,
violations, failures, or substantial misrepresentations
arising from a specific practice of a lender or
guaranty agency, and occurring prior to notification by
the Secretary under that paragraph, shall be deemed to
be a single violation, failure, or substantial
misrepresentation even if the violation, failure, or
substantial misrepresentation affects more than one
loan or more than one borrower, or both. The Secretary
may only impose a single civil penalty for each such
violation, failure, or substantial misrepresentation.
(5) Assignees not liable for violations by others.--
If a loan affected by a violation, failure, or
substantial misrepresentation is assigned to another
holder, the lender or guaranty agency responsible for
the violation, failure, or substantial
misrepresentation shall remain liable for any civil
money penalty provided for under paragraph (1) of this
subsection, but the assignee shall not be liable for
any such civil money penalty.
(6) Compromise.--Until a matter is referred to the
Attorney General, any civil penalty under paragraph (1)
of this subsection may be compromised by the Secretary.
In determining the amount of such penalty, or the
amount agreed upon in compromise, the Secretary shall
consider the appropriateness of the penalty to the
resources of the lender or guaranty agency subject to
the determination; the gravity of the violation,
failure, or substantial misrepresentation; the
frequency and persistence of the violation, failure, or
substantial misrepresentation; and the amount of any
losses resulting from the violation, failure, or
substantial misrepresentation. 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 lender or agency charged,
unless the lender or agency has, in the case of a final
agency determination, commenced proceedings for
judicial review within 90 days of the determination, in
which case the deduction may not be made during the
pendency of the proceeding.
(h) Authority of the Secretary To Impose and Enforce
Limitations, Suspensions, and Terminations.--
(1) Imposition of sanctions.--(A) If the Secretary,
after a reasonable notice and opportunity for hearing
to an eligible lender, finds that the eligible lender--
(i) has substantially failed--
(I) to exercise reasonable care and
diligence in the making and collecting
of loans under the provisions of this
part,
(II) to make the reports or
statements under section 428(a)(4), or
(III) to pay the required loan
insurance premiums to any guaranty
agency, or
(ii) has engaged in--
(I) fraudulent or misleading
advertising or in solicitations that
have resulted in the making of loans
insured or guaranteed under this part
to borrowers who are ineligible; or
(II) the practice of making loans
that violate the certification for
eligibility provided in section 428,
the Secretary shall limit, suspend, or terminate that
lender from participation in the insurance programs
operated by guaranty agencies under this part.
(B) The Secretary shall not lift any such limitation,
suspension, or termination until the Secretary is
satisfied that the lender's failure under subparagraph
(A)(i) of this paragraph or practice under subparagraph
(A)(ii) of this paragraph has ceased and finds that
there are reasonable assurances that the lender will--
(i) exercise the necessary care and
diligence,
(ii) comply with the requirements described
in subparagraph (A)(i), or
(iii) cease to engage in the practices
described in subparagraph (A)(ii),
as the case may be.
(2) Review of sanctions on lenders.--(A) The
Secretary shall review each limitation, suspension, or
termination imposed by any guaranty agency pursuant to
section 428(b)(1)(U) within 60 days after receipt by
the Secretary of a notice from the guaranty agency of
the imposition of such limitation, suspension, or
termination, unless the right to such review is waived
in writing by the lender. The Secretary shall uphold
the imposition of such limitation, suspension, or
termination in the student loan insurance program of
each of the guaranty agencies under this part, and
shall notify such guaranty agencies of such sanction--
(i) if such review is waived; or
(ii) if such review is not waived, unless the
Secretary determines that the limitation,
suspension, or termination was not imposed in
accordance with requirements of such section.
(B) The Secretary's review under this paragraph of
the limitation, suspension, or termination imposed by a
guaranty agency pursuant to section 428(b)(1)(U) shall
be limited to--
(i) a review of the written record of the
proceedings in which the guaranty agency
imposed such sanctions; and
(ii) a determination as to whether the
guaranty agency complied with section
428(b)(1)(U) and any notice and hearing
requirements prescribed in regulations of the
Secretary under this part.
(C) The Secretary shall not lift any such sanction
until the Secretary is satisfied that the lender has
corrected the failures which led to the limitation,
suspension, or termination, and finds that there are
reasonable assurances that the lender will, in the
future, comply with the requirements of this part. The
Secretary shall notify each guaranty agency of the
lifting of any such sanction.
(3) Review of sanctions on eligible institutions.--
(A) The Secretary shall review each limitation,
suspension, or termination imposed by any guaranty
agency pursuant to section 428(b)(1)(T) within 60 days
after receipt by the Secretary of a notice from the
guaranty of the imposition of such limitation,
suspension, or termination, unless the right to such
review is waived in writing by the institution. The
Secretary shall uphold the imposition of such
limitation, suspension, or termination in the student
loan insurance program of each of the guaranty agencies
under this part, and shall notify such guaranty
agencies of such sanctions--
(i) if such review is waived; or
(ii) if such review is not waived, unless the
Secretary determines that the limitation,
suspension, or termination was not imposed in
accordance with requirements of such section.
(B) The Secretary's review under this paragraph of
the limitation, suspension, or termination imposed by a
guaranty agency pursuant to section 428(b)(1)(T) shall
be limited to--
(i) a review of the written record of the
proceedings in which the guaranty agency
imposed such sanctions; and
(ii) a determination as to whether the
guaranty agency complied with section
428(b)(1)(T) and any notice and hearing
requirements prescribed in regulations of the
Secretary under this part.
(C) The Secretary shall not lift any such sanction
until the Secretary is satisfied that the institution
has corrected the failures which led to the limitation,
suspension, or termination, and finds that there are
reasonable assurances that the institution will, in the
future, comply with the requirements of this part. The
Secretary shall notify each guaranty agency of the
lifting of any such sanction.
(i) Authority To Sell Defaulted Loans.--In the event that all
other collection efforts have failed, the Secretary is
authorized to sell defaulted student loans assigned to the
United States under this part to collection agencies, eligible
lenders, guaranty agencies, or other qualified purchaser on
such terms as the Secretary determines are in the best
financial interests of the United States. A loan may not be
sold pursuant to this subsection if such loan is in repayment
status.
(j) Authority of the Secretary To Take Emergency Actions
Against Lenders.--
(1) Imposition of sanctions.--If the Secretary--
(A) receives information, determined by the
Secretary to be reliable, that a lender is
violating any provision of this title, any
regulation prescribed under this title, or any
applicable special arrangement, agreement, or
limitation;
(B) determines that immediate action is
necessary to prevent misuse of Federal funds;
and
(C) determines that the likelihood of loss
outweighs the importance of following the
limitation, suspension, or termination
procedures authorized in subsection (h);
the Secretary shall, effective on the date on which a
notice and statement of the basis of the action is
mailed to the lender (by registered mail, return
receipt requested), take emergency action to stop the
issuance of guarantee commitments and the payment of
interest benefits and special allowance to the lender.
(2) Length of emergency action.--An emergency action
under this subsection may not exceed 30 days unless a
limitation, suspension, or termination proceeding is
initiated against the lender under subsection (h)
before the expiration of that period.
(3) Opportunity to show cause.--The Secretary shall
provide the lender, if it so requests, an opportunity
to show cause that the emergency action is unwarranted.
(k) Program of Assistance for Borrowers.--
(1) In general.--The Secretary shall undertake a
program to encourage corporations and other private and
public employers, including the Federal Government, to
assist borrowers in repaying loans received under this
title, including providing employers with options for
payroll deduction of loan payments and offering loan
repayment matching provisions as part of employee
benefit packages.
(2) Publication.--The Secretary shall publicize
models for providing the repayment assistance described
in paragraph (1) and each year select entities that
deserve recognition, through means devised by the
Secretary, for the development of innovative plans for
providing such assistance to employees.
(3) Recommendation.--The Secretary shall recommend to
the appropriate committees in the Senate and House of
Representatives changes to statutes that could be made
in order to further encourage such efforts.
(l) Uniform Administrative and Claims Procedures.--
(1) In general.--The Secretary shall, by regulation
developed in consultation with guaranty agencies,
lenders, institutions of higher education, secondary
markets, students, third party servicers and other
organizations involved in providing loans under this
part, prescribe standardized forms and procedures
regarding--
(A) origination of loans;
(B) electronic funds transfer;
(C) guaranty of loans;
(D) deferments;
(E) forbearance;
(F) servicing;
(G) claims filing;
(H) borrower status change and anticipated
graduation date; and
(I) cures.
(2) Special rules.--(A) The forms and procedures
described in paragraph (1) shall include all aspects of
the loan process as such process involves eligible
lenders and guaranty agencies and shall be designed to
minimize administrative costs and burdens (other than
the costs and burdens involved in the transition to new
forms and procedures) involved in exchanges of data to
and from borrowers, schools, lenders, secondary
markets, and the Department.
(B) Nothing in this paragraph shall be construed to
limit the development of electronic forms and
procedures.
(3) Simplification requirements.--Such regulations
shall include--
(A) standardization of computer formats,
forms design, and guaranty agency procedures
relating to the origination, servicing, and
collection of loans made under this part;
(B) authorization of alternate means of
document retention, including the use of
microfilm, microfiche, laser disc, compact
disc, and other methods allowing the production
of a facsimile of the original documents;
(C) authorization of the use of computer or
similar electronic methods of maintaining
records relating to the performance of
servicing, collection, and other regulatory
requirements under this Act; and
(D) authorization and implementation of
electronic data linkages for the exchange of
information to and from lenders, guarantors,
institutions of higher education, third party
servicers, and the Department of Education for
student status confirmation reports, claim
filing, interest and special allowance billing,
deferment processing, and all other
administrative steps relating to loans made
pursuant to this part where using electronic
data linkage is feasible.
(4) Additional recommendations.--The Secretary shall
review regulations prescribed pursuant to paragraph (1)
and seek additional recommendations from guaranty
agencies, lenders, institutions of higher education,
students, secondary markets, third party servicers and
other organizations involved in providing loans under
this part, not less frequently than annually, for
additional methods of simplifying and standardizing the
administration of the programs authorized by this part.
(m) Common Forms and Formats.--
(1) Common guaranteed student loan application form
and promissory note.--
(A) In general.--The Secretary, in
cooperation with representatives of guaranty
agencies, eligible lenders, and organizations
involved in student financial assistance, shall
prescribe common application forms and
promissory notes, or master promissory notes,
to be used for applying for loans under part B
of this title.
(B) Requirements.--The forms prescribed by
the Secretary shall--
(i) use clear, concise, and simple
language to facilitate understanding of
loan terms and conditions by
applicants; and
(ii) be formatted to require the
applicant to clearly indicate a choice
of lender.
(C) Free application form.--For academic year
1999-2000 and succeeding academic years, the
Secretary shall prescribe the form developed
under section 483 as the application form under
this part, other than for loans under sections
428B and 428C.
(D) Master promissory note.--
(i) In general.--The Secretary shall
develop and require the use of master
promissory note forms for loans made
under this part and part D. Such forms
shall be available for periods of
enrollment beginning not later than
July 1, 2000. Each form shall allow
eligible borrowers to receive, in
addition to initial loans, additional
loans for the same or subsequent
periods of enrollment through a student
confirmation process approved by the
Secretary. Such forms shall be used for
loans made under this part or part D as
directed by the Secretary. Unless
otherwise notified by the Secretary,
each institution of higher education
that participates in the program under
this part or part D may use a master
promissory note for loans under this
part and part D.
(ii) Consultation.--In developing the
master promissory note under this
subsection, the Secretary shall consult
with representatives of guaranty
agencies, eligible lenders,
institutions of higher education,
students, and organizations involved in
student financial assistance.
(iii) Sale; assignment;
enforceability.--Notwithstanding any
other provision of law, each loan made
under a master promissory note under
this subsection may be sold or assigned
independently of any other loan made
under the same promissory note and each
such loan shall be separately
enforceable in all Federal and State
courts on the basis of an original or
copy of the master promissory note in
accordance with the terms of the master
promissory note.
(iv) Student loan contract.--
(I) In general.--Any master
promissory note form described
in this subparagraph that is
developed or used for loans
made under part D for periods
of enrollment beginning on or
after the date of enactment of
the College Affordability Act
shall be referred to as a
``student loan contract''.
(II) Clarification on use.--
Notwithstanding clause (i),
each student loan contract for
a part D loan made for periods
of enrollment beginning on or
after the date of enactment of
the College Affordability Act
shall--
(aa) not be entered
into by a student
unless the student has
completed all required
counseling related to
such loan, including
counseling required
under section 485(l);
(bb) be signed by the
student entering such
student loan contract
after completion of
such counseling; and
(cc) be used only for
the academic year for
which the initial loans
are made under the
contract, and shall not
be valid for additional
loans for the same or
subsequent periods of
enrollment.
(v) Loan disclosures.--For loans made
for periods of enrollment beginning on
or after the date of enactment of the
College Affordability Act, the
Secretary shall take such steps as are
necessary to streamline the student
loan disclosure requirements under this
Act. The Secretary shall ensure that
information required to be disclosed to
a student who is applying for,
receiving, or preparing to repay a loan
under part D of this Act shall be
streamlined in a manner that--
(I) based upon consumer
testing, reduces and simplifies
the paperwork students are
required to complete; and
(II) limits the number of
times students are presented
with disclosures by
incorporating the streamlined
disclosures into required
student loan counseling under
section 485(l), the student
loan contract under this
subparagraph, or both.
(E) Perfection of security interests in
student loans.--
(i) In general.--Notwithstanding the
provisions of any State law to the
contrary, including the Uniform
Commercial Code as in effect in any
State, a security interest in loans
made under this part, on behalf of any
eligible lender (as defined in section
435(d)) shall attach, be perfected, and
be assigned priority in the manner
provided by the applicable State's law
for perfection of security interests in
accounts, as such law may be amended
from time to time (including applicable
transition provisions). If any such
State's law provides for a statutory
lien to be created in such loans, such
statutory lien may be created by the
entity or entities governed by such
State law in accordance with the
applicable statutory provisions that
created such a statutory lien.
(ii) Collateral description.--In
addition to any other method for
describing collateral in a legally
sufficient manner permitted under the
laws of the State, the description of
collateral in any financing statement
filed pursuant to this subparagraph
shall be deemed legally sufficient if
it lists such loans, or refers to
records (identifying such loans)
retained by the secured party or any
designee of the secured party
identified in such financing statement,
including the debtor or any loan
servicer.
(iii) Sales.--Notwithstanding clauses
(i) and (ii) and any provisions of any
State law to the contrary, other than
any such State's law providing for
creation of a statutory lien, an
outright sale of loans made under this
part shall be effective and perfected
automatically upon attachment as
defined in the Uniform Commercial Code
of such State.
(2) Common deferment form.--The Secretary, in
cooperation with representatives of guaranty agencies,
institutions of higher education, and lenders involved
in loans made under part B of this title, shall
prescribe a common deferment reporting form to be used
for the processing of deferments of loans made under
this title.
(3) Common reporting formats.--The Secretary shall
promulgate standards including necessary rules,
regulations (including the definitions of all relevant
terms), and procedures so as to require all lenders and
guaranty agencies to report information on all aspects
of loans made under this part in uniform formats, so as
to permit the direct comparison of data submitted by
individual lenders, servicers, or guaranty agencies.
(4) Electronic forms.--Nothing in this section shall
be construed to limit the development and use of
electronic forms and procedures.
(n) Default Reduction Management.--
(1) Authorization.--There are authorized to be
appropriated $25,000,000 for fiscal year 1999 and each
of the four succeeding fiscal years, for the Secretary
to expend for default reduction management activities
for the purposes of establishing a performance measure
that will reduce defaults by 5 percent relative to the
prior fiscal year. Such funds shall be in addition to,
and not in lieu of, other appropriations made for such
purposes.
(2) Allowable activities.--Allowable activities for
which such funds shall be expended by the Secretary
shall include the following: (A) program reviews; (B)
audits; (C) debt management programs; (D) training
activities; and (E) such other management improvement
activities approved by the Secretary.
(3) Plan for use required.--The Secretary shall
submit a plan, for inclusion in the materials
accompanying the President's budget each fiscal year,
detailing the expenditure of funds authorized by this
section to accomplish the 5 percent reduction in
defaults. At the conclusion of the fiscal year, the
Secretary shall report the Secretary's findings and
activities concerning the expenditure of funds and
whether the performance measure was met. If the
performance measure was not met, the Secretary shall
report the following:
(A) why the goal was not met, including an
indication of any managerial deficiencies or of
any legal obstacles;
(B) plans and a schedule for achieving the
established performance goal;
(C) recommended legislative or regulatory
changes necessary to achieve the goal; and
(D) if the performance standard or goal is
impractical or infeasible, why that is the case
and what action is recommended, including
whether the goal should be changed or the
program altered or eliminated.
This report shall be submitted to the Appropriations
Committees of the House of Representatives and the
Senate and to the authorizing committees.
(o) Consequences of Guaranty Agency Insolvency.--In the event
that the Secretary has determined that a guaranty agency is
unable to meet its insurance obligations under this part, the
holder of loans insured by the guaranty agency may submit
insurance claims directly to the Secretary and the Secretary
shall pay to the holder the full insurance obligation of the
guaranty agency, in accordance with insurance requirements no
more stringent than those of the guaranty agency. Such
arrangements shall continue until the Secretary is satisfied
that the insurance obligations have been transferred to another
guarantor who can meet those obligations or a successor will
assume the outstanding insurance obligations.
(p) Reporting Requirement.--All officers and directors, and
those employees and paid consultants of eligible institutions,
eligible lenders, guaranty agencies, loan servicing agencies,
accrediting agencies or associations, State licensing agencies
or boards, and entities acting as secondary markets (including
the Student Loan Marketing Association), who are engaged in
making decisions as to the administration of any program or
funds under this title or as to the eligibility of any entity
or individual to participate under this title, shall report to
the Secretary, in such manner and at such time as the Secretary
shall require, on any financial interest which such individual
may hold in any other entity participating in any program
assisted under this title.
SEC. 433. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.
(a) Required Disclosure Before Disbursement.--Each eligible
lender, at or prior to the time such lender disburses a loan
that is insured or guaranteed under this part (other than a
loan made under section 428C), shall provide thorough and
accurate loan information on such loan to the borrower in
simple and understandable terms. Any disclosure required by
this subsection may be made by an eligible lender by written or
electronic means, including as part of the application material
provided to the borrower, as part of the promissory note
evidencing the loan, or on a separate written form provided to
the borrower. Each lender shall provide to each borrower a
telephone number, and may provide an electronic address,
through which additional loan information can be obtained. The
disclosure shall include--
(1) a statement prominently and clearly displayed and
in bold print that the borrower is receiving a loan
that must be repaid;
(2) the name of the eligible lender, and the address
to which communications and payments should be sent;
(3) the principal amount of the loan;
(4) the amount of any charges, such as the
origination fee and Federal default fee, and whether
those fees will be--
(A) collected by the lender at or prior to
the disbursal of the loan;
(B) deducted from the proceeds of the loan;
(C) paid separately by the borrower; or
(D) paid by the lender;
(5) the stated interest rate on the loan;
(6) for loans made under section 428H or to a student
borrower under section 428B, an explanation--
(A) that the borrower has the option to pay
the interest that accrues on the loan while the
borrower is a student at an institution of
higher education; and
(B) if the borrower does not pay such
interest while attending an institution, when
and how often interest on the loan will be
capitalized;
(7) for loans made to a parent borrower on behalf of
a student under section 428B, an explanation--
(A) that the parent has the option to defer
payment on the loan while the student is
enrolled on at least a half-time basis in an
institution of higher education;
(B) if the parent does not pay the interest
on the loan while the student is enrolled in an
institution, when and how often interest on the
loan will be capitalized; and
(C) that the parent may be eligible for a
deferment on the loan if the parent is enrolled
on at least a half-time basis in an institution
of higher education;
(8) the yearly and cumulative maximum amounts that
may be borrowed;
(9) a statement of the total cumulative balance,
including the loan being disbursed, owed by the
borrower to that lender, and an estimate of the
projected monthly payment, given such cumulative
balance;
(10) an explanation of when repayment of the loan
will be required and when the borrower will be
obligated to pay interest that accrues on the loan;
(11) a description of the types of repayment plans
that are available for the loan;
(12) a statement as to the minimum and maximum
repayment terms which the lender may impose, and the
minimum annual payment required by law;
(13) an explanation of any special options the
borrower may have for loan consolidation or other
refinancing of the loan;
(14) a statement that the borrower has the right to
prepay all or part of the loan, at any time, without
penalty;
(15) a statement summarizing circumstances in which
repayment of the loan or interest that accrues on the
loan may be deferred;
(16) a statement summarizing the circumstances in
which a borrower may obtain forbearance on the loan;
(17) a description of the options available for
forgiveness of the loan, and the requirements to obtain
loan forgiveness;
(18) a definition of default and the consequences to
the borrower if the borrower defaults, including a
statement that the default will be reported to a
consumer reporting agency; and
(19) an explanation of any cost the borrower may
incur during repayment or in the collection of the
loan, including fees that the borrower may be charged,
such as late payment fees and collection costs.
(b) Required Disclosure Before Repayment.--Each eligible
lender shall, at or prior to the start of the repayment period
on a loan made, insured, or guaranteed under section 428, 428B,
or 428H, disclose to the borrower by written or electronic
means the information required under this subsection in simple
and understandable terms. Each eligible lender shall provide to
each borrower a telephone number, and may provide an electronic
address, through which additional loan information can be
obtained. The disclosure required by this subsection shall be
made not less than 30 days nor more than 150 days before the
first payment on the loan is due from the borrower. The
disclosure shall include--
(1) the name of the eligible lender or loan servicer,
and the address to which communications and payments
should be sent;
(2) the scheduled date upon which the repayment
period is to begin or the deferment period under
section 428B(d)(1) is to end, as applicable;
(3) the estimated balance owed by the borrower on the
loan or loans covered by the disclosure (including, if
applicable, the estimated amount of interest to be
capitalized) as of the scheduled date on which the
repayment period is to begin or the deferment period
under 428B(d)(1) is to end, as applicable;
(4) the stated interest rate on the loan or loans, or
the combined interest rate of loans with different
stated interest rates;
(5) information on loan repayment benefits offered
for the loan or loans, including--
(A) whether the lender offers any benefits
that are contingent on the repayment behavior
of the borrower, such as--
(i) a reduction in interest rate if
the borrower repays the loan by
automatic payroll or checking account
deduction;
(ii) a reduction in interest rate if
the borrower makes a specified number
of on-time payments; and
(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] Borrower Advocate 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]
Borrower Advocate 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, 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 before
fiscal year 2018.--(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] through fiscal year
2017.
(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.
(iii) Default management plan.--The
default management plan required under
clause (i) may not include placing
students in forbearance as a means of
reducing the cohort default rate or the
adjusted cohort default rate of the
institution.
(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) Ineligibility based on high adjusted cohort
default rates.--
(A) In general.--Except as provided in
subparagraphs (B) and (D), beginning on the
date that is one year after the date on which
the final adjusted cohort default rates are
published by the Secretary for not less than 3
fiscal years, in a case in which one of the
following determinations is made with respect
to an institution, such institution shall be
ineligible to participate in a program under
this title for the fiscal year for which the
determination is made and for the two
succeeding fiscal years:
(i) The institution's adjusted cohort
default rate is greater than 20 percent
for each of the 3 most recent fiscal
years for which the final adjusted
cohort default rates are published.
(ii) With respect to the 6 most
recent fiscal years for which the final
adjusted cohort default rates are
published--
(I) the institution's
adjusted cohort default rate is
greater than 15 percent for
each such fiscal year; and
(II) the Secretary determines
that, during such 6-year
period, the institution has not
made adequate progress in
meeting standards for student
achievement established by the
relevant accrediting agency or
association pursuant to section
496(a)(5)(A).
(iii) With respect to the 8 most
recent fiscal years for which the final
adjusted cohort default rates are
published--
(I) the institution's
adjusted cohort default rate is
greater than 10 percent for
each such fiscal year; and
(II) the Secretary determines
that, during such 8-year
period, the institution has not
made adequate progress in
meeting standards for student
achievement established by the
relevant accrediting agency or
association pursuant to section
496(a)(5)(A).
(B) Exceptions for certain categories of
educational programs.--With respect to an
institution that loses eligibility to
participate in a program under this title in
accordance with subparagraph (A)(ii), such
institution may request and be granted an
exception to such loss of eligibility for a
category of educational programs at such
institution by demonstrating to the Secretary
that the adjusted cohort default rate for the
category of educational programs is 15 percent
or less for each fiscal year of the 6-year
period on which such loss of eligibility for
the institution is based.
(C) Determination of the adjusted cohort rate
for a category of educational programs.--In
determining the adjusted cohort default rate
for a category of educational programs for
purposes of this paragraph--
(i) subsection (m) shall be applied--
(I) in paragraph (1)--
(aa) in subparagraph
(A), by substituting
``received for
enrollment in the
category of educational
programs for which such
rate is being
determined'' for
``received for
attendance at the
institution''; and
(bb) in subparagraph
(E)(i)(II), by
substituting,
``percentage of
students enrolled in
the category of
educational programs
for which such rate is
being determined'' for
``percentage of
students enrolled at
the institution''; and
(II) as if the following were
added at the end of paragraph
(2):
``(E) In the case of a student who has
received a loan for enrollment in more than one
category of educational programs, the student
(and such student's subsequent repayment or
default) is attributed to the last category of
educational programs in which such student was
enrolled.''.
(D) Transition exception.--
(i) In general.--A covered
institution with an adjusted cohort
default rate that is greater than 20
percent for the first fiscal year for
which such rates are published by the
Secretary may request that any
determination of such institution's
ineligibility under paragraph (9)(A)
not be based on the adjusted cohort
default rate of such institution for
any or all of the first 3 fiscal years
for which such rates are published by
the Secretary.
(ii) Requirement.--To be granted a
request under clause (i), an
institution shall submit to the
Secretary a default management plan as
specified in paragraph (7).
(iii) Definition of covered
institution.--In this subparagraph, the
term ``covered institution'' means--
(I) a public institution of
higher education;
(II) a part B institution (as
defined in section 322); or
(III) a private, nonprofit
institution of higher education
at which not less than 45
percent of the total student
enrollment consists of low-
income students (as such term
is defined in section
419N(b)(7)).
(E) Category of educational programs
defined.--The term ``category of educational
programs'', when used with respect to an
institution, means one of the following:
(i) The educational programs at the
institution leading to an
undergraduate, non-degree credential.
(ii) The educational programs at the
institution leading to an associate's
degree.
(iii) The educational programs at the
institution leading to a bachelor's
degree.
(iv) The educational programs at the
institution leading to a graduate, non-
degree credential.
(v) The educational program at the
institution leading to a graduate
degree.
(10) Application of adjusted cohort default rate.--
Beginning on the date on which the final adjusted
cohort default rates are published by the Secretary for
not less than 3 fiscal years--
(A) paragraph (1) shall be applied by
substituting ``paragraph (9)'' for ``paragraph
(2)''.
(B) paragraph (3) shall be applied by
substituting ``adjusted cohort default rate,
calculated in accordance with subsection
(m)(1)(D), is greater than 20 percent for any 3
consecutive fiscal years'' for ``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'';
(C) paragraph (4) shall be applied--
(i) in subparagraph (C), by
substituting ``adjusted cohort default
rate is greater than 15 percent'' for
``cohort default rate equals or exceeds
20 percent''; and
(ii) in the matter following
subparagraph (C), by substituting
``adjusted 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)'' for ``cohort
default rate to reflect the percentage
of defaulted loans in the
representative sample that are required
to be excluded pursuant to subsection
(m)(1)(B)'';
(D) paragraph (5)(A) shall be applied by
substituting ``paragraph (9)'' for ``paragraph
(2)''; and
(E) paragraph (7) shall be applied--
(i) in subparagraph (A)(i)--
(I) in the matter preceding
subclause (I), by substituting
``adjusted cohort default rate
is greater than 20 percent''
for ``cohort default rate is
equal to or greater than the
threshold percentage specified
in paragraph (2)(B)(iv)''; and
(II) in subclauses (I) and
(II), by substituting
``adjusted cohort default
rate'' for ``cohort default
rate''; and
(ii) in subparagraph (B)(i), by
substituting ``adjusted cohort default
rate is greater than 20 percent'' for
``cohort default rate is equal to or
greater than the threshold percentage
specified in paragraph (2)(B)(iv)''.
(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.
(D)(i) With respect to a cohort default rate
calculated for an institution under this paragraph for
fiscal year 2018 and for each succeeding fiscal year,
such cohort default rate shall be adjusted as follows:
(I) In determining the number of current and
former students at an institution who enter
repayment for such fiscal year--
(aa) any such student who is in
nonmandatory forbearance for such
fiscal year for a period of greater
than 18 months but less than 36 months
shall not be counted as entering
repayment for such fiscal year;
(bb) such a student shall be counted
as entering repayment for the first
fiscal year for which the student
ceases to be in a period of forbearance
and otherwise meets the requirements
for being in repayment; and
(cc) any such student who is in a
period of forbearance for 3 or more
years shall be counted as in default
and included in the institution's total
number of students in default.
(II) Such rate shall be multiplied by the
percentage of students enrolled at the
institution for such fiscal year who are
borrowing a loan under part D of this title.
(ii) The result obtained under this subparagraph for
an institution shall be referred to in this Act as the
``adjusted cohort default rate''.
(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) Adjusted cohort default rates Beginning on the
date on which the final adjusted cohort default rates
for fiscal year 2018 are made available for publication
by the Secretary, paragraph (4) shall be applied by
substituting ``adjusted cohort default'' for ``cohort
default'' each place it appears.
(o) Economic Hardship.--
(1) In general.--For purposes of this part and part
E, 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.
* * * * * * *
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.
(3) Automatic income monitoring.--
(A) In general.--Not later than 2 years after
the date of enactment of the College
Affordability Act, the Secretary shall
establish and implement, with respect to any
borrower described in subparagraph (B),
procedures to--
(i) obtain (for each year of the
income-monitoring period described in
subparagraph (B) and without further
action by the borrower) such
information as is reasonably necessary
regarding the income of such borrower
for the purpose of determining the
borrower's continued eligibility for
the loan discharge described in
subparagraph (B) for such year, and any
other information necessary to
determine such continued eligibility of
the borrower for such year, except that
in the case of a borrower whose returns
and return information indicate that
the borrower has no earned income for
any year of such income-monitoring
period, such borrower shall be treated
as not having earned income in excess
of the poverty line for such year
subject to clause (ii);
(ii) allow the borrower, at any time,
to opt out of clause (i) and prevent
the Secretary from obtaining
information under such clause without
further action by the borrower; and
(iii) provide the borrower with an
opportunity to update the information
obtained under clause (i) before the
determination of the borrower's
continued eligibility for such loan
discharge for such year.
(B) Applicability.--Subparagraph (A) shall
apply--
(i) to each borrower of a covered
loan (defined in section 455(d)(10))
that is discharged under this
subsection or section 464(c)(1)(F) due
to the permanent and total disability
of the borrower; and
(ii) during the income-monitoring
period under this subsection, defined
in this paragraph as the period--
(I) beginning on the date on
which such loan is so
discharged; and
(II) during which the
Secretary determines whether a
reinstatement of the obligation
of, and resumption of
collection on, such loan may be
necessary.
(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, 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) Automatic closed school discharge.--
(A) Secretarial requirements.--With respect
to a borrower described in subparagraph (B),
the Secretary shall, without any further action
by the borrower, discharge the borrower's
liability on the loan described in subparagraph
(B)(i).
(B) Borrower requirements.--A borrower
described in this subparagraph means a borrower
who--
(i) receives a loan--
(I) made, insured, or
guaranteed under this title for
enrollment in a program that
the borrower was unable to
complete due to the closure of
the institution; and
(II) for which the Secretary
has not already discharged the
borrower's liability on such
loan pursuant to this
subsection; and
(ii) as of the date that is 2 years
after the closure of the institution,
has not re-enrolled in an institution
of higher education that participates
in programs under this title.
[(2)] (3) 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)] (4) 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)] (5) 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.
[(5)] (6) Reporting.--The Secretary shall report to
consumer reporting agencies with respect to loans which
have been discharged pursuant to this subsection.
(d) Repayment of Loans to Parents.--[If a student]
(1) Death._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.
(2) Disability.--
(A) In general.--The Secretary shall
discharge a parent's liability on a loan
described in section 428B by repaying the
amount owed on the loan if the student on whose
behalf the parent has received the loan--
(i) becomes permanently and totally
disabled (as determined in accordance
with regulations of the Secretary); or
(ii) 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.
(B) Disability determinations.--Subsection
(a)(2) shall apply to a disability
determination under this paragraph in the same
manner as such subsection applies to a
determination under subsection (a)(1).
(C) Safeguards.--The safeguards to prevent
fraud and abuse developed under subsection
(a)(1) shall apply under this paragraph.
(D) Reinstatement of loans.--The Secretary
may promulgate regulations to reinstate the
obligation of, and resume collection on, loans
discharged under this paragraph in cases in
which the Secretary determines that the
reinstatement and resumption is necessary and
appropriate based upon the regulations
developed under subsection (a)(1).
* * * * * * *
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 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 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) $1,500,000,000 for fiscal year 2021;
(2) $1,750,000,000 for fiscal year 2022;
(3) $2,000,000,000 for fiscal year 2023;
(4) $2,250,000,000 for fiscal year 2024; and
(5) $2,500,000,000 for fiscal year 2025 and each
succeeding fiscal year.
(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), child development and
early learning (including Head Start and Early Head
Start programs carried out under the Head Start Act (42
U.S.C. 9831 et seq.)), 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[.]; and
(5) work-based learning designed to give students
experience in any activity described in paragraph (1),
(2), (3), or (4), without regard to whether credit is
awarded.
(d) Work-based Learning Defined.--For purposes of this part,
the term ``work-based learning'' means sustained interactions
with industry, community, or academic professionals in real
workplace settings that shall--
(1) include on campus opportunities;
(2) 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; and
(3) may include internships, fellowships, research
assistant positions, teacher residencies, participation
in cooperative education, and 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.).
[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.--Beginning with the first fiscal
year that is 2 years after the date of the
enactment of the College Affordability Act, 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 equal to the
greater of the following:
(I) The amount 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.
(II) $5,000.
(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)--
(i) is an institution of higher
education (as defined under section
101) participating under this part;
(ii) is with respect to--
(I) the completion rate or
graduation rate of Federal Pell
Grant recipients at the
institution, in the top 75
percent of all institutions
participating under this part
for the preceding fiscal year;
(II) the percentage of
Federal Pell Grant recipients
at the institution, in the top
50 percent of the institutions
described in subclause (I); and
(III) the annual increase in
the completion rate or
graduation rate of Federal Pell
Grant recipients at the
institution, in the top 50
percent of the institutions
described in subclauses (I) and
(II).
(C) Completion rate or graduation rate.--For
purposes of determining the completion rate or
graduation rate under this section, a Federal
Pell Grant recipient who is either a full-time
student or a part-time student shall be counted
as a completer or graduate 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 institution
participating in any program under this title
for which the prior program provides
substantial preparation.
(2) Reservation for grant program.--From the amount
appropriated under section 441(b) for a fiscal year and
remaining after the Secretary reserves funds under
subparagraph (A), the Secretary shall reserve
$30,000,000 to carry out grants under section 449.
(3) Reallocation of amount returned by improved
institutions.--If an institution returns to the
Secretary any portion of the sums allocated to such
institution under this subsection for any fiscal year,
the Secretary shall reallot such excess to improved
institutions on the same basis as under paragraph
(1)(A).
(4) Publication.--Beginning 1 year after the first
allocations are made to improved institutions under
paragraph (1)(A) and annually thereafter, the Secretary
shall make publicly available--
(A) a list of the improved institutions that
received funding under such paragraph in the
prior fiscal year;
(B) the percentage of students at each such
improved institution that are Federal Pell
Grant recipients;
(C) the completion rate or graduation rate
for the students described in subparagraph (B)
with respect to each such improved institution;
and
(D) a comparison between the information
described in subparagraphs (A), (B), and (C)
for the prior fiscal year for such improved
institution, and such information for the year
prior to such year.
(c) Allocation Formula for Fiscal Years 2021 Through 2025.--
(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 2021, 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 2020, as such subsections
were in effect with respect to such
fiscal year (in this subparagraph
referred to as ``the 2020 amount for
the institution''); or
(ii) the fair share amount for the
institution determined under subsection
(d);
(B) for fiscal year 2022, an amount equal to
the greater of--
(i) 80 percent of the 2020 amount for
the institution; or
(ii) the fair share amount for the
institution determined under subsection
(d);
(C) for fiscal year 2023, an amount equal to
the greater of--
(i) 60 percent of the 2020 amount for
the institution; or
(ii) the fair share amount for the
institution determined under subsection
(d);
(D) for fiscal year 2024, an amount equal to
the greater of--
(i) 40 percent of the 2020 amount for
the institution; or
(ii) the fair share amount for the
institution determined under subsection
(d); and
(E) for fiscal year 2025, an amount equal to
the greater of--
(i) 20 percent of the 2020 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).
(d) Allocation Formula for Fiscal Year 2026 and Each
Succeeding Fiscal Year.--Except as provided in subsection
(d)(5), from the amount appropriated under section 441(b) for
fiscal year 2026 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).
(e) Determination of Fair Share Amount.--
(1) In general.--Subject to paragraph (2), the fair
share amount for an institution for a fiscal year shall
be equal to the sum of--
(A) 100 percent of the institution's
undergraduate student need described in
paragraph (2) for the preceding fiscal year;
and
(B) 25 percent of the institution's graduate
student need described in paragraph (3) for the
preceding fiscal year.
(2) Institutional undergraduate student need
calculation.--The undergraduate student need 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 awarded 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.
(3) Institutional graduate student need
calculation.--The graduate student need for an
institution for a fiscal year shall be equal to the
amount that bears the same proportion to the available
appropriated amount for such fiscal year as the total
amount of the graduate student need at the institution
for the preceding fiscal year bears to the total amount
of graduate student need at all institutions
participating under this part for the preceding fiscal
year.
(4) Eligibility for fair share amount.--The Secretary
may not allocate funds under this part to any
institution that, for two or more fiscal years during
any three fiscal year period beginning not earlier than
the first day of the first fiscal year that is 2 years
after the date of the enactment of this paragraph,
has--
(A) a student population with less than 7
percent of undergraduate students who are
recipients of Federal Pell Grants; or
(B) if the institution only enrolls graduate
students, a student population with less than 5
percent of students that have an expected
family contribution of zero.
(5) Definitions.--In this subsection:
(A) Available appropriated amount.--In this
section, 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 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;
(ii) standard living expenses 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; and
(iii) books and supplies, in an
amount not exceeding $1,000.
(C) Graduate student need.--The term
``graduate student need'' means, with respect
to a graduate student for a fiscal year, the
lesser of the following:
(i) 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 preceding
fiscal year, minus
(II) such graduate student's
expected family contribution
(computed in accordance with
part F of this title) for the
preceding fiscal year.
(ii) The total annual loan limit for
a Federal Direct Unsubsidized Stafford
Loan.
(D) 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) such undergraduate
student's expected family
contribution (computed in
accordance with part F of this
title) for the preceding fiscal
year.
(ii) The total annual loan limit for
a Federal Direct Unsubsidized Stafford
Loan and a Federal Direct Loan.
(f) Return of Surplus Allocated Funds.--
(1) In general.--Except with respect to funds
returned under subsection (a)(3), 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 reallot such
excess to institutions that used at least 10 percent of
the total amount of funds granted to such institution
under this section to compensate students employed
during a qualified period of nonenrollment (as such
term is defined in section 443(f)) on the same basis as
excess eligible amounts are allocated under subsection
(d).
(2) Use of funds.--Funds received by institutions
pursuant to this subsection shall, to maximum extent
practicable, be used to compensate students employed in
work-based learning positions.
(3) Retained funds.--
(A) Amount returned.--If an institution
returns more than 10 percent of its allocation
under paragraph (1), the institution's
allocation for the next fiscal year shall be
reduced by the amount returned.
(B) 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.
(g) Filing Deadlines.--The Secretary may require applications
under this section, at such time, in such manner, and
containing such information as the Secretary may require.
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 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;]
(2) provide that funds granted an institution of
higher education, pursuant to this section may only be
used to make payments to students participating in
work-study programs except that an institution--
(A) shall, beginning fiscal year 2023--
(i) use at least 3 percent of the
total amount of funds granted to such
institution under this section for such
fiscal year to compensate students who
have exceptional need (as defined in
section 413C(c)(2)) and are employed in
a work-based learning position during a
qualified period of nonenrollment, as
defined in subsection (f), except that
the Secretary may waive this clause if
the Secretary determines that enforcing
this clause would cause hardship for
students at the institution; and
(ii) 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 work-based learning
positions, except that the Secretary
may waive this clause if the Secretary
determines that enforcing this clause
would cause hardship for students at
the institution;
(B) may--
(i) use a portion of the sums granted
to it to compensate students employed
in community service;
(ii) use a portion of the sums
granted to it to meet administrative
expenses in accordance with section
489;
(iii) 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
(iv) transfer funds in accordance
with the provisions of section 488;
(3) provide that in the selection of students for
employment under such work-study program, only 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) except as provided under subsection (f), 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, 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) the Federal share may exceed 75 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
(C) the Federal share shall equal 100 percent
if the institution is eligible for assistance
under title III or title V;
(6) include provisions to make employment under such
work-study program reasonably available (to the extent
of available funds) to all eligible students who
demonstrate exceptional need (as defined in section
413C(c)(2)) in the institution and prioritize
employment for students who are currently homeless
individuals described in section 725 of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11434a) or
foster care youth 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] career 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
goals] 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 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 compensation of students
employed in the work-study program in accordance with
the agreement shall include reimbursement for
reasonable travel (not including the purchase of a
vehicle) directly related to such work-study program;
(13) provide assurances that the institution will
administer and use feedback from the surveys required
under section 450, to improve the experiences of
students employed in the work-study program in
accordance with the agreement;
(14) 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
(15) provide assurances that if the institution
receives funds under section 442(a)(1)(A), such
institution shall--
(A) use such funds to compensate students
employed in the work-study program in
accordance with the agreement; and
(B) prioritize the awarding of such funds
(and increasing the amount of each award) to
students--
(i) who demonstrate exceptional need
(as defined in section 413C(c)(2)); and
(ii) who are employed in work-based
learning opportunities through the work
study program in accordance with the
agreement.
(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 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);
[(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);]
(2) provide that--
(A) in the case of an institution that has
not received a waiver from the Secretary, such
institution will not use 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); and
(B) in the case of an institution that has
received a waiver from the Secretary, such
institution will not use more than 50 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) 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) 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) 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[.]; and
(6) provide assurances that compensation of students
employed in the work-study program in accordance with
the agreement shall include reimbursement for
reasonable travel (not including the purchase of a
vehicle) directly related to such work-study program.
(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] reasonable travel (not including the purchase
of a vehicle) 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.
(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.
(f) Qualified Period of Nonenrollment.--
(1) In general.--A student may be awarded work-study
employment during a qualified period of nonenrollment
if--
(A) the student demonstrates exceptional need
(as defined in section 413C(c)(2)) in the award
year prior to the qualified period of
nonenrollment;
(B) the student is employed in a work-based
learning position; and
(C) the employment--
(i) involves less than 25 percent
administrative work; and
(ii) is for at least 20 hours per
week, unless the institution waives
such requirement--
(I) at the request of the
student; or
(II) based on a finding by
the institution that such
requirement presents a hardship
in finding a work-based
learning position for the
student.
(2) Funds earned.--
(A) In general.--Any funds earned by a
student (beyond standard living expenses (as
such term is described in section
413D(c)(3)(C))) during the qualified period of
nonenrollment less than or equal to $2,500 may
not be applied to such student's cost of
attendance for the next period in which the
student is enrolled.
(B) Excess funds.--Any funds earned by a
student (beyond standard living expenses (as
such term is described in section
413D(c)(3)(C))) during the qualified period of
nonenrollment in excess of $2,500 shall be
applied to such student's cost of attendance
for the next period in which the student is
enrolled.
(3) Definition of qualified period of
nonenrollment.--In this subsection, the term
``qualified period of nonenrollment'' means, with
respect to a student, a period of nonenrollment that--
(A) occurs between a period of enrollment and
a period of anticipated enrollment; and
(B) the duration of which is no longer than 6
months.
(g) Cooperative Education.--
(1) In general.--A student may be awarded work-study
employment for participation in cooperative education
on--
(A) a part-time basis; or
(B) a full-time basis for a period equal to
or less than 6 months.
(2) Private agreements for cooperative education.--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 provide for the operation by the
institution of a program of cooperative education of
its students (on the basis described in subparagraph
(A) or (B) of paragraph (1)) by a private for-profit
organization under an agreement between the institution
and such organization that complies with the
requirements of subsection (c).
(3) Full-time basis period.--The period specified in
paragraph (1)(B) may be non-consecutive and include
participation during qualified periods of nonenrollment
(as defined in subsection (f)(3)).
(4) Cooperative education defined.--In this
subsection, the term ``cooperative education'' means a
program of alternating or parallel periods of academic
study and work-based learning designed to give students
work experiences related to their academic or career
objectives.
(h) Notification Regarding SNAP.--
(1) In general.--An institution receiving a grant
under this part shall send a notification (by email or
other electronic means) to each eligible student
informing the student of their potential eligibility
for participation in the SNAP and the process for
obtaining more information, confirming eligibility, and
accessing benefits under that program. The notification
shall be developed by the Secretary of Education in
consultation with the Secretary of Agriculture, and
shall include details on eligibility requirements for
participation in the SNAP that a student must satisfy.
The notification shall be, to the extent practicable,
specific to the student's State of residence and shall
provide contact information for the local office where
an application for the SNAP may be made.
(2) Evidence of participation in federally financed
work-study program.--The notification under paragraph
(1) shall include an official document confirming that
the recipient is an eligible student sufficient for
purposes of demonstrating that the exclusion from
ineligibility for participation in the SNAP under
section 6(e)(4) of the Food and Nutrition Act of 2008
(7 U.S.C. 2015(e)(4)) applies to the student.
(3) Guidance.--The Secretary of Education, in
consultation with the Secretary of Agriculture, shall
provide guidance to States and institutions of higher
education on how to identify and communicate with
students who are likely to be eligible for the SNAP,
including those eligible for a State or federally
financed work-study program.
(4) Definitions.--For purposes of this subsection:
(A) The term ``eligible student'' means a
student receiving work-study assistance under
this part.
(B) The term ``SNAP'' means the supplemental
nutrition assistance program (as defined in
section 3(t) of the Food and Nutrition Act of
2008 (7 U.S.C. 2012(t))).
* * * * * * *
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] 20 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 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 period
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] 20 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.
(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;]
(1) provide satisfactory assurance that the
institution will prioritize placing students with
exceptional need (as defined in section 413C(c)(2)) and
Federal work-study recipients in jobs located and
developed under this section; and
(2) provide satisfactory assurances that the funds
available under this section will be used to locate and
develop work-based learning positions;
(3) 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) 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) 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) 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 positions through such program;
(B) the number of students demonstrating
exceptional need (as defined in section
413C(c)(2)) and Federal work-study recipients
employed through such program; and
(C) the number of students demonstrating
exceptional need (as defined in section
413C(c)(2)) and Federal work-study recipients
employed in work-based learning positions
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. 447. ADDITIONAL FUNDS TO CONDUCT COMMUNITY SERVICE WORK STUDY
PROGRAMS
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;
(3) assuring, to the maximum extent practicable, that
the community service-learning program will support the
educational goals or career goals of students
participating in such program;
(4) 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; and
(5) to recruit and compensate students for community
service-learning (including compensation for time spent
in training and for reasonable travel (not including
the purchase of a vehicle) directly related to such
community service).
SEC. 448. WORK COLLEGES.
(a) Purpose.--The purpose of this section is to recognize,
encourage, and promote the use of comprehensive student work-
learning-service programs as a valuable educational approach
when it is an integral part of the institution's educational
program and a part of a financial plan which decreases reliance
on grants and loans.
(b) Source and Use Funds.--
(1) Source of funds.--In addition to the sums
appropriated under subsection (f), funds allocated to
the institution under part C and part E of this title
may be transferred for use under this section to
provide flexibility in strengthening the self-help-
through-work element in financial aid packaging.
(2) Activities authorized.--From the sums
appropriated pursuant to subsection (f), and from the
funds available under paragraph (1), eligible
institutions may, following approval of an application
under subsection (c) by the Secretary--
(A) support the educational costs of
qualified students through self-help payments
or credits provided under the work-learning-
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
student 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]
(1) In general._Each eligible institution may submit
an application for funds authorized by subsection (f)
to use funds under subsection (b)(1) at such time and
in such manner as the Secretary, by regulation, may
reasonably require.
(2) Application dates.--The Secretary shall require
an eligible institution that submits an application for
funding under this section for the first time to submit
such application 5 months prior to the application due
date for returning applicants.
(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;]
(B) is accredited by an accrediting agency or
association recognized by the Secretary
pursuant to part H, has operated a work-study
program under this part for at least the 2
years preceding the date of the determination,
and has operated a comprehensive student work-
learning-service program for at least the 2
years preceding the date of the determination;
(C) requires students, including at least
one-half of all students who are enrolled on a
full-time basis, to participate in a
comprehensive student 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 student work-learning-service
program with the opportunity to contribute to
their education and to the welfare of the
community as a whole; and
(2) the term ``comprehensive student work-learning-
service program'' means a student work-learning-service
program that--
(A) is a 4-year, degree-granting program;
[(A)] (B) is an integral and stated part of
the institution's educational philosophy and
program;
[(B)] (C) requires participation of all
resident students for enrollment and
graduation;
[(C)] (D) includes learning objectives,
evaluation, and a record of work performance as
part of the student's college record;
[(D)] (E) provides programmatic leadership by
college personnel at levels comparable to
traditional academic programs;
[(E)] (F) recognizes the educational role of
work-learning-service supervisors; and
[(F)] (G) 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.
SEC. 449. WORK-BASED LEARNING OPPORTUNITIES PILOT GRANT PROGRAM.
(a) Establishment.--
(1) In general.--The Secretary shall establish a
program to provide grants to eligible institutions
participating under this part to establish or expand a
program to develop work-based learning positions.
(2) Limitations.--
(A) Duration.--A grant awarded under this
section shall be for a period of not more than
4 years, but may be renewed by the Secretary
for a period of 2 years.
(B) Amount.--A grant under this section may
not be in an amount greater than $1,000,000.
(b) Application.--To be selected to receive a grant under
this section an eligible institution participating under this
part shall submit an application to the Secretary at such time,
in such manner, and containing such information as the
Secretary may require, including a plan that describes how the
eligible institution will establish or expand a program to
develop work-based learning positions that will--
(1) benefit students who demonstrate exceptional need
(as defined in section 413C(c)(2));
(2) identify in-demand industry sectors and
occupations (as defined in section 3 of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3102) and as
determined by the Bureau of Labor and Statistics, State
departments of labor, and local boards (as defined in
such section 3)) and develop partnerships with high-
demand employers (including nonprofit organizations,
joint labor-management organizations, for-profit firms,
or public agencies);
(3) involve participating employers in evaluating and
improving such program;
(4) track and report academic and employment outcomes
for participating students; and
(5) be able to continue after the end of the grant
term.
(c) Use of Funds.--Grant funds awarded under this program
shall be used to pay wages for students participating under
this program and develop work-based learning positions that--
(1) are for a period of at least 12 weeks;
(2) serve students who demonstrate exceptional need
(as defined in section 413C(c)(2));
(3) limit administrative work to no more than 25
percent of such position;
(4) provide a minimum of 15 hours of work per week
during periods of enrollment and 30 hours per week
during periods of nonenrollment, except such
requirement may be waived by the institution in
consultation with a student;
(5) include career coaching from participating
employers (including mock interviews, resume writing
assistance, career exploration, and counseling on
applying for and attaining employment); and
(6) provide participating students with opportunities
to meet with employers in fields or industries related
to those of participating employers.
(d) Report.--On a date that is before the date on which the
period of the grant received by an eligible institution under
this section terminates, such institution shall submit a report
to the Secretary including--
(1) the graduation rate or completion rate (as
described under section 442(a)(1)(C)) with respect to
students participating in work-based learning positions
under the pilot program; and
(2) the results of the work-based learning
opportunities program for which such institution
received such grant, including--
(A) participating students' satisfaction with
the program as reported in surveys under
section 450, as added by section 4209 of the
College Affordability Act;
(B) the types of jobs in which participating
students were employed and the types of duties
performed in such jobs;
(C) the academic programs of the
participating students;
(D) the share of participating students who
worked at another job, in addition to the one
under the pilot program;
(E) the percentage of participating students
who, during the second quarter after completing
their academic program, are in education or
training activities or unsubsidized employment;
(F) the percentage of participating students
employed in in-demand industry sectors or
occupations as described in subsection (b)(2)
within 2 quarters of completing their academic
programs; and
(G) other items as deemed relevant by the
Secretary.
(e) Reservation of Funding for Such Program.--From the amount
appropriated under section 441(b) for a fiscal year and
remaining after the Secretary reserves funds under section
442(a)(1), the Secretary shall reserve $30,000,000 to carry out
grants under this section.
SEC. 450. DEPARTMENT ACTIVITIES.
(a) Surveys.--Not later than 1 year after the date of the
enactment of this section, the Secretary shall develop, in
consultation with work-study administrators from institutions
of higher education, participating employers, and participating
students--
(1) a consumer-tested electronic survey for students
awarded work-study employment under the Federal work-
study program under this part that--
(A) measures each such student's satisfaction
with the Federal work-study program,
including--
(i) any complaints the student has
with respect to the program;
(ii) the amount and quality of the
on-the-job training the student
received;
(iii) the amount and quality of on-
the-job supervision and employer
feedback the student received;
(iv) the amount and quality of
information provided by the institution
about the work-study program and job
opportunities and the availability of
work-study staff at the institution;
(v) the quality of the assistance
provided by the institution to the
student in finding a work-study job and
the availability of types of jobs; and
(vi) the student's overall
satisfaction with the work-study
program;
(B) measures the applicability of work-study
employment to the educational goals and career
goals of each such student;
(C) elicits an assessment by each such
student of the capacity to manage time between
work-study employment and coursework;
(D) measures, with respect to the program--
(i) the award amounts under the
program;
(ii) the average number of hours
students worked per week, and the wages
received for such work;
(iii) the number of on campus jobs
and off campus jobs;
(iv) how students located work-study
positions;
(v) the work performed at each job;
(vi) whether students worked
additional jobs while employed in a
work-study job (and the reason for such
additional job);
(vii) whether the work-study
employment had an impact on the
student's academic performance; and
(viii) the voluntarily disclosed
demographics of students awarded work-
study employment; and
(E) includes such information as the
Secretary may require; and
(2) a consumer-tested electronic survey for employers
of students described in paragraph (1) that--
(A) measures each such employer's
satisfaction with the Federal work-study
program, including--
(i) the extent to which the employer
is satisfied with its ability to
accommodate students' schedules;
(ii) the extent to which student-
employees are prepared for the duties
advertised for the job; and
(iii) the extent to which the
employer is satisfied with
opportunities to make recommendations
for improving institutions' academic
programs;
(B) elicits an assessment by each such
employer of--
(i) any complaints the employer had
with respect to the program;
(ii) any skills or knowledge
necessary for the job that student-
employees are lacking; and
(iii) the extent of outreach from
institutions to the employer; and
(C) includes such information as the
Secretary may require; and
(3) a consumer-tested electronic survey that, not
less than once every 4 years, with respect to each
institution of higher education participating in the
Federal work-study program, measures--
(A) methods used to recruit on-campus and
off-campus employers;
(B) if an institution operates a job location
development program--
(i) the share of jobs filled on-
campus and off-campus;
(ii) the share of jobs filled by--
(I) work-study recipients;
and
(II) students who demonstrate
exceptional need (as defined in
section 413C(c)(2));
(iii) the primary factors considered
in matching work-study students and
jobs;
(iv) the share of students employed
in work-based learning opportunities;
and
(v) the share of students employed
during qualified periods of
nonenrollment, including the share of
students with exceptional need (as
defined in section 413C(c)(2)) employed
during qualified periods of
nonenrollment;
(C) the institution's Federal and non-Federal
contributions toward work-study wages;
(D) the primary factors considered in
awarding students work-study and in determining
the amount of the award;
(E) the acceptance rate among students who
were offered work-study aid; and
(F) other information the Secretary may
require.
(b) Results.--The Secretary shall develop an online portal--
(1) for students, employers, and institutions of
higher education to access the surveys required under
subsection (a); and
(2) to compile the results of such surveys.
(c) Report.--Not less than once every 4 years after the date
of the enactment of this subsection, the Secretary shall submit
a report to Congress that includes--
(1) the data collected under this section (redacted
for personal information);
(2) with respect to students employed in work-study
through the Federal work-study program--
(A) the types of jobs such students
participated in;
(B) the average hours worked per week;
(C) the average award amount;
(D) the average wage rates;
(E) the extent to which students enter
employment with skills and knowledge gained
from work-study participation that have
prepared them for the job; and
(F) the students' satisfaction with the
program and primary complaints;
(3) the extent to which institutions conduct outreach
to employers and engage them in discussions on
improving academic programs;
(4) the extent to which institutions conduct outreach
to students and make jobs readily available;
(5) the extent to which the work-study employment
aligns with students' academic programs or career
goals;
(6) the employers' satisfaction with the program and
primary complaints; and
(7) recommendations for improving the program.
(d) Consultation.--
(1) In general.--In consulting with the entities
described in subsection (a) to create the electronic
surveys required under such subsection, the Secretary
shall engage with--
(A) a representative sample of institutions
of higher education participating in the
Federal work-study program;
(B) a representative sample of employers
participating in the Federal work-study
program; and
(C) a representative sample of students
participating in the Federal work-study
program.
(2) Response rate.--The Secretary shall--
(A) consult with a survey consultant to
develop a target response rate with respect to
the electronic surveys required under
subsection (a); and
(B) provide guidance to institution with
respect to such developed target response rate.
(e) Technical Assistance.--The Secretary shall--
(1) provide technical assistance to institutions
participating under the Federal work-study program
under this part to--
(A) comply with the amendments made by part C
of title IV of the College Affordability Act
and the regulations issued pursuant to such
part;
(B) administer the surveys described in
subsection (a) to students and employers
participating in the Federal work-study
program; and
(C) ensure that Federal work-study positions
align with students' educational goals or
career goals to the maximum extent practicable;
and
(2) issue guidance and provide technical assistance
to institutions to support improved partnerships and
coordination among financial aid, career services, and
academic advisors to administer the Federal work-study
program.
(f) Authorization of Appropriations.--There is authorized to
be appropriated $2,000,000 to carry out subsection (a).
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)] (2) for purchasing loans under section 459A;
and (3) to make loans under section 460A and section 460B.
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).
(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''.
* * * * * * *
SEC. 455. TERMS AND CONDITIONS OF LOANS.
(a) In General.--
(1) Parallel terms, conditions, benefits, and
amounts.--Unless otherwise specified in this part,
loans made to borrowers under this part shall have the
same terms, conditions, and benefits, and be available
in the same amounts, as loans made to borrowers, 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 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)] subparagraphs (B) and (C) 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).
(C) For any period of instruction at an
institution of higher education (as defined in
section 101) beginning on or after July 1,
2021, a graduate or professional student shall
be eligible to receive a Federal Direct
Stafford loan under this part.
(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.--
(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, 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 and Federal
Direct Stafford Loans issued to graduate or
professional students, for which the first
disbursement is made on or after July 1, 2013,
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,
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, 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.]
(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) Design and selection on and after july 1, 2021.--
(A) In general.--Notwithstanding paragraph
(1), for the borrower of a loan made on or
after July 1, 2021, and for other borrowers
subject to paragraph (7), the Secretary shall
offer a borrower of a loan made under this part
2 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--
(i) a fixed repayment plan described
in section 493E; or
(ii) the income-based repayment plan
under section 493C(f).
(B) Selection by the secretary.--If a
borrower of a loan made under this part on or
after July 1, 2021, does not select a repayment
plan described in subparagraph (A), the
Secretary may provide the borrower with a fixed
repayment plan described in section 493E.
(C) Changes in selections.--Beginning on July
1, 2021, a borrower of a loan made under this
part may change the borrower's selection of a
repayment plan in accordance with paragraph (7)
and under such terms and conditions as may be
established by the Secretary.
[(2)] (3) 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)] (4) 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)] (5) 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)] (6) 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.] the income-based
repayment plan under section 493C(f).
(7) Borrowers of loans made before july 1, 2021.--A
borrower who is in repayment on a loan made under part
B or part D before July 1, 2021--
(A) may choose to retain the repayment plan
that the borrower was enrolled in on the day
before such date;
(B) may elect to--
(i) enter the income-based repayment
plan under section 493C(f); or
(ii) enter a fixed repayment plan
described in section 493E; and
(C) after electing to leave a repayment plan
other than an income-based repayment plan
described under section 493C(f) or a fixed
repayment plan described in section 493E, shall
not be permitted to re-elect a repayment plan
that is not an income-based repayment plan
under section 493C(f) or a fixed repayment plan
described in section 493E.
(8) Notification and automatic enrollment procedures
for borrowers who are delinquent on loans.--
(A) Authority to obtain income information.--
In the case of any borrower who is at least 60
days delinquent on a covered loan, the
Secretary may obtain such information as is
reasonably necessary regarding the income and
family size of the borrower (and the borrower's
spouse, if applicable).
(B) Borrower notification.--With respect to
each borrower of a covered loan who is at least
60 days delinquent on such loan and who has not
been subject to the procedures under this
paragraph for such loan in the preceding 120
days, the Secretary shall, as soon as
practicable after such 60-day delinquency,
provide to the borrower the following:
(i) Notification that the borrower is
at least 60 days delinquent on at least
1 covered loan, and a description of
all delinquent covered loans,
nondelinquent covered loans, and
noncovered loans of the borrower.
(ii) A brief description of the
repayment plans for which the borrower
is eligible and the covered loans and
noncovered loans of the borrower that
may be eligible for such plans, based
on information available to the
Secretary.
(iii) The amount of monthly payments
for the covered and noncovered loans
under the income-based repayment plan
under section 493C(f) and the fixed
repayment plan described in section
493E, based on information available to
the Secretary, including, if the income
information of the borrower is
available to the Secretary under
subparagraph (A)--
(I) the amount of the monthly
payment under the income-based
repayment plan under section
493C(f) and the fixed repayment
plan described in section 493E
for which the borrower is
eligible for the borrower's
covered and noncovered loans,
based on such income
information; and
(II) the income, family size,
tax filing status, and tax year
information on which each
monthly payment is based.
(iv) Clear and simple instructions on
how to select the repayment plans.
(v) An explanation that, in the case
of a borrower for whom adjusted gross
income is unavailable--
(I) if the borrower selects
to repay the covered loans of
such borrower pursuant to the
income-based repayment plan
under section 493C(f) that
defines discretionary income in
such a manner that an
individual not required under
section 6012(a)(1) of the
Internal Revenue Code of 1986
to file a return with respect
to income taxes imposed by
subtitle A of such Code may
have a calculated monthly
payment greater than $0, the
borrower will be required to
provide the Secretary with
other documentation of income
satisfactory to the Secretary,
which documentation the
Secretary may use to determine
an appropriate repayment
schedule; and
(II) if the borrower selects
to repay such loans pursuant to
an income-driven repayment plan
that is not described in
subclause (I), the borrower
will not be required to provide
the Secretary with such other
documentation of income, and
the borrower will have a
calculated monthly payment of
$0.
(vi) An explanation that the
Secretary shall take the actions under
subparagraph (C) with respect to such
borrower, if--
(I) the borrower is 120 days
delinquent on 1 or more covered
loans and has not selected a
new repayment plan for the
covered loans of the borrower;
and
(II) in the case of such a
borrower whose repayment plan
for the covered loans of the
borrower is not an income-
driven repayment plan described
in subparagraph (D) or (E) of
paragraph (1), the monthly
payments under such repayment
plan are higher than such
monthly payments would be under
the income-based repayment plan
under section 493C(f).
(vii) Instructions on updating the
information of the borrower obtained
under subparagraph (A).
(C) Secretary's initial selection of a
plan.--With respect to each borrower described
in subparagraph (B) who has a repayment plan
for the covered loans of the borrower that
meets the requirements of clause (vi)(II) of
subparagraph (B) and has not selected a new
repayment plan for such loans in accordance
with the notice received under such
subparagraph, and who is at least 120 days
delinquent on such a loan, the Secretary shall,
as soon as practicable--
(i) provide the borrower with the
income-based repayment plan under
section 493C(f); and
(ii) authorize the borrower to change
the Secretary's selection of a plan
under this clause to the fixed
repayment plan described in section
493E.
(D) Opt-out.--A borrower of a covered loan
shall have the right to opt out of the
procedures under this paragraph.
(E) Procedures.--The Secretary shall
establish procedures as are necessary to
effectively implement this paragraph.
(9) Notification and automatic enrollment procedures
for borrowers who are rehabilitating defaulted loans.--
(A) Authority to obtain income information.--
In the case of any borrower who is
rehabilitating a covered loan pursuant to
section 428F(a), the Secretary may obtain such
information as is reasonably necessary
regarding the income and family size of the
borrower (and the borrower's spouse, if
applicable).
(B) Borrower notification.--Not later than 30
days after a borrower makes the 6th payment
required for the loan rehabilitation described
in subparagraph (A), the Secretary shall notify
the borrower of the process under subparagraph
(C) with respect to such loan.
(C) Secretary's selection of plan.--With
respect to each borrower who has made the 9th
payment required for the loan rehabilitation
described in subparagraph (A), the Secretary
shall, as soon as practicable after such
payment, provide the borrower with the income-
based repayment plan under section 493C(f),
without regard to whether the loan has been so
rehabilitated.
(D) Opt-out.--A borrower of a covered loan
shall have the right to opt out of the
procedures under this paragraph.
(E) Procedures.--The Secretary shall
establish procedures as are necessary to
effectively implement this paragraph.
(10) Definitions.--In this subsection:
(A) Covered loan.--The term ``covered loan''
means--
(i) a loan made under this part;
(ii) a loan purchased under section
459A; or
(iii) a loan that has been assigned
to the Secretary under section
428(c)(8) or part E.
(B) Noncovered loan.--The term ``noncovered
loan'' means a loan made, insured, or
guaranteed under this title that is not a
covered loan.
(11) Application of prepayment amounts.--
(A) Requirement.--Notwithstanding any other
provision of this subsection or any other
provision of law--
(i) with respect to loans made to an
eligible borrower under this part or
part B, which are held by the same
holder and which have different
applicable rates of interest, the
holder of such loans shall, unless
otherwise requested by the borrower in
writing, apply the borrower's
prepayment amount (within the meaning
of section 682.209(b) of title 34, Code
of Federal Regulations, or a successor
regulation) for one or more of such
loans, first toward the outstanding
balance of principal due on the loan
with the highest applicable rate of
interest among such loans; and
(ii) except as provided in clause
(i), with respect to loans made to an
eligible borrower under this part or
part B, which are held by the same
holder and which have the same
applicable rates of interest, the
holder of such loans shall, unless
otherwise requested by the borrower in
writing, apply the borrower's
prepayment amount (within the meaning
of section 682.209(b) of title 34, Code
of Federal Regulations, or a successor
regulation) for one or more of such
loans, first toward the outstanding
balance of principal due on the loan
with the highest principal balance
among such loans.
(B) Eligible borrower.--
(i) In general.--For purposes of this
paragraph, the term ``eligible
borrower'' means a borrower with no
outstanding balance of fees, including
collection costs and authorized late
charges, due on any loan made under
this part or part B.
(ii) Prepayment amounts.--A
prepayment amount (as described in
subparagraph (A)) made by a borrower
who is not an eligible borrower to a
holder shall be applied first toward
the borrower's outstanding balance of
fees, including collection costs and
authorized late charges, due on any
loan made under this part or part B
held by such holder.
(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] whose
income has decreased relative to the adjusted gross
income available to the Secretary, 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,
consistent with the procedures established under
paragraph (9)(B)(iv).
(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--
(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)[.];
(vi) makes payments under the income-
based repayment plan under section
493C(f); or
(vii) makes payments under the fixed
repayment plan described in section
493E.
(8) Additional qualifying repayment plans.--A
borrower repaying a loan pursuant to income-contingent
repayment under this subsection may elect at any time
to terminate repayment under such repayment plan and
repay such loan under the income-based repayment plan
under section 493C(f) or the fixed repayment plan
described in section 493E.
(9) Automatic recertification.--
(A) Definition.--In this paragraph, the term
``covered loan'' has the meaning given the term
in subsection (d)(10).
(B) In general.--Beginning as soon as the
Secretary determines practicable after the
Secretary finalizes the procedures under
section 9004 of the College Affordability Act,
but not later than 2 years after the date of
enactment of such Act, the Secretary shall
establish and implement, with respect to any
borrower described in subparagraph (C),
procedures to--
(i) obtain (for each year of
repayment and without further action by
the borrower) such information as is
reasonably necessary regarding the
income of such borrower (and the
borrower's spouse, if applicable), for
the purpose of determining the
repayment obligation of the borrower
for such year, including information
with respect to the borrower's family
size in accordance with the procedures
under section 9004 of the College
Affordability Act, subject to clause
(ii);
(ii) allow the borrower, at any time,
to opt out of clause (i) and prevent
the Secretary from obtaining
information under such clause without
further action by the borrower;
(iii) provide the borrower with an
opportunity to update the information
obtained under clause (i) before the
determination of the annual repayment
obligation of the borrower; and
(iv) in the case of a borrower for
whom adjusted gross income is
unavailable--
(I) if the borrower has
selected to repay the covered
loans of such borrower pursuant
to an income contingent
repayment plan that defines
discretionary income in such a
manner that an individual not
required under section
6012(a)(1) of the Internal
Revenue Code of 1986 to file a
return with respect to income
taxes imposed by subtitle A of
such Code may have a calculated
monthly payment greater than
$0, the borrower will be
required to provide the
Secretary with other
documentation of income
satisfactory to the Secretary,
which documentation the
Secretary may use to determine
an appropriate repayment
schedule; or
(II) if the borrower has
selected to repay such loans
pursuant to an income
contingent repayment that is
not described in subclause (I),
the borrower will not be
required to provide the
Secretary with such other
documentation of income, and
the borrower will have a
calculated monthly payment of
$0.
(C) Applicability.--Subparagraph (B) shall
apply to each borrower of a covered loan who,
on or after the date on which the Secretary
establishes procedures under such subparagraph,
recertifies income and family size under such
plan.
(D) Other requirements.--The procedures
established by the Secretary under this
paragraph shall be consistent with the
requirements of paragraphs (1) through (7),
except as otherwise provided in this paragraph.
(f) Deferment And Forbearance.--
(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).]
(B) 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),
beginning on or after the date of enactment of
the College Affordability Act--
(i) for a deferment during a period
described in paragraph (2)(A)(i), shall
accrue and be capitalized or paid by
the borrower; and
(ii) for a deferment during a period
described in subparagraphs (B) through
(D) of paragraph (2), shall accrue but
not be capitalized.
(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) Deferment for borrowers receiving cancer
treatment.--
(A) Effect on principal and interest.--A
borrower of a loan made under this part who
meets the requirements of subparagraph (B)
shall be eligible for a deferment, during which
periodic installments of principal need not be
paid, and interest shall not accrue.
(B) Eligibility.--A borrower of a loan made
under this part shall be eligible for a
deferment during--
(i) any period in which such borrower
is receiving treatment for cancer; and
(ii) the 6 months after such period.
(C) Applicability.--This paragraph shall
apply with respect to loans--
(i) made on or after the date of the
enactment of this paragraph; or
(ii) in repayment on the date of the
enactment of this paragraph.
(4) 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.
(5) 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.
(6) Forbearance.--At the expiration of a period of
forbearance that begins on or after the date of
enactment of the College Affordability Act, interest
may accrue but shall not be capitalized on any loans
made under this part.
(g) Federal Direct Consolidation Loans.--[A borrower]
(1) In general._A borrower of a loan made under this
part 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).
(2) Separating joint consolidation loans.--
(A) In general.--A married couple, or 2
individuals who were previously a married
couple, and who received a joint consolidation
loan as such married couple under subparagraph
(C) of section 428C(a)(3) (as such subparagraph
was in effect on or before June 30, 2006), may
apply to the Secretary for each individual
borrower in the married couple (or previously
married couple) to receive a separate Federal
Direct Consolidation Loan under this part--
(i) that shall--
(I) unless the Secretary
receives notice of an agreement
described in subclause
(II)(aa), be equal to the sum
of--
(aa) the unpaid
principal and accrued
unpaid interest of the
percentage of the joint
consolidation loan
that, as of the day
before such joint
consolidation loan was
made, was attributable
to the loans of the
individual borrower for
whom such separate
consolidation loan is
being made; and
(bb) any other loans
described in section
428C(a)(4) that such
individual borrower
selects for
consolidation under
this part; or
(II) be equal to the sum of--
(aa) the unpaid
principal and accrued
unpaid interest of the
percentage of the joint
consolidation loan
that, as of the date of
application under this
paragraph, the married
couple (or previously
married couple) agrees
shall be considered
attributable to the
loans of the individual
borrower for whom such
separate consolidation
loan is being made; and
(bb) any other loans
described in section
428C(a)(4) that such
individual borrower
selects for
consolidation under
this part;
(ii) the proceeds of which shall be
paid by the Secretary to the holder or
holders--
(I) of the joint
consolidation loan for the
purpose of discharging the
liability on the percentage of
such joint consolidation loan
described in subclause (I)(aa)
or (II)(aa) of clause (i); and
(II) of the loans selected
for consolidation under
subclause (I)(bb) or subclause
(II)(bb) of clause (i) for the
purpose of discharging the
liability on such loans;
(iii) except as otherwise provided in
this paragraph, that has the same terms
and conditions, and rate of interest as
the joint consolidation loan;
(iv) for which any payment made under
section 455(m)(1)(A) on the joint
consolidation loan during a period in
which the individual borrower for whom
such separate consolidation loan is
being made was employed in a public
service job described in section
455(m)(1)(B) shall be treated as if
such payment were made on the portion
of the separate consolidation loan
described in clause (i)(I)(aa); and
(v) for which any payment made under
any repayment plan described in section
455(d)(1) on the joint consolidation
loan shall be treated as if such
payment were made on such portion of
such separate consolidation loan.
(B) Application for separate direct
consolidation loan.--
(i) Joint application.--Except as
provided in clause (ii), to receive
separate consolidation loans under
subparagraph (A), both individual
borrowers in a married couple (or
previously married couple) shall
jointly apply under subparagraph (A).
(ii) Separate application.--An
individual borrower in a married couple
(or previously married couple) may
apply for a separate consolidation loan
under subparagraph (A) separately and
without regard to whether or when the
other individual borrower in the
married couple (or previously married
couple) applies under subparagraph (A),
in a case in which--
(I) the individual borrower
has experienced from the other
individual borrower--
(aa) domestic
violence (as defined in
section 40002(a) of the
Violence Against Women
Act of 1994 (34 U.S.C.
12291(a))); or
(bb) economic abuse
(including behaviors
that control such
borrower's ability to
acquire, use, and
maintain access to
money, credit, or the
joint financial
obligations of both
borrowers);
(II) the individual borrower
certifies, on a form approved
by the Secretary, that such
borrower is unable to
reasonably reach or access the
loan information of the other
individual borrower; or
(III) the Secretary
determines that authorizing
each individual borrower to
apply separately under
subparagraph (A) would be in
the best fiscal interests of
the Federal Government.
(C) Borrower eligibility.--Notwithstanding
section 428C(a)(3)(A), the Secretary shall
award a consolidation loan under this part to
each borrower who--
(i) applies for such loan under
subparagraph (A); and
(ii) meets the requirements of
subparagraphs (A) and (B).
(3) Consumer reporting agencies.--Upon obtaining a
Federal Direct Consolidation Loan that discharges the
liability on a defaulted loan made, insured, or
guaranteed under this title, 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 any adverse item of
information relating to a delinquent or defaulted loan
made, insured, or guaranteed under this title from the
borrower's credit history.
[(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.]
(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]
(v) payments under the income-based
repayment plan under section 493C(f);
or
(vi) payments under the fixed
repayment plan described in section
493E; and
(B)[(i)] [is employed in a public service job
at the time of such forgiveness; and]
[(ii)] [has been] 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. In the case of a
borrower who meets the requirements under paragraph (1)
for such cancellation, such cancellation shall occur
without further action by the borrower.
(3) Treatment of loans refinanced under sections 460A
In the case of an eligible Federal Direct Loan
refinanced under section 460A, any monthly payment
pursuant to any repayment plan listed in paragraph
(1)(A) made on a loan, for which the liability has been
discharged by such refinanced loan and without regard
to whether such loan is an eligible Federal Direct
Loan, shall be treated as a monthly payment under
paragraph (1)(A) on the portion of such refinanced loan
that is attributable to such discharged loan.
(4) On-line portal
(A) Borrowers The Secretary shall ensure that
borrowers have access to an on-line portal that
provides each borrower who signs on to such
portal with the following:
(i) Instructions on how to access the
database under paragraph (5) so that
the borrower can determine whether the
borrower is employed in a public
service job.
(ii) An identification of the loans
of the borrower that are eligible
Federal Direct Loans.
(iii) With respect to each such
eligible Federal Direct Loan, the
number of monthly payments on such loan
that qualify as a monthly payment under
paragraph (1)(A), and the estimated
number of monthly payments under
paragraph (1)(A) remaining on such loan
before the borrower may be eligible for
loan cancellation under this
subsection.
(iv) With respect to each loan of the
borrower that is not eligible for loan
cancellation under this subsection, an
explanation of why the loan is not so
eligible and instructions on how what,
if anything, the borrower may do to
make the loan so eligible.
(v) Instructions for the submission
of any forms associated with such loan
cancellation, and an ability for the
borrower to use the portal to
electronically sign and submit such
forms.
(vi) In the case of a borrower who
disputes a determination of the
Secretary relating to the entitlement
of the borrower to loan cancellation
under paragraph (2)--
(I) an ability for the
borrower to file a claim with
the Secretary to dispute such
determination through the
portal; and
(II) in the case of such a
claim that has been filed, the
status of such claim, for which
updates shall be provided not
fewer than once every 90 days.
(B) Employers The Secretary shall ensure that
an employer of a borrower has the ability to
electronically sign and submit any forms
associated with loan cancellation under this
subsection.
(C) Information The Secretary shall ensure
that any information provided through the on-
line portal described in this paragraph is up-
to-date information.
(5) Database of public service jobs
(A) In general The Secretary, in consultation
with the Commissioner of the Internal Revenue
Service, shall establish and regularly update a
database that lists public service jobs.
(B) Public availability The database
established under subparagraph (A) shall be
made available on a publicly accessible website
of the Department in an easily searchable
format.
[(3)] (6) Definitions.--In this subsection:
(A) Eligible federal direct loan.--[The term]
(i) In general._The term
(ii) Treatment of certain
consolidation loan payments._In the
case of an eligible Federal Direct Loan
that is a Federal Direct Consolidation
Loan made on or after the date of
enactment of the College Affordability
Act, any monthly payment pursuant to
any repayment plan listed in paragraph
(1)(A) made on a loan, for which the
liability has been discharged by the
proceeds of such Federal Direct
Consolidation Loan and without regard
to whether the loan is an eligible
Federal Direct Loan, shall be treated
as a monthly payment under paragraph
(1)(A) on the portion of such Federal
Direct Consolidation Loan that is
attributable to such discharged loan,
except that in the case of a subsequent
consolidation loan, for purposes of
this clause--
(I) any monthly payment made
on the first consolidation loan
or any other loan for which the
liability has been discharged
by such subsequent
consolidation loan shall be
applicable; and
(II) any monthly payment made
on a loan for which the
liability has been discharged
by such first consolidation
loan shall not be applicable.
``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 (including any Federal
Direct Stafford Loan, Federal
Direct PLUS Loan, Federal
Direct Unsubsidized Stafford
Loan, or Federal Direct
Consolidation Loan refinanced
under section 460A).
(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] teaching--
(I) 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.]
and foreign language faculty),
as determined by the Secretary;
or
(II) as a part-time faculty
member or instructor who--
(aa) teaches not less
than 2 courses at an
institution of higher
education (as defined
in section 101(a)), a
postsecondary
vocational institution
(as defined in section
102(c)), or a Tribal
College or University
(as defined in section
316(b));
(bb) is not a student
enrolled at such
institution; and
(cc) is not employed
on a full-time basis by
any other employer;
(iii) a full-time job as an employee
or manager of a farm or ranch that,
with respect to a fiscal year, has
earnings of gross revenue during such
year from the sale of agricultural
products equal to or greater than--
(I) in the case of 2019,
$35,000; or
(II) in the case of any
succeeding year, the amount
applicable under this
subparagraph for the previous
year, increased by the
estimated percentage change in
the Consumer Price Index for
the most recent year preceding
such year; or
(iv) a full-time job with a veterans
or military service organization as
described in paragraph (19) or (23) of
section 501(c) of the Internal Revenue
Code, that does not engage in partisan
political campaign activity.
(C) Full-time job as health care
practitioner.--The term ``full-time
professionals engaged in health care
practitioner occupations'' includes an
individual who--
(i) has a full-time job as a health
care practitioner;
(ii) provides medical services in
such full-time job at a nonprofit or
public hospital or other nonprofit or
public health care facility; and
(iii) is prohibited from being
employed directly by such hospital or
other health care facility by State
law.
[(4)] (7) 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] section 428K or
428L.
(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.
(2) Consolidation loans.--In the case of any
consolidation loan made under this part that is
disbursed on or after October 1, 2008, interest shall
not accrue pursuant to this subsection only on such
portion of such loan as was used to repay a loan made
under this part for which the first disbursement is
made on or after October 1, 2008.
(3) Eligible military borrower.--In this subsection,
the term ``eligible military borrower'' means an
individual who--
(A)(i) is serving on active duty during a war
or other military operation or national
emergency; or
(ii) is performing qualifying National Guard
duty during a war or other military operation
or national emergency; and
(B) is serving in an area of hostilities in
which service qualifies for special pay under
section 310, 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.
[(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. 455A. FEDERAL DIRECT PERKINS LOANS.
(a) Designation of Loans.--Loans made to borrowers under this
section shall be known as ``Federal Direct Perkins Loans''.
(b) In General.--It is the purpose of this section to
authorize loans to be awarded by institutions of higher
education through agreements established under section 463(f).
Unless otherwise specified in this section, all terms and
conditions and other requirements applicable to Federal Direct
Unsubsidized Stafford loans established under section
455(a)(2)(D) shall apply to loans made pursuant to this
section.
(c) Eligible Borrowers.--Any student meeting the requirements
for student eligibility under section 464(b) (including
graduate and professional students as defined in regulations
promulgated by the Secretary) shall be eligible to borrow a
Federal Direct Perkins Loan, provided the student attends an
eligible institution with an agreement with the Secretary under
section 463(f), and the institution uses its authority under
that agreement to award the student a loan.
(d) Loan Limits.--The annual and aggregate limits for loans
under this section shall be the same as those established under
section 464, and aggregate limits shall include loans made by
institutions under agreements under section 463(a).
(e) Applicable Rates of Interest.--Loans made pursuant to
this section shall bear interest, on the unpaid principal
balance of the loan, at the rate of 5 percent per year.
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,
including the applicable procedures and policies
described in the manual developed under section 493F.
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. 460A. REFINANCING FFEL AND FEDERAL DIRECT LOANS.
(a) In General.--The Secretary shall establish a program
under which the Secretary, upon the receipt of an application
from a qualified borrower, makes a loan under this part, in
accordance with the provisions of this section, in order to
permit the borrower to obtain the interest rate provided under
subsection (c).
(b) Refinancing Direct Loans.--
(1) Federal direct loans.--Upon application of a
qualified borrower, the Secretary shall repay a Federal
Direct Stafford Loan, a Federal Direct Unsubsidized
Stafford Loan, a Federal Direct PLUS Loan, or a Federal
Direct Consolidation Loan of the qualified borrower,
for which the first disbursement was made, or the
application for the consolidation loan was received,
before July 1, 2020, with the proceeds of a refinanced
Federal Direct Stafford Loan, a Federal Direct
Unsubsidized Stafford Loan, a Federal Direct PLUS Loan,
or a Federal Direct Consolidation Loan, respectively,
issued to the borrower in an amount equal to the sum of
the unpaid principal, accrued unpaid interest, and late
charges of the original loan.
(2) Refinancing ffel program loans as refinanced
federal direct loans.--Upon application of a qualified
borrower for any loan that was made, insured, or
guaranteed under part B and for which the first
disbursement was made, or the application for the
consolidation loan was received, before July 1, 2010,
the Secretary shall make a loan under this part, in an
amount equal to the sum of the unpaid principal,
accrued unpaid interest, and late charges of the
original loan to the borrower in accordance with the
following:
(A) The Secretary shall pay the proceeds of
such loan to the eligible lender of the loan
made, insured, or guaranteed under part B, in
order to discharge the borrower from any
remaining obligation to the lender with respect
to the original loan.
(B) A loan made under this section that was
originally--
(i) a loan originally made, insured,
or guaranteed under section 428 shall
be a Federal Direct Stafford Loan;
(ii) a loan originally made, insured,
or guaranteed under section 428B shall
be a Federal Direct PLUS Loan;
(iii) a loan originally made,
insured, or guaranteed under section
428H shall be a Federal Direct
Unsubsidized Stafford Loan; and
(iv) a loan originally made, insured,
or guaranteed under section 428C shall
be a Federal Direct Consolidation Loan.
(C) The interest rate for each loan made by
the Secretary under this paragraph shall be the
rate provided under subsection (c).
(c) Interest Rates.--
(1) In general.--The interest rate for the refinanced
Federal Direct Stafford Loans, Federal Direct
Unsubsidized Stafford Loans, Federal Direct PLUS Loans,
and Federal Direct Consolidation Loans, shall be a rate
equal to--
(A) in any case where the original loan was a
loan under section 428 or 428H, a Federal
Direct Stafford loan, or a Federal Direct
Unsubsidized Stafford Loan, that was issued to
an undergraduate student, a rate equal to the
rate for Federal Direct Stafford Loans and
Federal Direct Unsubsidized Stafford Loans
issued to undergraduate students for the 12-
month period beginning on July 1, 2019, and
ending on June 30, 2020;
(B) in any case where the original loan was a
loan under section 428 or 428H, a Federal
Direct Stafford Loan, or a Federal Direct
Unsubsidized Stafford Loan, that was issued to
a graduate or professional student, a rate
equal to the rate for Federal Direct
Unsubsidized Stafford Loans issued to graduate
or professional students for the 12-month
period beginning on July 1, 2019, and ending on
June 30, 2020;
(C) in any case where the original loan was a
loan under section 428B or a Federal Direct
PLUS Loan, a rate equal to the rate for Federal
Direct PLUS Loans for the 12-month period
beginning on July 1, 2019, and ending on June
30, 2020; and
(D) in any case where the original loan was a
loan under section 428C or a Federal Direct
Consolidation Loan, a rate calculated in
accordance with paragraph (2).
(2) Interest rates for consolidation loans.--
(A) Method of calculation.--In order to
determine the interest rate for any refinanced
Federal Direct Consolidation Loan under
paragraph (1)(D), the Secretary shall--
(i) determine each of the component
loans that were originally consolidated
in the loan under section 428C or the
Federal Direct Consolidation Loan, and
calculate the proportion of the unpaid
principal balance of the loan under
section 428C or the Federal Direct
Consolidation Loan that each component
loan represents;
(ii) use the proportions determined
in accordance with clause (i) and the
interest rate applicable for each
component loan, as determined under
subparagraph (B), to calculate the
weighted average of the interest rates
on the loans consolidated into the loan
under section 428C or the Federal
Direct Consolidation Loan; and
(iii) apply the weighted average
calculated under clause (ii) as the
interest rate for the refinanced
Federal Direct Consolidation Loan.
(B) Interest rates for component loans.--The
interest rates for the component loans of a
loan made under section 428C or a Federal
Direct Consolidation Loan shall be the
following:
(i) The interest rate for any loan
under section 428 or 428H, Federal
Direct Stafford Loan, or Federal Direct
Unsubsidized Stafford Loan issued to an
undergraduate student shall be a rate
equal to the lesser of--
(I) the rate for Federal
Direct Stafford Loans and
Federal Direct Unsubsidized
Stafford Loans issued to
undergraduate students for the
12-month period beginning on
July 1, 2019, and ending on
June 30, 2020; or
(II) the original interest
rate of the component loan.
(ii) The interest rate for any loan
under section 428 or 428H, Federal
Direct Stafford Loan, or Federal Direct
Unsubsidized Stafford Loan issued to a
graduate or professional student shall
be a rate equal to the lesser of--
(I) the rate for Federal
Direct Unsubsidized Stafford
Loans issued to graduate or
professional students for the
12-month period beginning on
July 1, 2019, and ending on
June 30, 2020; or
(II) the original interest
rate of the component loan.
(iii) The interest rate for any loan
under section 428B or Federal Direct
PLUS Loan shall be a rate equal to the
lesser of--
(I) the rate for Federal
Direct PLUS Loans for the 12-
month period beginning on July
1, 2019, and ending on June 30,
2020; or
(II) the original interest
rate of the component loan.
(iv) The interest rate for any
component loan that is a loan under
section 428C or a Federal Direct
Consolidation Loan shall be the
weighted average of the interest rates
that would apply under this
subparagraph for each loan comprising
the component consolidation loan.
(v) The interest rate for any
eligible loan that is a component of a
loan made under section 428C or a
Federal Direct Consolidation Loan and
is not described in clauses (i) through
(iv) shall be the interest rate on the
original component loan.
(3) Fixed rate.--The applicable rate of interest
determined under paragraph (1) for a refinanced loan
under this section shall be fixed for the period of the
loan.
(d) Terms and Conditions of Loans.--
(1) In general.--A loan that is refinanced under this
section shall have the same terms and conditions as the
original loan, except as otherwise provided in this
section.
(2) No automatic extension of repayment period.--
Refinancing a loan under this section shall not result
in the extension of the duration of the repayment
period of the loan, and the borrower shall retain the
same repayment term that was in effect on the original
loan. Nothing in this paragraph shall be construed to
prevent a borrower from electing a different repayment
plan at any time in accordance with section 455(d)(4).
(e) Definition of Qualified Borrower.--
(1) In general.--For purposes of this section, the
term ``qualified borrower'' means a borrower--
(A) of a loan under this part or part B for
which the first disbursement was made, or the
application for a consolidation loan was
received, before July 1, 2020; and
(B) who meets the eligibility requirements
based on income or debt-to-income ratio
established by the Secretary.
(2) Income requirements.--The Secretary shall
establish eligibility requirements based on income or
debt-to-income ratio that take into consideration
providing access to refinancing under this section for
borrowers with the greatest financial need.
(f) Notification to Borrowers.--The Secretary, in
coordination with the Director of the Bureau of Consumer
Financial Protection, shall undertake a campaign to alert
borrowers of loans that are eligible for refinancing under this
section that the borrowers are eligible to apply for such
refinancing. The campaign shall include the following
activities:
(1) Developing consumer information materials about
the availability of Federal student loan refinancing.
(2) Requiring servicers of loans under this part or
part B to provide such consumer information to
borrowers in a manner determined appropriate by the
Secretary, in consultation with the Director of the
Bureau of Consumer Financial Protection.
SEC. 460B. FEDERAL DIRECT REFINANCED PRIVATE LOAN PROGRAM.
(a) Definitions.--In this section:
(1) Eligible private education loan.--The term
``eligible private education loan'' means a private
education loan, as defined in section 140(a) of the
Truth in Lending Act (15 U.S.C. 1650(a)), that--
(A) was disbursed to the borrower before July
1, 2020; and
(B) was for the borrower's own postsecondary
educational expenses for an eligible program at
an institution of higher education
participating in the loan program under this
part, as of the date that the loan was
disbursed.
(2) Federal direct refinanced private loan.--The term
``Federal Direct Refinanced Private Loan'' means a loan
issued under subsection (b)(1).
(3) Private educational lender.--The term ``private
educational lender'' has the meaning given the term in
section 140(a) of the Truth in Lending Act (15 U.S.C.
1650(a)).
(4) Qualified borrower.--The term ``qualified
borrower'' means an individual who--
(A) has an eligible private education loan;
(B) has been current on payments on the
eligible private education loan for the 6
months prior to the date of the qualified
borrower's application for refinancing under
this section, and is in good standing on the
loan at the time of such application;
(C) is not in default on the eligible private
education loan or on any loan made, insured, or
guaranteed under this part or part B or E; and
(D) meets the eligibility requirements
described in subsection (b)(2).
(b) Program Authorized.--
(1) In general.--The Secretary, in consultation with
the Secretary of the Treasury, shall carry out a
program under which the Secretary, upon application by
a qualified borrower who has an eligible private
education loan, shall issue such borrower a loan under
this part in accordance with the following:
(A) The loan issued under this program shall
be in an amount equal to the sum of the unpaid
principal, accrued unpaid interest, and late
charges of the private education loan.
(B) The Secretary shall pay the proceeds of
the loan issued under this program to the
private educational lender of the private
education loan, in order to discharge the
qualified borrower from any remaining
obligation to the lender with respect to the
original loan.
(C) The Secretary shall require that the
qualified borrower undergo loan counseling that
provides all of the information and counseling
required under clause (i) and clauses (iv)
through (xiv) of section 485(b)(1)(A) (as
amended by the College Affordability Act)
before the loan is refinanced in accordance
with this section, and before the proceeds of
such loan are paid to the private educational
lender.
(D) The Secretary shall issue the loan as a
Federal Direct Refinanced Private Loan, which
shall have the same terms, conditions, and
benefits as a Federal Direct Unsubsidized
Stafford Loan, except as otherwise provided in
this section.
(2) Borrower eligibility.--The Secretary, in
consultation with the Secretary of the Treasury and the
Director of the Bureau of Consumer Financial
Protection, shall establish eligibility requirements--
(A) based on income or debt-to-income ratio
that take into consideration providing access
to refinancing under this section for borrowers
with the greatest financial need;
(B) to ensure eligibility only for borrowers
in good standing;
(C) to minimize inequities between Federal
Direct Refinanced Private Loans and other
Federal student loans;
(D) to preclude windfall profits for private
educational lenders; and
(E) to ensure full access to the program
authorized in this subsection for borrowers
with private loans who otherwise meet the
criteria established in accordance with
subparagraphs (A) and (B).
(c) Interest Rate.--
(1) In general.--The interest rate for a Federal
Direct Refinanced Private Loan is--
(A) in the case of a Federal Direct
Refinanced Private Loan for a private education
loan originally issued for undergraduate
postsecondary educational expenses, a rate
equal to the rate for Federal Direct Stafford
Loans and Federal Direct Unsubsidized Stafford
Loans issued to undergraduate students for the
12-month period beginning on July 1, 2019, and
ending on June 30, 2020; and
(B) in the case of a Federal Direct
Refinanced Private Loan for a private education
loan originally issued for graduate or
professional degree postsecondary educational
expenses, a rate equal to the rate for Federal
Direct Unsubsidized Stafford Loans issued to
graduate or professional students for the 12-
month period beginning on July 1, 2019, and
ending on June 30, 2020.
(2) Combined undergraduate and graduate study
loans.--If a Federal Direct Refinanced Private Loan is
for a private education loan originally issued for both
undergraduate and graduate or professional
postsecondary educational expenses, the interest rate
shall be a rate equal to the rate for Federal Direct
PLUS Loans for the 12-month period beginning on July 1,
2019, and ending on June 30, 2020.
(3) Fixed rate.--The applicable rate of interest
determined under this subsection for a Federal Direct
Refinanced Private Loan shall be fixed for the period
of the loan.
(d) No Inclusion in Aggregate Limits.--The amount of a
Federal Direct Refinanced Private Loan, or a Federal Direct
Consolidated Loan to the extent such loan was used to repay a
Federal Direct Refinanced Private Loan, shall not be included
in calculating a borrower's annual or aggregate loan limits
under section 428 or 428H.
(e) No Eligibility for Service-related Repayment.--A Federal
Direct Refinanced Private Loan, or any Federal Direct
Consolidation Loan to the extent such loan was used to repay a
Federal Direct Refinanced Private Loan, shall not be eligible
for any loan repayment or loan forgiveness program under
section 428K, 428L, or 460 or for the repayment plan for public
service employees under section 455(m).
(f) Private Educational Lender Reporting Requirement.--
(1) Reporting required.--The Secretary, in
consultation with the Secretary of the Treasury and the
Director of the Bureau of Consumer Financial
Protection, shall establish a requirement that private
educational lenders report the data described in
paragraph (2) to the Secretary, to Congress, to the
Secretary of the Treasury, and to the Director of the
Bureau of Consumer Financial Protection, in order to
allow for an assessment of the private education loan
market.
(2) Contents of reporting.--The data that private
educational lenders shall report in accordance with
paragraph (1) shall include each of the following about
private education loans (as defined in section 140(a)
of the Truth in Lending Act (15 U.S.C. 1650(a))):
(A) The total amount of private education
loan debt the lender holds.
(B) The total number of private education
loan borrowers the lender serves.
(C) The average interest rate on the
outstanding private education loan debt held by
the lender.
(D) The proportion of private education loan
borrowers who are in default on a loan held by
the lender.
(E) The proportion of the outstanding private
education loan volume held by the lender that
is in default.
(F) The proportions of outstanding private
education loan borrowers who are 30, 60, and 90
days delinquent.
(G) The proportions of outstanding private
education loan volume that is 30, 60, and 90
days delinquent.
(g) Notification to Borrowers.--The Secretary, in
coordination with the Secretary of the Treasury and the
Director of the Bureau of Consumer Financial Protection, shall
undertake a campaign to alert borrowers about the availability
of private student loan refinancing under this section.
Part E--Federal Perkins Loans
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)] (1) 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)] (2) 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)] (3) 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] For
any fiscal year before fiscal year 2021, 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,] for any fiscal year before
fiscal year 2021, 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. 462A. FEDERAL DIRECT PERKINS LOAN ALLOCATION.
(a) Purpose.--The purpose of this section is to make funds
available, in accordance with section 452, to each
participating institution in an amount not to exceed the sum of
an institution's allocation of funds under subsection (b)(1)(B)
to enable each such participating institution to make Federal
Direct Perkins Loans under section 455A to eligible students at
such participating institution.
(b) Available Direct Perkins Annual Loan Authority.--
(1) Availability and allocations.--
(A) In general.--There are hereby made
available, from funds made available for loans
made under part D, not to exceed $2,400,000,000
of annual loan authority for award year 2021-
2022 and each succeeding award year, to be
allocated as provided in subparagraph (B).
(B) Allocation formula.--Except as provided
in paragraphs (2) and (3), for each award year,
the Secretary shall allocate an amount to each
participating institution that is equal to--
(i) 100 percent of the institutional
undergraduate student need (as
determined under subparagraph (C)) for
the preceding award year; and
(ii) 25 percent of the institutional
graduate student need (as determined
under subparagraph (D)) for the
preceding award year.
(C) Institutional undergraduate student need
calculation.--The institutional undergraduate
student need for a participating institution
for an award year shall be equal to the sum of
the following:
(i) An amount equal to 50 percent of
the amount that bears the same
proportion to the amount made available
under subparagraph (A) for such award
year as the total amount of Federal
Pell Grant funds awarded at the
participating institution for the
preceding award year bears to the total
amount of Federal Pell Grant funds
awarded at all participating
institutions for the preceding award
year.
(ii) An amount equal to 50 percent of
the amount that bears the same
proportion to the amount made available
under subparagraph (A) for such award
year as the total amount of the
undergraduate student need at the
participating institution for the
preceding award year bears to the total
amount of undergraduate student need at
all participating institutions for the
preceding award year.
(D) Institutional graduate student need
calculation.--The institutional graduate
student need for a participating institution
for an award year shall be equal to the amount
that bears the same proportion to the amount
made available under subparagraph (A) for such
award year as the total amount of the graduate
student need at the participating institution
for the preceding award year bears to the total
amount of graduate student need at all
participating institutions for the preceding
award year.
(2) Required minimum amount.--In no case shall the
sum of a participating institution's allocation of loan
authority computed under paragraph (1)(B) be less than
the average of the institution's total principal amount
of loans made under this part for each of the academic
years 2012-2013 through 2016-2017.
(3) Additional adjustments.--If the Secretary
determines that the sum of a participating
institution's allocation of loan authority under
paragraph (1)(B) is below the minimum amount required
under paragraph (3), the Secretary shall--
(A) for each participating institution for
which the minimum amount under paragraph (3) is
not satisfied, increase the amount of such sum
to the amount of the required minimum under
such paragraph; and
(B) ratably reduce the amount of the sum of
such loan authority of all participating
institutions not described in subparagraph (A).
(c) Definitions.--In this section:
(1) Annual loan authority.--The term ``annual loan
authority'' means the total original principal amount
of loans--
(A) made available for loans under part D;
and
(B) that may be allocated under subsection
(b)(1) for an award year to participating
institutions to make Federal Direct Perkins
Loans under section 455A.
(2) Average cost of attendance.--The term ``average
cost of attendance'' has the meaning given the term in
section 4202(e)(5)(B).
(3) Graduate student need.--The term ``graduate
student need'' means, with respect to a graduate
student for an award year, the lesser of the following:
(A) The amount equal to (except the amount
computed by this subparagraph shall not be less
than zero)--
(i) the average cost of attendance
for the preceding award year, minus
(ii) such graduate student's expected
family contribution (computed in
accordance with part F of this title)
for the preceding award year.
(B) The total annual loan limit for a Federal
Direct Unsubsidized Stafford Loan.
(4) Undergraduate student need.--The term
``undergraduate student need'' means, with respect to
an undergraduate student for an award year, the lesser
of the following:
(A) 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 award year, minus
(ii) such undergraduate student's
expected family contribution (computed
in accordance with part F of this
title) for the preceding award year.
(B) The total loan annual limit for a Federal
Direct Unsubsidized Stafford Loan and a Federal
Direct Loan.
(5) Participating institution.--The term
``participating institution'' means an institution of
higher education--
(A) that has an agreement under section
463(f);
(B) that participates in the Federal Direct
Stafford Loan Program; and
(C) is not an institution described in
section 102(a)(1)(C).
SEC. 463. AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION.
(a) Contents of Agreements For Loans Made Before July 1,
2021.--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 before July 1, 2021, 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--] thereon, if the institution has
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 require the institution to assign such
note or agreement to the Secretary, without recompense;
[(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] and the Secretary shall
return a portion of funds from loan repayments to the
institution as specified in section 466(b);
(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.]
(b) Administrative expenses An institution that has entered
into an agreement under subsection (a) shall be entitled, for
each fiscal year during which it services student loans from a
student loan fund established under such agreement, to a
payment in lieu of reimbursement for its expenses in servicing
student loans made before July 1, 2021. Such payment shall be
equal to 0.50 percent of the outstanding principal and interest
balance of such loans being serviced by the institution as of
September 30 of each fiscal year.
(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.
(f) Contents of agreements for loans made on or after July 1,
2021 An agreement with any institution of higher education that
elects to participate in the Federal Direct Perkins Loan
program under section 455A shall provide--
(1) for the establishment and maintenance of a Direct
Perkins Loan program at the institution under which the
institution shall use annual loan authority allocated
under section 462A to make loans to eligible students
attending the institution;
(2) that the institution, unless otherwise specified
in this subsection, shall operate the program
consistent with the requirements of agreements
established under section 454; and
(3) that if the institution ceases to be eligible to
receive Federal loans under this title based on loss of
eligibility under section 435(a), due to a high
adjusted cohort default rate, the Secretary shall
suspend or terminate the institution's eligibility to
make Federal Direct Perkins Loans under section 455A
unless and until the institution would qualify for a
resumption of eligible institution status under such
section 435(a).
SEC. 463A. STUDENT LOAN INFORMATION BY ELIGIBLE INSTITUTIONS.
(a) Disclosure Required Prior to Disbursement.--[Each
institution] For loans made before July 1, 2021, 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] For loans made before July 1, 2021, 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]
section 463(a) 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 made before July 1, 2021, 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 (with respect to a loan made before July 1, 2021) or an
allocation under section 462A (with respect to a loan made on
or after July 1, 2021) 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 made before July 1, 2021,
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
made before July 1, 2021, 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;
(v) during which the borrower is engaged in service
described in section 465(a)(2); or
(vi) during which the borrower is receiving
treatment for cancer and the 6 months after
such period;
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
made before July 1, 2021, 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 a loan made before July, 1,
2021, 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 before July 1, 2021,
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] For loans made before July 1, 2021, 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 made before
July 1, 2021, 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
made before July 1, 2021, 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, with
respect to loans made before July 1, 2021, and 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 before July 1, 2021 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,
and before July 1, 2021, 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 before July 1, 2021, 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 before July 1, 2021, 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 before July 1, 2021, 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, and before July 1, 2021, 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.]
(b) Reimbursement for Cancellations.--
(1) Assigned loans.--In the case of loans made under
this part before July 1, 2021, and that are assigned to
the Secretary, the Secretary shall, from amounts repaid
each quarter on assigned Perkins Loans made before July
1, 2021, pay to each institution for each quarter an
amount equal to--
(A) the aggregate of the amounts of loans
from its student loan fund that are canceled
pursuant to this section for such quarter,
minus
(B) an amount equal to the aggregate of the
amounts of any such loans so canceled that were
made from Federal capital contributions to its
student loan fund.
(2) Retained loans.--In the case of loans made under
this part before July 1, 2021, and that are retained by
the institution for servicing, the institution shall
deduct from loan repayments owed to the Secretary under
section 466, an amount equal to--
(A) the aggregate of the amounts of loans
from its student loan fund that are canceled
pursuant to this section for such quarter,
minus
(B) an amount equal to the aggregate of the
amounts of any such loans so canceled that were
made from Federal capital contributions to its
student loan fund.
(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. 466. DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS
(a) Capital distribution Beginning July 1, 2021, 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) For the quarter beginning July 1, 2021, the
Secretary shall first be paid, no later than September
30, 2021, an amount that bears the same ratio to the
cash balance in such fund at the close of June 30,
2021, as the total amount of the Federal capital
contributions to such fund by the Secretary under this
part bears to--
(A) the sum of such Federal contributions and
the institution's capital contributions to such
fund, less
(B) an amount equal to--
(i) the institution's outstanding
administrative costs as calculated
under section 463(b);
(ii) outstanding charges assessed
under section 464(c)(1)(H); and
(iii) outstanding loan cancellation
costs incurred under section 465.
(2) At the end of each quarter subsequent to the
quarter ending September 30, 2021, the Secretary shall
first be paid an amount that bears the same ratio to
the cash balance in such fund at the close of the
preceding quarter, as the total amount of the Federal
capital contributions to such fund by the Secretary
under this part bears to--
(A) the sum of such Federal contributions and
the institution's capital contributions to such
fund, less
(B) an amount equal to--
(i) the institution's administrative
costs incurred for that quarter as
calculated under section 463(b);
(ii) charges assessed for that
quarter under section 464(c)(1)(H); and
(iii) loan cancellation costs
incurred for that quarter under section
465.
(3)(A) The Secretary shall calculate the amounts due
to the Secretary under paragraph (1) (adjusted in
accordance with subparagraph (B), as appropriate) and
paragraph (2) and shall promptly inform the institution
of such calculated amounts.
(B) In the event that, prior to the date of enactment
of the College Affordability Act, an institution made a
short-term, interest-free loan to the institution's
student loan fund established under this part in
anticipation of collections or receipt of Federal
capital contributions, and the institution demonstrates
to the Secretary, on or before June 30, 2021, that such
loan will still be outstanding after June 30, 2021, the
Secretary shall subtract the amount of such outstanding
loan from the cash balance of the institution's student
loan fund that is used to calculate the amount due to
the Secretary under paragraph (1). An adjustment of an
amount due to the Secretary under this subparagraph
shall be made by the Secretary on a case-by-case basis.
(4) Any remaining balance at the end of a quarter
after a payment under paragraph (1) or (2) shall be
retained by the institution for use at its discretion.
Any balance so retained shall be withdrawn from the
student loan fund and shall not be counted in
calculating amounts owed to the Secretary for
subsequent quarters.
(5) Each institution shall make the quarterly
payments to the Secretary described in paragraph (2)
until all outstanding Federal Perkins Loans at that
institution have been assigned to the Secretary and
there are no funds remaining in the institution's
student loan fund.
(6) In the event that the institution's
administrative costs, charges, and cancellation costs
described in paragraph (2) for a quarter exceed the
amount owed to the Secretary under paragraphs (1) and
(2) for that quarter, no payment shall be due to the
Secretary from the institution for that quarter and the
Secretary shall pay the institution, from funds
realized from the collection of assigned Federal
Perkins Loans made before July 1, 2021, an amount that,
when combined with the amount retained by the
institution under paragraphs (1) and (2), equals the
full amount of such administrative costs, charges, and
cancellation costs.
(b) Assignment of outstanding loans Beginning July 1, 2021,
an institution of higher education may assign all outstanding
loans made under this part before July 1, 2021, to the
Secretary, consistent with the requirements of section
463(a)(5). In collecting loans so assigned, the Secretary shall
pay an institution an amount that constitutes the same fraction
of such collections as the fraction of the cash balance that
the institution retains under subsection (a)(2), but
determining such fraction without regard to subparagraph (B)(i)
of such subsection.
* * * * * * *
PART F--NEED ANALYSIS
* * * * * * *
SEC. 473. FAMILY CONTRIBUTION.
(a) In General.--For the purpose of this title, other than
subpart 2 of part A, and except as provided in subsection (b),
the term ``family contribution'' with respect to any student
means the amount which the student and the student's family may
be reasonably expected to contribute toward the student's
postsecondary education for the academic year for which the
determination is made, as determined in accordance with this
part.
(b) Special Rule.--
(1) In general.--Notwithstanding any other provision
of this title, the family contribution of each student
described in paragraph (2) shall be deemed to be zero
for the [academic year] award year for which the
determination is made.
(2) Applicability.--Paragraph (1) shall apply to any
dependent or independent student with respect to
determinations of need for [academic year] award year
2009-2010 (in the case of a student who meets the
requirement of subparagraph (B)(i)), or [academic year]
award year 2018-2019 (in the case of a student who
meets the requirement of subparagraph (B)(ii)), and
succeeding [academic years] award years--
(A) who is eligible to receive a Federal Pell
Grant for the [academic year] award year for
which the determination is made;
(B) whose [parent or guardian] parent,
guardian, or spouse was--
(i) a member of the Armed Forces of
the United States and died as a result
of performing military service in Iraq
or Afghanistan after September 11,
2001; or
(ii) actively serving as a public
safety officer and died in the line of
duty while performing as a public
safety officer; and
(C) in the case of a student whose parent or
guardian is described in clause (i) or (ii) of
subparagraph (B), who, at the time of the
parent or guardian's death, was--
(i) less than 24 years of age; or
(ii) enrolled at an institution of
higher education on a part-time or
full-time basis.
(3) Information.--
(A) Armed forces.--Notwithstanding any other
provision of law, the Secretary of Veterans
Affairs and the Secretary of Defense, as
appropriate, shall provide the Secretary of
Education with information necessary to
determine which students meet the requirements
of subparagraphs (A), (B)(i), and (C) of
paragraph (2).
(B) Public safety officers.--Notwithstanding
any other provision of law, unless the
Secretary establishes an alternate method to
adjust the expected family contribution, for
each student who meets the requirements of
subparagraphs (A), (B)(ii), and (C) of
paragraph (2), a financial aid administrator
shall--
(i) verify with the student that the
student is eligible for the adjustment;
(ii) adjust the expected family
contribution in accordance with this
subsection; and
(iii) notify the Secretary of the
adjustment and the student's
eligibility for the adjustment.
(4) Treatment of pell amount.--Notwithstanding
section 1212 of the Omnibus Crime Control and Safe
Streets Act of 1968 (42 U.S.C. 3796d-1), in the case of
a student who receives an increased Federal Pell Grant
amount under this section, the total amount of such
Federal Pell Grant, including the increase under this
subsection, shall not be considered in calculating that
student's educational assistance benefits under the
Public Safety Officers' Benefits program under subpart
2 of part L of title I of such Act.
(5) Definition of public safety officer.--For
purposes of this subsection, the term ``public safety
officer'' means--
(A) a public safety officer, as defined in
section 1204 of title I of the Omnibus Crime
Control and Safe Streets Act of 1968 (42 U.S.C.
3796b); or
(B) a fire police officer, defined as an
individual who--
(i) is serving in accordance with
State or local law as an officially
recognized or designated member of a
legally organized public safety agency;
(ii) is not a law enforcement
officer, a firefighter, a chaplain, or
a member of a rescue squad or ambulance
crew; and
(iii) provides scene security or
directs traffic--
(I) in response to any fire
drill, fire call, or other
fire, rescue, or police
emergency; or
(II) at a planned special
event.
SEC. 474. DETERMINATION OF EXPECTED FAMILY CONTRIBUTION; DATA ELEMENTS.
(a) General Rule for Determination of Expected Family
Contribution.--The expected family contribution--
(1) for a dependent student shall be determined in
accordance with section 475;
(2) for a single independent student or a married
independent student without dependents (other than a
spouse) shall be determined in accordance with section
476; and
(3) for an independent student with dependents other
than a spouse shall be determined in accordance with
section 477.
(b) Data Elements.--The following data elements are
considered in determining the expected family contribution:
(1) the available income of (A) the student and the
student's spouse, or (B) the student and the student's
parents, in the case of a dependent student;
(2) the number of dependents in the family of the
student;
(3) the number of dependents in the family of the
student, excluding the student's parents, who are
enrolled or accepted for enrollment, on at least a
half-time basis, in a degree, certificate, or other
program leading to a recognized educational credential
at an institution of higher education that is an
eligible institution in accordance with the provisions
of section 487 and for whom the family may reasonably
be expected to contribute to their postsecondary
education;
(4) only in the case of a pathway three applicant,
the net assets of (A) the student and the student's
spouse, and (B) the student and the student's parents,
in the case of a dependent student;
(5) the marital status of the student;
(6) the age of the older parent, in the case of a
dependent student, and the student; and
(7) the additional expenses incurred (A) in the case
of a dependent student, when both parents of the
student are employed or when the family is headed by a
single parent who is employed, or (B) in the case of an
independent student, when the student is married and
the student's spouse is employed, or when the employed
student qualifies as a surviving spouse or as a head of
a household under section 2 of the Internal Revenue
Code of 1986.
SEC. 475. FAMILY CONTRIBUTION FOR DEPENDENT STUDENTS.
(a) Computation of Expected Family Contribution.--For each
dependent student, the expected family contribution is equal to
the sum of--
(1) the parents' contribution from adjusted available
income (determined in accordance with subsection (b));
(2) the student contribution from available income
(determined in accordance with subsection (g)); and
(3) only in the case of a pathway three applicant,
the student contribution from assets (determined in
accordance with subsection (h)).
(b) Parents' Contribution From Adjusted Available Income.--
The parents' contribution from adjusted available income is
equal to the amount determined by--
(1) computing adjusted available income by adding--
(A) the parents' available income (determined
in accordance with subsection (c)); and
(B) only in the case of a pathway three
applicant the parents' contribution from assets
(determined in accordance with subsection (d));
(2) assessing such adjusted available income in
accordance with the assessment schedule set forth in
subsection (e); and
(3) dividing the assessment resulting under paragraph
(2) by the number of the family members, excluding the
student's parents, who are enrolled or accepted for
enrollment, on at least a half-time basis, in a degree,
certificate, or other program leading to a recognized
educational credential at an institution of higher
education that is an eligible institution in accordance
with the provisions of section 487 during the [award
period] award year for which assistance under this
title is requested;
except that the amount determined under this subsection shall
not be less than zero.
(c) Parents' Available Income.--
(1) In general.--The parents' available income is
determined by deducting from total income (as defined
in section 480)--
(A) Federal income taxes;
(B) an allowance for State and other taxes,
determined in accordance with paragraph (2);
(C) an allowance for social security taxes,
determined in accordance with paragraph (3);
(D) an income protection allowance,
determined in accordance with paragraph (4);
(E) an employment expense allowance,
determined in accordance with paragraph (5);
and
(F) the amount of any tax credit taken by the
parents under section 25A of the Internal
Revenue Code of 1986.
(2) Allowance for state and other taxes.--The
allowance for State and other taxes is equal to an
amount determined by multiplying total income (as
defined in section 480) by a percentage determined
according to the following table (or a successor table
prescribed by the Secretary under section 478):
Percentages for Computation of State and Other Tax Allowance
------------------------------------------------------------------------
And parents' total
income is--
---------------------
If parents' State or territory of residence is-- less than
$15,000 $15,000
or or more
------------------------------------------------------------------------
then the percentage
is--
------------
Alaska, Puerto Rico, Wyoming...................... 3 2
American Samoa, Guam, Louisiana, Nevada, Texas, 4 3
Trust Territory, Virgin Islands..................
Florida, South Dakota, Tennessee, New Mexico...... 5 4
North Dakota, Washington.......................... 6 5
Alabama, Arizona, Arkansas, Indiana, Mississippi, 7 6
Missouri, Montana, New Hampshire, Oklahoma, West
Virginia.........................................
Colorado, Connecticut, Georgia, Illinois, Kansas, 8 7
Kentucky.........................................
California, Delaware, Idaho, Iowa, Nebraska, North 9 8
Carolina, Ohio, Pennsylvania, South Carolina,
Utah, Vermont, Virginia, Canada, Mexico..........
Maine, New Jersey................................. 10 9
District of Columbia, Hawaii, Maryland, 11 10
Massachusetts, Oregon, Rhode Island..............
Michigan, Minnesota............................... 12 11
Wisconsin......................................... 13 12
New York.......................................... 14 13
Other............................................. 9 8
------------------------------------------------------------------------
(3) Allowance for social security taxes.--The
allowance for social security taxes is equal to the
amount earned by each parent multiplied by the social
security withholding rate appropriate to the tax year
of the earnings, up to the maximum statutory social
security tax withholding amount for that same tax year.
(4) Income protection allowance.--The income
protection allowance is determined by the following
table (or a successor table prescribed by the Secretary
under section 478):
Income Protection Allowance
----------------------------------------------------------------------------------------------------------------
Family Size Number in College
----------------------------------------------------------------------------------------------------------------
For each
(including student) 1 2 3 4 5 additional
subtract:
----------------------------------------------------------------------------------------------------------------
2 $10,520 $8,720 $1,790
3 13,100 11,310 $9,510
4 16,180 14,380 12,590 $10,790
5 19,090 17,290 15,500 13,700 $11,910
6 22,330 20,530 18,740 16,940 15,150
For each
additional
add: 2,520 2,520 2,520 2,520 2,520
----------------------------------------------------------------------------------------------------------------
(5) Employment expense allowance.--The employment
expense allowance is determined as follows (or using a
successor provision prescribed by the Secretary under
section 478):
(A) If both parents were employed in the year
for which their income is reported and both
have their incomes reported in determining the
expected family contribution, such allowance is
equal to the lesser of $2,500 or 35 percent of
the earned income of the parent with the lesser
earned income.
(B) If a parent qualifies as a surviving
spouse or as a head of household as defined in
section 2 of the Internal Revenue Code of 1986,
such allowance is equal to the lesser of $2,500
or 35 percent of such parent's earned income.
(d) Parents' Contribution From Assets.--
(1) In general.--The parents' contribution from
assets is equal to--
(A) the parental net worth (determined in
accordance with paragraph (2)); minus
(B) the education savings and asset
protection allowance (determined in accordance
with paragraph (3)); multiplied by
(C) the asset conversion rate (determined in
accordance with paragraph (4)), except that the
result shall not be less than zero.
(2) Parental net worth.--The parental net worth is
calculated by adding--
(A) the current balance of checking and
savings accounts and cash on hand;
(B) the net value of investments and real
estate, excluding the net value of the
principal place of residence; and
(C) the adjusted net worth of a business or
farm, computed on the basis of the net worth of
such business or farm (hereafter in this
subsection referred to as ``NW''), determined
in accordance with the following table (or a
successor table prescribed by the Secretary
under section 478), except as provided under
section 480(f):
Adjusted Net Worth of a Business or Farm
------------------------------------------------------------------------
If the net worth of a business or farm
is-- Then the adjusted net worth is:
------------------------------------------------------------------------
Less than $1........................... $0
$1-$75,000............................. 40 percent of NW
$75,001-$225,000....................... $30,000 plus 50 percent of NW
over $75,000
$225,001-$375,000...................... $105,000 plus 60 percent of NW
over $225,000
$375,001 or more....................... $195,000 plus 100 percent of NW
over $375,000
------------------------------------------------------------------------
(3) Education savings and asset protection
allowance.--The education savings and asset protection
allowance is calculated according to the following
table (or a successor table prescribed by the Secretary
under section 478):
Education Savings and Asset Protection Allowances for Families and
Students
------------------------------------------------------------------------
And there are
If the age of the oldest -----------------------------------------
parent is-- two parents one parent
------------------------------------------------------------------------
then the allowance is--
----------------------
................... ...................
25 or less.................... $ 0 $0
26............................ 2,200 1,600
27............................ 4,300 3,200
28............................ 6,500 4,700
29............................ 8,600 6,300
30............................ 10,800 7,900
31............................ 13,000 9,500
32............................ 15,100 11,100
33............................ 17,300 12,600
34............................ 19,400 14,200
35............................ 21,600 15,800
36............................ 23,800 17,400
37............................ 25,900 19,000
38............................ 28,100 20,500
39............................ 30,200 22,100
40............................ 32,400 23,700
41............................ 33,300 24,100
42............................ 34,100 24,700
43............................ 35,000 25,200
44............................ 35,700 25,800
45............................ 36,600 26,300
46............................ 37,600 26,900
47............................ 38,800 27,600
48............................ 39,800 28,200
49............................ 40,800 28,800
50............................ 41,800 29,500
51............................ 43,200 30,200
52............................ 44,300 31,100
53............................ 45,700 31,800
54............................ 47,100 32,600
55............................ 48,300 33,400
56............................ 49,800 34,400
57............................ 51,300 35,200
58............................ 52,900 36,200
59............................ 54,800 37,200
60............................ 56,500 38,100
61............................ 58,500 39,200
62............................ 60,300 40,300
63............................ 62,400 41,500
64............................ 64,600 42,800
65 or more.................... 66,800 44,000
------------------------------------------------------------------------
(4) Asset conversion rate.--The asset conversion rate
is 12 percent.
(e) Assessment Schedule.--The adjusted available income (as
determined under subsection (b)(1) and hereafter in this
subsection referred to as ``AAI'') is assessed according to the
following table (or a successor table prescribed by the
Secretary under section 478):
Parents' Assessment From Adjusted Available Income (AAI)
------------------------------------------------------------------------
If AAI is-- Then the assessment is--
------------------------------------------------------------------------
Less than -$3,409...................... -$750
-$3,409 to $9,400...................... 22% of AAI
$9,401 to $11,800...................... $2,068 + 25% of AAI over $9,400
$11,801 to $14,200..................... $2,668 + 29% of AAI over
$11,800
$14,201 to $16,600..................... $3,364 + 34% of AAI over
$14,200
$16,601 to $19,000..................... $4,180 + 40% of AAI over
$16,600
$19,001 or more........................ $5,140 + 47% of AAI over
$19,000
------------------------------------------------------------------------
(f) Computations in Case of Separation, Divorce, Remarriage,
or Death.--
(1) Divorced or separated parents.--Parental income
and assets for a student whose parents are divorced or
separated is determined under the following procedures:
(A) Include only the income and assets of the
parent with whom the student resided for the
greater portion of the 12-month period
preceding the date of the application.
(B) If the preceding criterion does not
apply, include only the income and assets of
the parent who provided the greater portion of
the student's support for the 12-month period
preceding the date of application.
(C) If neither of the preceding criteria
apply, include only the income and assets of
the parent who provided the greater support
during the most recent calendar year for which
parental support was provided.
(2) Death of a parent.--Parental income and assets in
the case of the death of any parent is determined as
follows:
(A) If either of the parents has died, the
student shall include only the income and
assets of the surviving parent.
(B) If both parents have died, the student
shall not report any parental income or assets.
(3) Remarried parents.--If a parent whose income and
assets are taken into account under paragraph (1) of
this subsection, or if a parent who is a widow or
widower and whose income is taken into account under
paragraph (2) of this subsection, has remarried, the
income of that parent's spouse shall be included in
determining the parent's adjusted available income only
if--
(A) the student's parent and the stepparent
are married as of the date of application for
the award year concerned; and
(B) the student is not an independent
student.
(g) Student Contribution From Available Income.--
(1) In general.--The student contribution from
available income is equal to--
(A) the student's total income (determined in
accordance with section 480); minus
(B) the adjustment to student income
(determined in accordance with paragraph (2));
multiplied by
(C) the assessment rate as determined in
paragraph (5);
except that the amount determined under this subsection
shall not be less than zero.
(2) Adjustment to student income.--The adjustment to
student income is equal to the sum of--
(A) Federal income taxes of the student;
(B) an allowance for State and other income
taxes (determined in accordance with paragraph
(3));
(C) an allowance for social security taxes
determined in accordance with paragraph (4);
[(D) an income protection allowance of the
following amount (or a successor amount
prescribed by the Secretary under section
478)--
[(i) for academic year 2009-2010,
$3,750;
[(ii) for academic year 2010-2011,
$4,500;
[(iii) for academic year 2011-2012,
$5,250; and
[(iv) for academic year 2012-2013,
$6,000;]
(D) an income protection allowance (or a
successor amount prescribed by the Secretary
under section 478) of $9,230 for award year
2021-2022;
(E) the amount of any tax credit taken by the
student under section 25A of the Internal
Revenue Code of 1986; and
(F) an allowance for parents' negative
available income, determined in accordance with
paragraph (6).
(3) Allowance for state and other income taxes.--The
allowance for State and other income taxes is equal to
an amount determined by multiplying total income (as
defined in section 480) by a percentage determined
according to the following table (or a successor table
prescribed by the Secretary under section 478):
Percentages for Computation of State and Other Tax Allowance
------------------------------------------------------------------------
The
If the students' State or territory of residence is-- percentage
is--
------------------------------------------------------------------------
Alaska, American Samoa, Florida, Guam, Nevada, South Dakota, 0
Tennessee, Texas, Trust Territory, Virgin Islands,
Washington, Wyoming........................................
Connecticut, Louisiana, Puerto Rico......................... 1
Arizona, New Hampshire, New Mexico, North Dakota............ 2
Alabama, Colorado, Illinois, Indiana, Kansas, Mississippi, 3
Missouri, Montana, Nebraska, New Jersey, Oklahoma..........
Arkansas, Georgia, Iowa, Kentucky, Maine, Pennsylvania, 4
Utah, Vermont, Virginia, West Virginia, Canada, Mexico.....
California, Idaho, Massachusetts, North Carolina, Ohio, 5
Rhode Island, South Carolina...............................
Hawaii, Maryland, Michigan, Wisconsin....................... 6
Delaware, District of Columbia, Minnesota, Oregon........... 7
New York.................................................... 8
Other....................................................... 4
------------------------------------------------------------------------
(4) Allowance for social security taxes.--The
allowance for social security taxes is equal to the
amount earned by the student multiplied by the social
security withholding rate appropriate to the tax year
of the earnings, up to the maximum statutory social
security tax withholding amount for that same tax year.
(5) The student's available income (determined in
accordance with paragraph (1) of this subsection) is
assessed at 50 percent.
(6) Allowance for parents' negative available
income.--The allowance for parents' negative available
income is the amount, if any, by which the sum of the
amounts deducted under subparagraphs (A) through (F) of
subsection (c)(1) exceeds the sum of the parents' total
income (as defined in section 480) and the parents'
contribution from assets (as determined in accordance
with subsection (d)).
(h) Student Contribution From Assets.--The student
contribution from assets is determined by calculating the net
assets of the student and multiplying such amount by 20
percent, except that the result shall not be less than zero.
(i) Adjustments to Parents' Contribution for Enrollment
Periods Other Than 9 Months For Purposes Other Than Subpart 2
of Part A of This Title.--For periods of enrollment other than
9 months, the parents' contribution from adjusted available
income (as determined under subsection (b)) is determined as
follows for purposes other than subpart 2 of part A of this
title:
(1) For periods of enrollment less than 9 months, the
parents' contribution from adjusted available income is
divided by 9 and the result multiplied by the number of
months enrolled.
(2) For periods of enrollment greater than 9 months--
(A) the parents' adjusted available income
(determined in accordance with subsection
(b)(1)) is increased by the difference between
the income protection allowance (determined in
accordance with subsection (c)(4)) for a family
of four and a family of five, each with one
child in college;
(B) the resulting revised parents' adjusted
available income is assessed according to
subsection (e) and adjusted according to
subsection (b)(3) to determine a revised
parents' contribution from adjusted available
income;
(C) the original parents' contribution from
adjusted available income is subtracted from
the revised parents' contribution from adjusted
available income, and the result is divided by
12 to determine the monthly adjustment amount;
and
(D) the original parents' contribution from
adjusted available income is increased by the
product of the monthly adjustment amount
multiplied by the number of months greater than
9 for which the student will be enrolled.
(j) Adjustments to Student's Contribution for Enrollment
Periods of Less Than Nine Months.--For periods of enrollment of
less than 9 months, the student's contribution from adjusted
available income (as determined under subsection (g)) is
determined, for purposes other than subpart 2 of part A, by
dividing the amount determined under such subsection by 9, and
multiplying the result by the number of months in the period of
enrollment.
SEC. 476. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITHOUT
DEPENDENTS OTHER THAN A SPOUSE.
(a) Computation of Expected Family Contribution.--For each
independent student without dependents other than a spouse, the
expected family contribution is determined by--
(1) adding--
(A) the family's contribution from available
income (determined in accordance with
subsection (b)); and
(B) only in the case of a pathway three
applicant, the family's contribution from
assets (determined in accordance with
subsection (c));
(2) dividing the sum resulting under paragraph (1) by
the number of students who are enrolled or accepted for
enrollment, on at least a half-time basis, in a degree,
certificate, or other program leading to a recognized
educational credential at an institution of higher
education that is an eligible institution in accordance
with the provisions of section 487 during the [award
period] award year for which assistance under this
title is requested; and
(3) for periods of enrollment of less than 9 months,
for purposes other than subpart 2 of part A--
(A) dividing the quotient resulting under
paragraph (2) by 9; and
(B) multiplying the result by the number of
months in the period of enrollment;
except that the amount determined under this subsection shall
not be less than zero.
(b) Family's Contribution From Available Income.--
(1) In general.--The family's contribution from
income is determined by--
(A) deducting from total income (as defined
in section 480)--
(i) Federal income taxes;
(ii) an allowance for State and other
taxes, determined in accordance with
paragraph (2);
(iii) an allowance for social
security taxes, determined in
accordance with paragraph (3);
[(iv) an income protection allowance
of the following amount (or a successor
amount prescribed by the Secretary
under section 478)--
[(I) for single or separated
students, or married students
where both are enrolled
pursuant to subsection (a)(2)--
[(aa) for academic
year 2009-2010, $7,000;
[(bb) for academic
year 2010-2011, $7,780;
[(cc) for academic
year 2011-2012, $8,550;
and
[(dd) for academic
year 2012-2013, $9,330;
and
[(II) for married students
where 1 is enrolled pursuant to
subsection (a)(2)--
[(aa) for academic
year 2009-2010,
$11,220;
[(bb) for academic
year 2010-2011,
$12,460;
[(cc) for academic
year 2011-2012,
$13,710; and
[(dd) for academic
year 2012-2013,
$14,960;]
(iv) an income protection allowance
(or a successor amount prescribed by
the Secretary under section 478)--
(I) for single or separated
students, or married students
where both are enrolled
pursuant to subsection (a)(2),
of $14,360 for award year 2021-
2022; and
(II) for married students
where 1 is enrolled pursuant to
subsection (a)(2), of $23,030
for award year 2021-2022;
(v) in the case where a spouse is
present, an employment expense
allowance, as determined in accordance
with paragraph (4); and
(vi) the amount of any tax credit
taken under section 25A of the Internal
Revenue Code of 1986; and
(B) assessing such available income in
accordance with paragraph (5).
(2) Allowance for state and other taxes.--The
allowance for State and other taxes is equal to an
amount determined by multiplying total income (as
defined in section 480) by a percentage determined
according to the following table (or a successor table
prescribed by the Secretary under section 478):
Percentages for Computation of State and Other Tax Allowance
------------------------------------------------------------------------
The
If the students' State or territory of residence is-- percentage
is--
------------------------------------------------------------------------
Alaska, American Samoa, Florida, Guam, Nevada, South Dakota, 0
Tennessee, Texas, Trust Territory, Virgin Islands,
Washington, Wyoming........................................
Connecticut, Louisiana, Puerto Rico......................... 1
Arizona, New Hampshire, New Mexico, North Dakota............ 2
Alabama, Colorado, Illinois, Indiana, Kansas, Mississippi, 3
Missouri, Montana, Nebraska, New Jersey, Oklahoma..........
Arkansas, Georgia, Iowa, Kentucky, Maine, Pennsylvania, 4
Utah, Vermont, Virginia, West Virginia, Canada, Mexico.....
California, Idaho, Massachusetts, North Carolina, Ohio, 5
Rhode Island, South Carolina...............................
Hawaii, Maryland, Michigan, Wisconsin....................... 6
Delaware, District of Columbia, Minnesota, Oregon........... 7
New York.................................................... 8
Other....................................................... 4
------------------------------------------------------------------------
(3) Allowance for social security taxes.--The
allowance for social security taxes is equal to the
amount earned by the student (and spouse, if
appropriate), multiplied by the social security
withholding rate appropriate to the tax year preceding
the award year, up to the maximum statutory social
security tax withholding amount for that same tax year.
(4) Employment expenses allowance.--The employment
expense allowance is determined as follows (or using a
successor provision prescribed by the Secretary under
section 478):
(A) If the student is married and the
student's spouse is employed in the year for
which income is reported, such allowance is
equal to the lesser of $2,500 or 35 percent of
the earned income of the student or spouse with
the lesser earned income.
(B) If a student is not married, the
employment expense allowance is zero.
(5) Assessment of available income.--The family's
available income (determined in accordance with
paragraph (1)(A) of this subsection) is assessed at 50
percent.
(c) Family Contribution From Assets.--
(1) In general.--The family's contribution from
assets is equal to--
(A) the family's net worth (determined in
accordance with paragraph (2)); minus
(B) the asset protection allowance
(determined in accordance with paragraph (3));
multiplied by
(C) the asset conversion rate (determined in
accordance with paragraph (4));
except that the family's contribution from assets shall
not be less than zero.
(2) Family's net worth.--The family's net worth is
calculated by adding--
(A) the current balance of checking and
savings accounts and cash on hand;
(B) the net value of investments and real
estate, excluding the net value in the
principal place of residence; and
(C) the adjusted net worth of a business or
farm, computed on the basis of the net worth of
such business or farm (hereafter referred to as
``NW''), determined in accordance with the
following table (or a successor table
prescribed by the Secretary under section 478),
except as provided under section 480(f):
Adjusted Net Worth of a Business or Farm
------------------------------------------------------------------------
If the net worth of a business or farm Then the adjusted net worth is--
is--
------------------------------------------------------------------------
Less than $1........................... $0
$1-$75,000............................. 40 percent of NW
$75,001-$225,000....................... $30,000 plus 50 percent of NW
over $75,000
$225,001-$375,000...................... $105,000 plus 60 percent of NW
over $225,000
$375,001 or more....................... $195,000 plus 100 percent of NW
over $375,000
------------------------------------------------------------------------
(3) Asset protection allowance.--The asset protection
allowance is calculated according to the following
table (or a successor table prescribed by the Secretary
under section 478):
Asset Protection Allowances for Families and Students
------------------------------------------------------------------------
And the student is
If the age of the student is-- ---------------------
married single
------------------------------------------------------------------------
then the allowance
is--
------------
25 or less........................................ $ 0 $0
26................................................ 2,200 1,600
27................................................ 4,300 3,200
28................................................ 6,500 4,700
29................................................ 8,600 6,300
30................................................ 10,800 7,900
31................................................ 13,000 9,500
32................................................ 15,100 11,100
33................................................ 17,300 12,600
34................................................ 19,400 14,200
35................................................ 21,600 15,800
36................................................ 23,800 17,400
37................................................ 25,900 19,000
38................................................ 28,100 20,500
39................................................ 30,200 22,100
40................................................ 32,400 23,700
41................................................ 33,300 24,100
42................................................ 34,100 24,700
43................................................ 35,000 25,200
44................................................ 35,700 25,800
45................................................ 36,600 26,300
46................................................ 37,600 26,900
47................................................ 38,800 27,600
48................................................ 39,800 28,200
49................................................ 40,800 28,800
50................................................ 41,800 29,500
51................................................ 43,200 30,200
52................................................ 44,300 31,100
53................................................ 45,700 31,800
54................................................ 47,100 32,600
55................................................ 48,300 33,400
56................................................ 49,800 34,400
57................................................ 51,300 35,200
58................................................ 52,900 36,200
59................................................ 54,800 37,200
60................................................ 56,500 38,100
61................................................ 58,500 39,200
62................................................ 60,300 40,300
63................................................ 62,400 41,500
64................................................ 64,600 42,800
65 or more........................................ 66,800 44,000
------------------------------------------------------------------------
(4) Asset conversion rate.--The asset conversion rate
is 20 percent.
(d) Computations in Case of Separation, Divorce, or Death.--
In the case of a student who is divorced or separated, or whose
spouse has died, the spouse's income and assets shall not be
considered in determining the family's contribution from income
or assets.
SEC. 477. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITH DEPENDENTS
OTHER THAN A SPOUSE.
(a) Computation of Expected Family Contribution.--For each
independent student with dependents other than a spouse, the
expected family contribution is equal to the amount determined
by--
(1) computing adjusted available income by adding--
(A) the family's available income (determined
in accordance with subsection (b)); and
(B) only in the case of a pathway three
applicant, the family's contribution from
assets (determined in accordance with
subsection (c));
(2) assessing such adjusted available income in
accordance with an assessment schedule set forth in
subsection (d);
(3) dividing the assessment resulting under paragraph
(2) by the number of family members who are enrolled or
accepted for enrollment, on at least a half-time basis,
in a degree, certificate, or other program leading to a
recognized educational credential at an institution of
higher education that is an eligible institution in
accordance with the provisions of section 487 during
the [award period] award year for which assistance
under this title is requested; and
[(4) for periods of enrollment of less than 9 months,
for purposes other than subpart 2 of part A--
[(A) dividing the quotient resulting under
paragraph (3) by 9; and
[(B) multiplying the result by the number of
months in the period of enrollment;]
(4) Income protection allowance The income protection
allowance is determined by the following table (or a
successor table prescribed by the Secretary under
section 478), for award year 2021-2022:
Income Protection Allowance
----------------------------------------------------------------------------------------------------------------
Family Size Number in College
----------------------------------------------------------------------------------------------------------------
For each
(including 1 2 3 4 5 additional
student) subtract:
----------------------------------------------------------------------------------------------------------------
2 $36,370 $30,160 $6,180
3 45,290 39,100 $32,890
4 55,920 49,720 43,540 $37,300
5 65,990 59,750 53,570 47,360 $41,180
6 77,170 70,960 64,790 58,540 52,350
For each
additional
add: 8,710
----------------------------------------------------------------------------------------------------------------
except that the amount determined under this subsection shall
not be less than zero.
(b) Family's Available Income.--
(1) In general.--The family's available income is
determined by deducting from total income (as defined
in section 480)--
(A) Federal income taxes;
(B) an allowance for State and other taxes,
determined in accordance with paragraph (2);
(C) an allowance for social security taxes,
determined in accordance with paragraph (3);
(D) an income protection allowance,
determined in accordance with paragraph (4);
(E) an employment expense allowance,
determined in accordance with paragraph (5);
and
(F) the amount of any tax credit taken under
section 25A of the Internal Revenue Code of
1986.
(2) Allowance for state and other taxes.--The
allowance for State and other taxes is equal to an
amount determined by multiplying total income (as
defined in section 480) by a percentage determined
according to the following table (or a successor table
prescribed by the Secretary under section 478):
Percentages for Computation of State and Other Tax Allowance
------------------------------------------------------------------------
And family's total
income is--
If student's State or territory of residence is-- ---------------------
less than $15,000
$15,000 or more
------------------------------------------------------------------------
then the percentage
is--
------------
Alaska, Puerto Rico, Wyoming...................... 3 2
American Samoa, Guam, Louisiana, Nevada, Texas, 4 3
Trust Territory, Virgin Islands..................
Florida, South Dakota, Tennessee, New Mexico...... 5 4
North Dakota, Washington.......................... 6 5
Alabama, Arizona, Arkansas, Indiana, Mississippi, 7 6
Missouri, Montana, New Hampshire, Oklahoma, West
Virginia.........................................
Colorado, Connecticut, Georgia, Illinois, Kansas, 8 7
Kentucky.........................................
California, Delaware, Idaho, Iowa, Nebraska, North 9 8
Carolina, Ohio, Pennsylvania, South Carolina,
Utah, Vermont, Virginia, Canada, Mexico..........
Maine, New Jersey................................. 10 9
District of Columbia, Hawaii, Maryland, 11 10
Massachusetts, Oregon, Rhode Island..............
Michigan, Minnesota............................... 12 11
Wisconsin......................................... 13 12
New York.......................................... 14 13
Other............................................. 9 8
------------------------------------------------------------------------
(3) Allowance for social security taxes.--The
allowance for social security taxes is equal to the
amount estimated to be earned by the student (and
spouse, if appropriate) multiplied by the social
security withholding rate appropriate to the tax year
preceding the award year, up to the maximum statutory
social security tax withholding amount for that same
tax year.
[(4) Income protection allowance.--The income
protection allowance is determined by the tables
described in subparagraphs (A) through (D) (or a
successor table prescribed by the Secretary under
section 478).
[(A) Academic year 2009-2010.--For academic
year 2009-2010, the income protection allowance
is determined by the following table:
[Income Protection Allowance
----------------------------------------------------------------------------------------------------------------
[Family Size Number in College
----------------------------------------------------------------------------------------------------------------
For each
(including student) 1 2 3 4 5 additional
subtract:
----------------------------------------------------------------------------------------------------------------
2 $17,720 $14,690
3 22,060 19,050 $16,020
4 27,250 24,220 21,210 $18,170
5 32,150 29,120 26,100 23,070 $20,060
6 37,600 34,570 31,570 28,520 25,520 $3,020
For each
additional
add: 4,240 4,240 4,240 4,240 4,240
----------------------------------------------------------------------------------------------------------------
[(B) Academic year 2010-2011.--For academic
year 2010-2011, the income protection allowance
is determined by the following table:
[Income Protection Allowance
----------------------------------------------------------------------------------------------------------------
[Family Size Number in College
----------------------------------------------------------------------------------------------------------------
For each
(including student) 1 2 3 4 5 additional
subtract:
----------------------------------------------------------------------------------------------------------------
2 $19,690 $16,330
3 24,510 21,160 $17,800
4 30,280 26,910 23,560 $20,190
5 35,730 32,350 29,000 25,640 $22,290
6 41,780 38,410 35,080 31,690 28,350 $3,350
For each
additional
add: 4,710 4,710 4,710 4,710 4,710
----------------------------------------------------------------------------------------------------------------
[(C) Academic year 2011-2012.--For academic
year 2011-2012, the income protection allowance
is determined by the following table:
[Income Protection Allowance
----------------------------------------------------------------------------------------------------------------
[Family Size Number in College
----------------------------------------------------------------------------------------------------------------
For each
(including student) 1 2 3 4 5 additional
subtract:
----------------------------------------------------------------------------------------------------------------
2 $21,660 $17,960
3 26,960 23,280 $19,580
4 33,300 29,600 25,920 $22,210
5 39,300 35,590 31,900 28,200 $24,520
6 45,950 42,250 38,580 34,860 31,190 $3,690
For each
additional
add: 5,180 5,180 5,180 5,180 5,180
----------------------------------------------------------------------------------------------------------------
[(D) Academic year 2012-2013.--For academic
year 2012-2013, the income protection allowance
is determined by the following table:
[Income Protection Allowance
----------------------------------------------------------------------------------------------------------------
[Family Size Number in College
----------------------------------------------------------------------------------------------------------------
For each
(including student) 1 2 3 4 5 additional
subtract:
----------------------------------------------------------------------------------------------------------------
2 $23,630 $19,590
3 29,420 25,400 $21,360
4 36,330 32,300 28,280 $24,230
5 42,870 38,820 34,800 30,770 $26,750
6 50,130 46,100 42,090 38,030 34,020 $4,020
For each
additional
add: 5,660 5,660 5,660 5,660 5,660 ]
----------------------------------------------------------------------------------------------------------------
(4) Income protection allowance.--The income
protection allowance is determined by the following
table (or a successor table prescribed by the Secretary
under section 478), for award year 2021-2022:
Income Protection Allowance
----------------------------------------------------------------------------------------------------------------
Family Size Number in College
----------------------------------------------------------------------------------------------------------------
For each
(including 1 2 3 4 5 additional
student) subtract:
----------------------------------------------------------------------------------------------------------------
2 $36,370 $30,160 $6,180
3 45,290 39,100 $32,890
4 55,920 49,720 43,540 $37,300
5 65,990 59,750 53,570 47,360 $41,180
6 77,170 70,960 64,790 58,540 52,350
For each
additional
add: 8,710
----------------------------------------------------------------------------------------------------------------
(5) Employment expense allowance.--The employment
expense allowance is determined as follows (or a
successor table prescribed by the Secretary under
section 478):
(A) If the student is married and the
student's spouse is employed in the year for
which their income is reported, such allowance
is equal to the lesser of $2,500 or 35 percent
of the earned income of the student or spouse
with the lesser earned income.
(B) If a student qualifies as a surviving
spouse or as a head of household as defined in
section 2 of the Internal Revenue Code of 1986,
such allowance is equal to the lesser of $2,500
or 35 percent of the student's earned income.
(c) Family's Contribution From Assets.--
(1) In general.--The family's contribution from
assets is equal to--
(A) the family net worth (determined in
accordance with paragraph (2)); minus
(B) the asset protection allowance
(determined in accordance with paragraph (3));
multiplied by
(C) the asset conversion rate (determined in
accordance with paragraph (4)), except that the
result shall not be less than zero.
(2) Family net worth.--The family net worth is
calculated by adding--
(A) the current balance of checking and
savings accounts and cash on hand;
(B) the net value of investments and real
estate, excluding the net value in the
principal place of residence; and
(C) the adjusted net worth of a business or
farm, computed on the basis of the net worth of
such business or farm (hereafter referred to as
``NW''), determined in accordance with the
following table (or a successor table
prescribed by the Secretary under section 478),
except as provided under section 480(f):
Adjusted Net Worth of a Business or Farm
------------------------------------------------------------------------
If the net worth of a business or farm Then the adjusted net worth is--
is--
------------------------------------------------------------------------
Less than $1........................... $0
$1-$75,000............................. 40 percent of NW
$75,001-$225,000....................... $30,000 plus 50 percent of NW
over $75,000
$225,001-$375,000...................... $105,000 plus 60 percent of NW
over $225,000
$375,001 or more....................... $195,000 plus 100 percent of NW
over $375,000
------------------------------------------------------------------------
(3) Asset protection allowance.--The asset protection
allowance is calculated according to the following
table (or a successor table prescribed by the Secretary
under section 478):
Asset Protection Allowances for Families and Students
------------------------------------------------------------------------
And the student is
If the age of the student is-- ---------------------
married single
------------------------------------------------------------------------
then the allowance
is--
------------
25 or less........................................ $ 0 $0
26................................................ 2,200 1,600
27................................................ 4,300 3,200
28................................................ 6,500 4,700
29................................................ 8,600 6,300
30................................................ 10,800 7,900
31................................................ 13,000 9,500
32................................................ 15,100 11,100
33................................................ 17,300 12,600
34................................................ 19,400 14,200
35................................................ 21,600 15,800
36................................................ 23,800 17,400
37................................................ 25,900 19,000
38................................................ 28,100 20,500
39................................................ 30,200 22,100
40................................................ 32,400 23,700
41................................................ 33,300 24,100
42................................................ 34,100 24,700
43................................................ 35,000 25,200
44................................................ 35,700 25,800
45................................................ 36,600 26,300
46................................................ 37,600 26,900
47................................................ 38,800 27,600
48................................................ 39,800 28,200
49................................................ 40,800 28,800
50................................................ 41,800 29,500
51................................................ 43,200 30,200
52................................................ 44,300 31,100
53................................................ 45,700 31,800
54................................................ 47,100 32,600
55................................................ 48,300 33,400
56................................................ 49,800 34,400
57................................................ 51,300 35,200
58................................................ 52,900 36,200
59................................................ 54,800 37,200
60................................................ 56,500 38,100
61................................................ 58,500 39,200
62................................................ 60,300 40,300
63................................................ 62,400 41,500
64................................................ 64,600 42,800
65 or more........................................ 66,800 44,000
------------------------------------------------------------------------
(4) Asset conversion rate.--The asset conversion rate
is 7 percent.
(d) Assessment Schedule.--The adjusted available income (as
determined under subsection (a)(1) and hereafter referred to as
``AAI'') is assessed according to the following table (or a
successor table prescribed by the Secretary under section 478):
Assessment From Adjusted Available Income (AAI)
------------------------------------------------------------------------
If AAI is-- Then the assessment is--
------------------------------------------------------------------------
Less than -$3,409...................... -$750
-$3,409 to $9,400...................... 22% of AAI
$9,401 to $11,800...................... $2,068 + 25% of AAI over $9,400
$11,801 to $14,200..................... $2,668 + 29% of AAI over
$11,800
$14,201 to $16,600..................... $3,364 + 34% of AAI over
$14,200
$16,601 to $19,000..................... $4,180 + 40% of AAI over
$16,600
$19,001 or more........................ $5,140 + 47% of AAI over
$19,000
------------------------------------------------------------------------
(e) Computations in Case of Separation, Divorce, or Death.--
In the case of a student who is divorced or separated, or whose
spouse has died, the spouse's income and assets shall not be
considered in determining the family's available income or
assets.
SEC. 478. REGULATIONS; UPDATED TABLES.
(a) Authority To Prescribe Regulations Restricted.--(1)
Notwithstanding any other provision of law, the Secretary shall
not have the authority to prescribe regulations to carry out
this part except--
(A) to prescribe updated tables in accordance with
subsections (b) through (h) of this section; [or]
(B) to propose modifications in the need analysis
methodology required by this part[.]; or
(C) to prescribe--
(i) one methodology that institutions of
higher education (other than institutions that
receive a waiver under clause (ii)) shall use,
or a selection of two or more methodologies
from which such institutions shall select and
use a methodology, to determine the allowance
for room and board costs incurred by students
described in subparagraph (A) of section 472(3)
and by students described in subparagraph (D)
of such section, which shall--
(I) ensure that each such allowance
determination is sufficient to cover
reasonable room and board costs
incurred by the students for whom such
allowance is being determined; and
(II) include the sources of
information that institutions shall use
in making each such allowance
determination; and
(ii) a process for granting institutions of
higher education a waiver from the requirements
of clause (i), including--
(I) a requirement that each
institution of higher education seeking
such a waiver submit to the Secretary--
(aa) a description of the
methodology that the
institution will use for each
allowance determination
described in clause (i);
(bb) an assurance that each
such allowance determination
meets the requirements of
clause (i)(I); and
(cc) a demonstration that the
institution will use reliable
sources of information for each
such allowance determination;
and
(II) a requirement that each
institution of higher education that
receives such a waiver publicly
disclose on the website of the
institution the methodology and sources
of information used by the institution
for each allowance determination
described in clause (i).
(2) Any regulation proposed by the Secretary that (A) updates
tables in a manner that does not comply with subsections (b)
through (h) of this section, or (B) that proposes modifications
under paragraph (1)(B) of this subsection, shall not be
effective unless approved by joint resolution of the Congress
by May 1 following the date such regulations are published in
the Federal Register in accordance with section 482. If the
Congress fails to approve such regulations by such May 1, the
Secretary shall publish in the Federal Register in accordance
with section 482 updated tables for the applicable award year
that are prescribed in accordance with subsections (b) through
(h) of this section.
(3) Any regulation proposed by the Secretary under paragraph
(1)(C) of this subsection shall not be subject to the
requirements of paragraph (2).
(b) Income Protection Allowance.--
(1) Revised tables.--
[(A) In general.--For each academic year
after academic year 2008-2009, the Secretary
shall publish in the Federal Register a revised
table of income protection allowances for the
purpose of sections 475(c)(4) and 477(b)(4),
subject to subparagraphs (B) and (C).
[(B) Table for independent students.--
[(i) Academic years 2009-2010 through
2012-2013.--For each of the academic
years 2009-2010 through 2012-2013, the
Secretary shall not develop a revised
table of income protection allowances
under section 477(b)(4) and the table
specified for such academic year under
subparagraphs (A) through (D) of such
section shall apply.
[(ii) Other academic years.--For each
academic year after academic year 2012-
2013, the Secretary shall develop the
revised table of income protection
allowances by increasing each of the
dollar amounts contained in the table
of income protection allowances under
section 477(b)(4)(D) by a percentage
equal to the estimated percentage
increase in the Consumer Price Index
(as determined by the Secretary)
between December 2011 and the December
next preceding the beginning of such
academic year, and rounding the result
to the nearest $10.]
(A) In general.--For each award year after
award year 2021-2022, the Secretary shall
publish in the Federal Register a revised table
of income protection allowances for the purpose
of sections 475(c)(4) and 477(b)(4), subject to
subparagraphs (B) and (C).
(B) Table for independent students.--For each
award year after award year 2021-2022, the
Secretary shall develop the revised table of
income protection allowances by increasing each
of the dollar amounts contained in the table of
income protection allowances under section
477(b)(4) by a percentage equal to the
estimated percentage increase in the Consumer
Price Index (as determined by the Secretary for
the most recent calendar year ending prior to
the beginning of the award year for which the
determination is being made), and rounding the
result to the nearest $10.
(C) Table for parents.--For each academic
year after academic year 2008-2009, the
Secretary shall develop the revised table of
income protection allowances under section
475(c)(4) by increasing each of the dollar
amounts contained in the table by a percentage
equal to the estimated percentage increase in
the Consumer Price Index (as determined by the
Secretary) between December 1992 and the
December next preceding the beginning of such
academic year, and rounding the result to the
nearest $10.
(2) Revised amounts.--For each [academic year after
academic year 2007-2008] award year after award year
2021-2022, the Secretary shall publish in the Federal
Register revised income protection allowances for the
purpose of sections 475(g)(2)(D) and 476(b)(1)(A)(iv).
Such revised allowances [shall be developed for each
academic year after academic year 2012-2013, by
increasing each of the dollar amounts contained in such
section for academic year 2012-2013 by a percentage
equal to the estimated percentage increase in the
Consumer Price Index (as determined by the Secretary)
between December 2011 and the December next preceding
the beginning of such academic year, and rounding the
result to the nearest $10.] shall be developed for each
award year after award year 2021-2022, by increasing
each of the dollar amounts contained in such section
for award year 2021-2022 by a percentage equal to the
estimated percentage increase in the Consumer Price
Index (as determined by the Secretary for the most
recent calendar year ending prior to the beginning of
the award year for which the determination is being
made), and rounding the result to the nearest $10.
(c) Adjusted Net Worth of a Farm or Business.--For each award
year after award year 1993-1994, the Secretary shall publish in
the Federal Register a revised table of adjusted net worth of a
farm or business for purposes of sections 475(d)(2)(C),
476(c)(2)(C), and 477(c)(2)(C). Such revised table shall be
developed--
(1) by increasing each dollar amount that refers to
net worth of a farm or business by a percentage equal
to the estimated percentage increase in the Consumer
Price Index (as determined by the Secretary) between
December 1992 and the December next preceding the
beginning of such award year, and rounding the result
to the nearest $5,000; and
(2) by adjusting the dollar amounts ``$30,000'',
``$105,000'', and ``$195,000'' to reflect the changes
made pursuant to paragraph (1).
(d) Education Savings and Asset Protection Allowance.--For
each award year after award year 1993-1994, the Secretary shall
publish in the Federal Register a revised table of allowances
for the purpose of sections 475(d)(3), 476(c)(3), and
477(c)(3). Such revised table shall be developed by determining
the present value cost, rounded to the nearest $100, of an
annuity that would provide, for each age cohort of 40 and
above, a supplemental income at age 65 (adjusted for inflation)
equal to the difference between the moderate family income (as
most recently determined by the Bureau of Labor Statistics),
and the current average social security retirement benefits.
For each age cohort below 40, the allowance shall be computed
by decreasing the allowance for age 40, as updated, by one-
fifteenth for each year of age below age 40 and rounding the
result to the nearest $100. In making such determinations--
(1) inflation shall be presumed to be 6 percent per
year;
(2) the rate of return of an annuity shall be
presumed to be 8 percent; and
(3) the sales commission on an annuity shall be
presumed to be 6 percent.
(e) Assessment Schedules and Rates.--For each award year
after award year 1993-1994, the Secretary shall publish in the
Federal Register a revised table of assessments from adjusted
available income for the purpose of sections 475(e) and 477(d).
Such revised table shall be developed--
(1) by increasing each dollar amount that refers to
adjusted available income by a percentage equal to the
estimated percentage increase in the Consumer Price
Index (as determined by the Secretary) between December
1992 and the December next preceding the beginning of
such [academic year] award year, rounded to the nearest
$100; and
(2) by adjusting the other dollar amounts to reflect
the changes made pursuant to paragraph (1).
(f) Definition of Consumer Price Index.--As used in this
section, the term ``Consumer Price Index'' means the Consumer
Price Index for All Urban Consumers published by the Department
of Labor. Each annual update of tables to reflect changes in
the Consumer Price Index shall be corrected for misestimation
of actual changes in such Index in previous years.
(g) State and Other Tax Allowance.--For each award year after
award year 1993-1994, the Secretary shall publish in the
Federal Register a revised table of State and other tax
allowances for the purpose of sections 475(c)(2), 475(g)(3),
476(b)(2), and 477(b)(2). The Secretary shall develop such
revised table after review of the Department of the Treasury's
Statistics of Income file and determination of the percentage
of income that each State's taxes represent.
(h) Employment Expense Allowance.--For each award year after
award year 1993-1994, the Secretary shall publish in the
Federal Register a revised table of employment expense
allowances for the purpose of sections 475(c)(5), 476(b)(4),
and 477(b)(5). Such revised table shall be developed by
increasing the dollar amount specified in sections
475(c)(5)(A), 475(c)(5)(B), 476(b)(4)(A), 477(b)(5)(A), and
477(b)(5)(B) to reflect increases in the amount and percent of
the Bureau of Labor Statistics budget of the marginal costs for
food away from home, apparel, transportation, and household
furnishings and operations for a two-worker versus one-worker
family.
[SEC. 479. SIMPLIFIED NEEDS TESTS.
[(a) 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; 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.
[(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 3 of
the Workforce Innovation and Opportunity Act.
[(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. 479. ZERO EXPECTED FAMILY CONTRIBUTION.
(a) In General.--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)(i) the student's parents are not required
to file--
(I) a Federal income tax return; or
(II) with respect to Internal Revenue
Service Form 1040, any of the following
forms: Schedule A, Schedule B, Schedule
C, Schedule C-EZ, Schedule D, Schedule
E, Schedule F, Schedule H, Schedule J,
and Schedule SE; and
(ii) the sum of the adjusted gross income of
the parents is less than or equal to $37,000;
or
(B) the student's parents, or the student,
received a benefit at some time during the
previous 24-month period under a means-tested
Federal benefit program;
(2) in the case of an independent student without
regard to whether the student has dependents other than
a spouse--
(A)(i) the student (and the student's spouse,
if any) certifies that the student (and the
student's spouse, if any)--
(I) is not required to file a Federal
income tax return; or
(II) with respect to Internal Revenue
Service Form 1040, any of the following
forms: Schedule A, Schedule B, Schedule
C, Schedule C-EZ, Schedule D, Schedule
E, Schedule F, Schedule H, Schedule J,
and Schedule SE; and
(ii) the sum of the adjusted gross income of
the student and spouse (if appropriate) is less
than or equal to $37,000; or
(B) the student received a benefit at some
time during the previous 24-month period under
a means-tested Federal benefit program; or
(3) the applicant is a pathway one applicant under
section 483(a)(13).
(b) Earned Income Credit.--An individual is not required to
qualify or file for the earned income credit in order to be
eligible under this section.
(c) Adjustments.--The Secretary shall annually adjust the
income level necessary to qualify an applicant for the zero
expected family contribution. The income level shall be
annually increased by the estimated percentage change in the
Consumer Price Index, as defined in section 478(f), for the
most recent calendar year ending prior to the beginning of an
award year, and rounded to the nearest $1,000.
(d) Means-tested Federal Benefit Program Defined.--For
purposes of this title, a ``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--
(1) the supplemental security income program under
title XVI of the Social Security Act (42 U.S.C. 1381 et
seq.);
(2) the supplemental nutrition assistance program
under the Food and Nutrition Act of 2008 (7 U.S.C. 2011
et seq.), a nutrition assistance program carried out
under section 19 of such Act (7 U.S.C. 2028), and a
supplemental nutrition assistance program carried out
under section 1841(c) of title 48 of the United States
Code;
(3) 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.);
(4) 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);
(5) the State Medicaid program under title XIX of the
Social Security Act (42 U.S.C. 1396 et seq.); and
(6) any other program identified by the Secretary.
* * * * * * *
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] shall
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] 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 Innovation and Opportunity
Act.]
(1) The term ``untaxed income and benefits'' means--
(A) child support received;
(B) untaxed portion of pensions;
(C) payments to individual retirement
accounts and Keogh accounts excluded from
income for Federal income tax purposes; and
(D) cash support or any money paid on the
student's behalf, except, for dependent
students, funds provided by the student's
parents.
(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[.];
(G) worker's compensation;
(H) veteran's benefits such as death pension,
dependency, or indemnity compensation, or
veterans' education benefits as defined in
subsection (c);
(I) interest on tax-free bonds;
(J) housing, food, or other allowances
(including rent subsidies for low-income
housing) for military, clergy, and others
(including cash payments and cash value of
benefits), or 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; or
(K) 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 Innovation and Opportunity
Act (29 U.S.C. 3111 et seq.).
(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 age 23 or younger
who is a homeless child or youth (as such
[terms are] term is 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,
or a designee of the liaison;
(ii) the director of [a program
funded under the Runaway and Homeless
Youth Act] an emergency or transitional
shelter, street outreach program,
homeless youths drop-in center, or
other program serving homeless youths,
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)] Federal TRIO program or a
Gaining Early Awareness and Readiness
for Undergraduate program under chapter
1 or 2 of subpart 2 of part A, 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.
(3) Simplifying the determination process for
unaccompanied youth.--
(A) Verification.--A financial aid
administrator shall accept a determination of
independence made by any individual authorized
to make such determinations under clause (i),
(ii), or (iii) of paragraph (1)(H) in the
absence of conflicting information. A
documented phone call with, or a written
statement from, one of the authorized
individuals is sufficient verification when
needed. For purposes of this paragraph, a
financial aid administrator's disagreement with
the determination made by an authorized
individual shall not be considered conflicting
information.
(B) Determination of independence.--A
financial aid administrator shall make a
determination of independence under paragraph
(1)(H) if a student does not have, and cannot
obtain, documentation from any of the other
designated authorities described in such
paragraph. Such a determination shall be--
(i) based on the definitions outlined
in paragraph (1)(H);
(ii) distinct from a determination of
independence under paragraph (1)(I);
(iii) based on a documented interview
with the student; and
(iv) limited to whether the student
meets the definitions in paragraph
(1)(H) and not about the reasons for
the student's homelessness.
(C) Additional streamlining permitted.--
Nothing in this paragraph prohibits an
institution from implementing polices that--
(i) streamline the determination of
independence under paragraph (1)(H);
and
(ii) improve a student's access to
financial aid because that student is
an unaccompanied youth.
(4) Simplifying the verification process for foster
care youth.--
(A) Verification of independence.--If an
institution requires documentation to verify
that a student is independent based on a status
described in paragraph (1)(B), a financial aid
administrator shall consider any of the
following as adequate verification:
(i) Submission of a court order or
official State documentation that the
student received Federal or State
support in foster care.
(ii) A documented phone call with, a
written statement from, or verifiable
data match with--
(I) a child welfare agency
authorized by a State or
county;
(II) a Tribal child welfare
authority;
(III) an Independent Living
case worker;
(IV) a public or private
foster care placing agency or
foster care facility or
placement;
(V) another program serving
orphans, foster care youth, or
wards of the court; or
(VI) a probation officer.
(iii) A documented phone call with,
or a written statement from, an
attorney, a guardian ad litem, or a
Court Appointed Special Advocate,
documenting that person's relationship
to the student.
(iv) A documented phone call with, or
a written statement from, a
representative of a Federal TRIO
program or a Gaining Early Awareness
and Readiness for Undergraduate program
under chapter 1 or 2 of subpart 2 of
part A.
(v) Verification of the student's
eligibility for an education and
training voucher under the John H.
Chafee Foster Care Independence Program
(42 U.S.C. 677).
(vi) Documentation of foster care
provided pursuant to section 475(5)(I)
of the Social Security Act (45 U.S.C.
675(5)(I)).
(vii) Submission of a copy of the
student's biological or adoptive
parents' or legal guardians'--
(I) Certificates of Death; or
(II) verifiable obituaries.
(viii) An attestation from the
student, which includes a description
of why the student may qualify for a
status described in paragraph (1)(B),
including the approximate dates that
the student was in foster care,
dependent, or a ward of the court, to
the best of the student's knowledge
after making reasonable efforts to
provide any requested documentation.
(B) Additional streamlining permitted.--
Nothing in this paragraph prohibits an
institution from implementing polices that
streamline the determination of independent
status and improve a student's access to
financial aid because that student 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 since such student was 13
years of age or older.
(5) Timing; use of earlier determination.--
(A) Timing.--A determination under
subparagraph (B) or (H) of paragraph (1) for a
student--
(i) shall be made as quickly as
practicable;
(ii) may be made as early as the year
before the award year for which the
student initially submits an
application; and
(iii) shall be made no later than
during the award year for which the
student initially submits an
application.
(B) Use of earlier determination.--Any
student who is determined to be independent
under subparagraph (B) or (H) of paragraph (1)
for a preceding award year at an institution
shall be presumed to be independent for each
subsequent award year at the same institution
unless--
(i) the student informs the
institution that circumstances have
changed; or
(ii) the institution has specific
conflicting information about the
student's independence, and has
informed the student of this
information and the opportunity to
challenge such information through a
documented interview or an impartial
review by the Borrower Advocate
pursuant to section 141(f)(6)(C).
(6) Retention of documents.--A financial aid
administrator shall retain all documents related to the
determination of independence under subparagraph (B) or
(H) of paragraph (1), including documented interviews,
for the duration of the student's enrollment at the
institution and for a minimum of 1 year after the
student is no longer enrolled at the institution.
(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]
(5) payments made and services provided under part E
of title IV of the Social Security Act to or on behalf
of any child or youth over whom the State agency has
responsibility for placement, care, or supervision,
including the value of vouchers for education and
training and amounts expended for room and board for
youth who are not in foster care but are receiving
services under section 477 of such 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.
(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 purpose of any program under this title, the
term ``academic year'' shall--
(i) require a minimum of 30 weeks of instructional
time for a course of study that measures its program
length in credit hours; or
(ii) require a minimum of 26 weeks of instructional
time for a course of study that measures its program
length in clock hours; and
(iii) require an undergraduate course of study to
contain an amount of instructional time whereby a full-
time student is expected to complete at least--
(I) 24 semester or trimester hours or 36
quarter credit hours in a course of study that
measures its program length in credit hours; or
(II) 900 clock hours in a course of study
that measures its program length in clock
hours.
(B) The Secretary may reduce such minimum of 30 weeks to not
less than 26 weeks for good cause, as determined by the
Secretary on a case-by-case basis, in the case of an
institution of higher education that provides a 2-year or 4-
year program of instruction for which the institution awards an
associate or baccalaureate degree and that measures program
length in credit hours or clock hours.
(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] occupation; 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) has a verified annual earnings rate among
individuals who completed the program, as determined
under subparagraph (D), that is not less than the
average or median annual earnings rate of individuals
with only a high school diploma (or the equivalent)
based on the most recently available data from the
Bureau of Labor Statistics or the Bureau of the Census
with respect to--
(I) such average or median earnings rate in
the United States; or
(II) subject to subparagraph (E), such
average or median earnings rate in the State or
local area in which the institution offering
the program is located;
(iv) prepares students for gainful employment in a
recognized occupation;
(v) has been in operation for not less than two
consecutive years; and
[(iii)] (vi) 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.
(C)(i) For each subsequent year for which a program seeks
eligibility under this paragraph, the Secretary shall
reevaluate whether the program continues to meet the
requirements of clauses (i), (iii), (iv), and (vi) of
subparagraph (A). A program that does not meet such
requirements for two consecutive award years (or, in the case
of a program that does not meet the requirements under
subparagraph (A)(iv), for a period of time determined by the
Secretary) shall be ineligible to participate in programs under
this title--
(I) for the period of two award years following the
last award year for which the program was eligible to
participate in such programs; and
(II) for any subsequent award year, unless the
program reapplies for eligibility in accordance with
clause (iii) and the Secretary determines that the
program meets the requirements of such clauses.
(ii) Not later than 60 days after receiving notification from
the Secretary of the loss of eligibility under clause (i), a
program may appeal a loss of eligibility to the Secretary. The
Secretary may restore the eligibility of a program under this
paragraph if the program demonstrates to the Secretary that
extenuating circumstances led to the loss of eligibility.
(iii) The Secretary shall issue a decision on any appeal
submitted by a program under clause (ii) not later than 45 days
after its submission.
(iv) After the expiration of the two-year period described in
clause (i)(I), a program that lost eligibility under clause (i)
may reapply to the Secretary for a determination of eligibility
under this paragraph.
(D)(i) In this subsection, the term ``verified annual
earnings rate'' means the mean or median annual earnings rate
(whichever is higher) of individuals who completed a program
calculated as of the date that is approximately one year after
the date on which such individuals completed the program.
(ii) For the first year for which a program seeks eligibility
under this paragraph, the institution that offers such program
shall--
(I) determine the verified annual earnings rate using
data obtained on individuals who completed the program;
(II) obtain an audit of such determination from an
independent auditor;
(III) together with the auditor described in
subclause (II), certify the accuracy of the verified
annual earnings rate to the Secretary; and
(IV) determine the completion rate for the program,
as described in subparagraph (A)(i), and certify to the
Secretary the accuracy of such determination.
(iii) For each subsequent year for which a program seeks
eligibility under this paragraph, the Secretary shall determine
the verified annual earnings rate and completion rate for the
program using data made available to the Secretary through the
postsecondary student data system established under section
132(l) or a successor system (whichever includes the most
recent data).
(E)(i) Except as provided in clause (ii), for purposes of
calculating the average annual earnings rate of individuals
with only a high school diploma (or the equivalent) under
subparagraph (A)(ii) the Secretary shall apply the national
average or median earnings rate in the United States.
(ii) The Secretary may apply the average or median earnings
rate in the State or local area in which the institution
offering a program is located, in lieu of the national average
earnings rate, if the institution provides sufficient
justification to the Secretary.
(F) Using the postsecondary student data system established
under section 132(l) or a successor system to streamline
reporting requirements and minimize reporting burdens, and in
coordination with the National Center for Education Statistics
and each institution of higher education offering an eligible
program under this paragraph, the Secretary shall, on at least
an annual basis, collect data with respect to each such
eligible program, including the following:
(i) The number and demographics of students who
enroll in the program.
(ii) The number of credits attempted and accumulated
annually by students enrolled in the program.
(iii) The share of such students who cease enrollment
on or before the completion of 60 percent of the
payment period or period of enrollment.
(iv) The verified completion rate for the program, as
described in subparagraph (A)(i).
(v) The mean and median annual earnings of graduates
and the verified annual earnings rate for the program,
as described in subparagraph (A)(ii).
(vi) The number and demographics of students who
complete the program.
(vii) The outcomes of the students who complete the
program, including--
(I) the share of such students who continue
enrollment at the institution of higher
education offering the program;
(II) the share of such students who transfer
to another institution of higher education;
(III) the share of such students who complete
a subsequent certificate or degree program;
(IV) the share of such students who secure
employment 6 months and 1 year, respectively--
(aa) after completion of such
program; or
(bb) in the case of a program that
prepares students for a professional
license or certification exam, after
acquiring such license or
certification; and
(V) in the case of a program that prepares
students for a professional license or
certification exam, the share of such students
who pass such exam.
(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 or in
addition to 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.
(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 eligible institution of higher education to
recruit students; or
[(2)] (3) 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. 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).] process a paper version of the
forms described in this subsection, in
accordance with 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)] (B) 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)]
subparagraph (A) 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)] (B) 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)] (C) 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)] (D) Privacy.--[The Secretary]
(i) In general._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.
(ii) Scholarship granting
organizations.--
(I) Authorization.--An
institution of higher education
may, with explicit written
consent of an applicant who has
completed a form developed
under this section, provide
such information collected from
such form as is necessary to an
organization described in
subclause (II) that is
designated by the applicant to
assist the applicant in
applying for and receiving
financial assistance for any
component of the applicant's
cost of attendance at that
institution.
(II) Definition of
organization.--An organization
described in this subclause--
(aa) means a
scholarship granting
organization, including
a tribal organization
(defined in section 4
of the Indian Self-
Determination and
Education Assistance
Act (25 U.S.C. 5304)))
or an organization
assisting an applicant
in applying for and
receiving Federal,
State, local, or tribal
assistance; and
(bb) shall be subject
to the requirements of
clause (i).
[(F)] (E) 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)] subparagraph (F).
[(G)] (F) 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)] (G) Personal identification number
improvement.--The Secretary shall continue to
work with the Commissioner of Social Security
to minimize the time required for an applicant
to obtain a personal identification number when
applying for aid under this title through an
electronic version of a form developed under
this paragraph.
(4) Streamlining.--
(A) Streamlined reapplication process.--
(i) In general.--The Secretary shall
continue to streamline reapplication
forms and processes for an applicant
who applies for financial assistance
under this title in the next succeeding
[academic year] award year subsequent
to an [academic year] award 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.
(C) Single question regarding homeless
status.--The Secretary shall ensure that, on
each form developed under this section for
which the information is applicable, there is a
single, easily understood screening question to
identify an applicant for aid who is--
(i) an unaccompanied homeless child
or youth (as such term is defined in
section 725 of the McKinney-Vento
Homeless Assistance Act); or
(ii) an unaccompanied youth who is
self-supporting and at risk of
homelessness.
(D) Incarcerated individuals.--
(i) In general.--The Secretary shall
streamline the forms and processes for
an incarcerated individual (as defined
in section 401(n)(4)) to apply for a
Federal Pell Grant under section 401,
which--
(I) shall be used to
determine the expected family
contribution for such
individual as of the date of
enrollment in the course for
which the individual is
applying for such Federal Pell
Grant; and
(II) may include--
(aa) flexibility in
the submission of any
required documentation
required to verify
eligibility for a
Federal Pell Grant; and
(bb) assistance in
rehabilitating loans
under section 428F.
(ii) Report.--Not later than 1 year
after the date of enactment of the
College Affordability Act, the
Secretary shall submit to the Committee
on Education and Labor of the House of
Representatives and the Committee on
Health, Education, Labor, and Pensions
of the Senate, and make publicly
available on the website of the
Department, a report on how the forms
and processes are being streamlined
under clause (i).
(5) State requirements.--
(A) In general.--Except as provided in
[paragraphs (2)(B)(iii), (3)(B), and
(4)(A)(ii)] paragraph (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] determine 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] The
Secretary shall publish on an annual
basis a notice in the Federal Register
requiring State agencies to inform the
Secretary 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)] (D) Restriction.--The Secretary shall,
to the extent practicable, not require
applicants to complete any financial or
nonfinancial data items that are not required--
(i) by the applicant's State; or
(ii) by the Secretary.
(6) Charges to students and parents for use of forms
prohibited.--The need and eligibility of a student for
financial assistance under parts A through E (other
than under subpart 4 of part A) may be determined only
by using a form developed by the Secretary under this
subsection. Such forms shall be produced, distributed,
and processed by the Secretary, and no parent or
student shall be charged a fee by the Secretary, a
contractor, a third-party servicer or private software
provider, or any other public or private entity for the
collection, processing, or delivery of financial aid
through the use of such forms. No data collected on a
form for which a fee is charged shall be used to
complete the form prescribed under this section, except
that a Federal or State income tax form prepared by a
paid income tax preparer or preparer service for the
primary purpose of filing a Federal or State income tax
return may be used to complete the form prescribed
under this section.
(7) Restrictions on use of pin.--No person,
commercial entity, or other entity may request, obtain,
or utilize an applicant's personal identification
number assigned under paragraph (3)(G) for purposes of
submitting a form developed under this subsection on an
applicant's behalf.
(8) Application processing cycle.--The Secretary
shall enable students to submit forms developed under
this subsection and initiate the processing of such
forms under this subsection, as early as practicable
prior to January 1 of the student's planned year of
enrollment.
(9) Early estimates.--The Secretary shall continue
to--
(A) permit applicants to enter data in such
forms as described in this subsection in the
years prior to enrollment in order to obtain a
non-binding estimate of the applicant's family
contribution (as defined in section 473);
(B) permit applicants to update information
submitted on forms described in this
subsection, without needing to re-enter
previously submitted information;
(C) develop a means to inform applicants, in
the years prior to enrollment, of student aid
options for individuals in similar financial
situations;
(D) develop a means to provide a clear and
conspicuous notice that the applicant's
expected family contribution is subject to
change and may not reflect the final expected
family contribution used to determine Federal
student financial aid award amounts under this
title; and
(E) consult with representatives of States,
institutions of higher education, and other
individuals with experience or expertise in
student financial assistance application
processes in making updates to forms used to
provide early estimates under this paragraph.
(10) Distribution of data.--Institutions of higher
education, guaranty agencies, and States shall receive,
without charge, the data collected by the Secretary
using a form developed under this subsection for the
purposes of processing loan applications and
determining need and eligibility for institutional and
State financial aid awards. Entities designated by
institutions of higher education, guaranty agencies, or
States to receive such data shall be subject to all the
requirements of this section, unless such requirements
are waived by the Secretary.
(11) Third party servicers and private software
providers.--To the extent practicable and in a timely
manner, the Secretary shall provide, to private
organizations and consortia that develop software used
by institutions of higher education for the
administration of funds under this title, all the
necessary specifications that the organizations and
consortia must meet for the software the organizations
and consortia develop, produce, and distribute
(including any diskette, modem, or network
communications) to be so used. The specifications shall
contain record layouts for required data. The Secretary
shall develop in advance of each processing cycle an
annual schedule for providing such specifications. The
Secretary, to the extent practicable, shall use
multiple means of providing such specifications,
including conferences and other meetings, outreach, and
technical support mechanisms (such as training and
printed reference materials). The Secretary shall, from
time to time, solicit from such organizations and
consortia means of improving the support provided by
the Secretary.
(12) Parent's social security number and birth
date.--The Secretary is authorized to include space on
the forms developed under this subsection for the
social security number and birth date of parents of
dependent students seeking financial assistance under
this title.
(13) FAFSA pathways.--
(A) Memorandum of understanding.--Not later
than the effective date of the College
Affordability Act, the Secretary shall seek to
enter into a Memorandum of Understanding with
the Secretary of Health and Human Services, the
Secretary of Agriculture, and the Secretary of
the Treasury, under which any information
exchanged under an income and eligibility
verification system established pursuant to
section 1137 of the Social Security Act by
State agencies administering a program listed
in paragraph (1), (4), or (5) of subsection (b)
of such section which may be of use in
establishing or verifying eligibility or
benefit amounts under such program shall be
made available to the Secretary of Education to
assist in determining whether the applicant
(or, in the case of a dependent applicant,
whether the applicant or the applicant's
parents) received a benefit at some time during
the previous 24-month period under a means-
tested Federal benefit program, but subject to
the requirements of Federal law.
(B) Requirement for all applicants and the
secretary.--For any award year for which an
applicant applies for financial assistance
under this title (except for any award year for
which, pursuant to paragraph (14), the
applicant is not required to submit a FAFSA)--
(i) the applicant shall provide on
the form described in this subsection
whether the applicant received (or, in
the case of a dependent applicant,
whether the applicant or the parents of
the applicant received) a benefit at
some time during the previous 24-month
period under a means-tested Federal
benefit program; and
(ii) the Secretary, to the extent
practicable and pursuant to the
Memorandum of Understanding entered
into under subparagraph (A), and
without any further action by the
applicant, shall verify the applicant's
(or, in the case of a dependent
applicant, the applicant's or the
applicant's parents') receipt of such
benefit.
(C) Pathway one applicants.--
(i) In general.--With respect to an
applicant who received (or, in the case
of a dependent applicant, an applicant
who received or whose parents received)
a benefit at some time during the
previous 24-month period under a means-
tested Federal benefit program, the
applicant shall not be required to
provide any further income or asset
information on the form under this
subsection.
(ii) Designation.--For purposes of
this section and part F, an applicant
described in clause (i) shall be
referred to as a ``pathway one
applicant''.
(D) Pathway two applicants.--
(i) In general.--With respect to an
applicant who is not a pathway one
applicant and who is described in
clause (ii), the Secretary, to the
extent practicable, shall use the data
retrieval tool under section 484(p) to
obtain any information for the
applicant beyond the information
described in subparagraph (A) for
purposes of the form under this
subsection.
(ii) Requirements.--An applicant
described in this clause is an
applicant who certifies that--
(I) the applicant is not
required to file or, in the
case of a dependent applicant,
no parent of the applicant is
required to file--
(aa) a Federal income
tax return; or
(bb) with respect to
Internal Revenue
Service Form 1040, any
of the following forms:
Schedule A, Schedule B,
Schedule C, Schedule C-
EZ, Schedule D,
Schedule E, Schedule F,
Schedule H, Schedule J,
and Schedule SE; and
(II) the sum of the adjusted
gross income of the applicant
or, in the case of a dependent
applicant, the parents of the
applicant, is less than or
equal to $60,000.
(iii) Designation.--For purposes of
this section and part F, an applicant
described in clause (i) shall be
referred to as a ``pathway two
applicant''.
(E) Pathway three applicants.--
(i) In general.--With respect to an
applicant who is not a pathway one
applicant or a pathway two applicant,
the Secretary, to the extent
practicable, shall use the data
retrieval tool under section 484(p) to
obtain any information for the
applicant beyond the information
described in subparagraph (A) for
purposes of the form under this
subsection.
(ii) Designation.--For purposes of
this section and part F, an applicant
described in clause (i) shall be
referred to as a ``pathway three
applicant''.
(F) Means-tested federal benefit program
defined.--For purposes of this paragraph, the
term ``means-tested Federal benefit program''
has the meaning given the term in section
479(d).
(14) One-time fafsa filing.--
(A) In general.--Notwithstanding any other
provision of this section and subject to
subparagraphs (B) and (C), an applicant who
submits a FAFSA for the first time for an award
year for the period required for the completion
of the first undergraduate baccalaureate course
of study being pursued by such applicant and is
eligible to receive a Federal Pell Grant for
such award year, for any succeeding award
year--
(i) for which the applicant does not
submit a FAFSA and for which the
applicant submits a certification form
described in subparagraph (D) that does
not indicate a change in the dependency
status of such applicant, such
applicant--
(I) shall not be required to
submit a FAFSA to receive
financial assistance under this
title; and
(II) shall have an expected
family contribution for such
year that is equal to the
expected family contribution of
the applicant determined for
the award year for which the
applicant submitted a FAFSA for
such period, except that an
adjustment may be made under
section 479A that results in a
change in such expected family
contribution;
(ii) for which the applicant submits
a certification form described in
subparagraph (D) that indicates a
change in the dependency status of the
applicant, such applicant--
(I) shall be required to
submit a FAFSA with respect to
such award year to receive
financial assistance under this
title; and
(II) shall have an expected
family contribution for such
year that is determined based
on such FAFSA;
(iii) for which the applicant submits
a FAFSA, such applicant--
(I) shall have an expected
family contribution for such
year that is determined based
on such FAFSA; and
(II) shall be required to
submit a FAFSA for any other
award year for which the
applicant seeks financial
assistance under this title;
and
(iv) for which the applicant does not
submit a certification form described
in subparagraph (D), such applicant
shall submit a FAFSA for such
succeeding award year and any other
award year for which the applicant
seeks financial assistance under this
title.
(B) Adjustment of expected family
contribution.--With respect to an applicant
described in subparagraph (A)(i) who receives
an adjustment under section 479A that results
in a change to the expected family contribution
of the applicant, for any succeeding award year
after the award year for which the adjustment
was made, subclause (II) of such subparagraph
shall be applied to such applicant by
substituting ``expected family contribution of
the applicant as most recently changed as a
result of an adjustment under section 479A for
such applicant'' for the ``expected family
contribution of the applicant determined for
the award year for which the applicant
submitted a FAFSA for such period''.
(C) Rule for certain students.--With respect
to an applicant who submits a FAFSA for award
year 2021-2022 and enrolls in an institution of
higher education for such year, subparagraph
(A) shall be applied--
(i) in the matter preceding clause
(i), by substituting ``award year 2021-
2022'' for ``the first time for an
award year''; and
(ii) in clause (i)(II), by
substituting ``award year 2021-2022''
for ``the award year for which the
applicant submitted a FAFSA for such
period''.
(D) Student certification form.--The
Secretary, in cooperation with representatives
of agencies and organizations involved in
student financial assistance, shall use
behavioral science insights to produce,
distribute, and process free of charge a short
and simple consumer-tested certification form
that uses skip logic to bypass fields that are
inapplicable to an applicant. Such form shall
not require an applicant to provide data that
the Secretary may otherwise obtain with respect
to the applicant (such as age or active duty
military status), and may only contain the data
elements required for purposes of subparagraph
(A)(i)--
(i) to confirm whether the applicant
is--
(I) a dependent student;
(II) a single independent
student or a married
independent student without
dependents (other than a
spouse); or
(III) an independent student
with dependents other than a
spouse;
(ii) to allow the applicant to update
the contact information of such
applicant or the Federal School Code of
the institution of higher education in
which the applicant is, or will be
enrolled, for the award year for which
the applicant submits such form; and
(iii) to ask whether the applicant's
need and eligibility for financial
assistance under this title has not
changed substantially since the most
recent of the following:
(I) The applicant submitted a
FAFSA.
(II) The applicant received
an adjustment under section
479A that results in a change
to the expected family
contribution of the applicant.
(E) Definitions.--In this paragraph:
(i) Dependency status.--The term
``dependency status'' means the status
of an applicant as--
(I) a dependent student;
(II) a single independent
student or a married
independent student without
dependents (other than a
spouse); or
(III) an independent student
with dependents other than a
spouse.
(ii) Succeeding award year.--The term
``succeeding award year''--
(I) when used with respect to
an applicant who submits a
FAFSA for the first time for an
award year for the period
required for the completion of
the first undergraduate
baccalaureate course of study
being pursued by such
applicant, means any award year
for such period that follows
the award year for which the
applicant submits such FAFSA;
and
(II) when used with respect
to an applicant described in
subparagraph (C), means any
award year after award year
2021-2022 for the period
required for the completion of
the first undergraduate
baccalaureate course of study
being pursued by such
applicant.
(15) FAFSA in various languages.--The Secretary
shall--
(A) translate the form developed under this
subsection into not fewer than 11 foreign
languages based on the languages most often
spoken by English learner students and their
parents, and make the translated form available
and accessible to applicants in paper and
electronic formats; and
(B) ensure that the form developed under this
subsection is available in formats accessible
to individuals with disabilities.
(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.
[(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.]
(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 data retrieval tool to transfer
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 taxpayers, regardless of filing
status, to utilize the 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 other year, the Secretary shall
report to the authorizing committees and the Committees
on Appropriations of the House of Representatives and
the Senate on the progress of the simplification
efforts under this subsection.
[(h)] (g) 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.
(h) Data Transparency on the Number of Applicants.--
(1) In general.--The Secretary shall annually publish
data on the number of individuals who apply for Federal
student aid pursuant to this section who are homeless
individuals described in section 725 of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11434a),
including unaccompanied youth and foster care youth.
(2) Contents.--The data described in paragraph (1)
with respect to homeless individuals shall include, at
a minimum, for each application cycle--
(A) the total number of all applicants who
were determined to be (or to be at risk of
becoming) unaccompanied homeless youth under
section 480(d)(1)(H);
(B) the number of applicants described in
subparagraph (A), disaggregated--
(i) by State; and
(ii) by the sources of determination
as described in clauses (i) through
(iv) of section 480(d)(1)(H); and
(C) the number of undetermined requests for
homelessness consideration, including statuses
that remain unknown because no determination
had been made in response to the applicant's
request for the institution to consider the
applicant's special circumstance of being
homeless.
(i) Prohibition on Questions Relating to Drug Offenses.--The
Secretary may not include on the forms developed under this
subsection any data items relating to whether an applicant has
a conviction of any offense under any Federal or State law
involving the possession or sale of a controlled substance (as
defined in section 102(6) of the Controlled Substances Act (21
U.S.C. 802(6)).
(j) FAFSA Verification.--
(1) In general.--With respect to applicants who
submit a FAFSA for an award year and were determined
using data provided in such FAFSA to be eligible to
receive a Federal Pell Grant for such award year, the
Secretary shall submit to the authorizing committees,
and make publicly available, a report for such award
year on--
(A) the number and share of such applicants
who received a Federal Pell Grant for such
award year;
(B) the number and share of such applicants
who did not receive a Federal Pell Grant for
such year;
(C) the number and share of such applicants
who were selected by the Secretary for
verification of the data provided in the FAFSA;
(D) to the extent practicable, the number and
share of applicants described in subparagraph
(C) who enrolled in an institution of higher
education in a year after such selection;
(E) the number and share of applicants
described in subparagraph (C) who completed the
verification process;
(F) of the applicants described in
subparagraph (E)--
(i) the average of the expected
family contribution for all such
applicants as determined using data
provided in the FAFSA;
(ii) the average of the expected
family contribution difference for all
such applicants;
(iii) the average of the expected
family contribution difference for all
such applicants whose expected family
contribution as determined using data
provided in the verification process
was greater than the expected family
contribution as determined using data
provided in the FAFSA; and
(iv) the average of the expected
family contribution difference for all
such applicants whose expected family
contribution as determined using data
provided in the FAFSA was greater than
the expected family contribution as
determined using data provided in the
verification process;
(G) of the applicants described in
subparagraph (E)--
(i) the average Federal Pell Grant
amount for all such applicants as
determined using data provided in the
FAFSA;
(ii) the average of the Federal Pell
Grant difference for all such
applicants;
(iii) the average of the Federal Pell
Grant difference for all such
applicants whose Federal Pell Grant
amount as determined using data
provided in the verification process
was greater than the Federal Pell Grant
amount as determined using data
provided in the FAFSA;
(iv) the average of the Federal Pell
Grant difference for all such
applicants whose Federal Pell Grant
amount as determined using data
provided in the FAFSA was greater than
the Federal Pell Grant amount as
determined using data provided in the
verification process; and
(v) the number and share of such
applicants who were determined using
the data provided in the verification
process to be ineligible for a Federal
Pell Grant;
(H) the number and share of applicants
described in subparagraph (C) who received a
Federal Pell Grant for such award year; and
(I) the number and share of applicants
described in subparagraph (C) who did not
receive a Federal Pell Grant for such award
year.
(2) Disaggregation.--The data provided in a report
under paragraph (1) shall be disaggregated--
(A) by applicants who were pathway one
applicants for such year;
(B) by applicants who were pathway two
applicants for such year;
(C) by applicants who were pathway three
applicants for such year; and
(D) with respect to applicants described in
subparagraphs (C) and (E), the verification
tracking groups of such applicants.
(3) Definitions.--In this subsection:
(A) Expected family contribution
difference.--The term ``expected family
contribution difference'' means, with respect
to an applicant who completed a verification
process with respect to the FAFSA, the
difference between--
(i) the expected family contribution
of such applicant as determined using
data provided in the FAFSA; and
(ii) the expected family contribution
of such applicant as determined using
data provided in the verification
process.
(B) Federal Pell Grant difference.--The term
``Federal Pell Grant difference'' means, with
respect to an applicant who completed a
verification process with respect to the FAFSA,
the difference between--
(i) the amount of the Federal Pell
Grant of such applicant as determined
using data provided in the FAFSA; and
(ii) the amount of the Federal Pell
Grant of such applicant as determined
using data provided in the verification
process.
(k) Financial Aid Offers.--
(1) Requirements for offers.--
(A) Secretarial requirements.--Not later than
18 months after the date of enactment of the
College Affordability Act, the Secretary shall,
based on the consumer testing conducted under
subparagraph (E), publish requirements for
financial aid offers that shall--
(i) include a requirement that
financial aid offers shall serve as the
primary source for Federal, State, and
institutional financial aid information
provided by an institution of higher
education participating in any program
under this title to each prospective
student accepted for admission and each
enrolled student at such institution;
(ii) include a requirement that such
offers include a standardized quick
reference box described in subparagraph
(D);
(iii) establish standardized terms
and definitions, including for the
elements listed in subparagraph (C),
that shall be included in each such
offer;
(iv) establish formatting
requirements with respect to the
organization of the elements listed in
subparagraph (C)), which shall include
a requirement that prohibits such
offers from displaying loans in a
manner that indicates or implies that
such loans reduce the amount owed to
the institution or reduce the net
price; and
(v) specify the simple, plain-
language, and consumer-friendly
information to be included in each such
offer with respect to the financial aid
being offered to a student, which shall
include--
(I) an explanation of
differences among each such
type of financial aid,
including clear explanations
that--
(aa) grants and
scholarships do not
have to be repaid;
(bb) loans (including
loans made under part D
and private education
loans (as defined in
section 140 of the
Truth in Lending Act))
must be repaid with
interest; and
(cc) payments under
Federal-work study
programs under part C
are contingent on
finding qualified
employment and are
typically disbursed
incrementally in
paychecks;
(II) information encouraging
students to consider loans made
under part D before such
private education loans;
(III) information clarifying
that students may--
(aa) decline to
accept a loan made
under part D; or
(bb) accept an amount
of such loan that is
less than the amount of
such loan included in
the financial aid
offer; and
(IV) in a case in which the
institution offers a student
such a loan in an amount that
is less than the maximum amount
for which the student is
eligible, an explanation that
the student is eligible for
additional loans under part D.
(B) Institutional requirements.--Beginning
with the award year that begins not less than 1
year after the Secretary publishes requirements
under subparagraph (A), each institution of
higher education described in subparagraph
(A)(i) shall provide a financial aid offer to
each student described in such subparagraph
prior to each academic year that--
(i) shall comply with the
requirements published by the Secretary
under subparagraph (A); and
(ii) may be supplemented by the
institution with additional, non-
contradictory information related to
financial aid as long as such
supplementary information uses the
standardized terms and definitions
described in subparagraph (A)(iii).
(C) Elements.--A financial aid offer provided
by an institution of higher education shall
include the following elements with respect to
the academic year for which the offer is being
provided:
(i) The cost of attendance, which
shall include separately calculated
subtotals of--
(I) an itemized list of
estimated direct costs owed to
the institution; and
(II) an itemized list of
anticipated student expenses
not covered under subclause
(I).
(ii) Federal, State, and
institutional financial aid available
to the student, which shall include
separately calculated subtotals of--
(I) grants and scholarships;
(II) loans made under part D
(excluding Federal Direct
Parent PLUS Loans) and part E;
and
(III) Federal-work study
programs under part C and other
on-campus employment.
(iii) Other options that may be
available to students to cover the cost
of attendance (including Federal Direct
Parent PLUS Loans, tuition payment
plans, savings, and earnings from other
employment).
(iv) The net price, which shall be
determined by calculating the
difference between--
(I) the cost of attendance
described in clause (i); and
(II) the grants and
scholarships described in
clause (ii)(I).
(v) Next step instructions,
including--
(I) the process and deadlines
for accepting the financial
aid; and
(II) information about where
to find additional information
on the financial aid offered.
(vi) Any other information determined
necessary by the Secretary based on the
consumer testing conducted under
subparagraph (E), which may include the
following:
(I) An estimate of the net
direct cost, which shall be
determined by calculating the
difference between--
(aa) the direct costs
owed to the institution
described in clause
(i)(I); and
(bb) the grants and
scholarships described
in clause (ii)(I).
(II) Information on average
student debt, loan repayment
and default rates, loan
repayment options, and
graduation rates.
(III) In the case of a
prospective student, the
process and deadlines for
enrolling at the institution.
(IV) Information regarding
the enrollment period covered
by the aid offer, and whether
the cost and aid estimates are
based on full-time or part-time
enrollment.
(D) Standardized quick reference box.--A
financial aid offer provided by an institution
of higher education shall include a
standardized quick reference box to enable
students to quickly and easily compare key
information on college costs and financial
aid--
(i) that shall be included in an
identical fashion for each student
receiving a financial aid offer from
the institution on the first page of
such offer;
(ii) the contents and structure of
which shall be developed through
consumer testing conducted under
paragraph (E); and
(iii) that shall include not more
than 8 elements, which, at a minimum,
shall include--
(I) the cost of attendance;
(II) grants and scholarships;
and
(III) net price (as
calculated under subparagraph
(C)(iv)).
(E) Consumer testing.--The Secretary shall--
(i) conduct consumer testing that
shall serve as the basis in determining
the requirements for financial aid
offers published under subparagraph
(A), which shall include students
(including low-income students, English
learners, first generation college
students, veteran students, graduate
students, and undergraduate students
(including prospective students and
returning students)), students'
families (including low-income
families, families of English learners,
and families with first generation
college students), institutions of
higher education (including
representatives from two- and four-year
institutions, public and private
institutions, and minority-serving
institutions), secondary school and
postsecondary counselors, financial aid
administrators, nonprofit college
access organizations, and nonprofit
consumer groups; and
(ii) not later than 60 days after the
publication of the requirements under
subparagraph (A)--
(I) issue a report on the
findings of the consumer
testing under this
subparagraph; and
(II) specify ways in which
the findings are reflected in
such requirements.
(2) Definitions.--In this subsection--
(A) the term ``English learner'' has the
meaning given the term in section 8101(20) of
the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7801(20)), except that such
term does not include individuals described in
subparagraph (B) of such section;
(B) the term ``first generation college
student'' has the meaning given the term in
section 402A(h));
(C) the term ``low-income student'' has the
meaning given the term in section 419N(b)(7);
and
(D) the term ``minority-serving institution''
means an institution of higher education
described in section 371(a).
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 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, 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.]
(a) In General.--
(1) Grants; loans; work assistance.--In order to
receive any grant, loan, or work assistance under this
title, a student must--
(A) 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
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;
(B) 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);
(C) 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, or a loan made, insured, or guaranteed
by the Secretary under this title for
attendance at any institution;
(D) file with the Secretary, as part of the
original financial aid application process, a
certification, which need not be notarized, but
which shall include--
(i) 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
(ii) such student's social security
number; and
(E) 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.
(2) Grants; loans; work assistance; services.--
(A) In general.--In order to receive any
grant, loan, or work assistance under this
title, or any service provided pursuant to a
program or project funded under this title, a
student must--
(i) be a citizen, national, or
permanent resident of the United
States;
(ii) be able to provide evidence from
the Department of Homeland Security
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;
(iii) have temporary protected status
under section 244 of the Immigration
and Nationality Act (8 U.S.C. 1254a);
or
(iv) be a Dreamer student, as defined
in subsection (q).
(B) Exceptions.--Subparagraph (A) shall not
be construed to affect eligibility for
participation in projects funded under chapter
2 of subpart 2 of part A or section 418A(b).
(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 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.
(c) Satisfactory Progress.--(1) For the purpose of
[subsection (a)(2)] subsection (a)(1)(B), a student is
maintaining satisfactory progress if--
(A) the institution at which the student is in
attendance, reviews the progress of the student at the
end of each academic year, or its equivalent, as
determined by the institution, and
(B) the student has 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 such academic
year.
(2) Whenever a student fails to meet the eligibility
requirements of [subsection (a)(2)] subsection (a)(1)(B) 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, the student may, subject
to this subsection, again be eligible under [subsection (a)(2)]
subsection (a)(1)(B) 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.
(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--
(i) is enrolled at an institution of
higher education (as defined in section
101) in a program described in
subsection (a)(3) of such section
that--
(I) prepares an individual to
be successful in any of a full
range of secondary and
postsecondary education
options;
(II) includes counseling to
support an individual in
achieving the individual's
education and career goals;
(III) enables an individual
to attain a secondary school
diploma or its recognized
equivalent; and
(IV) helps an individual
enter or advance within a
specific occupation or
occupational cluster, or to
enter and succeed in a graduate
program; and
(ii) is determined by such
institution 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 offered by the institution of
higher education.
[(B)] (C) 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.
(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 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.
(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)] subsection (a)(2)
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] Department of Homeland
Security either photostatic or other
similar copies of such documents, or
information from such documents, as
specified by the [Immigration and
Naturalization Service] Department of
Homeland Security, 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]
Department of Homeland Security,
(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] Department
of Homeland Security 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) 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 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.]
[(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)] subsection (a)(1)(D) 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.
(q) Dreamer Student.--
(1) In general.--In this section, the term ``Dreamer
student'' means an alien (as defined in section
101(a)(3) of the Immigration and Nationality Act (8
U.S.C. 1101(a)(3))) who is inadmissible to the United
States or deportable from the United States under the
immigration laws (as defined in section 101(a)(17) of
the Immigration and Nationality Act (8 U.S.C.
1101(a)(17))) and who--
(A)(i) was younger than 16 years of age on
the date on which the alien initially entered
the United States; and
(ii)(I) has earned a high school diploma, the
recognized equivalent of such diploma from a
secondary school, or a high school equivalency
diploma in the United States, or is scheduled
to complete the requirements for such a diploma
or equivalent before the next academic year
begins;
(II) is enrolled in an institution of higher
education pursuant to subsection (d); or
(III) has served in the uniformed services,
as defined in section 101 of title 10, United
States Code, for not less than 4 years and, if
discharged, received an honorable discharge; or
(B) would have been eligible, if the
memorandum were fully in effect since the date
issued, for a grant of deferred action pursuant
to the directive in the November 20, 2014,
memorandum from the Secretary of Homeland
Security entitled ``Exercising Prosecutorial
Discretion with Respect to Individuals Who Came
to the United States as Children and with
Respect to Certain Individuals Who Are the
Parents of U.S. Citizens or Permanent
Residents'' to establish a process for
exercising prosecutorial discretion through the
use of deferred action for individuals who,
among other qualifications, had a son or
daughter who was a United States citizen or
lawful permanent resident on such date.
(2) Hardship exception.--The Secretary shall issue
regulations that direct when the Department shall waive
the age requirement of paragraph (1)(A)(i) for an
individual to qualify as a Dreamer student under
paragraph (1), if the individual demonstrates, through
documentation presented to the Secretary of substantial
economic or personal hardship, that deprivation of the
requested benefit under this title would represent a
substantial hardship.
[(r) 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) 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) 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) that is
seeking the repayment of the amount due from a borrower
on a loan made under part D or E 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;] collection costs that--
(A) for purposes of the first collection
efforts, do not exceed 5 percent of the
outstanding principal and interest on such
loan;
(B) for purposes of the second collection
efforts, do not exceed 10 percent of the
outstanding balance of principal and interest
on such loan;
(C) for purposes of the third collection
efforts, do not exceed 15 percent of the
outstanding balance of principal and interest
on such loan; and
(D) for purposes of the fourth collection
efforts and any succeeding collection efforts,
do not exceed 20 percent of the outstanding
balance of principal and interest on such loan;
(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, an institution of higher education
that has an agreement with the Secretary pursuant to
section 463(a) shall not be subject to a defense raised
by any borrower based on a claim of infancy.
(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. 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 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)] 484(a)(1)(B);
(L) the completion or graduation rate of certificate-
or degree-seeking, full-time, undergraduate students
entering such institutions;
(M) the terms and conditions of the loans
that students receive under parts B, D, and E;
(N) that enrollment in a program of study abroad
approved for credit by the home institution may be
considered enrollment in the home institution for
purposes of applying for Federal student financial
assistance;
(O) the campus crime report prepared by the
institution pursuant to subsection (f), including all
required reporting categories;
(P) institutional policies and sanctions
related to copyright infringement, including--
(i) an annual disclosure that
explicitly informs students that
unauthorized distribution of
copyrighted material, including
unauthorized peer-to-peer file sharing,
may subject the students to civil and
criminal liabilities;
(ii) a summary of the penalties for
violation of Federal copyright laws;
and
(iii) a description of the
institution's policies with respect to
unauthorized peer-to-peer file sharing,
including disciplinary actions that are
taken against students who engage in
unauthorized distribution of
copyrighted materials using the
institution's information technology
system;
(Q) student body diversity at the
institution, including information on the
percentage of enrolled, full-time students
who--
(i) are male;
(ii) are female;
(iii) receive a Federal Pell Grant;
and
(iv) are a self-identified member of
a major racial or ethnic group;
(R) the placement in employment of, and types
of employment obtained by, graduates of the
institution's degree or certificate programs,
gathered from such sources as alumni surveys,
student satisfaction surveys, the National
Survey of Student Engagement, the Community
College Survey of Student Engagement, State
data systems, or other relevant sources;
(S) the types of graduate and professional
education in which graduates of the
institution's four-year degree programs
enrolled, gathered from such sources as alumni
surveys, student satisfaction surveys, the
National Survey of Student Engagement, State
data systems, or other relevant sources;
(T) the fire safety report prepared by the
institution pursuant to subsection (i);
(U) the retention rate of certificate- or
degree-seeking, first-time, full-time,
undergraduate students entering such
institution; [and]
(V) institutional policies regarding
vaccinations[.];
(W) the most recent relevant student
eligibility guidance with respect to the
nutrition assistance programs established
under--
(i) the supplemental nutrition
assistance program under the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et
seq.); and
(ii) 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);
(X) the contact information for the State
agencies responsible for administration of the
programs specified in clauses (i) and (ii) of
subparagraph (W); and
(Y) the food pantries and other food
assistance facilities and services available to
students enrolled in such institution.
(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 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 part B, D, or E;
(ii) an explanation of the grace period preceding
repayment and the expected date that the borrower will
enter repayment;
(iii) an explanation 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, 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 fixed repayment
plan described in section 493E, the income-based
repayment plan under section 493C(f), and any other
repayment plan for which each loan may be eligible 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, 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
part B, D, or E 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;
(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)); and
(xv) an explanation that--
(I) the borrower may be contacted during the
repayment period by third-party student debt
relief companies;
(II) the borrower should use caution when
dealing with those companies; and
(III) the services that those companies
typically provide are already offered to
borrowers free of charge through the Department
or the borrower's servicer.
(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] including, beginning on July 1,
2021, the income-based repayment plan under section 493C(f) and
the fixed repayment plan described in section 493E. 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
(including on a prominent location on the institution's
website), 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.] crimes, including a statement of current
campus policies regarding required background checks
for employees and volunteers working with student
athletes, children, or youth participating in
university-sponsored programs held in campus
facilities.
(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[.];
(iv) of harassment incidents that were
reported to campus security authorities or
local police agencies; and
(v) of hazing 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 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.
(K)(i) Each finding by the institution that, during
the most recent calendar year, and during the 2
preceding calendar years for which data are available,
a student organization committed a violation of the
institution's standards of conduct relating to hazing,
which--
(I) shall include--
(aa) the name of the student
organization that committed the
violation;
(bb) a general description of the
activities that led to the violation,
the charges, such findings by the
institution, and the sanctions placed
on the organization; and
(cc) the dates on which--
(AA) the violation was
alleged to have occurred;
(BB) the student organization
was charged with misconduct;
(CC) the investigation was
initiated; and
(DD) the investigation ended
with a finding that a violation
occurred; and
(II) may not include--
(aa) any information related to
allegations or investigations of hazing
that do not result in a formal finding
of a violation of the standards of
conduct of the institution; or
(bb) any personally identifiable
information on any individual student
or member of a student organization.
(ii) The anti-hazing policies (including the
standards of conduct with respect to hazing) of the
institution, and the changes, if any, that have been
made in the preceding calendar year with respect to
such policies, and the justification for such changes.
(iii) In the case of an allegation that a multi-
institution student organization was involved in a
hazing incident, each institution at which the students
involved in such allegation are enrolled (or were
formerly enrolled), including any student who was a
victim in the alleged incident, shall comply with the
requirements of this subparagraph.
(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.
(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.
(vi) For purposes of reporting under this section,
the term ``harassment''--
(I) means unwelcome conduct, of a hostile,
intimidating, or offensive nature, based on a
student's actual or perceived race, color,
religion, sex (including sexual orientation,
gender identity, pregnancy, childbirth, a
medical condition related to pregnancy or
childbirth, and sex stereotype), disability, or
national origin, that unreasonably interferes
with a student's ability to participate in a
program or activity at an institution of higher
education, including by creating an
intimidating, hostile, or offensive
environment;
(II) is not limited to physical acts, and
includes conduct that is verbal or nonverbal,
direct or indirect, undertaken in whole or in
part through the use of electronic messaging
services, commercial mobile services,
electronic communications, or other technology,
or the placement or display of hostile or
offensive images or objects based on a
protected trait; and
(III) includes sexual harassment, which is
unwelcome conduct of a sexual nature,
including--
(aa) a sexual advance;
(bb) a request for sexual favors;
(cc) a sexual act, where such
submission is made either explicitly or
implicitly a term or condition of a
program or activity at an institution
of higher education, regardless of a
student's submission to or rejection of
such sexual act;
(dd) a sexual act, where such
submission or rejection is used as the
basis for a decision affecting a term
or condition of a program or activity
at an institution of higher education,
regardless of a student's submission to
or rejection of such sexual act; or
(ee) other conduct of a sexual
nature.
(vii) 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 in concert with other persons,
against another student, that--
(I) was committed in connection with an
initiation into, an affiliation with, or the
maintenance of membership in, any student
organization; and
(II) causes, or contributes to a substantial
risk of, physical injury, mental harm, or
personal degradation.
(viii) The term ``commercial mobile service'' has the
meaning given the term in section 332(d) of the
Communications Act of 1934 (47 U.S.C. 332(d)).
(ix) The term ``electronic communication'' means any
transfer of signs, signals, writing, images, sounds, or
data of any nature transmitted in whole or in part by a
wire, radio, electromagnetic, photoelectronic, or
photooptical system.
(x) The term ``electronic messaging services'' has
the meaning given the term in section 102 of the
Communications Assistance for Law Enforcement Act (47
U.S.C. 1001).
(xi) The term ``multi-institution student
organization'' means a student organization that
includes students from more than one institution of
higher education, including city-wide, regional, State,
and national chapters of student organizations.
(xii) The term ``student organization'' means an
organization that is officially recognized by or
otherwise affiliated with an institution of higher
education and that has a membership that is made up
primarily of students enrolled at such institution.
(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)). For harassment incidents, such statistics shall be
compiled in accordance with the definition of that term in
paragraph (6)(A)(vi). For hazing incidents, such statistics
shall be compiled in accordance with the definition of that
term in paragraph (6)(A)(vii). 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, sexual
harassment, and stalking; and
(ii) the procedures that such institution will follow
once an incident of domestic violence, dating violence,
sexual assault, sexual harassment, 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, sexual harassment, 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, sexual
harassment, and stalking;
(bb) the definition of domestic
violence, dating violence, sexual
assault, sexual harassment, 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, sexual harassment, 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, sexual
harassment, or stalking.
(iii) Procedures victims should follow if a sex
offense, domestic violence, dating violence, sexual
assault, sexual harassment, 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, sexual harassment, 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, sexual harassment, 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, sexual
harassment, and stalking and how to
conduct [an investigation] a trauma-
informed investigation and hearing
process that protects the safety of
victims 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, sexual harassment, 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.
(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) Written notification of victims about
institutional policies regarding the reimbursement of
lost tuition and costs associated with student loan
interest accrual related to domestic violence, dating
violence, sexual assault, sexual harassment, or
stalking incidents.
(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, sexual
harassment, 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).
(9)(A) Each institution of higher education participating in
any program under this title, other than a foreign institution
of higher education, shall, as part of the report described in
paragraph (1)--
(i) develop and distribute a statement of policy
regarding harassment, which shall include--
(I) a prohibition of harassment, including
harassment of enrolled students by other
students, faculty, and staff--
(aa) on campus;
(bb) in or on a noncampus building or
property;
(cc) on public property;
(dd) in dormitories or other
residential facilities for students on
campus;
(ee) through the use of electronic
mail addresses issued by the
institution of higher education;
(ff) through the use of computers and
communication networks, including any
telecommunications service, owned,
operated, or contracted for use by the
institution of higher education or its
agents; and
(gg) during an activity sponsored by
the institution of higher education or
carried out with the use of resources
provided by the institution of higher
education;
(II) a prohibition of such harassment that is
carried out in whole or in part through the use
of electronic messaging services, commercial
mobile services, electronic communications, or
other technology;
(III) a description of the institution's
programs to combat harassment, which shall be
aimed at the prevention of harassment;
(IV) a description of the procedures that a
student should follow if an incident of
harassment occurs; and
(V) a description of the procedures that the
institution will follow once an incident of
harassment 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; and
(ii) provide, on a prominent location on the
institution's website, a link to the webpage that
contains the information required under paragraph
(1)(K), including statement notifying the public--
(I) of the availability of such information,
including findings, sanctions, and the
implementation of sanctions, except information
protected under section 444 of the General
Education Provisions Act (commonly known as the
``Family Education Rights and Privacy Act of
1974'');
(II) a description of how a member of the
public may obtain such information; and
(III) a statement that the institution is
required to provide such information pursuant
to paragraph (1)(K).
(B) The statement of policy described in subparagraph (A)(i)
shall address the following areas:
(i) Procedures for timely institutional action in
cases of alleged harassment, which shall include a
clear statement that the accuser and the accused shall
be informed of the outcome of any disciplinary
proceedings in response to an allegation of harassment.
(ii) Possible sanctions to be imposed following the
final determination of an institutional disciplinary
procedure regarding harassment.
(iii) Notification of existing counseling, mental
health, or student services for victims or perpetrators
of harassment, both on campus and in the community.
(iv) Identification of a designated employee or
office at the institution that will be responsible for
receiving and tracking each report of harassment.
[(9)] (10) 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)] (11) Nothing in this section shall be construed to
require the reporting or disclosure of privileged information.
[(11)] (12) 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)] (13) 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)] (14) 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), expect that such
section shall be applied by substituting ``$100,000'' for
``$60,000''.
[(14)] (15)(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)] (16) 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)] (17)(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, sexual harassment, and stalking, including elements of
institutional policies that have proven successful based on
evidence-based outcome measurements.
(18) Online survey tool for campus safety.--
(A) In general.--The Secretary shall, in
consultation with the Attorney General,
Director of the Centers for Disease Control,
and the Secretary of the Department of Health
and Human Services and experts in domestic
violence, dating violence, sexual assault,
sexual harassment, and stalking, develop,
design, and make available through a secure and
accessible online portal, a standardized online
survey tool regarding student experiences with
domestic violence, dating violence, sexual
assault, sexual harassment, and stalking.
(B) Development of survey tool.--In
developing the survey tool required under
subparagraph (A), the Secretary shall--
(i) use best practices from peer-
reviewed research measuring domestic
violence, dating violence, sexual
assault, sexual harassment, and
stalking;
(ii) consult with the higher
education community, experts in survey
research related to domestic violence,
dating violence, sexual assault, sexual
harassment, and stalking, and
organizations engaged in the prevention
of and response to, and advocacy on
behalf of victims of, domestic
violence, dating violence, sexual
assault, sexual harassment, and
stalking regarding the development and
design of such survey tool and the
methodology for administration of such
survey tool; and
(iii) ensure that the survey tool is
readily accessible to and usable by
individuals with disabilities.
(C) Elements.--
(i) In general.--The survey tool
developed pursuant to this paragraph
shall be fair and unbiased,
scientifically valid and reliable, and
meet the highest standards of survey
research.
(ii) Survey questions.--Survey
questions included in the survey tool
developed pursuant to this paragraph
shall--
(I) be designed to gather
information on student
experiences with domestic
violence, dating violence,
sexual assault, sexual
harassment, and stalking,
including the experiences of
victims of such incidents;
(II) use trauma-informed
language to prevent
retraumatization; and
(III) include the following:
(aa) Questions
designed to determine
the incidence and
prevalence of domestic
violence, dating
violence, sexual
assault, sexual
harassment, and
stalking.
(bb) Questions
regarding whether
students know about
institutional policies
and procedures related
to domestic violence,
dating violence, sexual
assault, sexual
harassment, and
stalking.
(cc) Questions
designed to determine,
if victims reported
domestic violence,
dating violence, sexual
assault, sexual
harassment, or
stalking--
(AA) to whom
the incident
was reported
and what
response the
victim may have
received;
(BB) whether
the victim was
informed of, or
referred to,
national,
State, local,
or on-campus
resources; and
(CC) whether
the entity to
whom the victim
reported the
incident
conducted an
investigation
and the
duration and
final
resolution of
such an
investigation.
(dd) Questions
regarding contextual
factors, such as
whether force,
incapacitation, or
coercion was involved.
(ee) Questions to
determine whether an
accused individual was
a student at the
institution.
(ff) Questions to
determine whether a
victim reported an
incident to State,
local, or campus law
enforcement.
(gg) Questions to
determine why the
victim chose to report
or not report an
incident to the
institution or State,
local, or campus law
enforcement.
(hh) Questions to
determine the impact of
domestic violence,
dating violence, sexual
assault, sexual
harassment, and
stalking on the
victim's education,
including diminished
grades, dropped
classes, leaves of
absence, and negative
financial consequences
(such as costs
associated with loss in
paid tuition due to
leaves of absence, loss
in scholarship awards
due to diminished
grades, and cost
associated with
counseling, medical
services, or housing
changes).
(ii) Questions to
determine the impact
and effectiveness of
prevention and
awareness programs and
complaints processes.
(jj) Questions to
determine attitudes
toward sexual violence
and harassment,
including the
willingness of
individuals to
intervene as a
bystander of sex-based
(including sexual
orientation-based and
gender identity-based),
race-based, national
origin-based, and
disability-based
discrimination,
harassment, assault,
domestic violence,
dating violence, sexual
assault, sexual
harassment, and
stalking.
(kk) Other questions,
as determined by the
Secretary.
(iii) Additional elements.--In
addition to the standardized questions
developed by the Secretary under clause
(ii), an institution may request
additional information from students
that would increase the understanding
of the institution of school climate
factors unique to their campuses.
(iv) Responses.--The responses to the
survey questions described in clause
(ii) shall--
(I) be submitted
confidentially;
(II) not be included in crime
statistics; and
(III) in the case of such
responses being included in a
report, shall not include
personally identifiable
information.
(D) Administration of survey.--
(i) Federal administration.--The
Secretary, in consultation with the
Attorney General, Director of the
Centers for Disease Control, and
Secretary of the Department of Health
and Human Services, shall develop a
mechanism by which institutions of
higher education may, with respect to
the survey tool developed pursuant to
this paragraph--
(I) administer such survey
tool; and
(II) modify such survey tool
to include additional elements
or requirements, as determined
by the institution.
(ii) Costs.--The Secretary may not
require an institution of higher
education to pay to modify the survey
tool in accordance with clause
(ii)(II).
(iii) Accessibility.--The Secretary
shall ensure that the survey tool is
administered in such a way as to be
readily accessible to and usable by
individuals with disabilities.
(iv) Institutional administration.--
Beginning not later than one year after
the date on which the Secretary makes
available to institutions the mechanism
described in clause (i), and every 2
years thereafter, each institution
shall administer the survey tool
developed pursuant to this paragraph.
(E) Completed surveys.--The Secretary shall
require each institution participating in any
program under this title to ensure, to the
maximum extent practicable, that an adequate,
random, and representative sample size of
students (as determined by the Secretary)
enrolled at the institution complete the survey
tool developed pursuant to this paragraph.
(F) Report.--Beginning not later than 2 years
after the date of enactment of the College
Affordability Act, the Secretary shall prepare
a biennial report on the information gained
from the standardized elements of the survey
under this paragraph and publish such report in
an accessible format on the website of the
Department and submit such report to Congress.
The report shall include campus-level data for
each school and attributed by name of each
campus in a manner that permits comparisons
across schools and campuses.
(G) Publication.--Each institution shall
publish, in a manner that is readily accessible
and usable by individuals, including
individuals with disabilities--
(i) the campus-level results of the
standardized elements of the survey
under this paragraph on the website of
the institution and in the annual
security report required under
paragraph 1 for the campuses affiliated
with the institution; and
(ii) the campus-level results of the
additional elements modifying the
survey by the institution, if any, on
the website of the institution.
(H) Violation.--Upon a determination pursuant
to section 487(c)(3)(B) that an institution of
higher education has violated or failed to
carry out any provision 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).
[(17)] (19) 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)] (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 on the website of the institution and
in at least one other relevant publication (such as a
course catalogue), in a readable, easy to find, 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[.],
including a link to the website of each
institution of higher education on such list
and a link to or an explanation of the
provisions of each such articulation agreement;
and
(C) a list of transfer-related resources and
information not otherwise provided under
subparagraphs (A) and (B) that the institution
provides (such as deadlines, financial aid
information, and relevant staff contact
information).
(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.
(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.
(2) Rule of construction.--Nothing in this subsection
shall be construed--
(A) to provide a private right of action to
any person to enforce any provision of this
subsection; or
(B) to create a cause of action against any
institution of higher education or any employee
of the institution for any civil liability.
[(k) Notice to Students Concerning Penalties for Drug
Violations.--
[(1) Notice upon enrollment.--Each institution of
higher education shall provide to each student, upon
enrollment, a separate, clear, and conspicuous written
notice that advises the student of the penalties under
section 484(r).
[(2) Notice after loss of eligibility.--An
institution of higher education shall provide in a
timely manner to each student who has lost eligibility
for any grant, loan, or work-study assistance under
this title as a result of the penalties listed under
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).]
(k) Each institution of higher education participating in any
program under this title shall--
(1) have designated an appropriate staff person as a
liaison to assist homeless individuals described in
section 725 of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11434a) and foster care youth in
accessing and completing postsecondary education,
including by ensuring that such homeless individuals
and foster care youth are connected to applicable and
available student support services, programs, and
community resources in areas such as financial aid,
academic advising, housing, food, public benefits,
health care, health insurance, mental health, child
care, transportation benefits, and mentoring;
(2) post public notice about student financial
assistance and other assistance available to such
homeless individuals and foster care youth, including
their eligibility as independent students under
subparagraphs (B) and (H) of sections 480(d)(1);
(3) give priority for any institutionally owned or
operated housing facilities, including student housing
facilities that remain open for occupation during
school breaks or on a year-round basis, to--
(A) homeless individuals described in section
725 of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11434a);
(B) youth who are unaccompanied, at risk of
homelessness, and self-supporting; and
(C) foster care youth;
(4) have developed a plan for how such homeless
individuals, youth who are unaccompanied, at risk of
homelessness, and self-supporting, and foster care
youth can access housing resources during and between
academic terms, through means that may include access
to institutionally owned or operated housing during
breaks and a list of housing resources in the community
that provide short-term housing; and
(5) include, in its application for admission,
questions (to be answered voluntarily) regarding the
applicant's status as a homeless individual or foster
care youth, that--
(A) can be answered by the applicant
voluntarily for the limited purpose of being
provided information about financial aid or any
other available assistance;
(B) explain the key terms in the question in
a manner children and youth can understand in
order to self-identify and declare eligibility
as a homeless individual or foster care youth;
and
(C) with consent of the applicant, may be
shared with the liaison after admission but
prior to the beginning of the next academic
term.
[(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 that each individual who receives
a loan made under part D (other than a Federal
Direct Consolidation Loan or a loan made under
section 460A and 460B) receives comprehensive
information on the terms and conditions of such
loan and the responsibilities the individual
has with respect to such loan. Such information
shall be provided, for each award year for
which the individual receives such 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)
through the use of interactive programs, during
an annual counseling session that is in-person
or online, that tests the individual's
understanding of the terms and conditions of
the loan awarded to the individual, using
simple and understandable language and clear
formatting.
(2) All individuals.--The information to be provided
under paragraph (1)(A) to each individual receiving
counseling under this subsection shall include the
following:
(A) An explanation of how the individual 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) An introduction to the financial
management resources provided by the Consumer
Financial Protection Bureau.
(D) 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.
(3) Borrowers receiving loans made under part d
(other than parent plus loans).--The information to be
provided under paragraph (1)(A) to a borrower of a loan
made under part D (other than a Federal Direct PLUS
Loan made on behalf of a dependent student) shall
include the following:
(A) A notification that some students may
qualify for other financial aid and 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 student loans.
(B) 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.
(C) An explanation of the use of the student
loan contract referred to in section
432(m)(1)(D).
(D) An explanation that the borrower is not
required to accept the full amount of the loan
offered to the borrower.
(E) An explanation of the approved
educational expenses for which the borrower may
use a loan made under part D.
(F) A recommendation to the borrower to
exhaust the borrower's Federal student loan
options prior to taking out private education
loans, an explanation that Federal student
loans typically offer better terms and
conditions than private education loans, an
explanation that Federal student loans offer
consumer protections typically not available in
the private education loan market, an
explanation of treatment of loans made under
part D 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) of the Truth
in Lending Act (15 U.S.C.
1638(e)); 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
(15 U.S.C. 1638(e)(7)).
(G) The interest rate for the loan, as of the
date of the counseling.
(H) Information on how interest accrues and
is capitalized during periods when the interest
is not paid by either the borrower or the
Secretary.
(I) In the case of 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.
(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) 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.
(M) The likely consequences of default on the
loan, including adverse credit reports,
delinquent debt collection procedures under
Federal law, and litigation.
(N) Notice of the institution's most recent
adjusted cohort default rate (calculated in
accordance with section 435(m)(1)(D)), an
explanation of the adjusted cohort default
rate, the most recent national average adjusted
cohort default rate, and the most recent
national average adjusted cohort default rate
for the category of institution described in
section 435(m)(4) to which the institution
belongs.
(O) Information on the National Student Loan
Data System and how the borrower can access the
borrower's records.
(P) 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.
(Q) For a first-time borrower, in addition to
all the information described in subparagraphs
(A) through (P)--
(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 fixed repayment plan
described in section 493E; and
(II) the income-based
repayment plan under section
493C(f), as determined using
regionally available data from
the Bureau of Labor Statistics
of the average starting salary
for the occupation in which the
borrower has an interest in or
intends to be employed;
(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 part D
who are in the same program of study as
the borrower and the expected increase
in the cost of attendance of such
program; and
(iv) information on the annual and
aggregate loan limits for Federal
Direct Stafford Loans and Federal
Direct Unsubsidized Stafford Loans as
it pertains to the loan for which the
borrower is receiving counseling, and a
statement that such aggregate borrowing
limit may change based on the
borrower's student status (whether
undergraduate or graduate) or if there
is a change in the borrower's
dependency status.
(R) For a borrower with an outstanding
balance of principal or interest due on a loan
made under this title, in addition to all the
information described in subparagraphs (A)
through (P)--
(i) information on each student loan
that the institution is aware that the
student has borrowed, including Federal
loans, private loans, and loans from
the institution;
(ii) the total amount of the
outstanding balance and interest
accrued from the Federal student loans
described in clause (i);
(iii) for each Federal loan described
in clause (i), the interest rate for
the loan, as of the date of the
counseling, and a statement that the
interest rate on student loans may vary
based on when the loan was borrowed and
other factors;
(iv) based on such outstanding
balance for the Federal student loans,
the anticipated monthly payment amount
under the fixed repayment plan
described in section 493E, the income-
based repayment plan under section
493C(f), and any other repayment plan
for which each loan may be eligible,
calculated using regionally available
data from the Bureau of Labor
Statistics of the average starting
salary for the occupation the borrower
intends to be employed;
(v) an estimate of the projected
monthly payment amount under each
repayment plan described in clause
(iv), based on--
(I) the outstanding balance
described in clause (ii);
(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 part D
that the borrower is reasonably
expected to accept during the
borrower's program of study
based on at least the average
cumulative indebtedness at
graduation for borrowers of
loans made under part D who are
in the same program of study as
the borrower and the expected
increase in the cost of
attendance of such program;
(vi) a statement that the outstanding
balance described in clause (ii), the
interest rate described in clause
(iii), and the monthly amount described
in clause (iv) and clause (v) does not
include any amounts that the student
may be required to repay for private or
institutional loans; and
(vii) the percentage of the total
aggregate borrowing limit that the
student has reached, as of the date of
the counseling, for Federal Direct
Stafford Loans and Federal Direct
Unsubsidized Stafford Loans, and a
statement that such aggregate borrowing
limit may change based on the
borrower's student status (whether
undergraduate or graduate) or if there
is a change in the borrower's
dependency status.
(4) Borrowers receiving parent plus loans for
dependent students.--The information to be provided
under paragraph (1)(A) to a borrower of a Federal
Direct PLUS Loan made on behalf of a dependent student
shall include the following:
(A) A notification that some students may
qualify for other financial aid and an
explanation that the student for whom the
borrower is taking out the loan should consider
accepting any grant, scholarship, or State or
Federal work-study jobs for which the borrower
is eligible prior to borrowing Parent PLUS
Loans.
(B) The information described in
subparagraphs (B) through (D) and (L) through
(O) of paragraph (3).
(C) The interest rate for the loan, as of the
date of the counseling.
(D) The option of the borrower to pay the
interest on the loan while the loan is in
deferment.
(E) Debt management strategies that are
designed to facilitate the repayment of such
indebtedness.
(F) An explanation that the borrower has the
options to prepay each loan, pay each loan on a
shorter schedule, and change repayment plans.
(G) For each Federal Direct PLUS Loan made on
behalf of a dependent student 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.
(H) For a first-time borrower of 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 fixed
repayment plan described in section
493E, the income-based repayment plan
under section 493C(f), and any other
repayment plan for which each loan may
be eligible; and
(iii) an estimate of the projected
monthly payment amount under the fixed
repayment plan described in section
493E, the income-based repayment plan
under section 493C(f), and any other
repayment plan for which each loan may
be eligible, based on the average
cumulative indebtedness of other
borrowers of Federal Direct PLUS Loans
made on behalf of dependent students
who are in the same program of study as
the student on whose behalf the
borrower borrowed the loan and the
expected increase in the cost of
attendance of such program.
(I) 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 fixed
repayment plan described in section
493E, the income-based repayment plan
under section 493C(f), and any other
repayment plan for which each loan may
be eligible; and
(iii) an estimate of the projected
monthly payment amount under the fixed
and income-based repayment plans, based
on--
(I) the anticipated
outstanding balance on the loan
for which the borrower is
receiving counseling under this
subsection; and
(II) a projection for any
other Federal Direct PLUS Loan
made on behalf of the dependent
student that the borrower is
reasonably expected to accept
during the program of study of
such student based on at least
the average cumulative
indebtedness of other borrowers
of Federal Direct PLUS Loans
made on behalf of dependent
students who are in the same
program of study as the student
on whose behalf the borrower
borrowed the loan and the
expected increase in the cost
of attendance of such program.
(5) Annual loan acceptance.--Prior to making the
first disbursement of a loan made under part D (other
than a Federal Direct Consolidation Loan or a loan made
under section 460A and 460B) 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), (3),
and (4) for the loan the borrower accepts the loan for
such award year by--
(A) signing and returning to the institution
the student loan contract for the loan referred
to in section 432(m)(1)(D) that affirmatively
states that the borrower accepts the loan; or
(B) electronically signing an electronic
version of the student loan contract described
in subparagraph (A).
(6) Rule of 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, provided that any additional information
and counseling services for recipients of Federal
student aid shall not preclude or be considered a
condition for disbursement of such aid.
(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 18 months
after the date of enactment of the College
Affordability 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 developing and
maintaining the online counseling tools described in
paragraph (1), the Secretary shall ensure that each
such tool is--
(A) consumer tested, in consultation with
other relevant Federal agencies and including
students (low-income students and student
veterans, and students' families) and
borrowers, institutions of higher education,
secondary school and postsecondary counselors,
and nonprofit consumer groups, to ensure that
the tool is effective in helping individuals
understand their options, rights, and
obligations with respect to borrowing a loan
made under part D; and
(B) 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 part D
using the tool described in paragraph (1)(B),
notify the borrower by when the borrower should
accept, in a manner described in subsection
(l)(5), 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) Disclosure of Religious Exemptions to Title IX of the
Education Amendments of 1972.--Each institution of higher
education participating in any program under this title that
requests, receives, or exercises or intends to exercise a
religious exemption to the requirements of title IX of the
Education Amendments of 1972 (20 U.S.C. 1681 et seq.) shall
submit in writing to the Assistant Secretary for Civil Rights a
statement by the highest ranking official of the institution,
identifying the provisions of part 106 of title 34 of the Code
of Federal Regulations that conflict with a specific tenet of
the religious organization and shall publish on its website, in
a prominent location, the following:
(1) Request letter.--Each letter submitted by the
educational institution to the Department to request
such an exemption.
(2) Exemption letter.--Each letter from the
Department to the educational institution that grants
or denies such an exemption.
(3) Notice of request.--Notice that the educational
institution has requested an exemption under section
901(a)(3) of the Education Amendments of 1972 (20
U.S.C. 1681(a)(3)).
(4) Notice of exemption.--If applicable, notice that
the educational institution has received an exemption
under section 901(a)(3) of the Education Amendments of
1972 (20 U.S.C. 1681(a)(3)).
(5) Covered personal characteristics or behaviors.--A
list of the personal characteristics or behaviors to
which each requested or granted exemption applies.
(6) Covered activities or programs.--A list of the
activities or programs to which each exemption applies.
(7) Statement of rights.--The statement ``Students
continue to have rights under title IX of the Education
Amendments of 1972. Any student who experiences
discrimination may contact the Office for Civil Rights
at the United States Department of Education at _____
or _____.'', with the first blank space being filled
with a link to the website of the Office for Civil
Rights and the second blank space being filled with the
telephone number of the Office for Civil Rights.
(p) Expectant and Parenting Students Policies.--Each
institution of higher education participating in any program
under this title shall develop and make available, including on
the institution's website, a statement of policy concerning
expectant and parenting students, which shall include, at a
minimum--
(1) the institution's policy regarding leaves of
absence related to pregnancy (and related medical
conditions), and the birth or adoption of a child,
which shall include--
(A) any policies related to the availability
of parental leave; and
(B) options, including time requirements, for
making up missed work for students who take a
leave of absence;
(2) information regarding lactation accommodations
available to students;
(3) a description of the process for requesting
accommodations, and the type of accommodations
available to expectant and parenting students,
including--
(A) information on accommodations for
pregnancy-related medical conditions; and
(B) information on accommodations for
students who have parental responsibilities;
(4) information regarding financial aid eligibility
for expectant and parenting students, including--
(A) the availability of dependent care
allowances for a parenting student for the
purposes of determining the student's cost of
attendance;
(B) the ability to change dependency status,
including during an award year, following the
birth of a child;
(C) the availability of and eligibility
requirements for any emergency financial aid
programs provided by the institution; and
(D) an explanation of the effect that a leave
of absence may have on a student's
demonstration of satisfactory academic
progress, including for the purposes of
eligibility to participate in financial aid
programs under this title;
(5) information on available student support
services, programs, and community resources, such as
academic advising, child care (including child care
subsidy and assistance programs), housing (including
housing subsidies and utility assistance programs),
food (including food assistance programs), public
benefits, health care, health insurance, mental health,
transportation benefits, mentoring, and other services
available for expectant and parenting students, both
on-campus and in the community, and under local, State,
and Federal law;
(6) information regarding the availability of on-
campus housing that permits students to live with
dependents;
(7) information on the rights and protections that
are guaranteed to expectant and parenting students
under applicable Federal and State laws;
(8) the institution's procedures for addressing
complaints under title IX of the Education Amendments
of 1972 (20 U.S.C. 1681 et seq.), including procedures
for reporting complaints under such title;
(9) the institution's procedures for addressing
complaints alleging discrimination based on a
pregnancy-related disability under section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) or
the Americans with Disabilities Act of 1990 (42 U.S.C.
12101 et seq.), including procedures for reporting
complaints under such laws; and
(10) the contact information for the institution's
Office of Accessibility, the institution's Title IX
coordinator, and any other relevant staff members who
serve as a point of contact for, or offer services
available to, expectant and parenting students.
* * * * * * *
SEC. 485B. NATIONAL STUDENT LOAN DATA SYSTEM.
(a) Development of the System.--The Secretary shall consult
with a representative group of guaranty agencies, eligible
lenders, and eligible institutions to develop a mutually
agreeable proposal for the establishment of a National Student
Loan Data System containing information regarding loans made,
insured, or guaranteed under part B and loans made under parts
D and E, and for allowing the electronic exchange of data
between program participants and the system. In establishing
such data system, the Secretary shall place a priority on
providing for the monitoring of enrollment, student status,
information about current loan holders and servicers, and
internship and residency information. Such data system shall
also permit borrowers to use the system to identify the current
loan holders and servicers of such borrower's loan not later
than one year after the date of enactment of the Higher
Education Amendments of 1998. The information in the data
system shall include (but is not limited to)--
(1) the amount and type of each such loan made;
(2) the names and social security numbers of the
borrowers;
(3) the guaranty agency responsible for the guarantee
of the loan;
(4) the institution of higher education or
organization responsible for loans made under parts D
and E;
(5) the exact amount of loans partially or totally
canceled or in deferment for service under the Peace
Corps Act (22 U.S.C. 2501 et seq.), for service under
the Domestic Volunteer Service Act of 1973 (42 U.S.C.
4951 et seq.), and for comparable full-time service as
a volunteer for a tax-exempt organization of
demonstrated effectiveness;
(6) the eligible institution in which the student was
enrolled or accepted for enrollment at the time the
loan was made, and any additional institutions attended
by the borrower;
(7) the total amount of loans made to any borrower
and the remaining balance of the loans;
(8) the lender, holder, and servicer of such loans;
(9) information concerning the date of any default on
the loan and the collection of the loan, including any
information concerning the repayment status of any
defaulted loan on which the Secretary has made a
payment pursuant to section 430(a) or the guaranty
agency has made a payment to the previous holder of the
loan;
(10) information regarding any deferments or
forbearance granted on such loans; and
(11) the date of cancellation of the note upon
completion of repayment by the borrower of the loan or
payment by the Secretary pursuant to section 437.
(b) Additional Information.--For the purposes of research and
policy analysis, the proposal shall also contain provisions for
obtaining additional data concerning the characteristics of
borrowers and the extent of student loan indebtedness on a
statistically valid sample of borrowers under part B. Such data
shall include--
(1) information concerning the income level of the
borrower and his family and the extent of the
borrower's need for student financial assistance,
including loans;
(2) information concerning the type of institution
attended by the borrower and the year of the program of
education for which the loan was obtained;
(3) information concerning other student financial
assistance received by the borrower; and
(4) information concerning Federal costs associated
with the student loan program under part B of this
title, including the costs of interest subsidies,
special allowance payments, and other subsidies.
(c) Verification.--The Secretary may require lenders,
guaranty agencies, or institutions of higher education to
verify information or obtain eligibility or other information
through the National Student Loan Data System prior to making,
guaranteeing, or certifying a loan made under part B, D, or E.
(d) Principles for Administering the Data System.--In
managing the National Student Loan Data System, the Secretary
shall take actions necessary to maintain confidence in the data
system, including, at a minimum--
(1) ensuring that the primary purpose of access to
the data system by guaranty agencies, eligible lenders,
and eligible institutions of higher education is for
legitimate program operations, such as the need to
verify the eligibility of a student, potential student,
or parent for loans under part B, D, or E;
(2) prohibiting nongovernmental researchers and
policy analysts from accessing personally identifiable
information;
(3) creating a disclosure form for students and
potential students that is distributed when such
students complete the common financial reporting form
under section 483, and as a part of the exit counseling
process under section 485(b), that--
(A) informs the students that any title IV
grant or loan the students receive will be
included in the National Student Loan Data
System, and instructs the students on how to
access that information;
(B) describes the categories of individuals
or entities that may access the data relating
to such grant or loan through the data system,
and for what purposes access is allowed;
(C) defines and explains the categories of
information included in the data system;
(D) provides a summary of the provisions of
section 444 of the General Education Provisions
Act (commonly known as the ``Family Educational
Rights and Privacy Act of 1974'') and other
applicable Federal privacy statutes, and a
statement of the students' rights and
responsibilities with respect to such statutes;
(E) explains the measures taken by the
Department to safeguard the students' data; and
(F) includes other information as determined
appropriate by the Secretary;
(4) requiring guaranty agencies, eligible lenders,
and eligible institutions of higher education that
enter into an agreement with a potential student,
student, or parent of such student regarding a loan
under part B, D, or E, to inform the student or parent
that such loan shall be--
(A) submitted to the data system; and
(B) accessible to guaranty agencies, eligible
lenders, and eligible institutions of higher
education determined by the Secretary to be
authorized users of the data system;
(5) regularly reviewing the data system to--
(A) delete inactive users from the data
system;
(B) ensure that the data in the data system
are not being used for marketing purposes; and
(C) monitor the use of the data system by
guaranty agencies and eligible lenders to
determine whether an agency or lender is
accessing the records of students in which the
agency or lender has no existing financial
interest; [and]
(6) developing standardized protocols for limiting
access to the data system that include--
(A) collecting data on the usage of the data
system to monitor whether access has been or is
being used contrary to the purposes of the data
system;
(B) defining the steps necessary for
determining whether, and how, to deny or
restrict access to the data system; and
(C) determining the steps necessary to reopen
access to the data system following a denial or
restriction of access[.]; and
(7) preventing access to the data system and any
other system used to administer a program under this
title by any person or entity for the purpose of
assisting a student in managing loan repayment or
applying for any repayment plan, consolidation loan, or
other benefit authorized by this title, unless such
access meets the requirements described in subsection
(e).
(e) Requirements for Third-Party Data System Access.--
(1) In general.--As provided in paragraph (7) of
subsection (d), an authorized person or entity
described in paragraph (2) may access the data system
and any other system used to administer a program under
this title if that access--
(A) is in compliance with terms of service,
information security standards, and a code of
conduct which shall be established by the
Secretary and published in the Federal
Register;
(B) is obtained using an access device (as
defined in section 1029(e)(1) of title 18,
United States Code) issued by the Secretary to
the authorized person or entity; and
(C) is obtained without using any access
device (as defined in section 1029(e)(1) of
title 18, United States Code) issued by the
Secretary to a student, borrower, or parent.
(2) Authorized person or entity.--An authorized
person or entity described in this paragraph means--
(A) a guaranty agency, eligible lender, or
eligible institution, or a third-party
organization acting on behalf of a guaranty
agency, eligible lender, or eligible
institution, that is in compliance with
applicable Federal law (including regulations
and guidance); or
(B) a licensed attorney representing a
student, borrower, or parent, or another
individual who works for a Federal, State,
local, or Tribal government or agency, or for a
nonprofit organization, providing financial or
student loan repayment counseling to a student,
borrower, or parent, if--
(i) that attorney or other individual
has never engaged in unfair, deceptive,
or abusive practices, as determined by
the Secretary;
(ii) that attorney or other
individual does not work for an entity
that has engaged in unfair, deceptive,
or abusive practices (including an
entity that is owned or operated by a
person or entity that engaged in such
practices), as determined by the
Secretary;
(iii) system access is provided only
through a separate point of entry; and
(iv) the attorney or other individual
has consent from the relevant student,
borrower, or parent to access the
system.
[(e)] (f) Reports to Congress.--
(1) Annual report.--Not later than September 30 of
each fiscal year, the Secretary shall prepare and
submit to the authorizing committees a report
describing--
(A) the effectiveness of existing privacy
safeguards in protecting [student and parent]
student, borrower, and parent information in
the data system;
(B) the success of any new authorization
protocols in more effectively preventing abuse
of the data system;
(C) the reduction in improper data system
access as described in subsection (d)(7);
[(C)] (D) the ability of the Secretary to
monitor how the system is being used, relative
to the intended purposes of the data system;
and
[(D) any protocols developed under subsection
(d)(6) during the preceding fiscal year.]
(E) any protocols, codes of conduct, terms of
service, or information security standards
developed under paragraphs (6) or (7) of
subsection (d) during the preceding fiscal
year.
(2) Study.--
(A) In general.--The Secretary shall conduct
a study regarding--
(i) available mechanisms for
providing students and parents with the
ability to opt in or opt out of
allowing eligible lenders to access
their records in the National Student
Loan Data System; and
(ii) appropriate protocols for
limiting access to the data system,
based on the risk assessment required
under subchapter III of chapter 35 of
title 44, United States Code.
(B) Submission of study.--Not later than
three years after the date of enactment of the
Higher Education Opportunity Act, the Secretary
shall prepare and submit a report on the
findings of the study under subparagraph (A) to
the authorizing committees.
[(f)] (g) Standardization of Data Reporting.--
(1) In general.--The Secretary shall by regulation
prescribe standards and procedures (including relevant
definitions) that require all lenders and guaranty
agencies to report information on all aspects of loans
made under this title in uniform formats in order to
permit the direct comparison of data submitted by
individual lenders, servicers or guaranty agencies.
(2) Activities.--For the purpose of establishing
standards under this section, the Secretary shall--
(A) consult with guaranty agencies, lenders,
institutions of higher education, and
organizations representing the groups described
in paragraph (1);
(B) develop standards designed to be
implemented by all guaranty agencies and
lenders with minimum modifications to existing
data processing hardware and software; and
(C) publish the specifications selected to be
used to encourage the automation of exchanges
of information between all parties involved in
loans under this title.
[(g)] (h) Common Identifiers.--The Secretary shall, not later
than July 1, 1993--
(1) revise the codes used to identify institutions
and students in the student loan data system authorized
by this section to make such codes consistent with the
codes used in each database used by the Department of
Education that contains information of participation in
programs under this title; and
(2) modify the design or operation of the system
authorized by this section to ensure that data relating
to any institution is readily accessible and can be
used in a form compatible with the integrated
postsecondary education data system (IPEDS).
[(h)] (i) Integration of Databases.--The Secretary shall
integrate the National Student Loan Data System with the Pell
Grant applicant and recipient databases as of January 1, 1994,
and any other databases containing information on participation
in programs under this title.
* * * * * * *
SEC. 485F. INFORMATION WITH RESPECT TO CRIME STATISTICS FOR PROGRAMS OF
STUDY ABROAD.
(a) In General.--Each institution participating in any
program under this title, other than a foreign institution of
higher education, shall develop and distribute a statement of
policy with respect to students participating in a program of
study abroad approved for credit by the institution concerning
crime and harm that may occur while participating in such
program of study abroad that, at a minimum, includes a biennial
review by the institution of the programs of study abroad
approved for credit by the institution to determine--
(1) the effectiveness of the programs at protecting
students from crime and harm, and whether changes to
the programs are needed (based on the most recent
guidance or other assistance from the Secretary) and
will be implemented;
(2) for the 5 years preceding the date of the report,
the number (in the aggregate for all programs of study
abroad approved for credit by the institution) of--
(A) deaths of program participants occurring
during program participation or during any
other activities during the study abroad
period;
(B) sexual assaults against program
participants occurring during program
participation and reported to the institution;
(C) accidents and illnesses occurring during
program participation that resulted in
hospitalization and were reported to the
institution; and
(D) incidents involving program participants
during the program participation that resulted
in police involvement or a police report and
were reported to the institution; and
(3) with respect to the incidents described in
subparagraphs (A) and (B) of paragraph (2), whether the
incidents occurred--
(A) on campus;
(B) in or on noncampus buildings or property;
(C) on public property;
(D) in dormitories or other residential
facilities for students on campus; or
(E) at a location not described in items (A)
through (D) of this clause, without regard to
whether the institution owns or controls a
building or property at the location.
(b) Other Duties.--An institution of higher education
described in subsection (a) shall--
(1) provide each student who is interested in
participating in a program of study abroad approved for
credit by the institution, with an orientation session
and advising that includes--
(A) a list of countries in which such
programs of study abroad are located;
(B) all current travel information, including
all travel warnings and travel alerts, issued
by the Bureau of Consular Affairs of the
Department of State for such countries; and
(C) the information described in paragraph
(a), provided specifically for each program of
study abroad approved for credit by the
institution in which the student is considering
participation; and
(2) provide each student who returns from such a
program of study abroad with a post-trip debriefing
session, including an exit interview that assists the
institution in carrying out subsection (a).
(c) Limitations.--An institution of higher education shall
not disaggregate or otherwise distinguish information for
purposes of subsection (a) or (b) 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.
(d) Review.--The Secretary shall periodically review a
representative sample of the policies described in subsection
(a) that have been adopted by institutions of higher education.
(e) Definition.--For the purpose of this section, the
definitions for ``campus'', ``noncampus building or property'',
and ``public property'' shall have the same meaning as in
section 485(f)(6).
* * * * * * *
SEC. 486B. REMEDIAL EDUCATION GRANTS.
(a) Grants Authorized.--
(1) In general.--From the funds appropriated under
subsection (k) (and not reserved under subsection
(c)(4)), the Secretary, in consultation with the
Director of the Institute of Education Sciences, shall
award grants, on a competitive basis, to eligible
entities to improve remedial education in higher
education.
(2) Duration.--A grant under this section shall be
awarded for a period of 5 years.
(3) Minimum awards.--The total amount of funds
provided under each grant awarded under this section
shall not be less than $500,000.
(b) Application.--An eligible entity that desires to receive
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, which shall include
the following:
(1) A description of how the eligible entity will use
the grant funds to develop or improve a remedial
education program that includes evidence-based,
effective strategies for providing instruction to
ensure that students are prepared for courses at the
postsecondary level.
(2) An assurance that the eligible entity will use
more than two measures (such as a student's college
entrance examination score, grade point average, high
school course list, or a placement examination) to
identify students in need of remedial education who may
be eligible to participate in the remedial education
program developed or improved under the grant.
(3) A description of how the eligible entity, in
developing or improving such a program, will consult
with stakeholders, including individuals with expertise
in remedial education, students enrolled in remedial
education, and faculty instructors for remedial
education.
(4) The eligible entity's plan for sustaining the
program after the grant period has ended.
(5) The eligible entity's plan for monitoring and
evaluating the program, including how the eligible
entity will use the data collected under subsection (h)
to continually update and improve the program.
(c) Consultation and Independent Evaluation.--
(1) In general.--Before selecting eligible entities
to receive grants under this section for a fiscal year,
the Secretary shall--
(A) ensure that the consultation required
under paragraph (3) is carried out; and
(B) consider the results of the consultation
in selecting eligible entities to receive such
grants.
(2) Contract authority.--The Secretary, acting
through the Director, shall seek to enter into a
contract with an independent evaluator under which the
evaluator will provide the consultation and evaluation
required under paragraph (3).
(3) Consultation and independent evaluation
required.--The independent evaluator shall carry out
the following activities:
(A) Consultation.--For each fiscal year of
the grant program under this section, the
independent evaluator shall consult with, and
provide advice to, the Secretary regarding
which eligible entities should receive grants
under this section for such fiscal year.
(B) Evaluation.--Throughout the duration of
the grant program under this section, the
independent evaluator shall independently
evaluate the impact of the remedial education
programs funded with the grants, which shall
include evaluation of--
(i) the effectiveness of the remedial
education programs in increasing course
and degree completion at the
postsecondary level; and
(ii) the outcomes of the remedial
education programs within and among
models of remedial education described
in subsection (d).
(4) Reservation.--The Secretary may reserve not more
than 15 percent of the funds appropriated under
subsection (k) for a fiscal year to carry out this
subsection for such fiscal year.
(d) Use of Funds.--An eligible entity that receives a grant
under this section shall use the grant to develop or improve a
remedial education program through one or more of the following
models:
(1) Aligning course work.--Working with a local
educational agency or State educational agency that is
part of the eligible entity to develop or improve
programs that provide alignment between high school
coursework and postsecondary education, and that may
include--
(A) assessments in high school to measure
student readiness for courses at the
postsecondary level; or
(B) interventions in high school that improve
student competencies for courses at the
postsecondary level.
(2) Accelerated course work.--Redesigning or
improving remedial education that--
(A) allows students to enroll in more than
one sequential remedial education course or
training in a semester, or the equivalent;
(B) condenses the time of the remedial
education; or
(C) provides shortened, intensive courses or
training to improve competencies of students
for courses at the postsecondary level.
(3) Modular instructional methods.--Developing or
improving remedial education that--
(A) specifically targets the skills that
students need to move forward in courses at the
postsecondary level; and
(B) may be used to develop new assessments,
redesign courses to provide targeted skill
instruction, or provide faculty professional
development.
(4) Co-requisite model.--Developing or improving
remedial education programs that allow a student to
enroll in remedial education (which may be provided
through a modular instructional method) while also
enrolled in a course at the postsecondary level.
(5) Systemic reform to implement comprehensive,
integrated support programs.--Implementing and
improving comprehensive, integrated, evidence-based
support programs that--
(A) enable students enrolled in remedial
education to complete a course of study leading
to a recognized educational credential within
150 percent of the normal time for completion;
and
(B) may include financial supports, academic
tutoring or support, and advising that enable
students to find success in remedial education
and courses at the postsecondary level.
(e) Considerations.--In awarding grants under this section,
the Secretary, in consultation with the Director, shall--
(1) ensure--
(A) a minimum of 30 eligible entities are
awarded grants for each 5-year grant period;
(B) an equitable geographic distribution of
such grants, including an equitable
distribution between urban and rural areas; and
(C) that grants are used to develop or
improve remedial education programs--
(i) under each model described in
subsection (d) to enable, to the extent
practicable, statistical comparisons of
the relative effectiveness of the
models and the programs within each
model; and
(ii) for a range of types and sizes
of institutions of higher education;
and
(2) give preference to eligible entities that
primarily serve low-income students.
(f) Fiscal Requirements.--
(1) Supplement not supplant.--A grant awarded under
this section shall be used to supplement, not supplant,
funds that would otherwise be used to carry out the
activities described in this section.
(2) Matching funds.--
(A) In general.--Subject to subparagraph (B),
an eligible entity that receives a grant under
this section shall provide, from non-Federal
sources, an amount equal to 10 percent of the
amount of the grant for the cost of activities
assisted under the grant.
(B) Exceptions.--The requirements of
subparagraph (A) shall not apply to--
(i) Tribal Colleges or Universities;
or
(ii) institutions of higher education
located in the Commonwealth of Puerto
Rico, Guam, American Samoa, the United
States Virgin Islands, the Commonwealth
of the Northern Mariana Islands, the
Republic of the Marshall Islands, the
Federated States of Micronesia, or the
Republic of Palau.
(g) Experimental Authority.--Notwithstanding any other
provision of this title, a student may be eligible to receive
loans or grants under this title for up to 2 academic years for
enrollment in a remedial education program under this section.
(h) Data Collection, Reports, Evaluations, and
Dissemination.--
(1) Information.--
(A) Student-level data.--Each eligible entity
that receives a grant under this section shall
provide to the Director and the Secretary, on
an annual basis for each year of the grant
period and for 5 years after such grant period,
the student-level data with respect to the
students who are or were enrolled in a remedial
education program funded with the grant. The
Director and the Secretary shall share such
data with the independent evaluator to enable
the evaluator, for each such year, to determine
the information described in subparagraph (B)
with respect to each such remedial education
program.
(B) Aggregate student data.--The independent
evaluator shall determine, with respect to each
remedial education program for which an
eligible entity provides student-level data
under subparagraph (A), the following
information:
(i) The number of students who are or
were enrolled in such remedial
education program.
(ii) The cost of such remedial
education program.
(iii) The amount of grant or loan
funds under this title awarded to
students for enrollment in such
remedial education program.
(iv) The type of remedial education
offered under the program.
(v) The length of time students spend
in such remedial education program, as
measured by semester, trimester, or
clock hours.
(vi) The number of students who
complete such remedial education
program.
(vii) Of the students who complete
such remedial education program--
(I) the number and percentage
of such students who later
enroll in postsecondary-level
courses at an institution of
higher education;
(II) the number and
percentage of such students who
receive a recognized
educational credential from an
institution of higher
education;
(III) the average length of
time required for a student
described in subclause (II) to
complete the course of study
leading to such credential; and
(IV) the number and
percentage of students
described in subclause (II) who
complete the course of study
leading to such credential
within 150 percent of the
normal time for completion.
(C) Disaggregation.--The information
determined under subparagraph (B) shall be
disaggregated by race, gender, socioeconomic
status, Federal Pell Grant eligibility status,
status as a first generation college student,
veteran or active duty status, and disability
status.
(2) Evaluation results.--Not later than six years
after the first grant is awarded under this section,
the Director, in consultation with the Secretary and
using the information determined under paragraph (1),
shall submit to the authorizing committees and make
available on a publicly accessible website, a report on
the results of the multiyear, rigorous, and independent
evaluation of the impact of the remedial education
programs carried out by the independent evaluator. The
report shall include the results of such evaluation
with respect to--
(A) the effectiveness of the remedial
education programs in increasing course and
degree completion at the postsecondary level;
and
(B) the outcomes of the remedial education
programs within and among models of remedial
education described in subsection (d).
(3) Reports and dissemination.--
(A) Initial report.--Not later than one year
after the first grant is awarded under this
section, the Secretary, in consultation with
the independent evaluator, shall prepare and
submit to the authorizing committees a report
on each remedial education program funded under
this section.
(B) Subsequent report.--Not later than five
years after the last grant is awarded under
this section, the Secretary, in consultation
with the independent evaluator, shall prepare
and submit to the authorizing committees a
report that includes--
(i) a review of the activities and
program performance of each remedial
education program funded under this
section; and
(ii) guidance and recommendations on
how successful remedial education
programs (as determined, at a minimum,
by the number and percentage of
remedial education students who later
complete a course of study at an
institution of higher education within
150 percent of the normal time for
completion) can be replicated.
(C) Public availability.--The reports
submitted under subparagraphs (A) and (B) shall
be made available on a publicly accessible
website of the Department of Education.
(i) Data Privacy.--
(1) In general.--It shall be unlawful for any person
who obtains or has access to personally identifiable
information pursuant to this section to knowingly
disclose to any person (except as authorized in this
section or any Federal law) such personally
identifiable information.
(2) Penalty.--Any person who violates paragraph (1)
shall be fined under title 18, United States Code.
(3) Officer or employee of the united states.--If any
officer or employee of the United States violates
paragraph (1), the officer or employee shall be
dismissed from office or discharged from employment
upon conviction for the violation.
(4) Law enforcement.--Personally identifiable
information collected under this section shall not be
used for any law enforcement activity or any other
activity that would result in adverse action against
any student, including debt collection activity or
enforcement of the immigration laws.
(j) Definitions.--In this section:
(1) Director.--The term ``Director'' means the
Director of the Institute of Education Sciences.
(2) Eligible entity.--The term ``eligible entity''
means--
(A) an institution of higher education; or
(B) a partnership between an institution of
higher education and at least 1 of the
following:
(i) A local educational agency.
(ii) A State educational agency.
(3) First generation college student.--The term
``first generation college student'' has the meaning
given that term in section 402A(h).
(4) Independent evaluator.--The term ``independent
evaluator'' means the independent evaluator with which
the Secretary enters into a contract under subsection
(c)(2).
(5) Institution of higher education.--The term
``institution of higher education'' has the meaning
given that term in section 101.
(6) Remedial education.--The term ``remedial
education''--
(A) means education (such as courses or
training) offered at an institution of higher
education that--
(i) is below the postsecondary level;
and
(ii) is determined by the institution
to be necessary to help students be
prepared for the pursuit of a first
undergraduate baccalaureate degree,
associate's 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; and
(B) includes developmental education that
meets the requirements of subparagraph (A).
(7) Tribal college or university.--The term ``Tribal
College or University'' has the meaning given that term
in section 316(b).
(k) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section $162,500,000 for
fiscal year 2021 and each of the 5 succeeding fiscal years.
SEC. 486C. COMPETENCY-BASED EDUCATION DEMONSTRATION PROJECTS.
(a) Demonstration Projects Authorized.--The Secretary shall
select, in accordance with subsection (d), eligible entities to
voluntarily carry out competency-based education demonstration
projects for a duration of 5 years and receive waivers or other
flexibility described in subsection (e) to carry out such
projects.
(b) Application.--
(1) In general.--Each eligible entity desiring to
carry out a demonstration project under this section
shall submit an application to the Secretary, at such
time and in such manner as the Secretary may require.
(2) Outreach.--
(A) In general.--The Secretary shall, prior
to any deadline to submit applications under
paragraph (1), conduct outreach to
institutions, including those described in
subparagraph (B), to provide those institutions
with information on the opportunity to apply to
carry out a demonstration project under this
section.
(B) Institutions.--The institutions described
in this subparagraph are the following:
(i) Part B institutions (as defined
in section 322).
(ii) Hispanic-serving institutions
(as defined in section 502).
(iii) Tribal Colleges or Universities
(as defined in section 316).
(iv) Alaska Native-serving
institutions (as defined in section
317(b)).
(v) Native Hawaiian-serving
institutions (as defined in section
317(b)).
(vi) Predominantly Black Institutions
(as defined in section 318).
(vii) Asian American and Native
American Pacific Islander-serving
institutions (as defined in section
320(b)).
(viii) Native American-serving,
nontribal institutions (as defined in
section 319).
(ix) Institutions predominately
serving adult learners.
(x) Institutions serving students
with disabilities.
(xi) Institutions located in rural
areas.
(3) Amendments.--
(A) In general.--An eligible entity that has
been selected to carry out a demonstration
project under this section may submit to the
Secretary amendments to the eligible entity's
approved application under paragraph (1), at
such time and in such manner as the Secretary
may require, which the Secretary shall approve
or deny within 30 days of receipt.
(B) Expanding enrollment.--Notwithstanding
the assurance required with respect to maximum
enrollment under paragraph (4)(N)--
(i) an eligible entity whose
demonstration project has been
evaluated under subsection (g)(2) not
less than twice, may submit to the
Secretary an amendment to the eligible
entity's application under paragraph
(1) to increase enrollment in the
project to more than 3,000 students,
but not more than 5,000 students, and
which shall specify--
(I) the proposed maximum
enrollment and annual
enrollment growth for the
project;
(II) how the eligible entity
will successfully carry out the
project with such maximum
enrollment and enrollment
growth; and
(III) any other amendments to
the eligible entity's
application under paragraph (1)
that are related to such
maximum enrollment or
enrollment growth; and
(ii) the Secretary shall determine
whether to approve or deny an amendment
submitted under clause (i) for a
demonstration project based on the
project's evaluations under subsection
(g)(2).
(4) Contents.--Each application under paragraph (1)
shall include--
(A) a description of each competency-based
education program to be offered by the eligible
entity under the demonstration project;
(B) a description of the alignment of the
proposed competency-based education program to
the institution's mission, and evidence of
institutional commitment to such program;
(C) a description of how each program will
work with employers and local industry to
assess and incorporate competencies that are
relevant in the labor market and how the
program aligns with employer needs;
(D) a description of the proposed academic
design, academic and support services,
delivery, business, and financial models for
the demonstration project, including
explanations and supporting documents,
including financial statements, and, any
revenue-sharing agreements with third-party
servicers or online program managers, of how
each competency-based education program offered
under the demonstration project will--
(i) result in the achievement of
competencies;
(ii) differ from standard credit hour
approaches, in whole or in part;
(iii) result in lower costs of a
certificate or degree; and
(iv) result in shortened time to
completion of a certificate or degree;
(E) a description of how each competency-
based education program offered under the
demonstration project will award academic
credit to advance the progress of a student
toward completion of a certificate or degree
that is portable and used by in-demand
employers for making employment decisions;
(F) a description of how each credit-bearing
competency-based education program offered
under the demonstration project is aligned with
a career pathway;
(G) a description of the meaningful role of
the appropriate instructors of the eligible
entity in the development, design,
implementation, delivery, and evaluation of
each such competency-based education program;
(H) a description of how each such
competency-based education program will provide
strong post-enrollment job placement, earnings,
and loan repayment outcomes;
(I) a description of how the eligible entity
will facilitate transfer, postsecondary study,
and employer understanding by articulating a
competency-based transcript from a competency-
based education program offered under the
demonstration project to a credit hour
transcript at another program at the eligible
entity and to other institutions of higher
education;
(J) a description of the statutory and
regulatory requirements described in subsection
(e) for which the eligible entity is seeking a
waiver or other flexibility, and why such
waiver or flexibility is necessary to carry out
the demonstration project;
(K) a description of indicators of a
program's effectiveness to inform how a third
party will reliably assess student learning for
each competency-based education program offered
under the demonstration project;
(L) a description of how the eligible entity
will develop and evaluate the competencies and
assessments of student knowledge administered
as part of the demonstration project, including
whether there is a relationship between the
competency unit and a traditional credit or
clock hour, the average time it takes to earn a
competency, how such competencies and
assessments are aligned with workforce needs
and any other considerations the institution
made when it developed its unit of competency;
(M) a description of the proposal for
determining a student's Federal student aid
eligibility under this title for participating
in the demonstration project, the award and
distribution of such aid, and the safeguards to
ensure that students are making satisfactory
progress that warrants the disbursement of such
aid;
(N) an assurance that the demonstration
project at each eligible entity--
(i) will enroll a minimum of 25
students and a maximum of 3,000
students or, in the case of an eligible
entity with an application amendment
approved under paragraph (3)(B), the
maximum enrollment approved under such
paragraph;
(ii) will identify and disseminate
best practices with respect to the
demonstration project to the Secretary
and to other eligible entities carrying
out a demonstration project under this
section;
(iii) operates under an agreement
with the accrediting agency or
association of the eligible entity to
establish the standards described in
subsection (c); and
(iv) uses available funds solely for
purposes of awarding academic credit to
eligible students based on the
achievement of competencies and for the
related costs or fees of demonstrating
the achievement of competencies;
(O) a description of the population of
students to whom competency-based education
under the demonstration project will be
offered, including demographic information and
prior educational experience, disaggregated (as
practicable) by students who are Federal Pell
Grant recipients, students of color, Native
students, students with disabilities, students
who are veterans or members of the Armed
Forces, adult learners, and first generation
college students, and how such eligible entity
will, when appropriate, address the specific
needs of each such population of students when
carrying out the demonstration project;
(P) a description of outreach and
communication activities to students who may
benefit under the demonstration project,
including those described in subparagraph (O);
(Q) a description of how the institution is
ensuring that students participating in the
demonstration project will not, on average, be
eligible for more or less Federal assistance
under this title than such students would have
been eligible for under a program measured in
credit or clock hours;
(R) the cost of attendance for each
competency-based education program offered
under the demonstration project, disaggregated
by each of the applicable costs or allowances
described in paragraphs (1) through (13) of
section 472, and the estimated amount of the
cost of attendance of each such program to be
covered by need-based grant aid and merit-based
grant aid from Federal, State, institutional,
and private sources;
(S) a description of other competency-based
education programs the eligible entity offers
or plans to offer outside of the demonstration
project;
(T) a description of how the eligible entity
will use data to--
(i) ensure that each competency-based
education program under the
demonstration project meets the
benchmarks established in accordance
with subsection (c)(2)(E);
(ii) confirm relevancy of
competencies in the labor market; and
(iii) improve each such program; and
(U) other such elements as the Secretary may
require.
(c) Recognition by Accrediting Agency or Association.--Unless
a program has already been recognized as a direct assessment
program by the accrediting agency or association of the
eligible entity, in order to carry out a competency-based
education program under a demonstration project under this
section, an eligible entity shall include in its application
under subsection (b), a letter from the accrediting agency or
association of the eligible entity that describes how it will
establish and enforce the following standards with respect to
such competency-based education program:
(1) Standards for determining whether the eligible
entity or the program requires students to demonstrate
competencies that are--
(A) capable of being validly and reliably
assessed; and
(B) appropriate in scope and rigor for the
award of the relevant certificate or degree.
(2) Standards for determining whether the eligible
entity or the program demonstrate--
(A) the administrative capacity and expertise
that will ensure--
(i) the validity and reliability of
assessments of competencies; and
(ii) good practices in assessment and
measurement;
(B) sufficient educational content,
activities, and resources (including faculty
support)--
(i) to enable students to learn or
develop what is required to demonstrate
or attain mastery of competencies; and
(ii) that are consistent with the
qualifications of graduates of
traditional programs;
(C) that the quality of demonstration of
competence is judged at mastery for each
competency that is assessed for the award of a
certificate or degree;
(D) a standard for the amount of learning
that is included in a unit of competency;
(E) reasonable, clear, and actionable
benchmarks for graduation rates and the
employment and earnings of graduates, including
job placements in a field for which the program
prepares students, debt-to-earnings ratios,
loan repayment rates, and student satisfaction;
(F) regular evaluation of whether the program
meets the benchmarks under subparagraph (E),
and address what may be the cause with
identified interventions; and
(G) that students may not receive a
subsequent disbursement until they have
completed the anticipated number of credits for
the payment period.
(3) Standards for determining when to deny, withdraw,
suspend, or terminate the accreditation of the program
if the benchmarks under paragraph (2)(E) are not
achieved after 4 consecutive title IV payment periods,
including standards for providing sufficient
opportunity--
(A) for the eligible entity or program to
provide a written response regarding the
failure to achieve such benchmarks be
considered by the agency or association in the
manner described in section 496(a)(6)(B); and
(B) for the eligible entity or program to
appeal any adverse action under this
subparagraph before an appeals panel that meets
the requirements of section 496(a)(6)(C).
(d) Selection.--
(1) In general.--Not later than 12 months after the
date of enactment of the College Affordability Act, the
Secretary shall select not more than 100 eligible
entities to carry out a demonstration project under
this section under which at least 1 competency-based
education program is offered at each eligible entity.
(2) Considerations.--In selecting eligible entities
under paragraph (1), the Secretary shall--
(A) consider the number and quality of
applications received;
(B) consider an eligible entity's--
(i) ability to successfully execute
the demonstration project as described
in the eligible entity's application
under subsection (b);
(ii) commitment and ability to
effectively finance the demonstration
project;
(iii) ability to provide
administrative capability and the
expertise to evaluate student progress
based on measures other than credit
hours or clock hours;
(iv) history of compliance with the
requirements of this Act;
(v) commitment to work with the
Director and the Secretary to evaluate
the demonstration project and the
impact of the demonstration project
under subsection (g)(2);
(vi) commitment and ability to assess
student learning through a third party;
(vii) commitment of the accrediting
agency or association of the eligible
entity to establish and enforce the
standards described in subsection (c);
and
(viii) commitment to collaboration
with an employer advisory group or
specific employers to determine how the
demonstration project will meet
employer needs;
(C) ensure the selection of a diverse group
of eligible entities with respect to size,
mission, student population, and geographic
distribution;
(D) not limit the types of programs of study
or courses of study approved for participation
in a demonstration project; and
(E) not select an eligible entity--
(i) that, for 1 of the preceding 2
fiscal years--
(I) had an adjusted cohort
default rate (defined in
section 435(m)) that is 20
percent or greater;
(II) failed to meet the
requirement under section
487(a)(24); or
(III) was--
(aa) under probation
or an equivalent status
from the accrediting
agency or association
of the eligible entity;
(bb) under sanction
from the authorization
agency of the State in
which the eligible
entity is located; or
(cc) under public
investigation or facing
a pending lawsuit from
a State or Federal
agency;
(ii) if the Department has concerns
with the entity's compliance based on
program reviews or audits; or
(iii) if the eligible entity fails to
meet the financial responsibility
standards prescribed by the Secretary
in accordance with section 498(c) or is
placed on a reimbursement payment
method by the Secretary.
(e) Waivers and Other Flexibility.--
(1) In general.--With respect to any eligible entity
selected to carry out a demonstration project under
this section, the Secretary may--
(A) waive any requirements of the provisions
of law (including any regulations promulgated
under such provisions) listed in paragraph (2)
for which the eligible entity has provided a
reason for waiving under subsection (b)(4)(J);
or
(B) provide other flexibility, but not waive,
any requirements of the provisions of law
(including any regulations promulgated under
such provisions) listed in paragraph (3) for
which the eligible entity has provided a reason
with which the Secretary agrees for such
flexibility under subsection (b)(4)(J).
(2) Provisions eligible for waivers.--The Secretary
may waive the following under paragraph (1)(A):
(A) Subparagraphs (A) and (B) of section
102(a)(3).
(B) Section 484(l)(1).
(3) Provisions eligible for flexibility.--The
Secretary may provide the flexibility described in
paragraph (1)(B) with respect to the requirements under
provisions in title I, part F of this title, or this
part, that inhibit the operation of a competency-based
education program, relating to the following:
(A) Documenting attendance.
(B) Weekly academic activity.
(C) Minimum weeks of instructional time.
(D) Requirements for credit hour or clock
hour equivalencies if an institution proposes a
measure clearly defined in its application that
accounts for the academic intensity of study.
(E) Requirements for regular and substantive
interaction with the instructor.
(F) Definitions of the terms ``academic
year'', ``full-time student'', ``part-time
student'', ``term'' (including ``standard
term'', ``non-term'', and ``non-standard
term''), ``satisfactory academic progress'',
``educational activity'', ``program of study'',
and ``payment period''.
(G) Methods of disbursing student financial
aid by institutions of higher education
selected, as of the date of enactment of the
College Affordability Act, as experimental
sites under section 487A to carry out
competency-based education programs.
(H) Restrictions regarding concurrent student
enrollment in Direct Assessment and non-Direct
Assessment programs.
(4) Measurement of activity or academic work.--An
institution granted flexibility under paragraph (3)
related to requirements for credit hour or clock hour
equivalencies shall include a measurement of activity
or academic ``work'' by students as considered
comparable to the standard practice for measuring
credit or clock hours for these areas.
(f) Notification.--Not later than 9 months after the date of
enactment of the College Affordability Act, the Secretary shall
make available to the authorizing committees and the public a
list of eligible entities selected to carry out a demonstration
project under this section, which shall include for each such
eligible entity--
(1) the specific waiver or other flexibility from
statutory or regulatory requirements offered under
subsection (e); and
(2) a description of the competency-based education
programs, and its associated accreditation standards,
to be offered under the project.
(g) Information and Evaluation.--
(1) Information.--
(A) Student-level data.--Each eligible entity
that carries out a demonstration project under
this section shall provide to the Director the
student-level data for the students enrolled in
a program described in subparagraph (C)(i)(I),
the student-level data for the students
enrolled in a program described in subparagraph
(C)(i)(II), and the student-level data for
students enrolled in a program described in
subparagraph (C)(i)(III) to enable the
Director--
(i) to determine the aggregate
information described in subparagraph
(B) with respect to each such program;
and
(ii) to the extent practicable, to
compare the programs using a rigorous
evaluation, such as propensity score
matching.
(B) Aggregate information.--For purposes of
the evaluation under paragraph (2), the
Director shall use the student-level data
provided under subparagraph (A) by an eligible
entity to determine the following information
with respect to each program described in
subparagraph (C)(i) offered at such eligible
entity:
(i) The average number of credit
hours students earned prior to
enrollment in the program, if
applicable.
(ii) The number and percentage of
students enrolled in a competency-based
education program that are also
enrolled in programs of study or
courses of study offered in credit
hours or clock hours, disaggregated by
student status as a first-year, second-
year, third-year, fourth-year, or other
student.
(iii) The average period of time
between the enrollment of a student in
the program and the first assessment of
student knowledge of such student.
(iv) The average time to 25 percent,
50 percent, 75 percent, 100 percent,
150 percent, and 200 percent completion
of a certificate or degree.
(v) The number and percentage of
students who begin in a certain cohort
and complete a certificate or degree.
(vi) The number and percentage of
students who begin in a certain cohort
and withdraw without completing a
certificate or degree.
(vii) The number and percentage of
students who begin in a certain cohort
who reach 25 percent, 50 percent, 75
percent, and 100 percent completion of
a certificate or degree.
(viii) The number and percentage of
students who begin in a certain cohort
who re-enroll in a second period.
(ix) The median number of
competencies completed per period.
(x) The average number of attempts it
takes students to pass all assessments
of student knowledge during the period
of enrollment in the program.
(xi) The percentage of summative
assessments of student competence that
students passed on the first attempt
during the period of enrollment in the
program.
(xii) The percentage of summative
assessments of student competence that
students passed on the second attempt
and the average period of time between
the first and second attempts during
the period of enrollment in the
program.
(xiii) The average number of
competencies a student acquired and
demonstrated while enrolled in a
program and the period of time during
which the student acquired such
competencies.
(xiv) The number and percentage of
students completing the program who
find employment that lasts not less
than 6 months within 6 months of
graduation, disaggregated by number and
percentage of such students finding
employment in a field related to the
program.
(xv) Student job placement rates 1,
2, and 3 years after graduating from
the program, if available.
(xvi) The median student earnings 1,
2, and 3 years after graduating from
the program, if available.
(xvii) The number and percentage of
students completing the program who
continue their education.
(xviii) Such other information as the
Director may reasonably require.
(C) Disaggregation.--The information
determined under subparagraph (B) shall be
disaggregated as follows, provided that the
disaggregation of the information does not
identify any individual student:
(i) For each eligible entity that
carries out a demonstration project
under this section, disaggregation by--
(I) the students enrolled in
each competency-based education
program under the project;
(II) the students enrolled in
each competency-based education
program not being carried out
under the project, if the
eligible entity has a
competency-based education
program not being carried out
under the project; and
(III) the students enrolled
in a program not described in
subclause (I) or (II).
(ii) For each group of students
described in clause (i), disaggregation
by prior postsecondary experience, age
group, race, gender, disability status,
students who are Veterans or
servicemembers, first generation
college students, full-time and part-
time enrollment, and status as a
recipient of a Federal Pell Grant.
(D) Council.--The Director shall provide to
the Competency-Based Education Council any
information described in subparagraph (A) or
(B) (other than personally identifiable
information) that may be necessary for the
Council to carry out its duties under section
4616(e) of the College Affordability Act.
(2) Evaluation.--
(A) In general.--The Director, in
consultation with the Secretary and using the
information determined under paragraph (1),
shall annually evaluate each eligible entity
carrying out a demonstration project under this
section. Each evaluation shall be disaggregated
in accordance with subparagraph (B) and
include--
(i) the extent to which the eligible
entity has met the elements of its
application under subsection (b)(4);
(ii) whether the demonstration
project led to reduced cost, including
as reflected by median debt levels, or
time to completion of a certificate or
degree, and the amount of cost or time
reduced for such completion;
(iii) obstacles related to student
financial assistance for competency-
based education;
(iv) the extent to which statutory or
regulatory requirements not waived or
for which flexibility is not provided
under subsection (e) presented
difficulties or unintended consequences
for students or eligible entities;
(v) a description of the waivers or
flexibility provided under subsection
(e) that were most beneficial to
students or eligible entities, and an
explanation of such benefits;
(vi) the percentage of students who
received each of the following--
(I) a grant under this title;
(II) a loan under this title;
(III) a State grant;
(IV) a State loan;
(V) an institutional grant;
(VI) an institutional loan;
(VII) a private loan; and
(VIII) an employer grant or
subsidy;
(vii) median annual total cost and
net cost to the student of the program;
(viii) median total cost and net cost
of the credential and associated
examination or licensure calculated
upon completion;
(ix) median outstanding balance of
principal and interest on loans made
under this title that students have
upon graduation;
(x) the median 3-year adjusted cohort
default rate as defined under section
435(m);
(xi) the median 1-year and 3-year
repayment rate of loans made under this
title;
(xii) the median student earnings 1,
3, and 4 years after graduation;
(xiii) a description of the
curricular infrastructure, including
assessments of student knowledge and
the corresponding competencies;
(xiv) a description of the role of
faculty and faculty involvement; and
(xv) outcomes of the assessments of
student competency.
(B) Disaggregation.--The data collected under
clauses (vi) through (xii) shall be
disaggregated by each group of students
described in paragraph (1)(C).
(3) Annual report.--The Director, in consultation
with the Secretary, shall annually provide to the
authorizing committees a report on--
(A) the evaluations required under paragraph
(2);
(B) the number and types of students
receiving assistance under this title for
competency-based education programs offered
under projects under this section;
(C) any proposed statutory or regulatory
changes designed to support and enhance the
expansion of competency-based education
programs, which may be independent of or
combined with traditional credit hour or clock
hour projects;
(D) the most effective means of delivering
competency-based education programs through
projects under this section; and
(E) the appropriate level and distribution
methodology of Federal assistance under this
title for students enrolled in a competency-
based education program.
(h) Coordination.--An eligible entity or the Director shall
consult with the Secretary of Education or the Secretary of the
Treasury to obtain the employment, earnings, and loan
information that may be necessary for purposes of subsection
(c)(2)(F) or subsection (g), respectively.
(i) Oversight.--In carrying out this section, the Secretary
shall, at least twice annually--
(1) assure compliance of eligible entities with the
requirements of this title (other than the provisions
of law and regulations that are waived under subsection
(e));
(2) provide technical assistance;
(3) monitor fluctuations in the student population
enrolled in the eligible entities carrying out the
demonstration projects under this section;
(4) consult with appropriate accrediting agencies or
associations and appropriate State regulatory
authorities for additional ways of improving the
delivery of competency-based education programs; and
(5) collect and disseminate to eligible entities
carrying out a demonstration project under this
section, best practices with respect to such projects.
(j) Data Privacy.--
(1) In general.--It shall be unlawful for any person
who obtains or has access to personally identifiable
information pursuant to this section to knowingly
disclose to any person (except as authorized in this
section or any Federal law) such personally
identifiable information.
(2) Penalty.--Any person who violates paragraph (1)
shall be fined under title 18, United States Code.
(3) Officer or employee of the united states.--If any
officer or employee of the United States violates
paragraph (1), the officer or employee shall be
dismissed from office or discharged from employment
upon conviction for the violation.
(4) Law enforcement.--Personally identifiable
information collected under this section shall not be
used for any law enforcement activity or any other
activity that would result in adverse action against
any student, including debt collection activity or
enforcement of the immigration laws.
(k) Authorization of Appropriations.--There are authorized to
be appropriated $5,000,000 to the Department to carry out the
project under this section.
(l) Definitions.--For the purpose of this section:
(1) Career pathway.--The term ``career pathway'' has
the meaning given the term in section 3 of the
Workforce Innovation and Opportunity Act (29 U.S.C.
3102).
(2) Competency.--The term ``competency'' means the
knowledge, skill, and abilities demonstrated for a
particular program of study.
(3) Competency-based education program.--The term
``competency-based education program'' means a
postsecondary program that provides competency-based
education for which the accrediting agency or
association of the institution of higher education
offering such program has established or will establish
the standards described in subsection (c) and, in
accordance with such standards--
(A) measures academic progress and credential
attainment by the assessment of student
learning in lieu of, or in addition to, credit
or clock hours;
(B) measures and assesses such academic
progress and attainment in terms of a student's
mastery of competencies by identifying what
students know and the skills mastered through
rigorous assessment;
(C) determines and reports to the Secretary
the number of credit or clock hours that would
be needed for the attainment of a similar level
of knowledge, skills, and characteristics in a
standard credit or clock hour program;
(D) provides the educational content,
activities, support, and resources necessary to
enable students to develop and attain the
competencies that are required to demonstrate
mastery of such competencies, including a
system for monitoring a student's engagement
and progress in each competency, in which
faculty are responsible for providing proactive
academic assistance, when needed, on the basis
of such monitoring;
(E) upon a student's demonstration or mastery
of a set of competencies identified and
required by the institution, leads to or
results in the awarding of a certificate or
degree;
(F) ensures that funds received under this
title may be used only for learning that
results from instruction provided or overseen
by the institution and 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;
(G) is organized in a manner that an
institution can determine, based on the method
of measurement selected by the institution, and
approved by the accreditor as described in
subsection (c), 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 this title,
or assistance provided under another provision
of Federal law to attend an institution of
higher education; and
(H) may use a disaggregated faculty model in
which the educational responsibilities for an
academic course are divided among a number of
individuals, each performing specific tasks
essential to instruction, including curriculum
design, content delivery, and student
assessment.
(4) Director.--The term ``Director'' means the
Director of the Institute of Education Sciences.
(5) Dual or concurrent enrollment program.--The term
``dual or concurrent enrollment program'' has the
meaning given the term in section 8101 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801).
(6) Eligible entity.--The term ``eligible entity''
means an institution of higher education, which may be
an institution of higher education that offers a dual
or concurrent enrollment program.
(7) First generation college student.--The term
``first generation college student'' has the meaning
given the term in section 402A(h)(3).
(8) Institution of higher education.--The term
``institution of higher education'' has the meaning
given the term in section 102, except that such term
does not include institutions described in section
102(a)(1)(C).
SEC. 486D. WRITTEN ARRANGEMENTS TO PROVIDE EDUCATIONAL PROGRAMS.
(a) Written Arrangements Between Eligible Institutions.--
(1) In general.--Except as provided in paragraph (2),
if an eligible institution enters into a written
arrangement with another eligible institution, or with
a consortium of eligible institutions, under which the
other eligible institution or consortium provides part
of the educational program to students enrolled in the
first institution, the Secretary shall consider that
educational program to be an eligible program if the
educational program offered by the institution that
grants the degree or certificate otherwise satisfies
the requirements for eligibility under this title.
(2) Common ownership or control.--If the written
arrangement described in paragraph (1) is between two
or more eligible institutions that are owned or
controlled by the same individual, partnership, or
corporation, the Secretary shall consider the
educational program to be an eligible program if--
(A) the educational program offered by the
institution that grants the degree or
certificate otherwise satisfies the
requirements for eligibility under this title;
and
(B) the institution that grants the degree or
certificate provides more than 50 percent of
the educational program.
(b) Written Arrangements for Study-abroad.--Under a study
abroad program, if an eligible institution enters into a
written arrangement under which an institution in another
country, or an organization acting on behalf of an institution
in another country, provides part of the educational program of
students enrolled in the eligible institution, the Secretary
considers that educational program to be an eligible program if
it otherwise satisfies the requirements of paragraphs (1)
through (3) of subsection (c).
(c) Written Arrangements Between an Eligible Institution and
an Ineligible Institution or Organization.--If an eligible
institution enters into a written arrangement with an
institution or organization that is not an eligible institution
under which the ineligible institution or organization provides
part of the educational program of students enrolled in the
eligible institution, the Secretary shall consider that
educational program to be an eligible program if--
(1) the ineligible institution or organization has
not--
(A) had its eligibility to participate in the
programs under this title terminated by the
Secretary;
(B) voluntarily withdrawn from participation
programs under this title under a termination,
show-cause, suspension, or similar type
proceeding initiated by the institution's State
licensing agency, accrediting agency,
guarantor, or by the Secretary;
(C) had its certification to participate in
programs under this title revoked by the
Secretary;
(D) had its application for re-certification
to participate in programs under this title
denied by the Secretary; or
(E) had its application for certification to
participate in programs under this title denied
by the Secretary;
(2) the ineligible institution or organization does
not have any role in the admission of students into the
educational program;
(3) the educational program offered by the
institution that grants the degree or certificate
otherwise satisfies the requirements for eligibility
under this title; and
(4)(A) the ineligible institution or organization
provides 25 percent or less of the educational program;
or
(B)(i) the ineligible institution or organization
provides more than 25 percent but less than 50 percent
of the educational program;
(ii) the eligible institution and the ineligible
institution or organization are not owned or controlled
by the same individual, partnership, or corporation;
(iii) the eligible institution's accrediting agency,
or if the institution is a public postsecondary
vocational educational institution, the State agency
determined by the Secretary to be a reliable authority
as to the quality of public postsecondary vocational
education pursuant to section 487(c)(4), has
specifically determined that the institution's
arrangement meets the agency's standards for the
contracting out of educational services; and
(iv) the eligible institution provides to the
Secretary the institution's expenditures on
instruction, student services, marketing, recruitment,
advertising, and lobbying made available under section
132(i)(1)(AA) with respect to the portion of the
educational program covered by the written arrangement.
(d) Administration of Title IV Programs.--
(1) In general.--If an institution enters into a
written arrangement as described in subsection (a),
subsection (b), or subsection (c), except as provided
in paragraph (2), the institution at which the student
is enrolled as a regular student shall determine the
student's eligibility for funds under this title, and
shall calculate and disburse those funds to that
student.
(2) Special rule for arrangements between eligible
institutions.--In the case of a written arrangement
between eligible institutions, the institutions may
agree in writing to have any eligible institution in
the written arrangement calculate and disburse funds
under this title to the student and the Secretary shall
not consider that institution to be a third party
servicer for that arrangement.
(3) Calculation and disbursement.--The institution
that calculates and disburses a student's funds under
paragraph (1) or paragraph (2) must--
(A) take into account all the hours in which
the student enrolls at each institution that
apply to the student's degree or certificate
when determining the student's enrollment
status and cost of attendance; and
(B) maintain all records regarding the
student's eligibility for and receipt of funds
under this title.
(e) Information Made Available to Students.--If an
institution enters into a written arrangement described in
subsection (a), subsection (b), or subsection (c), the
institution shall provide directly to enrolled and prospective
students, and make available on a publicly accessible website
of the institution, a description of written arrangements the
institution has entered into in accordance with this section,
including information on--
(1) the portion of the educational program that the
institution that grants the degree or certificate is
not providing;
(2) the name and location of the other institutions
or organizations that are providing the portion of the
educational program that the institution that grants
the degree or certificate is not providing;
(3) the method of delivery of the portion of the
educational program that the institution that grants
the degree or certificate is not providing; and
(4) estimated additional costs students may incur as
the result of enrolling in an educational program that
is provided, in part, under the written arrangement.
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) The institution will comply with the requirements
of section 485.
(8) 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) In the case of an institution participating in a
program under part B or D, 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) The institution certifies that it has in
operation [a drug abuse prevention program] an alcohol
and substance misuse prevention program in accordance
with section 120 that is determined by the institution
to be accessible to any officer, employee, or student
at the institution.
(11) 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) 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) 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)(A) The institution, in order to participate as
an eligible institution under part B or D, will develop
a Default Management 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, develop a Default
Management 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, 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.
(D) Beginning on the date on which the final adjusted
cohort default rates are published by the Secretary for
fiscal year 2018 under section 435(m), subparagraph (C)
shall be applied by substituting ``adjusted cohort
default rate in excess of 5 percent'' for ``cohort
default rate in excess of 10 percent'' each place it
appears.
(15) 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)(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) 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.]
(17) The institution of higher education (or the
assigned agent of such institution) shall collect and
submit data to the Commissioner for Education
Statistics in a timely manner in accordance with--
(A) section 132(l);
(B) nonstudent-related surveys within the
Integrated Postsecondary Education Data System
(IPEDS); and
(C) any other Federal postsecondary data
collection effort.
(18) The institution will meet the requirements
established pursuant to section 485(g).
(19) [The institution will not] The institution--
(A) will not impose any penalty, including
the assessment of late fees, the denial of
access to classes, libraries, housing
facilities, 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.]
institution; and
(B) will provide a means for students to
access institutionally owned or operated
housing if a student is temporarily unable to
meet financial obligations related to housing,
including deposits, due to delayed disbursement
of vouchers for education and training made
available under section 477 of part E of title
IV of the Social Security Act or delays
attributable to the institution.
(20) 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.
(21) 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.
(22) 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] not less than 15
percent of such institution's revenues from sources
other than Federal education assistance funds, as
calculated in accordance with subsection (d)(1), or
will be subject to the sanctions described in
subsection (d)(2).[Effective on July 1, 2022, section
4618(f)(1)(A) of H.R. 4674 (as reported) provides for
an amendment to paragraph (24) of section 487(a) of the
Higher Education Act of 1965 by striking and inserting
text which is shown above. Effective on July 1, 2023,
section 4618(f)(2)(A) of H.R. 4674 (as reported)
provides for an amendment to repeal paragraph (24).
Below is a version of paragraph (24), as so amended and
in effect prior to July 1, 2023, showing its repeal.]
[(24) In the case of a proprietary institution of
higher education (as defined in section 102(b)), such
institution will derive not less than 15 percent of
such institution's revenues from sources other than
Federal education assistance funds, as calculated in
accordance with subsection (d)(1), or will be subject
to the sanctions described in subsection (d)(2).]
(25) In the case of an institution that participates
in a loan program under this title, the institution
will--
(A) develop a code of conduct with respect to
such loans with which the institution's
officers, employees, and agents shall comply,
that--
(i) prohibits a conflict of interest
with the responsibilities of an
officer, employee, or agent of an
institution with respect to such loans;
and
(ii) at a minimum, includes the
provisions described in subsection (e);
(B) publish such code of conduct prominently
on the institution's website; and
(C) administer and enforce such code by, at a
minimum, requiring that all of the
institution's officers, employees, and agents
with responsibilities with respect to such
loans be annually informed of the provisions of
the code of conduct.
(26) The institution will, upon written request,
disclose to the alleged victim of any crime of violence
(as that term is defined in section 16 of title 18,
United States Code), or a nonforcible sex offense, the
report on the results of any disciplinary proceeding
conducted by such institution against a student who is
the alleged perpetrator of such crime or offense with
respect to such crime or offense. If the alleged victim
of such crime or offense is deceased as a result of
such crime or offense, the next of kin of such victim
shall be treated as the alleged victim for purposes of
this paragraph.
(27) In the case of an institution that has entered
into a preferred lender arrangement, the institution
will at least annually compile, maintain, and make
available for students attending the institution, and
the families of such students, a list, in print or
other medium, of the specific lenders for loans made,
insured, or guaranteed under this title or private
education loans that the institution recommends,
promotes, or endorses in accordance with such preferred
lender arrangement. In making such list, the
institution shall comply with the requirements of
subsection (h).
(28)(A) The institution will, upon the request of an
applicant for a private education loan, provide to the
applicant the form required under section 128(e)(3) of
the Truth in Lending Act (15 U.S.C. 1638(e)(3)), and
the information required to complete such form, to the
extent the institution possesses such information.
(B) For purposes of this paragraph, the term
``private education loan'' has the meaning given such
term in section 140 of the Truth in Lending Act.
(29) The institution certifies that the institution--
(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.
(30) In the case of an institution that enters into a
written arrangement with an organization or another
institution to provide part of an educational program,
the institution will comply with the applicable
requirements of section 486D.
(31) The institution will--
(A) designate at least one employee to
coordinate compliance with title VI of the
Civil Rights Act of 1964 (42 U.S.C. 2000d et
seq.), including any investigation of any
complaint alleging--
(i) noncompliance with such title;
and
(ii) any actions prohibited by such
title;
(B) annually submit a report to the Secretary
that includes all complaints described in
subparagraph (A) with respect to such
institution;
(C) make the report under subparagraph (B)
publicly available on the internet website of
the institution; and
(D) notify students and employees of--
(i) the name, office address, and
telephone number of each employee
designated under subparagraph (A);
(ii) the report under subparagraph
(B);
(iii) the enforcement policies of the
institution with respect to such title;
and
(iv) the procedure for reporting and
investigating complaints under such
title.
(32) The institution will submit, for inclusion in
the postsecondary student data system established under
section 132(l), the Integrated Postsecondary Education
Data System of the Department, or any other Federal
postsecondary institution data collection effort, key
data related to undergraduate and graduate students
enrolled at the institution who are formally registered
as students with disabilities with the institution's
office of accessibility, including the total number of
students with disabilities enrolled, the number of
students accessing or receiving accommodation, the
percentage of students with disabilities of all
undergraduate students, and the total number of
undergraduate certificates or degrees awarded to
students with disabilities. An institution shall not be
required to submit the information described in the
preceding sentence if the number of such students would
reveal personally identifiable information about an
individual student.
(33) The institution will provide students with an
educational program on hazing (as that term is defined
in section 485(f)(6)(A)(vii)), which shall include
information on hazing awareness, hazing prevention, and
the institution's policies on hazing.
(34)(A) The institution will not prohibit a student
from accessing the student's transcripts, degree
scrolls, or other certifications of coursework or
educational attainments at the institution because the
student is in default on the repayment of a loan made,
insured, or guaranteed under this title.
(B) For purposes of this paragraph, the term
``student'' includes former students.
(35) No agreement between the institution and any
student will contain any limitation or restriction
(including a limitation or restriction on any available
choice of applicable law, a jury trial, or venue) on
the ability of the student to pursue a claim,
individually or with others, against an institution in
court.
(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)) 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] $60,000 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.
(C) In this paragraph:
(i) The term ``misleading'' means having the
likelihood or tendency to mislead under the
circumstances.
(ii) The term ``misrepresentation''--
(I) means any false, erroneous, or misleading
statement an institution, one of its
representatives, or a third-party servicer (as
defined in section 481(c)) makes directly or
indirectly to a student, prospective student or
any member of the public, or an accrediting
agency, a State agency, or to the Secretary;
and
(II) includes any statement that omits
information in such a way as to make the
statement false, erroneous, or misleading.
(iii) The term ``statement'' means any communication
made in writing, visually, orally, or through other
means.
(iv) The term ``substantial misrepresentation'' means
any misrepresentation on which the person to whom such
misrepresentation was made could reasonably be expected
to rely, or has reasonably relied, to that person's
detriment.
(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] Federal Education
Assistance Funds Revenue Requirement.--
[(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).]
(e) Code of Conduct Requirements.--An institution of higher
education's code of conduct, as required under subsection
(a)(25), shall include the following requirements:
(1) Ban on revenue-sharing arrangements.--
(A) Prohibition.--The institution shall not
enter into any revenue-sharing arrangement with
any lender.
(B) Definition.--For purposes of this
paragraph, the term ``revenue-sharing
arrangement'' means an arrangement between an
institution and a lender under which--
(i) a lender provides or issues a
loan that is made, insured, or
guaranteed under this title to students
attending the institution or to the
families of such students; and
(ii) the institution recommends the
lender or the loan products of the
lender and in exchange, the lender pays
a fee or provides other material
benefits, including revenue or profit
sharing, to the institution, an officer
or employee of the institution, or an
agent.
(2) Gift ban.--
(A) Prohibition.--No officer or employee of
the institution who is employed in the
financial aid office of the institution or who
otherwise has responsibilities with respect to
education loans, or agent who has
responsibilities with respect to education
loans, shall solicit or accept any gift from a
lender, guarantor, or servicer of education
loans.
(B) Definition of gift.--
(i) In general.--In this paragraph,
the term ``gift'' means any gratuity,
favor, discount, entertainment,
hospitality, loan, or other item having
a monetary value of more than a de
minimus amount. The term includes a
gift of services, transportation,
lodging, or meals, whether provided in
kind, by purchase of a ticket, payment
in advance, or reimbursement after the
expense has been incurred.
(ii) Exceptions.--The term ``gift''
shall not include any of the following:
(I) Standard material,
activities, or programs on
issues related to a loan,
default aversion, default
prevention, or financial
literacy, such as a brochure, a
workshop, or training.
(II) Food, refreshments,
training, or informational
material furnished to an
officer or employee of an
institution, or to an agent, as
an integral part of a training
session that is designed to
improve the service of a
lender, guarantor, or servicer
of education loans to the
institution, if such training
contributes to the professional
development of the officer,
employee, or agent.
(III) Favorable terms,
conditions, and borrower
benefits on an education loan
provided to a student employed
by the institution if such
terms, conditions, or benefits
are comparable to those
provided to all students of the
institution.
(IV) Entrance and exit
counseling services provided to
borrowers to meet the
institution's responsibilities
for entrance and exit
counseling as required by
subsections (b) and (l) of
section 485, as long as--
(aa) the
institution's staff are
in control of the
counseling, (whether in
person or via
electronic
capabilities); and
(bb) such counseling
does not promote the
products or services of
any specific lender.
(V) Philanthropic
contributions to an institution
from a lender, servicer, or
guarantor of education loans
that are unrelated to education
loans or any contribution from
any lender, guarantor, or
servicer that is not made in
exchange for any advantage
related to education loans.
(VI) State education grants,
scholarships, or financial aid
funds administered by or on
behalf of a State.
(iii) Rule for gifts to family
members.--For purposes of this
paragraph, a gift to a family member of
an officer or employee of an
institution, to a family member of an
agent, or to any other individual based
on that individual's relationship with
the officer, employee, or agent, shall
be considered a gift to the officer,
employee, or agent if--
(I) the gift is given with
the knowledge and acquiescence
of the officer, employee, or
agent; and
(II) the officer, employee,
or agent has reason to believe
the gift was given because of
the official position of the
officer, employee, or agent.
(3) Contracting arrangements prohibited.--
(A) Prohibition.--An officer or employee who
is employed in the financial aid office of the
institution or who otherwise has
responsibilities with respect to education
loans, or an agent who has responsibilities
with respect to education loans, shall not
accept from any lender or affiliate of any
lender any fee, payment, or other financial
benefit (including the opportunity to purchase
stock) as compensation for any type of
consulting arrangement or other contract to
provide services to a lender or on behalf of a
lender relating to education loans.
(B) Exceptions.--Nothing in this subsection
shall be construed as prohibiting--
(i) an officer or employee of an
institution who is not employed in the
institution's financial aid office and
who does not otherwise have
responsibilities with respect to
education loans, or an agent who does
not have responsibilities with respect
to education loans, from performing
paid or unpaid service on a board of
directors of a lender, guarantor, or
servicer of education loans;
(ii) an officer or employee of the
institution who is not employed in the
institution's financial aid office but
who has responsibility with respect to
education loans as a result of a
position held at the institution, or an
agent who has responsibility with
respect to education loans, from
performing paid or unpaid service on a
board of directors of a lender,
guarantor, or servicer of education
loans, if the institution has a written
conflict of interest policy that
clearly sets forth that officers,
employees, or agents must recuse
themselves from participating in any
decision of the board regarding
education loans at the institution; or
(iii) an officer, employee, or
contractor of a lender, guarantor, or
servicer of education loans from
serving on a board of directors, or
serving as a trustee, of an
institution, if the institution has a
written conflict of interest policy
that the board member or trustee must
recuse themselves from any decision
regarding education loans at the
institution.
(4) Interaction with borrowers.--The institution
shall not--
(A) for any first-time borrower, assign,
through award packaging or other methods, the
borrower's loan to a particular lender; or
(B) refuse to certify, or delay certification
of, any loan based on the borrower's selection
of a particular lender or guaranty agency.
(5) Prohibition on offers of funds for private
loans.--
(A) Prohibition.--The institution shall not
request or accept from any lender any offer of
funds to be used for private education loans
(as defined in section 140 of the Truth in
Lending Act), including funds for an
opportunity pool loan, to students in exchange
for the institution providing concessions or
promises regarding providing the lender with--
(i) a specified number of loans made,
insured, or guaranteed under this
title;
(ii) a specified loan volume of such
loans; or
(iii) a preferred lender arrangement
for such loans.
(B) Definition of opportunity pool loan.--In
this paragraph, the term ``opportunity pool
loan'' means a private education loan made by a
lender to a student attending the institution
or the family member of such a student that
involves a payment, directly or indirectly, by
such institution of points, premiums,
additional interest, or financial support to
such lender for the purpose of such lender
extending credit to the student or the family.
(6) Ban on staffing assistance.--
(A) Prohibition.--The institution shall not
request or accept from any lender any
assistance with call center staffing or
financial aid office staffing.
(B) Certain assistance permitted.--Nothing in
paragraph (1) shall be construed to prohibit
the institution from requesting or accepting
assistance from a lender related to--
(i) professional development training
for financial aid administrators;
(ii) providing educational counseling
materials, financial literacy
materials, or debt management materials
to borrowers, provided that such
materials disclose to borrowers the
identification of any lender that
assisted in preparing or providing such
materials; or
(iii) staffing services on a short-
term, nonrecurring basis to assist the
institution with financial aid-related
functions during emergencies, including
State-declared or federally declared
natural disasters, federally declared
national disasters, and other localized
disasters and emergencies identified by
the Secretary.
(7) Advisory board compensation.--Any employee who is
employed in the financial aid office of the
institution, or who otherwise has responsibilities with
respect to education loans or other student financial
aid of the institution, and who serves on an advisory
board, commission, or group established by a lender,
guarantor, or group of lenders or guarantors, shall be
prohibited from receiving anything of value from the
lender, guarantor, or group of lenders or guarantors,
except that the employee may be reimbursed for
reasonable expenses incurred in serving on such
advisory board, commission, or group.
(f) Institutional Requirements for Teach-Outs.--
(1) In general.--In the event the Secretary initiates
the limitation, suspension, or termination of the
participation of an institution of higher education in
any program under this title under the authority of
subsection (c)(1)(F) or initiates an emergency action
under the authority of subsection (c)(1)(G) and its
prescribed regulations, the Secretary shall require
that institution to prepare a teach-out plan for
submission to the institution's accrediting agency or
association in compliance with section 496(c)(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.]
(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 that--
(A) shall include--
(i) a process to maintain a complete
list of such students and the estimated
date of completion of each such
student's program of study; and
(ii) a record retention plan that
includes--
(I) a plan to provide each
student with the transcript of
such student, at no cost to
such student, regardless of
whether such student chooses to
participate in a teach-out or
transfer; and
(II) the policies and
procedures required under
subparagraphs (B) and (C) of
section 495(a)(6); and
(B) may include--
(i) if required by the institution's
accrediting agency or association, an
agreement between institutions for such
a teach-out plan; and
(ii) such other information as the
Secretary may require.
(g) Inspector General Report on Gift Ban Violations.--The
Inspector General of the Department shall--
(1) submit an annual report to the authorizing
committees identifying all violations of an
institution's code of conduct that the Inspector
General has substantiated during the preceding year
relating to the gift ban provisions described in
subsection (e)(2); and
(2) make the report available to the public through
the Department's website.
(h) Preferred Lender List Requirements.--
(1) In general.--In compiling, maintaining, and
making available a preferred lender list as required
under subsection (a)(27), the institution will--
(A) clearly and fully disclose on such
preferred lender list--
(i) not less than the information
required to be disclosed under section
153(a)(2)(A);
(ii) why the institution has entered
into a preferred lender arrangement
with each lender on the preferred
lender list, particularly with respect
to terms and conditions or provisions
favorable to the borrower; and
(iii) that the students attending the
institution, or the families of such
students, do not have to borrow from a
lender on the preferred lender list;
(B) ensure, through the use of the list of
lender affiliates provided by the Secretary
under paragraph (2), that--
(i) there are not less than three
lenders of loans made under part B that
are not affiliates of each other
included on the preferred lender list
and, if the institution recommends,
promotes, or endorses private education
loans, there are not less than two
lenders of private education loans that
are not affiliates of each other
included on the preferred lender list;
and
(ii) the preferred lender list under
this paragraph--
(I) specifically indicates,
for each listed lender, whether
the lender is or is not an
affiliate of each other lender
on the preferred lender list;
and
(II) if a lender is an
affiliate of another lender on
the preferred lender list,
describes the details of such
affiliation;
(C) prominently disclose the method and
criteria used by the institution in selecting
lenders with which to enter into preferred
lender arrangements to ensure that such lenders
are selected on the basis of the best interests
of the borrowers, including--
(i) payment of origination or other
fees on behalf of the borrower;
(ii) highly competitive interest
rates, or other terms and conditions or
provisions of loans under this title or
private education loans;
(iii) high-quality servicing for such
loans; or
(iv) additional benefits beyond the
standard terms and conditions or
provisions for such loans;
(D) exercise a duty of care and a duty of
loyalty to compile the preferred lender list
under this paragraph without prejudice and for
the sole benefit of the students attending the
institution, or the families of such students;
(E) not deny or otherwise impede the
borrower's choice of a lender or cause
unnecessary delay in loan certification under
this title for those borrowers who choose a
lender that is not included on the preferred
lender list; and
(F) comply with such other requirements as
the Secretary may prescribe by regulation.
(2) Lender affiliates list.--
(A) In general.--The Secretary shall maintain
and regularly update a list of lender
affiliates of all eligible lenders, and shall
provide such list to institutions for use in
carrying out paragraph (1)(B).
(B) Use of most recent list.--An institution
shall use the most recent list of lender
affiliates provided by the Secretary under
subparagraph (A) in carrying out paragraph
(1)(B).
(i) Definitions.--For the purpose of this section:
(1) Agent.--The term ``agent'' has the meaning given
the term in section 151.
(2) Affiliate.--The term ``affiliate'' means a person
that controls, is controlled by, or is under common
control with another person. A person controls, is
controlled by, or is under common control with another
person if--
(A) the person directly or indirectly, or
acting through one or more others, owns,
controls, or has the power to vote five percent
or more of any class of voting securities of
such other person;
(B) the person controls, in any manner, the
election of a majority of the directors or
trustees of such other person; or
(C) the Secretary determines (after notice
and opportunity for a hearing) that the person
directly or indirectly exercises a controlling
interest over the management or policies of
such other person's education loans.
(3) Education loan.--The term ``education loan'' has
the meaning given the term in section 151.
(4) Eligible institution.--The term ``eligible
institution'' means any such institution described in
section 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) 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
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.
[(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) Report.--The Secretary shall review and evaluate
the experience of institutions participating as
experimental sites and shall, on a biennial basis,
submit a report based on the review and evaluation to
the authorizing committees. Such report shall include--
[(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) 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.
[(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) 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 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. 487A. EXPERIMENTATION WITH STATUTORY AND REGULATORY FLEXIBILITY.
(a) Experimental Sites.--The Secretary is authorized to
periodically select a limited number of institutions for
voluntary participation as experimental sites to test the
effectiveness of approaches to statutory and regulatory
flexibility that--
(1) to the extent appropriate, may lead to a
reduction of regulatory burden on institutions of
higher education or the Department of Education, except
that the Secretary shall not waive any requirement of
this title for any institution participating as an
experimental site that would reduce the protections or
the information provided to a student under this Act;
and
(2) aim to increase student success, as determined in
accordance with subsection (g).
(b) Continuing and Discontinuing Experiments and Experimental
Sites.--The Secretary may continue any experiment or the
voluntary participation of any experimental site in existence
as of the date of enactment of the College Affordability Act,
unless the Secretary determines that such experiment or site
has not been successful in increasing student success as
determined in accordance with subsection (g). Any experiment or
experimental site approved by the Secretary prior to the date
of enactment of the College Affordability Act that has not been
successful in increasing student success shall be discontinued
before the first day of the first award year beginning after
such date.
(c) Waivers.--The Secretary is authorized to waive, for any
institution participating as an experimental site under
subsection (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.
(d) Evaluation Plan Required.--Before notifying institutions
of the intent of the Secretary to carry out an experiment under
this section, the Secretary, in consultation with the Director
of the Institute of Education Sciences, shall develop an
evaluation plan for the experiment. The evaluation plan shall
include the following:
(1) Identification of the methodology to be used for
collecting data on the experiment which shall include,
to the extent practicable, a methodology that allows
for the disaggregation of data by age, race, gender,
disability status, status as a veteran or member of the
Armed Forces, status as a first generation college
student, and status as a recipient of a Federal Pell
Grant under section 401.
(2) Identification of the rigorous evaluation methods
to be used for determining the impact of the
experiment, which shall include, to the extent
practicable--
(A) a randomized controlled design; and
(B) an assessment of whether the experiment
has a differential impact on any group
described in paragraph (1).
(3) A schedule for conducting the experiment in
accordance with the duration limit specified in
subsection (f).
(4) An estimate of the cost of conducting the
experiment, to the extent practicable.
(5) An estimate of the size of the study sample (such
as the number of participating students or
institutions) needed to determine if the experiment has
statistically significant effects.
(e) Limitation Pending Notice to Congress.--
(1) Limitation.--The Secretary may not carry out an
experiment at an experimental site under this section
until a period of 60 days has elapsed following the
date on which the Secretary submits to the authorizing
committees the notice described in paragraph (2).
(2) Notice to congress.--The notice described in this
paragraph is a written notice that includes--
(A) a description of the experiment proposed
to be carried out by the Secretary, including
the rationale for the proposed experiment;
(B) the policy-relevant questions the
Secretary intends to evaluate through the
experiment and an explanation of how the design
of the experiment will allow the Secretary to
best answer those questions;
(C) a list of the specific statutory and
regulatory requirements that the Secretary
intends to waive with respect to an institution
participating as an experimental site and the
legal authority for such waivers;
(D) an explanation of how the statutory and
regulatory flexibility provided to an
institution participating as an experimental
site is expected to increase student success,
as required under subsection (a); and
(E) a copy of the evaluation plan developed
under subsection (d).
(f) Duration.--
(1) In general.--Except as provided in paragraph (2),
the duration of an experiment under this section shall
not exceed a period of four years beginning with the
first award year for which Federal financial aid is
disbursed to students participating in the experiment.
(2) Extension.--The Secretary may extend an
experiment for up to two years beyond the four-year
period specified in paragraph (1) on a case-by-case
basis.
(g) Determination of Success.--For the purposes of subsection
(a), the Secretary shall make a determination of success
regarding an institution's participation as an experimental
site based on--
(1) whether, and to what extent, student outcomes
improve as a direct result of the experiment;
(2) whether the experimental site improves the
delivery of services to, or otherwise benefitted,
students; and
(3) the extent to which the experiment reduces
administrative burdens on institutions participating as
experimental sites, as documented in the Secretary's
annual report under subsection (h)(3), without harming
students.
(h) Outcomes Reporting.--
(1) Data submission.--Each institution participating
as an experimental site shall submit to the Secretary,
on a periodic basis to be determined by the Secretary,
data on outcomes relating to the experiment carried out
at the site.
(2) Review and evaluation.--
(A) In general.--Subject to subparagraph (B),
the Secretary shall review and rigorously
evaluate the activities of each institution
participating as an experimental site.
(B) Evaluation methodology.--To the extent
practicable, the evaluation under subparagraph
(A) shall be based on data collected in
accordance with the data collection methodology
specified in the evaluation plan for the
experiment under subsection (d)(1).
(3) Annual report.--On an annual basis, the Secretary
shall submit to the authorizing committees a report
based on the review and evaluation carried out under
paragraph (2). Each report shall include, with respect
to each experiment carried out by the Secretary during
the period covered by the report, the following:
(A) A summary of the status of the
experiment.
(B) A list identifying each institution
participating as an experimental site.
(C) The specific statutory or regulatory
waivers granted to each institution
participating as an experimental site.
(D) In a case in which data on the experiment
is not collected in accordance with the
methodology specified in the evaluation plan
under subsection (d)(1)--
(i) the reasons that such methodology
was not used to collect data on the
experiment; and
(ii) a description of the alternative
data collection methodology used for
the experiment.
(E) An evaluation of the quality of data
yielded by the experiment.
(F) A summary and analysis of the findings,
to date, of the experiment.
(G) An assessment of whether the experiment
has had a differential impact on any group
listed in subsection (d)(1).
(H) An explanation of any current or foreseen
barriers to conducting the experiment.
(I) In the case of an experiment for which
the Secretary determines there is sufficient
value in continuing the experiment past the
duration limit specified in subsection (f)(1),
adequate documentation to justify such
continuation.
(4) Final report.--Not later than 180 days after the
conclusion of each experiment, the Secretary shall
submit to the authorizing committees a report that
includes the following:
(A) A summary of the data yielded by the
experiment, including, to the extent
practicable, data on the results of the
experiment disaggregated by age, race, gender,
disability status, status as a veteran or
member of the Armed Forces, status as a first
generation college student, and status as a
recipient of a Federal Pell Grant under section
401.
(B) The conclusions reached regarding each
experiment conducted.
(C) Recommendations, based on the results of
the experiment--
(i) to improve and streamline
relevant statutes, including this Act;
and
(ii) for improvements to relevant
regulations.
(D) An explanation of any changes to
regulations that the Secretary intends to make
as a result of the experiment.
(5) Public availability.--Each report submitted under
paragraphs (3) and (4) shall be made available on a
publicly accessible website of the Department of
Education.
(i) Fast-track Process to Comply With Information Collection
Requirements.--The requirements of section 3507 of title 44,
United States Code, shall not apply to the collection of
information by the Department of Education on experiments
carried out in accordance with this section.
* * * * * * *
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, 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, and 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).] compensation of students. 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. 490. CRIMINAL PENALTIES.
(a) In General.--Any person who knowingly and willfully
embezzles, misapplies, steals, obtains by fraud, false
statement, or forgery, or fails to refund any funds, assets, or
property provided or insured under this title or attempts to so
embezzle, misapply, steal, obtain by fraud, false statement or
forgery, or fail to refund any funds, assets, or property,
shall be fined not more than $20,000 or imprisoned for not more
than 5 years, or both, except if the amount so embezzled,
misapplied, stolen, obtained by fraud, false statement, or
forgery, or failed to be refunded does not exceed $200, then
the fine shall not be more than $5,000 and imprisonment shall
not exceed one year, or both.
(b) Assignment of Loans.--Any person who knowingly and
willfully makes any false statement, furnishes any false
information, or conceals any material information in connection
with the assignment of a loan which is made or insured under
this title or attempts to so make any false statement, furnish
any false information, or conceal any material information in
connection with such assignment shall, upon conviction thereof,
be fined not more than $10,000 or imprisoned for not more than
one year, or both.
(c) Inducements To Lend or Assign.--Any person who knowingly
and willfully makes an unlawful payment to an eligible lender
under part B or attempts to make such unlawful payment as an
inducement to make, or to acquire by assignment, a loan insured
under such part shall, upon conviction thereof, be fined not
more than $10,000 or imprisoned for not more than one year, or
both.
(d) Obstruction of Justice.--Any person who knowingly and
willfully destroys or conceals any record relating to the
provision of assistance under this title or attempts to so
destroy or conceal with intent to defraud the United States or
to prevent the United States from enforcing any right obtained
by subrogation under this part, shall upon conviction thereof,
be fined not more than $20,000 or imprisoned not more than 5
years, or both.
(e) Access to Department of Education Information Technology
Systems for Fraud, Commercial Advantage, or Private Financial
Gain.--Any person who knowingly uses an access device, as
defined in section 1029(e)(1) of title 18, United States Code,
issued to another person or obtained by fraud or false
statement to access Department information technology systems
for purposes of obtaining commercial advantage or private
financial gain, or in furtherance of any criminal or tortious
act in violation of the Constitution or laws of the United
States or of any State, shall be fined not more than $20,000,
imprisoned for not more than 5 years, or both.
* * * * * * *
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] students and
borrowers, consumer representatives, institutions of
higher education, and contractors responsible for
carrying out student financial assistance programs
under this title.
(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]
representatives that are broadly representative of
constituencies in different sectors and geographic
locations. 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.
(3) Negotiated rulemaking process.--In carrying out a
negotiated rulemaking process required under this
section, the Secretary shall--
(A) to the extent practicable, comply with
requests from the participants in such
negotiated rulemaking process for data;
(B) make publicly available issue papers and
the proposed regulations described in paragraph
(1) in a timely manner that allows for public
review;
(C) make video recordings of each negotiated
rulemaking session publicly available through
simultaneous transmission;
(D) archive the video recordings described in
subparagraph (C) in a publicly available
manner; and
(E) make publicly available the transcripts
of each such negotiated rulemaking session.
(c) Applicability of Federal Advisory Committee Act.--The
Federal Advisory Committee Act shall not apply to activities
carried out under this section.
(d) 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);
(vi) has made payments under the
income-based repayment plan under
section 493C(f); or
(vii) has made payments under the
fixed repayment plan described in
section 493E;
[(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]
(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 income-
based repayment plan under section 493C(f) or the fixed
repayment plan described in section 493E;
(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[.]; and
(10) a borrower who is repaying a loan made, insured,
or guaranteed under part B or D pursuant to this
section may repay such loan in full at any time without
penalty.
(c) Eligibility Determinations.--[The Secretary shall
establish]
(1) In general._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]
(2) Procedures for eligibility._The Secretary shall--
(A) 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).]
428C(b)(1)(E); and
(B) beginning as soon as the Secretary
determines practicable after the Secretary
finalizes the procedures required under section
9004 of the College Affordability Act, but not
later than 2 years after the date of enactment
of such Act, carry out, with respect to
borrowers of any covered loan (as defined in
section 455(d)(10)), including such borrowers
who select, or for whom the Secretary selects
under paragraph (8)(C) or (9)(C) of subsection
(d), or section 428(m)(1), the income-based
repayment plan under subsection (f), procedures
for income-based repayment plans under this
section that are equivalent to the procedures
carried out under section 455(e)(9) with
respect to income contingent repayment plans.
(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) Income-based Repayment for New Loans on and After July 1,
2021, and for Borrowers who Enter Income-based Repayment After
June 30, 2021.--
(1) In general.--The income-based repayment plan
under this subsection shall be carried out in
accordance with this section, except as otherwise
specified in this subsection--
(A) with respect to any loan made under part
D on or after July 1, 2021, if such borrower
elects such income-based repayment plan for the
loan; and
(B) with respect to any loan made, insured,
or guaranteed under part B or D on or before
June 30, 2021, if such borrower elects to repay
the loan under such income-based repayment plan
on or after July 1, 2021.
(2) Special terms.--Notwithstanding any other
provision of this section, with respect to a loan
described under paragraph (1), the following terms
shall apply to the income-based repayment plan under
this subsection:
(A)(i) Notwithstanding subsection (a)(3)(B),
the repayment amount under this subsection
shall be an amount equal to 10 percent of the
result obtained by calculating, on at least an
annual basis, the amount by which the adjusted
gross income of the borrower (subject to clause
(ii)) exceeds the applicable percentage of the
poverty line in accordance with clause (iii).
(ii)(I) Subject to subclause (II), in the
case of a married borrower (regardless of tax
filing status), clause (i) shall be applied by
substituting ``the adjusted gross income of the
borrower and the borrower's spouse'' for ``the
adjusted gross income of the borrower''.
(II) Subclause (I) shall not be applicable to
any borrower who is married and who certifies
to the Secretary through a form approved by the
Secretary that the borrower is--
(aa) separated from the spouse of the
borrower; or
(bb) unable to reasonably access the
income information the spouse of such
borrower.
(iii) For purposes of clause (i), the term
``applicable percentage'' means 250 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)))--
(I) reduced by 10 percentage points
for each $1,000 by which the borrower's
adjusted gross income (in the case of a
single borrower) exceeds $80,000; and
(II) reduced by 10 percentage points
for each $2,000 by which the borrower's
adjusted gross income (in the case of a
married borrower (regardless of filing
status)), exceeds $160,000.
(B) Subsection (b)(7)(B) shall apply by
substituting ``20 years'' for ``25 years''.
(C) A borrower of such a loan may elect, and
remain enrolled in, the income-based repayment
plan under this subsection regardless of--
(i) whether such borrower has a
partial financial hardship; and
(ii) the income level of the
borrower.
(D) Notwithstanding subparagraph (A) of
subsection (b)(6), a borrower's monthly
payment--
(i) shall be equal to the repayment
amount determined under subparagraph
(A) divided by 12; and
(ii) may exceed the monthly repayment
amount under a standard 10-year
repayment plan or a fixed repayment
plan described in section 493E.
(E) Subparagraph (B) of subsection (b)(3)
shall not apply.
(F) Subsection (d) shall not apply.
(G) In the case of a Federal Direct
Consolidation Loan made on or after the date of
enactment of the College Affordability Act that
is being repaid under this subsection, any
monthly payment made pursuant to any repayment
plan listed in subsection (b)(7)(B) on a loan
for which the liability has been discharged by
the proceeds of such consolidation loan shall
be treated as a monthly payment under this
subsection on the portion of such consolidation
loan that is attributable to such discharged
loan, except that in the case of a subsequent
consolidation loan, for purposes of this
clause--
(i) any monthly payment made on the
first consolidation loan or any other
loan for which the liability has been
discharged by such subsequent
consolidation loan shall be applicable;
and
(ii) any monthly payment made on a
loan for which the liability has been
discharged by such first consolidation
loan shall not be applicable.
(3) Additional special terms for certain borrowers.--
A borrower described in paragraph (1)(B)--
(A) may--
(i) choose to continue repayment
pursuant to the repayment plan in which
the borrower is enrolled on June 30,
2021; or
(ii) make a one-time election to--
(I) terminate repayment
pursuant to the repayment plan
described in clause (i) and
enter the income-based
repayment plan under this
subsection; or
(II) terminate repayment
pursuant to the repayment plan
described in clause (i) and
enter a fixed repayment plan
described in section 493E; and
(B) who makes an election under subparagraph
(A)(ii), shall not repay a loan described in
paragraph (1)(B) under a repayment plan that is
not an income-based repayment plan under this
subsection or a fixed repayment plan described
in section 493E.
(4) Written, electronic, or verbal enrollment in
income-based repayment.--
(A) In general.--The Secretary shall develop
and implement a process that is consistent with
any procedures (including verification
procedures) established under subsection (c),
which enables a covered borrower of a loan made
under part D who desires to elect to repay such
loan under income-based repayment under this
subsection to make such election through
written, electronic, or verbal notice to the
Secretary.
(B) Covered borrower defined.--In this
paragraph, the term ``covered borrower'' means
a borrower of a loan made under part D who--
(i) is enrolled in the fixed
repayment plan under section 493E; or
(ii) has not yet selected a repayment
plan.
(g) Special Rule for Refinanced Loans.--
(1) Refinanced federal direct and ffel loans.--In
calculating the period of time during which a borrower
of a loan that is refinanced under section 460A has
made monthly payments for purposes of subsection
(b)(7), the Secretary shall include each month in which
a monthly payment was made for the original loan or the
refinanced loan, if such monthly payment otherwise meet
the requirements of this section.
(2) Federal direct refinanced private loans.--In
calculating the period of time during which a borrower
of a Federal Direct Refinanced Private Loan under
section 460B has made monthly payments for purposes of
subsection (b)(7), the Secretary shall include only
payments--
(A) that are made after the date of the
issuance of the Federal Direct Refinanced
Private Loan; and
(B) that otherwise meet the requirements of
this section.
* * * * * * *
SEC. 493E. FIXED REPAYMENT PLAN.
(a) In General.--A borrower of a loan made under this part on
or after July 1, 2021, and a borrower who is in repayment on a
loan made, insured, or guaranteed under part B or part D before
July 1, 2021, may elect to repay such loan under the fixed
repayment plan described in this section.
(b) Fixed Repayment Plan.--Under the fixed repayment plan, a
borrower whose total outstanding amount of principal and
interest on such a loan (as of the day before entering
repayment on such loan)--
(1) is equal to or less than $20,000, shall repay
such loan with a fixed monthly repayment amount paid
over a period of 10 years;
(2) is more than $20,000 and less than $30,000, shall
repay such loan with a fixed monthly repayment amount
paid over a period of--
(A) 15 years; or
(B) the period described in paragraph (1), if
the borrower elects such period;
(3) is equal to or greater than $30,000, and less
than $40,000, shall repay such loan with a fixed
monthly repayment amount paid over a period of--
(A) 20 years; or
(B) the period described in paragraph (1) or
(2), if the borrower elects such period; and
(4) is equal to or greater than $40,000, shall repay
such loan with a fixed monthly repayment amount paid
over a period of--
(A) 25 years; or
(B) the period described in any of paragraphs
(1) through (3), if the borrower elects such
period.
(c) Treatment of Certain Consolidation Loans.--In the case of
a Federal Direct Consolidation Loan made on or after the date
of enactment of the College Affordability Act that is being
repaid under this section, any monthly payment made pursuant to
any repayment plan listed in section 493C(b)(7)(B) on a loan
for which the liability has been discharged by the proceeds of
such consolidation loan shall be treated as a monthly payment
under this section on the portion of such consolidation loan
that is attributable to such discharged loan, except that in
the case of a subsequent consolidation loan, for purposes of
this subsection--
(1) any monthly payment made on the first
consolidation loan or any other loan for which the
liability has been discharged by such subsequent
consolidation loan shall be applicable; and
(2) any monthly payment made on a loan for which the
liability has been discharged by such first
consolidation loan shall not be applicable.
SEC. 493F. REQUIRING A COMMON MANUAL FOR LOAN SERVICERS.
(a) In General.--Not later than 1 year after the date of
enactment of the College Affordability Act, the Secretary shall
develop a manual of common procedures and policies for entities
with which the Secretary enters into contracts for the
origination, servicing, and collection of covered loans, to
standardize procedures to ensure consistency of quality and
practice across such entities, and a minimum standard of
quality and practice, to ensure that borrowers, including
individuals pursuing public service loan forgiveness under
section 455(m) and teachers, are well served.
(b) Updates.--The Secretary shall update the manual under
subsection (a) as frequently as may be necessary, but not less
frequently than once every 5 years.
(c) Covered Loans Defined.--The term ``covered loans''
means--
(1) loans sold or assigned to the Secretary under
part B;
(2) loans made or purchased under part D; and
(3) loans referred, transferred, or assigned to the
Secretary under part E.
SEC. 493G. REMOVAL OF RECORD OF DEFAULT.
(a) In General.--Upon repaying in full the amount due on a
defaulted loan made, insured, or guaranteed under this title,
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 any adverse item of
information relating to such loan from the borrower's credit
history.
(b) Retroactive Application.--With respect to a borrower
that, prior to the date of enactment of the College
Affordability Act, repaid in full the amount due on a defaulted
loan made, insured, or guaranteed under this title, the
Secretary, guaranty agency, or holder that reported the default
of the loan to a consumer reporting agency shall request that
such consumer reporting agency remove any adverse item of
information relating to such loan from the borrower's credit
history, upon receiving a request from the borrower for such
removal.
SEC. 493H. BORROWER DEFENSES.
(a) In General.--Notwithstanding any other provision of State
or Federal law, a defense to repayment of a loan under this
title includes--
(1) a substantial misrepresentation;
(2) an act or omission that would give rise to a
cause of action against an institution of higher
education under applicable State law, to the extent
that such act or omission relates to--
(A) a loan received by a borrower under this
title; or
(B) educational services for which such a
loan was received; or
(3) such further acts or omissions that the Secretary
determines to be appropriate in accordance with
subsection (b).
(b) Regulations.--The Secretary shall specify in regulations
which further acts or omissions of an institution of higher
education a borrower may assert as a defense to repayment of a
loan made under this title.
(c) Secretarial Determination.--
(1) In general.--The Secretary shall determine
whether a borrower is entitled to relief under this
section based on all evidence available to the
Secretary.
(2) Evidentiary standard.--A borrower shall be
entitled to relief under this section if a
preponderance of the evidence available to the
Secretary demonstrates that the borrower is entitled to
such relief.
(3) Independent determination.--A determination under
paragraph (1) shall be independent of any action that
the Secretary may take to recoup funds from the
institution of higher education implicated by the
borrower defense claim.
(d) Procedures for Review and Resolution of Claims.--
(1) Procedures required.--The Secretary shall
establish procedures for the fair and expeditious
review and resolution of borrower defense claims
brought under this section. In establishing such
procedures, the Secretary shall--
(A) provide a fair process for the review and
resolution of borrower defense claims, which
shall include procedures for the consideration
of borrower defense claims on behalf of groups
of similarly situated borrowers without
requiring each borrower in the group to submit
a separate claim;
(B) review a borrower defense claim at any
time without regard to the repayment status of
any loan subject to such claim;
(C) allow a legal representative to bring a
borrower defense claim--
(i) on behalf of an individual
borrower; or
(ii) on behalf of a group of
similarly situated borrowers; and
(D) specify a fixed timeframe for the
resolution of borrower defense claims, except
that--
(i) such timeframe shall not exceed a
12-month period beginning on the day on
which a borrower submits such a claim
under this section; and
(ii) a borrower defense claim that
was submitted to the Secretary before
the date of enactment of the College
Affordability Act that has not been
resolved as of such date of enactment,
shall be resolved not later than 12
months after such date of enactment.
(2) Deferment during pendency of claims.--
(A) In general.--Subject to subparagraph (B),
a loan made under this title that is subject to
a pending borrower defense claim shall be
placed in deferment status, during which
periodic installments of principal need not be
paid and interest shall not accrue (or shall be
paid by the Secretary), without regard to
whether such loan is in default.
(B) Opt out.--The borrower of a loan subject
to deferment under subparagraph (A) may opt out
of such deferment at any time during the
pendency of the borrower defense claim.
(C) Suspension of credit reporting and
collection.--The Secretary shall suspend all
adverse credit reporting and collection
activity, including offsets and garnishments,
with respect to any loan in default that is
subject to a deferment under subparagraph (A).
(f) Terms of Relief.--
(1) In general.--If the Secretary determines under
subsection (c) that a borrower is entitled to relief,
the Secretary shall, subject to paragraph (2)--
(A) cancel or repay all or a portion of the
balance of interest and principal due on any
loan subject to the claim for relief; and
(B) return to the borrower an amount not in
excess of the total amount of payments made on
the loan by the borrower.
(2) Cancellation of debt and return of payments.--
(A) Substantial misrepresentation claims.--If
the Secretary determines that a borrower is
entitled to relief based on a claim of
substantial misrepresentation, the Secretary
shall--
(i) cancel or repay the full balance
of interest and principal due on any
loan subject to the claim; and
(ii) return to the borrower an amount
equal to the total amount of payments
made on the loan by the borrower.
(B) Other claims.--If the Secretary
determines that a borrower is entitled to
relief based on a claim other than substantial
misrepresentation, there shall be a presumption
that the Secretary will cancel or repay the
full balance of principal and interest due on
the loan and return the full amount of payments
made by the borrower as described in
subparagraph (A). If the Secretary determines
that full cancellation or repayment of the debt
and return of all funds paid on the loan is not
appropriate in a particular case, the Secretary
shall provide the borrower with a written
explanation as to why partial cancellation or
repayment, or the partial return of funds is
appropriate.
(g) Appeals.--Upon a determination by the Secretary to deny a
borrower defense claim under this section, the borrower may
file an appeal with the Department. The Secretary shall develop
and implement a standardized process for the treatment of
appeals under this subsection.
(h) Refiling of Claims.--A borrower whose claim was denied
under this section may refile the claim for good cause, which
may include--
(1) the availability of substantial evidence that was
not available to the Secretary at the time the initial
claim was denied;
(2) the emergence of facts or circumstances that may
have substantially altered the Secretary's original
treatment of the initial claim; and
(3) such other factors as may be determined by the
Secretary.
(i) Designation of Personnel.--The Secretary shall designate
qualified personnel within the Department whose principal
responsibility shall be the processing of borrower defense
claims submitted under his section.
(j) Availability of Information to Borrowers.--
(1) Borrower requests for information.--At the
request of a borrower, the Secretary shall identify and
provide to the borrower or the legal representative of
the borrower any records the Secretary is considering
as part of the borrower's claim.
(2) Status of claim.--The Secretary shall establish a
process under which each borrower with a claim pending
under this section shall be notified of the status of
the pending claim not fewer than once every 90 days.
(3) Information from institutions.--The Secretary may
request documents and other information relating to a
borrower defense claim from an institution of higher
education. An institution that receives a request for
information from the Secretary under this subsection
shall provide the information to the Secretary at such
time, in such form, and in such manner as the Secretary
may direct.
(k) Quarterly Reports.--
(1) In general.--Not less than once every fiscal
quarter, the Secretary shall submit to the authorizing
committees a report that includes the following:
(A) The total number of claims submitted to
the Secretary pursuant to this subsection in
the fiscal quarter covered by the report and in
all previous fiscal quarters.
(B) Of the claims described in subparagraph
(A)--
(i) the number of claims that remain
pending;
(ii) the number of claims that were
denied by the Secretary, and the total
dollar amount of such claims; and
(iii) the number of claims that were
approved by the Secretary, and the
total dollar amount of such claims.
(2) Disaggregation.--The information described in
subparagraphs (A) and (B) of paragraph (1) shall be
disaggregated by State and institution of higher
education (except that such disaggregation shall not be
required in a case in which the results would reveal
personally identifiable information about an individual
borrower).
(3) Public availability.--The information included in
each report submitted under paragraph (A) shall be made
available on a publicly accessible website of the
Department.
(l) Definitions.--In this section:
(1) The term ``legal representative'' means a
licensed attorney working on behalf of a borrower or a
group of borrowers, including--
(A) a State attorney general; and
(B) an attorney employed by a State agency, a
Federal agency, or a nonprofit organization
that is qualified to provide legal
representation to borrowers.
(2) The term ``substantial misrepresentation'' has
the meaning given that term in section 487(c)(3)(C).
SEC. 493I. ON-TIME REPAYMENT RATES.
(a) Calculation of On-time Repayment Rates.--
(1) On-time repayment rate defined.--
(A) In general.--The term ``on-time repayment
rate'' means for any fiscal year in which 30 or
more current and former students at an
institution have been in repayment for 3 years
on any covered loan received for attendance at
the institution, the percentage of such current
and former students who have paid at least 90
percent of the monthly payments on such loan
during such 3-year repayment period.
(B) Small cohorts.--For any fiscal year in
which fewer than 30 of an institution's current
and former students have been in repayment for
3 years, the term ``on-time repayment rate''
means the percentage of such current and former
students who entered their 3rd year of
repayment on any covered loan received for
attendance at the institution in any of the 3
most recent fiscal years and who have paid at
least 90 percent of the monthly payments on
such loan during such 3-year repayment period.
(2) Additional requirements for rate determination.--
(A) Multiple institutions.--In the case of a
student who has attended and borrowed a covered
loan for attendance at more than one
institution, the student (and such student's
subsequent repayment or monthly payment on such
loan) is attributed to each institution for
attendance at which the student received such
loan for which the student entered the 3rd year
of repayment in the fiscal year for which the
on-time repayment rate is being determined.
(B) Treatment of consolidation loans.--For
purposes of determining whether a student is in
repayment (or has paid a monthly payment) on a
loan under section 428C or a Federal Direct
Consolidation Loan, only the portion of such
loan that is used to repay a covered loan
received for attendance at the institution
whose on-time repayment rate is being
determined shall be considered for purposes of
such rate.
(3) Determination of when monthly payment is paid.--
For purposes of determining the on-time repayment rate
of an institution, a student shall be considered to
have paid a monthly payment on a covered loan if one of
the following applies:
(A) The amount of such monthly payment has
been paid not later than 30 days after the date
on which such monthly payment is due, except
that a monthly payment by the institution, such
institution's owner, agent, contractor,
employee, or any other entity or individual
affiliated with such institution made on behalf
of a student who is not employed by the
institution shall not be considered a paid
monthly payment on such loan.
(B) The monthly payment amount due on such
loan is equal to zero.
(C) The full amount due on the loan has been
repaid or the liability on the loan has been
otherwise discharged under this Act.
(D) The student is in a period of deferment,
other than--
(i) a deferment due to an economic
hardship described section
427(a)(2)(C)(iii), 428(b)(1)(M)(iv), or
455(f)(2)(D); or
(ii) a deferment due to unemployment
described in section 427(a)(2)(C)(ii),
428(b)(1)(M)(ii), or 455(f)(2)(B)).
(E) The student is in one of the following
periods of forbearance (as applicable to loans
made, insured, or guaranteed under part B or
this title):
(i) Medical or dental internship or
residency forbearance under subclause
(I) of section 428(c)(3)(A)(i).
(ii) National service forbearance
under subclause (III) of section
428(c)(3)(A)(i).
(iii) Forbearance for active duty
service in the Armed Forces under
subclause (IV) of section
428(c)(3)(A)(i).
(iv) Forbearance for National Guard
Duty under section 428(c)(3)(B).
(v) Forbearance due to military
mobilization or other local or national
emergency as authorized by the
Secretary under section 685.205(b)(8)
of title 34, Code of Federal
Regulations (as in effect on the date
of enactment of the College
Affordability Act).
(vi) Teacher loan forgiveness
forbearance under section 682.213(e) or
685.205(a)(5) of title 34, Code of
Federal Regulations (as in effect on
the date of enactment of the College
Affordability Act).
(4) Participation rate.--
(A) In general.--An institution that
demonstrates to the Secretary that the
institution's participation rate is equal to or
less than 20 percent for any of the 3 most
recent fiscal years for which data is available
shall not be subject to subsection (b).
(B) Determination.--For purposes of this
paragraph, the term ``participation rate''
means the percentage of the institution'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 cohort of borrowers used to calculate the
institution's on-time loan repayment rate is
determined.
(C) Data.--An institution shall provide the
Secretary with sufficient data to determine the
institution's participation rate within 30 days
after receiving an initial notification of the
institution's draft on-time repayment rate.
(D) Notification.--Prior to publication of a
final on-time repayment rate for 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) Determination of Eligibility Based on Repayment Rates and
Instructional Spending Amounts.--
(1) Ineligibility.--
(A) In general.--Except as provided in
subparagraphs (C) and (D), beginning on the
date that is one year after the date on which
the final on-time repayment rates are published
by the Secretary for not less than 3 fiscal
years, an institution shall not be eligible to
participate in a program under this title for
the fiscal year for which the determination
under this subparagraph is made and for the two
succeeding fiscal years, if the Secretary
determines the following with respect to such
institution--
(i) the on-time repayment rate of
such institution is less than any
threshold on-time repayment rate
specified under subparagraph (B) for
period determined appropriate by the
Secretary for such threshold rate; and
(ii) with respect to any of the 3
most recent institutional fiscal years
for which the institution submits to
the Secretary disclosures on the
expenditures of the institution on
instruction for purposes of section
132(i)(1)(AA), the amount expended by
such institution on instruction for
such fiscal year is less than 1/3 of
the institution's revenues derived from
tuition and fees.
(B) Threshold rates.--For purposes of
determinations under subparagraph (A)(i), the
Secretary shall specify 1 or more threshold on-
time repayment rates, which rates--
(i) shall require that a significant
percentage of students who have been in
repayment for 3 years on a covered loan
received for attendance at an
institution of higher education have
paid at least 90 percent of the monthly
payments on such covered loan during
such 3-year repayment period; and
(ii) may be applicable with respect
to a period of 1 or more fiscal years,
as determined appropriate for such a
rate.
(C) Exceptions for certain categories of
educational programs.--
(i) Exceptions for certain categories
of educational programs.--With respect
to an institution that loses
eligibility to participate in a program
under this title in accordance with
paragraph (1), such institution may
request and be granted an exception to
such loss of eligibility for a category
of educational programs at such
institution by demonstrating to the
Secretary that the on-time loan
repayment rate for such category of
educational programs is greater than
the threshold percentage specified
under paragraph (1)(B) for each fiscal
year of the period on which such loss
of eligibility for the institution is
based.
(ii) Determinations.--In determining
the on-time loan repayment rate for a
category of educational programs,
subsection (a)(1) shall be applied--
(I) in subparagraph (A), by
substituting ``received for
enrollment in the category of
educational programs for which
such rate is being determined''
for ``received for attendance
at the institution''; and
(II) as if the following were
added at the end of such
paragraph:
``(C) Multiple categories of educational
programs.--In the case of a student who has
received a covered loan for enrollment in more
than one category of educational programs, the
student (and such student's subsequent
repayment or monthly payment on such covered
loan) is attributed to the last category of
educational programs in which such student was
enrolled.''.
(D) Appeals.--Not later than 60 days of
receiving notification from the Secretary of
the loss of eligibility under subparagraph (A),
the institution may appeal the loss of its
eligibility under subsection (c).
(2) Repayment management plan requirement for certain
institutions.--
(A) In general.--Beginning on the date that
is one year after the date on which the final
on-time repayment rates are published by the
Secretary for not less than 3 fiscal years, an
institution shall be subject to the
requirements of subparagraph (B), if the
Secretary determines the following with respect
to such institution--
(i) the on-time repayment rate of
such institution is less than any
threshold on-time repayment rate
specified under paragraph (1)(B) for
period determined appropriate by the
Secretary for such threshold rate; and
(ii) for each of the 3 most recent
institutional fiscal years for which
the institution submits to the
Secretary disclosures on the
expenditures of the institution on
instruction for purposes of section
132(i)(1)(AA), the amount expended by
the institution for instructional
spending is greater than or equal to an
amount equal to 1/3 of the amount of
revenue derived from tuition and fees.
(B) Repayment management plan.--An
institution subject to the requirements of this
subparagraph, shall--
(i) not later than 6 months after the
determination under subparagraph (A),
submit to the Secretary a repayment
management plan which the Secretary, in
the Secretary's discretion, after
consideration of the institution's
history, resources, expenditures, and
targets for improving on-time
repayment, determines--
(I) is acceptable and is in
the best interests of students;
and
(II) provides reasonable
assurance that the institution
will have an on-time repayment
rate that exceeds the on-time
threshold referred to in
subparagraph (A)(i) after a
reasonable period;
(ii) engage an independent third-
party to provide technical assistance
in implementing such repayment
management plan; and
(iii) provide to the Secretary, on an
annual basis or at such other intervals
as the Secretary may require, evidence
of on-time repayment rate improvement
and successful implementation of such
repayment management plan.
(c) Appeals.--
(1) Secretarial requirements.--The Secretary shall
issue a decision on any appeal submitted by an
institution under subsection (b)(1)(D) not later than
45 days after its submission. Such decision may permit
the institution to continue to participate in a program
under this title if--
(A) the institution demonstrates to the
satisfaction of the Secretary that the
Secretary's calculation of its on-time
repayment rate is not accurate, and that
recalculation would increase its on-time
repayment rate above the applicable threshold
percentage specified in subsection (b)(1)(B)
for the period on which the determination of
the institution's ineligibility under
subsection (b)(1)(A) was based;
(B) the institution demonstrates to the
satisfaction of the Secretary that there has
been improper loan servicing, which, if
remedied, would increase its on-time repayment
rate above the applicable threshold percentage
specified in subsection (b)(1)(B) for the
period on which the determination of the
institution's ineligibility under subsection
(b)(1)(A) was based;
(C) there are, in the judgment of the
Secretary, exceptional mitigating circumstances
that would make the application of this section
inequitable;
(D) for each of the 3 most recent fiscal
years for which the institution submits to the
Secretary disclosures on expenditures for
purposes of section 132(i)(1)(AA), the sum of
the expenditures on instruction and student
services of the institution is equal to an
amount greater than or equal to 50 percent of
the institution's revenues derived from tuition
and fees, and the institution complies with the
requirements of subsection (b)(2)(B).
(2) Institutional requirements.--If an institution
continues to participate in a program under this title,
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 covered
loans 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 title.
(d) Regulations.--The Secretary shall prescribe regulations
designed to prevent an institution from evading the application
to that institution of a on-time repayment rate determination
under this section through the use of such measures as
branching, consolidation, change of ownership or control, or
any similar device.
(e) Publication.--The Secretary shall publish not less often
than once every fiscal year (by September 30 of each year) a
report--
(1) for each category of institution, and for each
institution for which an on-time repayment rate is
determined under this section--
(A) with respect to the preceding fiscal
year--
(i) the on-time repayment rate for
such institution;
(ii) the on-time repayment rate for
each category of educational programs;
and
(iii) the number of students on which
the rates described in clauses (i) and
(ii) are based; and
(B) for each of the 3 most recent fiscal
years for which the institution submits to the
Secretary disclosures on expenditures for
purposes of section 132(i)(1)(AA)--
(i) the amount of the institution's
expenditures on instruction;
(ii) the amount of revenue derived
from tuition and fees by the
institution; and
(iii) the quotient of the amount
described in clause (i) divided by the
amount described in clause (ii),
expressed as a percentage; and
(2) each on-time repayment rate used for calculating
each of the threshold rates under subsection (b)(1)(B)
for the period determined appropriate by the Secretary
for such threshold rate under such subsection.
(f) Definitions.--In this section:
(1) Category of educational programs.--The term
``category of educational programs'' has the meaning
given the term in section 435(a)(9)(E).
(2) Category of institution.--The term ``category of
institution'' includes--
(A) four-year public institutions;
(B) four-year private nonprofit institutions;
(C) four-year proprietary institutions;
(D) two-year public institutions;
(E) two-year private nonprofit institutions;
(F) two-year proprietary institutions;
(G) less-than-two year public institutions;
(H) less-than-two year private nonprofit
institutions; and
(I) less-than-two year proprietary
institutions.
(3) Covered loan.--
(A) In general.--The term ``covered loan''
means a loan made, insured, or guaranteed under
part B or D (other than an excepted PLUS Loan
or an excepted consolidation Loan).
(B) Excepted plus loan; excepted
consolidation loan.--The terms ``excepted PLUS
Loan'' and ``excepted consolidation Loan'' have
the meanings given such terms in section
493C(a).
(4) Student services.--The term ``student services''
has the meaning given the term in section 498E(a)(2).
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 and the accrediting agency
or association involved promptly whenever the State
[revokes a license] takes a negative action, or 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[.];
(4) evaluate each institution of higher education
located in the State or seeking authorization to
operate in the State to determine if such institution
of higher education meets the applicable standards of
the State relating to--
(A) facilities, equipment, and supplies; and
(B) measures of program length and other
factors relevant for a student or graduate to
receive a professional license from the State;
(5) certify to the Secretary that the State shall--
(A) accept student complaints from--
(i) all students attending an
institution of higher education located
in the State; and
(ii) all students who are residents
of the State and attend an institution
of higher education not located in the
State through correspondence or
distance education; and
(B) report to the Secretary and accrediting
bodies--
(i) relevant student complaints
received by the State, including
multiple student complaints that
present consistent allegations with
respect to an institution of higher
education in the State; and
(ii) such other complaints the
Secretary determines necessary; and
(6) establish policies and procedures to anticipate
and respond to the closure of an institution of higher
education, which shall include--
(A) the maintenance of sufficient cash
reserves (or an equivalent alternative) in
accordance with regulations issued pursuant to
section 498(c)(6)(A) to ensure repayment of any
required refunds;
(B) a plan to address ensuring custodial
record-keeping of institutional records and
student transcripts in the case of such a
closure;
(C) the maintenance of contact information
adequate to ensure communication directly
between the State and each student in the case
of such a closure; and
(D) in the case of an institution of higher
education located in the State, to develop a
process to identify when a campus of such
institution of higher education closes in any
State.
(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.
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;
(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) of paragraph (2),
then such agency or association is separate and
independent, both administratively and
financially of any related, associated, or
affiliated trade association or membership
organization, and any institution described in
clauses (i) through (v) of subsection
(b)(1)(B);
(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,
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;
(C) if such agency or association has or
seeks to include within its scope of
recognition the evaluation of the quality of
institutions of higher education participating
in the job training Federal Pell Grant program
under section 401(k), such agency or
association shall, in addition to meeting the
other requirements of this subpart, demonstrate
to the Secretary that, with respect to such
eligible job training program--
(i) the agency or association's
standards include a process for
determining if the institution has the
capability to effectively provide an
eligible job training program; and
(ii) the agency or association
requires a demonstration that the
program--
(I) has identified each
recognized postsecondary
credential offered and the
corresponding industry or
sector partnership that
actively recognizes each
credential in the State or
local area in which the job
training program is provided;
and
(II) provides the academic
content and amount of
instructional time that is
sufficient to--
(aa) meet the hiring
requirements of
potential employers;
and
(bb) satisfy any
applicable educational
prerequisite
requirement for
professional license or
certification, so that
a student who completes
the program and seeks
employment is qualified
to take any licensure
or certification
examination needed to
practice or find
employment in such
sectors or occupations;
and
(D) if such agency or association accredits
or seeks to accredit institutions of higher
education that seek to award Federal Pell
Grants under section 401(n) to incarcerated
individuals for a course of study at such
institution, 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 include a process for
determining if the institution has the
capability to effectively offer such a
course of study to incarcerated
individuals; and
(ii) the agency or association
requires a demonstration that--
(I) such course of study is
taught by faculty with
experience and credentials
comparable to the experience
and credentials of faculty who
teach courses of study
available to non-incarcerated
students enrolled at the
institution;
(II) academic credits earned
by incarcerated individuals for
completion of a course of study
are treated by the institution
as the equivalent to credits
earned by non-incarcerated
students for an equivalent
course;
(III) the institution
provides sufficient educational
content and resources to
students enrolled in such a
course of study that are, to
the extent practicable,
consistent with the educational
content and resources available
to non-incarcerated students;
and
(IV) the institution has the
capacity, staffing, and
expertise to provide
incarcerated individuals with
the support and advising
services necessary to select
and successfully participate in
such a course of study and, to
the extent practicable, with
support upon reentry (including
career and academic advising);
(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;]
(A) success with respect to student
achievement in relation to the institution's
mission (except that the agencies and
associations described in paragraph (2)(A)(ii)
shall not be subject to this subparagraph),
which--
(i) shall be assessed using at least
1 measure selected by the agency or
association from the glossary of
measures established and defined under
section 4713(a)(1) of the College
Affordability Act, or established by
the agency or association, for each of
the following outcomes--
(I) completion;
(II) progress toward
completion; and
(III) workforce
participation;
(ii) may be assessed using different
measures selected or established under
clause (i) for different institutions;
(iii) for each measure selected or
established under clause (i), shall be
assessed using a single performance
benchmark established by the agency or
association, except that an accrediting
agency or association may establish a
different performance benchmark for
such a measure for each category of
educational programs (as defined in
section 435(a)(9)(E)); and
(iv) in the case of an institution
defined in section 101(a), may include
consideration of--
(I) the historical
significance of the
institution; and
(II) whether the institution
is one of the only physical
locations at which
postsecondary education is
provided in the geographic
area;
(B) student achievement outcomes,
disaggregated by the elements required in the
postsecondary student data system under
subclauses (I) through (X) of section
132(l)(2)(C)(ii) to facilitate institutional
improvement and yield statistically reliable
information that does not reveal personally
identifiable information about an individual
student;
(C) credentials, including consideration of
the non-monetary value accruing to students
pursuing such credentials;
(D) curricula, including--
(i) other than for the agencies and
associations described in paragraph
(2)(A)(ii), program length;
(ii) course sequencing; and
(iii) objectives related to
credentialing;
(E) faculty;
(F) student support services;
(G) recruiting and admissions practices,
academic calendars, catalogues, publications,
and grading; and
(H) fiscal and administrative capacity (which
shall include the institution's governance) as
appropriate to the specified scale of
operations;
except that subparagraphs (A), (H), and (J) shall not
apply to agencies or associations described in
paragraph (2)(A)(ii) of this subsection;
(6) such agency or association shall make available
on a publicly accessible website, up-to-date
information on--
(A) the institutions that are subject to the
jurisdiction of such agency or association;
(B) the measures used to assess each of the
outcomes described in subclauses (I) through
(III) of paragraph (5)(A)(i);
(C) the performance benchmark established for
each measure selected by the agency or
association under paragraph (5)(A), the
rationale for the establishment of such
performance benchmark, and how such benchmarks
are factored into the accreditation process;
(D) the process such agency or association
follows when an institution subject to the
jurisdiction of such agency or association does
not meet an accreditation standard under
section 496(a)(5); and
(E) any sanction or adverse action taken with
respect to an institution and the reason for
such sanction or adverse action;
[(6)] (7) 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)] (8) such agency or association shall notify the
Secretary and the appropriate State licensing or
authorizing agency within [30 days] 10 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.]
(9) such agency or association shall--
(A) make available on its public website, and
to the Secretary, and the State licensing or
authorizing agency, a summary (including the
decision and rationale for such decision) of
any review resulting in a final accrediting
decision involving denial, termination, or
suspension of accreditation, together with the
comments of the affected institution; and
(B) ensure that each institution that is the
subject of a final accrediting decision
described in subparagraph (A) makes available
on its public website the summary described in
subparagraph (A) (including the decision and
rationale for such decision) with respect to
such institution and the institution's
comments; and
(10) such agency or association shall--
(A) ensure that any substantive change to the
educational mission or a program of an
institution after the agency or association has
accredited or preaccredited the institution
does not adversely affect the capacity of the
institution to continue to meet the standards
of such agency or association;
(B) require such an institution to obtain the
approval of such agency or association with
respect to such substantive change before the
agency or association includes the change in
the scope of accreditation or preaccreditation
previously granted to the institution by such
agency or association; and
(C) make public and report to the Secretary
any decision made under subparagraph (B) and
the rationale of such decision.
[(b) Separate and Independent Defined.--For the purpose of
subsection (a)(3), the term ``separate 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, 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.]
(b) Separate and Independent Defined.--For the purpose of
subsection (a)(3), the term ``separate and independent'' means
that--
(1) the members of the postsecondary education
governing body and any other decision-making body of
the accrediting agency or association are not--
(A) elected or selected by the board or chief
executive officer of any related, associated,
or affiliated trade association or membership
organization; or
(B) individuals (such as executives and
owners of an institution) who exercise
substantial control over an institution--
(i) that is required to provide the
Secretary with satisfactory evidence of
its financial responsibility in
accordance with paragraph (3)(A) of
section 498(c) because the institution
fails to meet criteria under paragraphs
(1) and (2) of such section, except
that this clause shall not be
applicable to an institution until the
Secretary has completed the rulemaking
required under section 4721(b) of the
College Affordability Act;
(ii) that is on a reimbursement
payment method pursuant to section
487(c)(1)(B);
(iii) against which the Secretary is
initiating or carrying out an emergency
action in accordance with section
487(c)(1)(G);
(iv) against which the Secretary is
limiting, suspending, or terminating
the institution's participation in any
program under this title in accordance
with section 487(c)(1)(F); or
(v) that is on probation or show
cause, or that is not accredited by an
accrediting agency or association;
(2) among the membership of the board of the
accrediting agency or association there shall be 1
public member for each 4 members of the board, with a
minimum of 1 such public member, and guidelines are
established for such members to avoid conflicts of
interest, including guidelines ensuring that each such
public member--
(A) is selected to serve on such board in the
same manner that other board members are
selected for such service;
(B) has not served on such board as a non-
public member in the preceding 10 years;
(C) is not (or has not been in the preceding
5-year period) a full-time employee of, or a
member of the governing board, an owner, or
shareholder of, or consultant to, an
institution or program that--
(i) is accredited or preaccredited by
the agency or association; or
(ii) has applied for accreditation or
preaccreditation from such agency or
association;
(D) is not a member of any trade association
or membership organization related to,
affiliated with, or associated with the agency
or association or an institution that is
accredited by such agency or association; and
(E) is not a spouse, parent, child, or
sibling of an individual identified in
subparagraph (C) or (D);
(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.
(c) Operating Procedures Required.--No accrediting agency or
association may be recognized by the Secretary as a reliable
authority as to the quality of education or training offered by
an institution seeking to participate in the programs
authorized under this title, unless the agency or association--
(1) performs, at regularly established intervals, on-
site inspections and reviews of institutions of higher
education (which may include unannounced site visits)
with particular focus on educational quality and
program effectiveness, and ensures that accreditation
team members are well-trained and knowledgeable with
respect to their responsibilities, including [those
regarding distance education] regarding distance
education and the history and mission of the
institutions reviewed;
(2) monitors the growth and decline of programs at
institutions that are experiencing significant
enrollment growth or decline;
[(3) requires an institution to submit for approval
to the accrediting agency a teach-out plan upon the
occurrence of any of the following events:
[(A) the Department notifies the accrediting
agency of an action against the institution
pursuant to section 487(f);
[(B) the accrediting agency acts to withdraw,
terminate, or suspend the accreditation of the
institution; or
[(C) the institution notifies the accrediting
agency that the institution intends to cease
operations;]
(3) requires an institution to submit for approval to
the accrediting agency or association a teach-out plan
(as defined in section 487(f)(2)) and which shall meet
the requirements of such agency or association) upon
the occurrence of any of the following events:
(A) the Secretary notifies the agency or
association that the Secretary has determined
under section 498(c) that the institution does
not have the financial responsibility required
by this title, except that this subparagraph
shall not be applicable to an institution until
the Secretary has completed the rulemaking
required under section 4721(b) of the College
Affordability Act;
(B) the Secretary notifies the agency of a
determination by the institution's independent
auditor expressing doubt with the institution's
ability to operate as a going concern or
indicating an adverse opinion or finding of
material weakness related to financial
stability, except that this subparagraph shall
not apply with respect to a public institution;
(C) the agency or association acts to place
an institution on probation, show cause, or
equivalent status; or
(D) the Secretary notifies the agency that
the institution is participating in title IV
under a provisional program participation
agreement;
(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;
[(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;]
(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, and that
such an agreement shall be required and subject to such
approval upon the occurrence of any of the following
events:
(A) the Secretary notifies the agency or
association that--
(i) the Secretary has placed the
institution on the reimbursement
payment method pursuant to section
487(c)(1)(B); and
(ii) the institution fails to meet
criteria prescribed by the Secretary
regarding ratios that demonstrate
financial responsibility as described
in section 498(c)(2);
(B) the Secretary notifies the accrediting
agency or association that the Secretary has
initiated--
(i) an emergency action against the
institution pursuant to section
487(c)(1)(G); or
(ii) an action under section
487(c)(1)(F) to limit, suspend, or
terminate the participation of the
institution in any program under this
title;
(C) the accrediting agency or association
acts to withdraw, terminate, or suspend the
accreditation of the institution;
(D) the institution notifies the accrediting
agency or association that the institution
intends to cease operations;
(E) the institution notifies the accrediting
agency or association that the institution
intends to close a location that provides one
hundred percent of at least one program; or
(F) pursuant to section 495, the State
notifies the accrediting agency or association
that an institution's license or legal
authorization to operate within the State has
been or will be revoked;
(7) not later than 10 days after taking an action
described in this paragraph, makes available to the
public and the State licensing or authorizing agency,
and submits to the Secretary, a summary of agency or
association actions, including--
(A) the award of accreditation or
reaccreditation of an institution;
(B) final denial, withdrawal, suspension, or
termination of accreditation of an institution,
and any findings made in connection with the
action taken, together with the official
comments of the affected institution; and
(C) any other adverse action taken with
respect to an institution or placement on
probation of an institution;
(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[.]; and
(10) responds to complaints received with respect to
an institution during the period which the accrediting
agency or association accredits such institution not
later than 30 days after receiving the complaint
(including complaints shared with the agency or
association by the Secretary or a State agency under
section 495), monitors and assesses an institution's
record of student complaints during such period, and
submits the complaints relevant to the Secretary and to
the State agency involved.
(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 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.
(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.
(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 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.
(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. Nothing in this section
shall prohibit the Secretary from implementing a process of
recognition under this section which differs for the
accrediting agencies or associations described in subsection
(a)(2)(A)(ii) for the purposes of participation in programs
(other than the programs under this Act) administered by the
Department or other Federal agencies if such differentiation
would be beneficial to taxpayers and the performance of such
agencies or associations.
(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,
which shall include information on at least one institution of
higher education representing each of the sectors subject to
the jurisdiction of the accrediting agency or association
(including public, nonprofit, and proprietary, as applicable)
of the representative member institutions. Such evaluation
shall include--
(A) the solicitation of third-party information
concerning the performance of the accrediting agency or
association, and for purposes of facilitating such
third-party information, the Secretary shall make
publicly available the application of the accrediting
agency or association seeking recognition by the
Secretary upon publishing in the Federal Register the
solicitation for such third-party information; 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 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.
(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.
(5) In the case in which an official of the Department (other
than the Secretary) makes a decision on the recognition of an
accrediting agency or association that differs from the
recommendation made by the National Advisory Committee on
Institutional Quality and Integrity on such recognition,
without regard to whether any appeals process with respect to
such decision has been concluded, the official shall submit to
the authorizing committees the rationale and evidence for such
decision.
(6) During the first 90-day period of each fiscal year, the
Secretary shall submit to the authorizing committees the
following information with respect to the preceding fiscal
year--
(A) information about each accrediting agency that
the Secretary reviews and evaluates under this
subsection;
(B) the recommendation of the National Advisory
Committee on Institutional Quality and Integrity about
whether to recognize such accrediting agency or
association and the rationale for such recommendation;
(C) in the case in which an official of the
Department (other than the Secretary) makes a decision
on the recognition of such accrediting agency or
association (without regard to whether any appeals
process with respect to such decision has been
concluded), such decision and the rationale for such
decision; and
(D) the final decision of the Secretary on the
recognition of such accrediting agency or association
and the rationale for such final decision.
(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).
(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.
(r) Evaluation of Quality and Achievement Measures.--
(1) In general.--The Secretary shall direct the
National Advisory Committee on Institutional Quality
and Integrity to--
(A) regularly evaluate the effectiveness of
the measures selected and the performance
benchmarks established by accrediting agencies
and associations under subsection (a)(5)(A);
and
(B) compare similarly situated accrediting
agencies or associations, whose similarity may
not be determined solely by the educational
sector to which the institutions being
evaluated belong, based on the measures and
performance benchmarks used in subsection
(a)(5)(A) by such agencies and associations.
(2) Revising performance benchmarks.--The Secretary
may require an accrediting agency or association to
review and revise a performance benchmark established
by such agency or association if the Secretary
determines that such performance benchmark is too low
for the measure for which such benchmark is
established.
(3) Rule of construction.--Nothing in this subsection
shall be construed to give the Secretary that authority
to require the use of a specific performance benchmark
by an accrediting agency or association for purposes of
subsection (a)(5)(A).
(s) Report on Recognized Institutional Accreditors
Required.--Not later than 180 days after the date of the
enactment of the College Affordability Act, and annually
thereafter, the Secretary shall publish a report that includes
with respect to each accrediting agency or association
recognized under this section by the Secretary, the following:
(1) The number of institutions of higher education
evaluated by such accrediting agency or association in
each educational sector.
(2) The number of locations of such institutions of
higher education.
(3) The number of students enrolled at such
institutions of higher education.
(4) The number of students receiving a Federal Pell
Grant at such institutions of higher education in the
preceding year.
(5) The total amount of Federal student aid received
by students enrolled at such institutions of higher
education in the preceding year.
(6) The graduation rates of such institutions of
higher education.
(7) The median earnings of students 10 years after
enrollment.
(8) The number of institutions placed on a
reimbursement payment method pursuant to section
487(c)(1)(B).
(t) Rule of Construction.--Nothing in this section shall be
construed to prohibit an institution of higher education from
seeking accreditation, in a manner consistent with the
requirements of subsections (h), (i), and (l)(2), from an
accrediting agency or association that is accrediting a branch
campus of such institution in the State in which the
institution is located.
Subpart 3--Eligibility and Certification Procedures
SEC. 498. ELIGIBILITY AND CERTIFICATION PROCEDURES.
(a) General Requirement.--For purposes of qualifying
institutions of higher education for participation in programs
under this title, the Secretary shall determine 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.
(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[.]; and
(6) includes an addendum under which an institution
of higher education shall report a change in
circumstances described in subparagraph (A)(ii) or
clauses (ii) or (iii) of subparagraph (B) of subsection
(c)(8), not later than 30 days after the date on which
such change in circumstance occurs.
(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[.]; and
(D) the institution is not an institution described
in paragraph (7)(B).
(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 has a rating of investment grade
or above from a recognized credit rating agency;
[(C)] (D) 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)] (E) 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).
(4) 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) The determination as to whether an institution has met
the standards of financial responsibility provided for in
paragraphs (2) and (3)(C) 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)(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.
(7) Prohibited financial responsibility
determinations.--
(A) In general.--The Secretary may not
determine that an institution has the financial
responsibility required by this title if such
institution is an institution described in
subparagraph (B).
(B) Specified institution.--An institution
described in this subparagraph is--
(i) a private non-profit institution
of higher education or a proprietary
institution of higher education (as
defined in section 102(b)) that--
(I) is required by the
accrediting agency of such
institution to submit a teach-
out plan under section 487(f);
(II) with respect to the
preceding 2 fiscal years, has
an adjusted cohort default rate
(as determined under section
435(m)) of 20 percent or
greater, unless the institution
files a challenge, request for
adjustment, or appeal under
section 435(a) with respect to
such rates for one or both of
such fiscal years; or
(III) is subject to a number
of pending or approved borrower
relief claims under section
493H from borrowers that equals
or exceeds, with respect to the
prior academic year, half of
the enrollment of full-time
equivalent students at such
institution;
(ii) a proprietary institution of
higher education (as defined in section
102(b)) that--
(I) is publicly traded; and
(II)(aa) is sanctioned by the
Securities and Exchange
Commission;
(bb) fails to file a required
annual or quarterly report with
the Securities and Exchange
Commission; or
(cc) the stock of which is
delisted; or
(iii) a proprietary institution of
higher education (as defined in section
102(b))--
(I) that derived, for any
award year beginning on or
after July 1, 2022, more than
85 percent of the revenue of
the institution from Federal
education assistance funds; or
(II) fails to meet criteria
prescribed by the Secretary
regarding ratios that
demonstrate financial
responsibility, and has any
withdrawal of owner's equity
from the institution by any
means, including by declaring a
dividend.
(8) Change in circumstances.--
(A) Required redetermination.--
(i) In general.--In the case of a
private non-profit institution of
higher education or a proprietary
institution of higher education (as
defined in section 102(b)) that submits
an addendum described in clause (ii) or
(iii) to the Secretary, the Secretary
shall, not later than 30 days after
such addendum is submitted, redetermine
whether such institution meets the
requirements of this subsection.
(ii) Specified circumstances.--An
institution of higher education shall
submit an addendum under subsection
(b)(6) if, with respect to such
institution of higher education, one of
the following occurs:
(I) The institution is
required to pay any material
debt, as determined by the
Secretary, or incur any
material liability, as
determined by the Secretary,
arising from a final judgment
in a judicial proceeding, an
administrative proceeding or
determination, or settlement.
(II) The institution is
involved in a lawsuit that is
brought on or after the date of
the enactment of College
Affordability Act by a Federal
or State authority for
financial relief on claims
related to the making of loans
under part D of title IV.
(III) Such other circumstance
the Secretary determines
necessary.
(iii) Gainful employment
determination by secretary.--An
institution of higher education shall
submit an addendum under subsection
(b)(6) if the Secretary makes a
determination that such institution has
programs that could become ineligible
under gainful employment (as defined in
section 104) in the next award year.
(B) Permissible redetermination.--
(i) Redetermination.--In the case of
an institution that submits an addendum
under clause (ii), the Secretary may,
not later than 30 days after such
addendum is submitted, redetermine
whether such institution meets the
requirements of this subsection.
(ii) Specified circumstances.--The
Secretary shall require an institution
to submit an addendum under subsection
(b)(6) if the Secretary makes a
determination--
(I) that the Secretary will
likely receive a significant
number of borrower relief
claims under section 493H as
the result of a lawsuit,
settlement, or judgement
against the institution; or
(II) that the institution
experienced one of the
following:
(aa) A significant
fluctuation in
enrollments between
consecutive award years
or a period of award
years.
(bb) A citation by a
State licensing or
authorizing agency for
failing State or agency
requirements.
(cc) High annual drop
out rates.
(dd) Pending borrower
relief claims under
section 493H.
(C) Financial circumstances materials.--If
the institution's financial circumstances
materially change after the institution submits
an addendum under subsection (b)(6), such
institution shall submit to the Secretary such
certified financial statements and other
information as the Secretary may require.
(9) Transparency.--Beginning not later than 90 days
after the date of the enactment of this paragraph, and
not less than once every 120 days thereafter, the
Secretary shall make publicly available on the website
of the Department the following:
(A) The ratios used to demonstrate financial
responsibility under this section.
(B) Each reports made to the Secretary under
this section.
(C) Each audited financial statement
submitted to the Secretary by an institution of
higher education under this section.
(D) Each certified financial statement
submitted to the Secretary under paragraph
(8)(C).
(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) and received less than $500,000 in funds
under part B 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 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))
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[.]; or
(G) the transfer of ownership as a result of a court-
ordered receivership.
(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) 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), if such teach-out has been approved by
the institution's accrediting agency.
(2) Special rule.--An institution of higher education
that conducts a teach-out through the establishment of
an additional location described in paragraph (1) shall
be permitted to establish a permanent additional
location at a closed institution and shall not be
required--
(A) to meet the requirements of sections
102(b)(1)(E) and 102(c)(1)(C) for such
additional location; or
(B) to assume the liabilities of the closed
institution.
SEC. 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;]
(A) institutions with an adjusted cohort
default rate for loans under part D in excess
of 18 percent or which places such institutions
in the highest 25 percent of such institutions;
(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;
(C) institutions with a significant
fluctuation in Federal Stafford Loan volume,
Federal Direct Stafford/Ford 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, 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) 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) 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) inform the appropriate State and accrediting
agency or association whenever the Secretary takes
action against an institution of higher education under
this section, section 498, or section 432;
(6) provide to an institution of higher education an
adequate opportunity to review and respond to any
program review report and relevant materials related to
the report before any final program review report is
issued;
(7) review and take into consideration an institution
of higher education's response in any final program
review report or audit determination, and include in
the report or determination--
(A) a written statement addressing the
institution of higher education's response;
(B) a written statement of the basis for such
report or determination; and
(C) a copy of the institution's response; and
(8) maintain and preserve at all times the
confidentiality of any program review report until the
requirements of paragraphs (6) and (7) are met, and
until a final program review is issued, other than to
the extent required to comply with paragraph (5),
except that the Secretary shall promptly disclose any
and all program review reports to the institution of
higher education under review.
(c) Undercover Operations.--In carrying out paragraphs (1)
and (2) of subsection (a) and any other relevant provisions of
this subpart, the Secretary--
(1) shall conduct undercover and secret shopper
operations for the purpose of encouraging the ethical
treatment of students and prospective students and
detecting fraud and abuse in the Federal student aid
programs, including--
(A) violations described in section
487(c)(3);
(B) violations of section 487(a)(20); and
(C) violations by any entity with which the
institution has contracted for student
recruitment or admission activity;
(2) shall develop written guidelines for the conduct
of activities under paragraph (1) in accordance with
commonly-accepted Federal practices for undercover
operations and in consultation with other relevant
agencies, including the Department of Justice, Federal
Trade Commission, Consumer Financial Protection Bureau,
and the Department of Education's Office of Inspector
General; and
(3) shall provide an annual report on the results of
activities under paragraph (1) to the authorizing
committees, and thereafter shall make the report
available to the public.
[(c)] (d) 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)] (e) 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)] (f) 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.
* * * * * * *
Subpart 4--Strengthening Institutional Quality
SEC. 498C. ASSISTANCE TO PROGRESS PERIOD INSTITUTIONS.
(a) In General.--The Secretary shall provide grants and
technical assistance to covered progress period institutions in
accordance with this section.
(b) Authorized Activities.--Grants and assistance provided
under this section shall be used to improve student achievement
(as described in section 496(a)(5)(A)) at covered progress
period institutions.
(c) Duration.--Grants and assistance may be provided under
this section for a period of not less than one year and not
more than three years.
(d) Conditions.--
(1) Benchmarks.--
(A) In general.--To continue to receive
support under this section after the first year
in which such support is provided, an
institution must show progress, as determined
by the Secretary, toward meeting the standards
for student achievement established by the
relevant accrediting agency or association
pursuant to section 496(a)(5)(A).
(B) Considerations.--In determining the
progress of an institution under subparagraph
(A), the Secretary may take into consideration
extenuating circumstances that may have
contributed to the poor performance of the
institution in the first year of the review
period.
(2) Deadline for compliance.--An institution that
does not achieve an adjusted cohort default rate of
less than 10 percent after receiving support under this
section for three consecutive years shall be ineligible
to receive further support under this section.
(3) Prohibition.--An institution shall be ineligible
to receive further support under this section if, while
the institution was receiving such support, the total
enrollment of low-income students (as such term is
defined in section 419N(b)(7)) at the institution
decreased by 10 percent or more.
(e) Covered Progress Period Institution.--In this section,
the term ``covered progress period institution'' means--
(1) a public institution of higher education that is
determined to be in progress period status;
(2) a part B institution (as defined in section 322)
that is determined to be in progress period status; or
(3) a private, nonprofit institution of higher
education--
(A) that is determined to be in progress
period status; and
(B) at which not less than 45 percent of the
total student enrollment consists of low-income
students (as such term is defined in section
419N(b)(7)).
(f) Funding.--
(1) In general.--There are authorized to be
appropriated, and there are appropriated, such funds as
the Secretary, using the formula described in paragraph
(2), determines necessary to meet the needs of all
eligible institutions under this subsection, except
that such funds shall not exceed $100,000,000 for
fiscal year 2021 and each succeeding fiscal year. Such
funds shall be available until expended.
(2) Formula.--Not later than 1 year after the date of
the enactment of this section, the Secretary shall
establish through negotiated rulemaking a formula to
determine the--
(A) proportional amount of institutional need
under this section; and
(B) total amount of institutional need under
this section.
(3) Special rule.--Such formula must at minimum take
into consideration the severity of the problem, size of
the institution, institutional resources, historical
underfunding, and the number of low-income students (as
such term is defined in section 419N(b)(7)) being
served.
SEC. 498D. RESTRICTIONS ON CERTAIN EXPENDITURES.
(a) Establishing Definitions.--
(1) In general.--For purposes of each survey
conducted under the Integrated Postsecondary Education
Data System after the date of enactment of the College
Affordability Act and this Act, the Secretary shall
define the following terms:
(A) Marketing.
(B) Recruitment.
(C) Advertising.
(D) Lobbying.
(E) Student services.
(2) Exclusion of certain activities.--In defining the
term ``student services'' under paragraph (1)(E), the
Secretary shall ensure that such term does not include
marketing, recruitment, advertising, or lobbying.
(b) Limitation on Expenditures.--In a case in which the
Secretary determines with respect to an institution of higher
education participating in any program under this title that,
for any of the 3 most recent institutional fiscal years after
the promulgation of regulations by the Secretary defining the
terms in subsection (a)(1) for which the institution submits to
the Secretary disclosures on the expenditures of the
institution on instruction for purposes of section
132(i)(1)(AA), the amount expended by such institution on
instruction for such fiscal year is less than an amount equal
to \1/3\ of institution's revenues derived from tuition and
fees--
(1) for any institutional fiscal year after such
determination is made, the sum of the amount expended
by the institution on marketing, recruitment,
advertising, and lobbying may not exceed the amount of
the institution's revenues derived from sources other
than Federal education assistance funds; and
(2) in a case in which the institution fails to meet
the requirements of paragraph (1) for 2 consecutive
institutional fiscal years, the institution shall be
ineligible to participate in the programs authorized by
this title for a period of not less than two
institutional fiscal years.
(c) Publication on Website.--The Secretary shall, on an
annual basis, publicly disclose on the Department's website,
information with respect to any institution of higher education
that is subject to the requirements of subsection (b)(1),
including--
(1) the quotient of the amount that the institution
expends on instruction divided by the institution's
revenues derived from tuition and fees, expressed as a
percentage;
(2) the sum of such institution's expenditures on
advertising, recruiting, marketing, and lobbying;
(3) the amount of such institution's revenues
received from sources outside of Federal education
assistance funds; and
(4) the difference between paragraphs (2) and (3).
SEC. 498E. INSTITUTIONAL DISCLOSURE SYSTEM.
(a) Departmental Disclosure.--The Secretary shall make
available, on a publicly accessible website of the Department
of Education, a list of institutions of higher education that--
(1) have failed to meet the requirements for
accreditation by an agency or association recognized by
the Secretary pursuant to section 496(a); or
(2) have failed to meet the requirements for
participation in programs under this title.
(b) Institutional Disclosure.--
(1) In general.--To be eligible to participate in
programs under this title, an institution of higher
education shall, using the template developed by the
Secretary under subsection (c), disclose the
accreditation status of the institution on a publicly
accessible website of the institution.
(2) Updates.--Any change in the accreditation status
of an institution of higher education shall be
disclosed in accordance with paragraph (1) not later
than 30 days after such change occurs.
(c) Template.--The Secretary shall develop a template that
shall be used by institutions of higher education to make the
disclosures required under subsection (b). The Secretary shall
ensure that the template--
(1) clearly identifies the information to be
disclosed; and
(2) is in a format that is easily understood by
consumers.
* * * * * * *
PART J--AMERICA'S COLLEGE PROMISE FEDERAL-STATE PARTNERSHIP
Subpart 1--State and Indian Tribe Grants for Community Colleges
SEC. 499A. IN GENERAL.
From amounts appropriated under section 499G for any fiscal
year, the Secretary shall award grants to eligible States and
Indian tribes to pay the Federal share of expenditures needed
to carry out the activities and services described in section
499E.
SEC. 499B. FEDERAL SHARE; NON-FEDERAL SHARE.
(a) Federal Share.--
(1) Formula.--Subject to paragraph (2), the Federal
share of a grant under this subpart shall be based on a
formula, determined by the Secretary, that--
(A) accounts for the State or Indian tribe's
share of eligible students;
(B) accounts for the ratio between a State or
Indian tribe's funding per full-time equivalent
(FTE) student at public colleges and
universities and the average net price at State
public four-year colleges and universities, in
such a way as to reward States that keep net
prices for students low while maintaining their
investment in higher education; and
(C) provides, for each eligible student in
the State or Indian tribe, a per-student amount
that is at least 75 percent of--
(i) for the 2021-2022 award year, the
average resident community college
tuition and fees per student in all
States for the most recent year for
which data are available; and
(ii) for each subsequent award year,
the amount determined under this
subparagraph for the preceding award
year, increased by the lesser of--
(I) a percentage equal to the
estimated percentage increase
in the Consumer Price Index (as
determined by the Secretary)
since the date of such
determination; or
(II) 3 percent.
(2) Exception for certain Indian tribes.--In any case
in which not less than 75 percent of the students at
the community colleges operated or controlled by an
Indian tribe are low-income students, the amount of the
Federal share for such Indian tribe shall be not less
than 95 percent of the total amount needed to waive
tuition and fees for all eligible students enrolled in
such community colleges.
(b) State or Tribal Share.--
(1) Formula.--
(A) In general.--The State or tribal share of
a grant under this subpart for each fiscal year
shall be the amount needed to pay 25 percent of
the average community college resident tuition
and fees per student in all States in the 2021-
2022 award year for all eligible students in
the State or Indian tribe, respectively, for
such fiscal year, except as provided in
subparagraph (B).
(B) Exception for certain indian tribes.--In
the case of an Indian tribe described in
subsection (a)(2), the amount of such Indian
tribe's tribal share shall not exceed 5 percent
of the total amount needed to waive tuition and
fees for all eligible students enrolled in such
community colleges.
(2) Need-based aid.--A State or Indian tribe may
include, as part of the State or tribal share, any
need-based financial aid that--
(A) is provided from State or tribal funds to
an eligible student; and
(B) may be used by such student to pay costs
of attendance other than tuition and fees.
(3) No in-kind contributions.--A State or Indian
tribe shall not include in-kind contributions for
purposes of the State or tribal share described in
paragraph (1).
(c) Determining Number of Eligible Students.--
(1) In general.--The Secretary of Education shall
develop and implement a process for accurately
estimating the number of eligible students in a State
or Indian tribe for purposes of subsection (a) and (b).
(2) Initial determination.--For the first year for
which grants are awarded under this subpart, the number
of eligible students in a State or Indian tribe shall
be considered to be equal to the number of eligible
students that were in the State or tribe for the
preceding school year.
(d) Adjustment of Grant Amount.--Not later than 180 days
after the date on which a State or Indian tribe receives a
grant under this subpart, the Secretary shall--
(1) in consultation with the State or tribe
concerned, determine whether the actual number of
eligible students in the State or Tribe for the year
covered by the grant is greater than the estimated
number of such students that was used to determine the
amount of the grant; and
(2) if it is determined under paragraph (1) that the
actual number of eligible students in the State or
Tribe is higher than such estimate, issue a
supplementary grant payment to the State or tribe in an
amount that ensures that the total amount of the grant
funds received by the State or tribe under this subpart
for the year covered by the grant accurately reflects
the higher number of eligible students.
SEC. 499C. APPLICATIONS.
(a) Submission.--In order to receive a grant under this
subpart, a State or tribe shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require.
(b) Contents.--Each application under subsection (a) shall
include, at a minimum--
(1) an estimate of the number of eligible students in
the State or Indian tribe and the cost of waiving
community college resident tuition and fees for all
eligible students for each fiscal year covered by the
grant;
(2) an assurance that all community colleges in the
State or under the jurisdiction of the Indian tribe,
respectively, will waive resident tuition and fees for
eligible students in accordance with section 499D(a);
(3) a description of the promising and evidence-based
institutional reforms and innovative practices to
improve student outcomes, including transfer and
completion rates, that have been or will be adopted by
the participating community colleges, such as--
(A) providing comprehensive academic and
student support services, including mentoring
and advising, especially for low-income, first-
generation, and adult students, and other
students belonging to racial and other groups
that are underrepresented in higher education;
(B) the provision of direct support services
such as--
(i) childcare, transportation,
emergency financial assistance, and
mental health and substance use
disorder treatment;
(ii) assistance in obtaining health
insurance coverage;
(iii) assistance securing affordable
housing;
(iv) efforts to address food
insecurity and campus hunger; and
(v) efforts to facilitate student
participation in means-tested Federal
benefit programs (as defined in section
479(d));
(C) providing accelerated learning
opportunities, such as dual or concurrent
enrollment programs, including early college
high school programs;
(D) strengthening and reforming remedial and
developmental education, especially for low-
income, first-generation, and adult students,
and other students belonging to racial and
other groups that are underrepresented in
higher education, including through the use of
multiple measures (such as a student's college
entrance examination score, grade point
average, high school course list, or a
placement examination) to identify students in
need of remedial education; or
(E) utilizing career pathways, including
through building capacity for career and
technical education as defined in section 3(5)
of the Carl D. Perkins Career and Technical
Education Act of 2006 (20 U.S.C. 2302(5)) and
programs of study as defined in section 3(41)
of such Act (20 U.S.C. 2302(41)), or degree
pathways;
(4) a description of how the State or Indian tribe
will ensure that programs leading to a recognized
postsecondary credential meet the quality criteria
established by the State under section 123(a) of the
Workforce Innovation and Opportunity Act (29 U.S.C.
3153(a)) or other quality criteria determined
appropriate by the State or Indian tribe;
(5) an assurance that all participating community
colleges in the State or under the authority of the
Indian tribe have entered into program participation
agreements under section 487;
(6) an assurance that the State or Indian tribe will,
to the extent practicable, assist eligible students in
obtaining information about and accessing means-tested
Federal benefit programs (as defined in section 479(d))
for which such students may be eligible;
(7) an assurance that, for each year of the grant,
the State or Indian tribe will notify each eligible
student of the student's remaining eligibility for
assistance under this subpart; and
(8) if the application is submitted by a State--
(A) an assurance that the State will, to the
extent practicable, consider changes to State
law that will enable more community college
students to be eligible for means-tested
Federal benefit programs (as defined in section
479(d));
(B) an assurance that the State will meet the
requirements of section 499D(b)(1) relating to
the alignment of secondary and postsecondary
education; and
(C) an assurance that the State will meet the
requirements of section 499D(b)(2) relating to
the improvement of transfer pathways between
institutions of higher education.
SEC. 499D. PROGRAM REQUIREMENTS.
(a) General Requirements for States and Indian Tribes.--As a
condition of receiving a grant under this subpart a State or
Indian tribe shall meet the following requirements:
(1) For each year of the grant the total amount of
community college resident tuition and fees charged to
an eligible student in the State or Indian tribe shall
be $0.
(2) For each year of the grant no amount of financial
assistance for which an eligible student qualifies may
be applied to such tuition or fees.
(b) State Requirements.--As a condition of receiving a grant
under this subpart a State shall meet the following
requirements:
(1) Alignment of k-12 and higher education.--
(A) In general.--The State shall--
(i) submit a plan to align the
requirements for receiving a regular
high school diploma from public high
schools in the State with the
requirements for entering credit-
bearing coursework at participating
community colleges in such State; and
(ii) not later than three years after
the date on which the State first
receives a grant under this subpart,
certify to the Secretary that such
alignment has been achieved.
(B) Failure to certify.-- If a State does not
provide the certification required under
subparagraph (A) by the date specified in such
subparagraph, the State shall submit to the
Secretary, at such time and in such manner as
the Secretary may require--
(i) a written explanation for the
delay in making the certification; and
(ii) a plan that will enable the
State to make the certification by not
later than 5 years after the date on
which the State first received a grant
under this subpart.
(2) Transfer pathways.--
(A) In general.--The State shall--
(i) submit a plan, developed in
collaboration with faculty from
institutions of higher education in the
State, to improve transfer pathways
between institutions of higher
education in the State, including by
ensuring that associate degrees awarded
by public institutions in the State are
fully transferable to, and credited as,
the first 2 years of related
baccalaureate programs at public
institutions of higher education in
such State; and
(ii) not later than 3 years after the
date on which the State first receives
a grant under this subpart, certify to
the Secretary that an associate degree
in an academic major in the arts or
sciences that is awarded by a public
institution of higher education in the
State on or after the date that is not
later than 3 years after the date on
which the State first receives a grant
under this subpart shall be fully
transferrable to, and credited as, the
first 2 years of a related
baccalaureate program at a public
institution of higher education in such
State.
(B) Failure to certify.-- If a State does not
provide the certification required under
subparagraph (A) by the date specified in such
subparagraph, the State shall submit to the
Secretary, at such time and in such manner as
the Secretary may require--
(i) a written explanation for the
delay in making the certification; and
(ii) a plan that will enable the
State to make the certification by not
later than 5 years after the date on
which the State first received a grant
under this subpart.
(3) Applicability.--The Secretary may not apply the
requirements under this subsection to an Indian tribe.
SEC. 499E. ALLOWABLE USES OF FUNDS.
(a) In General.--Except as provided in subsection (b), a
State or Indian tribe shall use a grant under this subpart only
to provide funds to participating community colleges to enable
such community colleges to waive resident tuition and fees for
eligible students as required under section 499D(a).
(b) Additional Uses.--If a State or Indian tribe demonstrates
to the Secretary that it has grant funds remaining after
meeting the demand for activities described in subsection (a),
the State or Indian tribe may use those funds to carry out one
or more of the following:
(1) Enhancing the quality of public higher education
to improve student outcomes, including transfer and
completion rates, which may include investing in the
academic workforce.
(2) Expanding the scope and capacity of high-quality
academic and occupational skills training programs at
community colleges, which may include collaboration
with one or more industry or sector partnership (as
defined in section 3 of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3201)).
(3) Improving postsecondary education readiness in
the State or Indian tribe, including through outreach
and early intervention.
(4) Expanding access to dual or concurrent enrollment
programs, including early college high school programs.
(5) Improving affordability at 4-year public
institutions of higher education.
(c) Use of Funds for Administrative Purposes.--A State or
Indian tribe that receives a grant under this subpart may not
use any funds provided under this subpart for administrative
purposes relating to the grant under this subpart.
(d) Maintenance of Effort.--A State or Indian tribe receiving
a grant under this subpart is entitled to receive its full
allotment of funds under this subpart for a fiscal year only
if, for each year of the grant, the State or Indian tribe
provides--
(1) financial support for public higher education at
a level equal to or exceeding the average amount
provided per full-time equivalent student for public
institutions of higher education for the three
consecutive preceding fiscal years. In making the
calculation under this subsection, the State or Indian
tribe shall--
(A) exclude capital expenses and research and
development costs; and
(B) include need-based financial aid for
students who attend public institutions of
higher education;
(2) financial support for operational expenses for
public, four-year colleges and universities at a level
equal to or exceeding the average amount provided for
the three consecutive preceding State or Indian tribe
fiscal years; and
(3) financial support for need-based financial aid at
a level equal to or exceeding the average amount
provided for the three consecutive preceding State or
Indian tribe fiscal years.
(e) Annual Report A State or Indian tribe receiving a grant
under this subpart shall submit an annual report to the
Secretary describing the uses of grant funds under this
subpart, the progress made in fulfilling the requirements of
the grant, and rates of transfer, graduation, and attainment of
recognized postsecondary credentials at participating community
colleges, including such rates disaggregated by race, income,
and age, and including any other information as the Secretary
may require.
(f) Reporting by Secretary.--The Secretary annually shall--
(1) compile and analyze the information described in
subsection (e); and
(2) prepare and submit a report to the Committee on
Health, Education, Labor, and Pensions of the Senate
and the Committee on Education and Labor of the House
of Representatives containing the analysis described in
paragraph (1) and an identification of State and Indian
tribe best practices for achieving the purpose of this
subpart.
(g) Technical Assistance.--The Secretary shall provide
technical assistance to eligible States and Indian tribes
concerning best practices regarding the promising and evidence-
based institutional reforms and innovative practices to improve
student outcomes and shall disseminate such best practices
among the States and Indian tribes.
(h) Continuation of Funding.--
(1) In general.--A State or Indian tribe receiving a
grant under this subpart for a fiscal year may continue
to receive funding under this subpart for future fiscal
years conditioned on the availability of budget
authority and on meeting the requirements of the grant,
as determined by the Secretary.
(2) Discontinuation.--The Secretary may discontinue
funding of the Federal share of a grant under this
subpart if the State or Indian tribe has violated the
terms of the grant or is not making adequate progress
in implementing the reforms described in the
application submitted under section 499C.
(i) Supplement, Not Supplant.--Funds made available under
this subpart 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. 499F. DEFINITIONS.
In this subpart:
(1) Career pathway.--The term ``career pathway'' has
the meaning given the term in section 3 of the
Workforce Innovation and Opportunity Act (29 U.S.C.
3102).
(2) Community college.--The term ``community
college'' means a public institution of higher
education at which the highest degree that is
predominantly awarded to students is an associate's
degree, including 2-year tribally controlled colleges
under section 316 and public 2-year State institutions
of higher education.
(3) Dual or concurrent enrollment program.--The term
``dual or concurrent enrollment program'' has the
meaning given the term in section 8101 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801).
(4) Early college high school.--The term ``early
college high school'' has the meaning given the term in
section 8101 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7801).
(5) Eligible student.--
(A) Definition.--The term ``eligible
student'' means a student who--
(i) attends the community college on
not less than a half-time basis;
(ii) is maintaining satisfactory
progress (as defined in section 484(c))
in the student's course of study;
(iii) is enrolled in an eligible
program (as defined in section 481(b));
and
(iv) either--
(I) qualifies for in-State
resident community college
tuition, as determined by the
State or Indian tribe; or
(II) would qualify for such
in-State resident community
college tuition, but for the
immigration status of such
student.
(B) Special rule.--An otherwise eligible
student shall lose eligibility 3 calendar years
after first receiving benefits under this
subpart.
(6) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 102 of the Federally
Recognized Indian Tribe List Act of 1994 (25 U.S.C.
479a).
(7) Institution of higher education.--The term
``institution of higher education'' has the meaning
given the term in section 101.
(8) Recognized postsecondary credential.--The term
``recognized postsecondary credential'' has the meaning
as described in section 3 of the Workforce Innovation
and Opportunity Act (29 U.S.C. 3102).
(9) State.--The term ``State'' has the meaning given
the term in section 103.
SEC. 499G. APPROPRIATIONS.
(a) Authorization and Appropriations.--For the purpose of
making grants under this subpart there are authorized to be
appropriated, and there are appropriated--
(1) $1,569,700,000 for fiscal year 2021;
(2) $3,472,880,000 for fiscal year 2022;
(3) $4,431,950,000 for fiscal year 2023;
(4) $6,204,030,000 for fiscal year 2024;
(5) $8,119,870,000 for fiscal year 2025;
(6) $9,297,430,000 for fiscal year 2026;
(7) $11,708,890,000 for fiscal year 2027;
(8) $14,971,330,000 for fiscal year 2028;
(9) $15,619,910,000 for fiscal year 2029; and
(10) $16,296,080,000 for fiscal year 2030 and each
succeeding fiscal year.
(b) Availability.--Funds appropriated under subsection (a)
shall remain available to the Secretary until expended.
(c) Insufficient Funds.--If the amount appropriated under
subsection (a) for a fiscal year is not sufficient to award
each participating State and Indian tribe a grant under this
subpart that is equal to the minimum amount of the Federal
share described in section 499B, the Secretary may ratably
reduce the amount of each such grant or take other actions
necessary to ensure an equitable distribution of such amount.
Subpart 2--Student Success Fund
SEC. 499H. IN GENERAL.
From amounts appropriated under section 499N for any fiscal
year, the Secretary shall carry out a grant program (to be
known as the Student Success Fund) to make grants to eligible
entities to carry out the activities and services described in
section 499L.
SEC. 499I. ALLOCATION.
(a) Federal Share Allocation.--The Federal share of a grant
under this subpart shall be determined using the formula
determined under section 499B(1).
(b) Matching Funds.--
(1) In general.--Except as provided in paragraph (2),
an eligible entity participating in the program under
this subpart shall provide, from non-Federal sources,
in cash or in-kind--
(A) in each of the first, second, third, and
fourth year of participation in the program, an
amount equal to 25 percent of the amount such
entity received under subsection (a) with
respect to such year;
(B) in each of the fifth and sixth year of
participation in the program, an amount equal
to 50 percent of the amount such entity
received under subsection (a) with respect to
such year;
(C) in each of the seventh and eighth year of
participation in the program, an amount equal
to 75 percent of the amount such entity
received under subsection (a) with respect to
such year; and
(D) in each ninth year and each subsequent
year thereafter of participation in the
program, an amount equal to 100 percent of the
amount such entity received under subsection
(a) with respect to such year.
(2) Exception for certain indian tribes.--The
Secretary may waive the matching fund requirements
under paragraph (1) in the case of an eligible entity
that is an Indian tribe if at least 75 percent of the
students at the institutions of higher education
operated or controlled by such Indian tribe are low-
income students.
(3) Reallotment.--If an eligible entity returns to
the Secretary any portion of the sums allocated to such
eligible entity under this section for any fiscal year,
the Secretary shall reallot such excess as part of the
available appropriated amount for the succeeding fiscal
year.
(c) Supplement, Not Supplant.--Grant funds awarded under this
subpart shall be used to supplement, and not supplant, other
Federal, State, and local funds that would otherwise be
expended to carry out activities assisted under this subpart.
(d) Limitation.--An eligible entity may only participate in
the program under this subpart in a year in which such entity
receives a grant under subpart 1.
SEC. 499J. APPLICATIONS.
(a) In General.--To be eligible to participate in the program
under this subpart, an eligible entity shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require,
including--
(1) a plan that includes--
(A) the amount of funds requested by the
eligible entity under this subpart and the
intended use of such funds;
(B) how the eligibility entity will use the
requested funds to implement promising and
evidence-based institutional reforms and
innovative practices to improve student
outcomes, including those identified by such
entity under section 499C(b)(3), and including
annual implementation benchmarks that the
entity will use to track progress in
implementing such reforms and practices;
(C) how the eligible entity will meet its
matching fund requirements under section
499I(b);
(D) if the eligible entity is a State, how
such eligible entity will prioritize spending
on the public institutions of higher education
specified in paragraph (2)(B); and
(E) the improvements the eligible entity
anticipates in student outcomes, including
improvements in transfer rates or completion
rates, or both.
(2) if the eligible entity is a State, an analysis
that includes--
(A) with respect to each public institution
of higher education of the eligible entity--
(i) the total per-student funding;
(ii) the amount of per-student
funding from State-appropriated funds;
(iii) the student demographics
(including, data on race, income,
disability status, and remediation);
and
(iv) transfer and completion rates,
including such rates among low-income
students, students of color, students
with disabilities, and students in need
of remediation; and
(B) an analysis of whether, of the public
institutions of higher education of the
eligible entity, the public institutions of
higher education that received less funding on
a per-student basis described in clause (i) or
(ii), or both, of subparagraph (A), are serving
disproportionately high shares of low-income
students, students of color, students with
disabilities, or students in need of
remediation.
(b) Approval.--
(1) In general.--Not later than 180 days after
receiving a plan under subsection (a), the Secretary
shall--
(A) approve the plan; or
(B) require revisions to such plan.
(2) Revisions required.--An eligible entity shall
make such revisions as required by the Secretary under
paragraph (1)(B).
(c) Publication.--The Secretary shall make each plan approved
under subsection (b)(1)(A) and each plan revised under
subsection (b)(2) available to the public on the website of the
Department.
SEC. 499K. PROGRAM REQUIREMENTS.
(a) General Requirements.--
(1) Report on demonstrated progress.--For the third
year in which an eligible entity participates in the
program under this subpart, and every 2 years
thereafter, the eligible entity shall submit a report
to the Secretary, in such manner and containing such
information as the Secretary may require, that
includes--
(A) the progress in meeting the annual
implementation benchmarks included in the
application of such eligible entity under
section 499J(a)(1)(B);
(B) the progress in improving the student
outcomes identified by the entity under section
499(J)(a)(1)(E); and
(C) with respect to the 2 years after such
report is submitted--
(i) a plan for the use of funds under
this subpart; and
(ii) the amount of funds requested by
the eligible entity under this subpart.
(2) Approval.--Not later than 180 days after
receiving a plan under paragraph (1)(C)(i), the
Secretary shall--
(A) approve the plan; or
(B) require revisions to such plan.
(3) Revisions required.--An eligible entity shall
make such revisions as required by the Secretary under
paragraph (2)(B).
(b) Failure to Meet Requirements.-- If an eligible entity
does not meet the annual implementation benchmarks included in
the application of such eligible entity under section
499J(a)(1)(B), as required to be reported under subsection
(a)(1)(A), such eligible entity shall submit to the Secretary,
at such time and in such manner as the Secretary may require--
(1) a written explanation for the delay in meeting
such requirements; and
(2) a plan that will enable such eligible entity to
meet such requirements not later than 1 year after the
date on which the eligible entity submitted the written
explanation under paragraph (1).
(c) Publication.--The Secretary shall make each plan approved
under subsection (a)(2)(A), each plan revised under subsection
(a)(3), and each plan submitted under subsection (b)(2)
available to the public on the website of the Department.
SEC. 499L. ALLOWABLE USES OF FUNDS.
(a) In General.--Except as provided in subsection (b), an
eligible entity shall use a grant under this subpart only to
allocate funds in accordance with the plan submitted for such
year under section 499J(a)(1).
(b) Use of Funds for Administrative Purposes.--An eligible
entity that receives a grant under this subpart may use not
more than 10 percent of such grant for administrative purposes
relating to the grant under this subpart.
SEC. 499M. ELIGIBLE ENTITY DEFINED.
In this subpart, the term ``eligible entity'' means a State
or Indian tribe that received a grant under subpart 1 for the
fiscal year in which such State or Indian tribe receives a
grant under this subpart.
SEC. 499N. APPROPRIATIONS.
(a) Authorization and Appropriations.--For the purpose of
making grants under this subpart there are authorized to be
appropriated and there are appropriated $500,000,000 for fiscal
year 2021 and each succeeding fiscal year.
(b) Availability.--Funds appropriated under subsection (a)
shall remain available to the Secretary until expended.
Subpart 3--Grants to Historically Black Colleges and Universities,
Tribal Colleges and Universities, and Minority-serving Institutions
SEC. 499O. PATHWAYS TO STUDENT SUCCESS FOR HISTORICALLY BLACK COLLEGES
AND UNIVERSITIES.
(a) In General.--From amounts appropriated under section
499S(a) for any fiscal year, the Secretary shall award grants
to participating 4-year historically black colleges or
universities that meet the requirements of subsection (b) to--
(1) encourage students to enroll and successfully
complete a bachelor's degree at participating
institutions;
(2) provide incentives to community college students
to transfer to participating institutions through
strong transfer pathways to complete a bachelor's
degree program; and
(3) support participating institutions to better
serve new and existing students by engaging in reforms
and innovations designed to improve completion rates
and other student outcomes.
(b) Eligibility.--To be eligible to receive a grant under the
program under this section, an institution shall be a
historically black college or university that--
(1) has a student body of which not less than 35
percent are low-income students;
(2) commits to maintaining or adopting and
implementing promising and evidence-based institutional
reforms and innovative practices to improve the
completion rates and other student outcomes, such as--
(A) providing comprehensive academic and
student support services, including mentoring
and advising, especially for low-income, first-
generation, and adult students, and other
students belonging to racial and other groups
that are underrepresented in higher education;
(B) providing direct support services such
as--
(i) childcare, transportation,
emergency financial assistance, and
mental health and substance use
disorder treatment;
(ii) assistance in obtaining health
insurance coverage;
(iii) assistance securing affordable
housing;
(iv) efforts to address food
insecurity and campus hunger; and
(v) efforts to facilitate student
participation in means-tested Federal
benefit programs (as defined in section
479(d));
(C) providing accelerated learning
opportunities and degree pathways, such as dual
enrollment and pathways to graduate and
professional degree programs;
(D) partnering with employers, industry, not-
for-profit associations, and other groups to
provide opportunities to advance learning
outside the classroom, including work-based
learning opportunities such as internships or
apprenticeships or programs designed to improve
inter-cultural development and personal growth,
such as foreign exchange and study abroad
programs; or
(E) strengthening remedial education,
especially for low-income, first-generation,
and adult students, and other students
belonging to racial and other groups that are
underrepresented in higher education, including
through the use of multiple measures (such as a
student's college entrance examination score,
grade point average, high school course list,
or a placement examination) to identify
students in need of remedial education;
(3) sets performance goals for improving student
outcomes for the duration of the grant; and
(4) if receiving a grant for transfer students, has
articulation agreements with community colleges at the
national, State, or local level to ensure that
community college credits can fully transfer to the
participating institution.
(c) Grant Amount.--
(1) Initial amount.--For the first year that an
eligible institution participates in the grant program
under this section and subject to paragraph (3), such
eligible institution shall receive a grant in an amount
based on the product of--
(A) the actual cost of tuition and fees at
the eligible institution in such year (referred
to in this section as the per-student rebate);
and
(B) the number of eligible students enrolled
in the eligible institution for the preceding
year.
(2) Subsequent increases.--For each succeeding year
after the first year of the grant program under this
section, each participating eligible institution shall
receive a grant in the amount determined under
paragraph (1) for such year, except that in no case
shall the amount of the per-student rebate for an
eligible institution increase by more than 3 percent as
compared to the amount of such rebate for the preceding
year.
(3) Limitations.--
(A) Maximum per-student rebate.--No eligible
institution participating in the grant program
under this section shall receive a per-student
rebate amount for any year that is greater than
the national average of annual tuition and fees
at public 4-year institutions of higher
education for such year, as determined by the
Secretary.
(B) First-year tuition and fees.--During the
first year of participation in the grant
program under this section, no eligible
institution may increase tuition and fees at a
rate greater than any annual increase at the
eligible institution in the previous 5 years.
(d) Application.--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.
(e) Use of Funds.--Funds awarded under this section to a
participating eligible institution shall be used to waive or
significantly reduce tuition and fees for eligible students in
an amount of not more than up to the annual per-student rebate
amount for each student, for not more than the first 60 credits
an eligible student enrolls in the participating eligible
institution.
(f) Supplement, Not Supplant.--Funds made available under
section 499S to carry out 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. 499P. PATHWAYS TO STUDENT SUCCESS FOR TRIBAL COLLEGES AND
UNIVERSITIES.
(a) In General.--From amounts appropriated under section
499S(a) for any fiscal year, the Secretary shall award grants
to participating 4-year Tribal Colleges or Universities that
meet the requirements of subsection (b) to--
(1) encourage students to enroll and successfully
complete a bachelor's degree at participating
institutions;
(2) provide incentives to community college students
to transfer to participating institutions through
strong transfer pathways to complete a bachelor's
degree program; and
(3) support participating institutions to better
serve new and existing students by engaging in reforms
and innovations designed to improve completion rates
and other student outcomes.
(b) Eligibility.--To be eligible to receive a grant under the
program under this section, an institution shall be a Tribal
College or University that--
(1) has a student body of which not less than 35
percent are low-income students;
(2) commits to maintaining or adopting and
implementing promising and evidence-based institutional
reforms and innovative practices to improve the
completion rates and other student outcomes, such as--
(A) providing comprehensive academic and
student support services, including mentoring
and advising, especially for low-income, first-
generation, and adult students, and other
students belonging to racial and other groups
that are underrepresented in higher education;
(B) providing direct support services such
as--
(i) childcare, transportation,
emergency financial assistance, and
mental health and substance use
disorder treatment;
(ii) assistance in obtaining health
insurance coverage;
(iii) assistance securing affordable
housing;
(iv) efforts to address food
insecurity and campus hunger; and
(v) efforts to facilitate student
participation in means-tested Federal
benefit programs (as defined in section
479(d));
(C) providing accelerated learning
opportunities and degree pathways, such as dual
enrollment and pathways to graduate and
professional degree programs;
(D) partnering with employers, industry, not-
for-profit associations, and other groups to
provide opportunities to advance learning
outside the classroom, including work-based
learning opportunities such as internships or
apprenticeships or programs designed to improve
inter-cultural development and personal growth,
such as foreign exchange and study abroad
programs; or
(E) strengthening remedial education,
especially for low-income, first-generation,
and adult students, and other students
belonging to racial and other groups that are
underrepresented in higher education, including
through the use of multiple measures (such as a
student's college entrance examination score,
grade point average, high school course list,
or a placement examination) to identify
students in need of remedial education;
(3) sets performance goals for improving student
outcomes for the duration of the grant; and
(4) if receiving a grant for transfer students, has
articulation agreements with community colleges at the
national, State, or local level to ensure that
community college credits can fully transfer to the
participating institution.
(c) Grant Amount.--
(1) Initial amount.--For the first year that an
eligible institution participates in the grant program
under this section and subject to paragraph (3), such
eligible institution shall receive a grant in an amount
based on the product of--
(A) the actual cost of tuition and fees at
the eligible institution in such year (referred
to in this section as the per-student rebate);
and
(B) the number of eligible students enrolled
in the eligible institution for the preceding
year.
(2) Subsequent increases.--For each succeeding year
after the first year of the grant program under this
section, each participating eligible institution shall
receive a grant in the amount determined under
paragraph (1) for such year, except that in no case
shall the amount of the per-student rebate for an
eligible institution increase by more than 3 percent as
compared to the amount of such rebate for the preceding
year.
(3) Limitations.--
(A) Maximum per-student rebate.--No eligible
institution participating in the grant program
under this section shall receive a per-student
rebate amount for any year that is greater than
the national average of annual tuition and fees
at public 4-year institutions of higher
education for such year, as determined by the
Secretary.
(B) First-year tuition and fees.--During the
first year of participation in the grant
program under this section, no eligible
institution may increase tuition and fees at a
rate greater than any annual increase at the
eligible institution in the previous 5 years.
(d) Application.--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.
(e) Use of Funds.--Funds awarded under this section to a
participating eligible institution shall be used to waive or
significantly reduce tuition and fees for eligible students in
an amount of not more than up to the annual per-student rebate
amount for each student, for not more than the first 60 credits
an eligible student enrolls in the participating eligible
institution.
(f) Supplement, Not Supplant.--Funds made available under
section 499S to carry out 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. 499Q. PATHWAYS TO STUDENT SUCCESS FOR HISPANIC-SERVING
INSTITUTIONS, ASIAN AMERICAN AND NATIVE AMERICAN
PACIFIC ISLANDER-SERVING INSTITUTIONS, ALASKA
NATIVE-SERVING INSTITUTIONS, NATIVE HAWAIIAN-
SERVING INSTITUTIONS, PREDOMINANTLY BLACK
INSTITUTIONS, AND NATIVE AMERICAN-SERVING NONTRIBAL
INSTITUTIONS.
(a) In General.--From amounts appropriated under section
499S(a) for any fiscal year, the Secretary shall award grants
to participating 4-year minority-serving institutions to--
(1) encourage students to enroll and successfully
complete a bachelor's degree at participating
institutions;
(2) provide incentives to community college students
to transfer to participating institutions through
strong transfer pathways to complete a bachelor's
degree program; and
(3) support participating institutions to better
serve new and existing students by engaging in reforms
and innovations designed to improve completion rates
and other student outcomes.
(b) Institutional Eligibility.--To be eligible to participate
and receive a grant under this section, an institution shall be
a minority-serving institution that--
(1) has a student body of which not less than 35
percent are low-income students;
(2) commits to maintaining or adopting and
implementing promising and evidence-based institutional
reforms and innovative practices to improve the
completion rates and other student outcomes, such as--
(A) providing comprehensive academic and
student support services, including mentoring
and advising, especially for low-income, first-
generation, and adult students, and other
students belonging to racial and other groups
that are historically underrepresented in
higher education;
(B) providing direct support services such
as--
(i) childcare, transportation,
emergency financial assistance, and
mental health and substance use
disorder treatment;
(ii) assistance in obtaining health
insurance coverage;
(iii) assistance securing affordable
housing;
(iv) efforts to address food
insecurity and campus hunger; and
(v) efforts to facilitate student
participation in means-tested Federal
benefit programs (as defined in section
479(d));
(C) providing accelerated learning
opportunities and degree pathways, such as dual
enrollment and pathways to graduate and
professional degree programs;
(D) partnering with employers, industry, not-
for-profit associations, and other groups to
provide opportunities to advance learning
outside the classroom, including work-based
learning opportunities such as internships or
apprenticeships or programs designed to improve
inter-cultural development and personal growth,
such as foreign exchange and study abroad
programs; or
(E) strengthening remedial education,
especially for low-income, first-generation,
and adult students, and other students
belonging to racial and other groups that are
underrepresented in higher education, including
through the use of multiple measures (such as a
student's college entrance examination score,
grade point average, high school course list,
or a placement examination) to identify
students in need of remedial education;
(3) sets performance goals for improving student
outcomes for the duration of the grant; and
(4) if receiving a grant for transfer students, has
articulation agreements with community colleges at the
national, State, or local levels to ensure that
community college credits can fully transfer to the
participating institution.
(c) Grant Amount.--
(1) Initial amount.--For the first year that an
eligible institution participates in the grant program
under this section and subject to paragraph (3), such
participating eligible institution shall receive a
grant in an amount based on the product of--
(A) the actual cost of tuition and fees at
the eligible institution in such year (referred
to in this section as the per-student rebate);
and
(B) the number of eligible students enrolled
in the eligible institution for the preceding
year.
(2) Subsequent increases.--For each succeeding year
after the first year of the grant program under this
section, each participating eligible institution shall
receive a grant in the amount determined under
paragraph (1) for such year, except that in no case
shall the amount of the per-student rebate increase by
more than 3 percent as compared to the amount of such
rebate for the preceding year.
(3) Limitations.--
(A) Maximum per-student rebate.--No eligible
institution participating in the grant program
under this section shall receive a per-student
rebate amount for a grant year greater than the
national average of public four-year
institutional tuition and fees, as determined
by the Secretary.
(B) First-year tuition and fees.--During the
first year of participation in the grant
program under this section, no eligible
institution may increase tuition and fees at a
rate greater than any annual increase made by
the institution in the previous 5 years.
(d) Application.--An eligible institution shall submit an
application to the Secretary at such time, in such a manner,
and containing such information as determined by the Secretary.
(e) Use of Funds.--Funds awarded under this section to a
participating eligible institution shall be used to waive or
significantly reduce tuition and fees for eligible students in
an amount of not more than up to the annual per-student rebate
amount for each student, for not more than the first 60 credits
an eligible student enrolls in the participating eligible
institution.
(f) Supplement, Not Supplant.--Funds made available under
section 499S to carry out 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. 499R. DEFINITIONS.
In this subpart:
(1) Eligible student.--
(A) Definition.--The term ``eligible
student'' means a student, regardless of age,
who--
(i)(I) enrolls in a historically
black college or university, Tribal
College or University, or minority-
serving institution; or
(II) transfers from a community
college into a historically black
college or university, Tribal College
or University, or minority-serving
institution;
(ii) attends the historically black
college or university, Tribal College
or University, or minority-serving
institution, on at least a half-time
basis;
(iii) maintains satisfactory academic
progress; and
(iv) is a low-income student.
(B) Special rules.--
(i) First 3 years.--An otherwise
eligible student shall lose eligibility
3 calendar years after first receiving
benefits under this title.
(ii) Special rule for certain
students.--Notwithstanding subparagraph
(A)(i), an otherwise eligible student
whose parent or guardian was denied a
Federal Direct PLUS loan under part D
after November 1, 2011, and before
March 29, 2015, and who subsequently
withdrew from a historically black
college or university, Tribal College
or University, or minority-serving
institution, and has not yet completed
a program of study at such historically
black college or university or
minority-serving institution, shall be
eligible to participate under sections
499O, 499P, or 499Q in order to
complete such program of study, subject
to all other requirements of sections
499O, 499P, or 499Q (as the case may
be).
(2) Historically black college or university.--The
term ``historically black college or university'' means
a part B institution described in section 322(2).
(3) Low-income student.--The term ``low-income
student''--
(A) shall include any student eligible for a
Federal Pell Grant under section 401; and
(B) may include a student ineligible for a
Federal Pell Grant under section 401 who is
determined by the institution to be a low-
income student based on an analysis of the
student's ability to afford the cost of
attendance at the institution.
(4) Minority-serving institution.--The term
``minority-serving institution'' means any public or
not-for-profit institution of higher education--
(A) described in paragraph (2) and paragraphs
(4) through (7) of section 371(a); and
(B) designated as a minority-serving
institution by the Secretary.
(5) Tribal college or university.--The term ``Tribal
College or University'' has the meaning given the term
in section 316.
SEC. 499S. APPROPRIATIONS.
(a) Authorization and Appropriations for HBCU, TCU, and MSI
Grants.--For the purpose of carrying out sections 499O, 499P,
and 499Q there are authorized to be appropriated, and there are
appropriated--
(1) $63,250,000 for fiscal year 2021;
(2) $206,990,000 for fiscal year 2022;
(3) $1,232,760,000 for fiscal year 2023;
(4) $1,282,210,000 for fiscal year 2024;
(5) $1,333,950,000 for fiscal year 2025;
(6) $1,386,850,000 for fiscal year 2026;
(7) $1,408,700,000 for fiscal year 2027;
(8) $1,501,850,000 for fiscal year 2028;
(9) $1,562,800,000 for fiscal year 2029; and
(10) $1,626,040,000 for fiscal year 2030 and each
succeeding fiscal year.
(b) Availability.--Funds appropriated under subsection (a)
are to remain available to the Secretary until expended.
(c) Insufficient Funds.--If the amount appropriated under
subsection (a) for a fiscal year is not sufficient to award
each participating institution in the grant programs under
sections 499O, 499P, and 499Q a grant under this part equal to
100 percent of the grant amount determined under section
499O(c), 499P(c), or 499Q(c), as appropriate, the Secretary may
ratably reduce the amount of each such grant or take other
actions necessary to ensure an equitable distribution of such
amount.
Subpart 4--Additional College Affordability Grants
SEC. 499T. UNMET NEED FOR FEDERAL PELL GRANT RECIPIENTS.
(a) In General.--
(1) Grant program.--Subject to paragraph (2), from
amounts appropriated under subsection (f) for any
fiscal year, the Secretary may award grants to eligible
States and Indian tribes described in paragraph (3) to
pay the Federal share of expenditures needed to carry
out the activities and services described in subsection
(d).
(2) Limitation.--The Secretary may not make grants
under paragraph (1) in fiscal year unless all grants
eligible to be made under subpart 1 have been made for
such fiscal year.
(3) Eligibility.--A State or Indian tribe may only be
eligible for a grant under this section in a fiscal
year if such State or Indian tribe received a grant
under subpart 1 for such fiscal year.
(b) Federal Share; Non-Federal Share.--
(1) Federal share.--
(A) Formula.--Subject to paragraph (2), the
Federal share of a grant under this section
shall be based on a formula, determined by the
Secretary, that--
(i) accounts for the State or Indian
tribe's share of Pell Grant recipients;
(ii) provides, for each Pell Grant
recipient in the State or Indian tribe,
a per-student amount that is at least
75 percent of--
(I) for the first award year
for which grants are made under
this section, the average unmet
need of Pell Grant recipients
in all States for the most
recent year for which data are
available; and
(II) for each subsequent
award year, the amount
determined under this
subparagraph for the preceding
award year, increased by the
lesser of--
(aa) a percentage
equal to the estimated
percentage increase in
the Consumer Price
Index (as determined by
the Secretary) since
the date of such
determination; or
(bb) 3 percent.
(B) Exception for certain indian tribes.--In
any case in which not less than 75 percent of
the students at the institutions of higher
education operated or controlled by an Indian
tribe are low-income students, the amount of
the Federal share for such Indian tribe shall
be not less than 95 percent of the total amount
needed to waive tuition and fees for all Pell
Grant recipients enrolled in such institutions
of higher education.
(2) State or tribal share.--
(A) Formula.--
(i) In general.--The State or tribal
share of a grant under this section for
each fiscal year shall be the amount
needed to pay 25 percent of the average
unmet need of Pell Grant recipients in
all States in the first award year for
which grants are made under this
section for all Pell Grant recipients
in the State or Indian tribe,
respectively, for such fiscal year,
except as provided in clause (ii).
(ii) Exception for certain indian
tribes.--In the case of an Indian tribe
described in paragraph (1)(B), the
amount of such Indian tribe's tribal
share shall not exceed 5 percent of the
total amount needed to pay the average
unmet need for all Pell Grant
recipients enrolled in the institutions
of higher education described in such
paragraph.
(B) Need-based aid.--A State or Indian tribe
may include, as part of the State or tribal
share, any need-based financial aid that--
(i) is provided from State or tribal
funds to a Pell Grant recipient; and
(ii) may be used by such student to
pay costs of attendance other than
tuition and fees.
(3) Determining number of pell grant recipients.--
(A) In general.--The Secretary shall develop
and implement a process for accurately
estimating the number of Pell Grant recipients
in a State or Indian tribe for purposes of
paragraphs (1) and (2).
(B) Initial determination.--For the first
year for which grants are awarded under this
section, the number of Pell Grant recipients in
a State or Indian tribe shall be considered to
be equal to the number of Pell Grant recipients
that were in the State or tribe for the
preceding school year.
(4) Adjustment of grant amount.--Not later than 180
days after the date on which a State or Indian tribe
receives a grant under this section, the Secretary
shall--
(A) in consultation with the State or tribe
concerned, determine whether the actual number
of Pell Grant recipients in the State or Tribe
for the year covered by the grant is greater
than the estimated number of such students that
was used to determine the amount of the grant;
and
(B) if it is determined under paragraph (1)
that the actual number of Pell Grant recipients
in the State or Tribe is higher than such
estimate, issue a supplementary grant payment
to the State or tribe in an amount that ensures
that the total amount of the grant funds
received by the State or tribe under this
section for the year covered by the grant
accurately reflects the higher number of Pell
Grant recipients.
(c) Applications.--In order to receive a grant under this
section, a State or tribe shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require.
(d) Allowable Uses of Funds.--
(1) In general.--A State or Indian tribe shall use a
grant under this section only to provide to each Pell
Grant recipient a grant that equals the unmet need of
such recipient.
(2) Annual report.--A State or Indian tribe receiving
a grant under this section shall submit an annual
report to the Secretary describing the uses of grant
funds under this section, the progress made in
fulfilling the requirements of the grant, and rates of
transfer, graduation, and attainment of recognized
postsecondary credentials at institutions of higher
education in the State or Indian tribe, including such
rates disaggregated by race, income, and age, and
including any other information as the Secretary may
require.
(3) Reporting by the secretary.--The Secretary
annually shall--
(A) compile and analyze the information
described in paragraph (2); and
(B) prepare and submit a report to the
Committee on Health, Education, Labor, and
Pensions of the Senate and the Committee on
Education and Labor of the House of
Representatives containing the analysis
described in subparagraph (A) and an
identification of State and Indian tribe best
practices for achieving the purpose of this
section.
(4) Technical assistance.--The Secretary shall
provide technical assistance to eligible States and
Indian tribes concerning best practices regarding the
promising and evidence-based institutional reforms and
innovative practices to improve student outcomes and
shall disseminate such best practices among the States
and Indian tribes.
(5) Continuation of funding.--
(A) In general.--A State or Indian tribe
receiving a grant under this section for a
fiscal year may continue to receive funding
under this section for future fiscal years
conditioned on the availability of budget
authority and on meeting the requirements of
the grant, as determined by the Secretary.
(B) Discontinuation.--The Secretary may
discontinue funding of the Federal share of a
grant under this section if the State or Indian
tribe has violated the terms of the grant.
(6) 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.
(e) Definitions.--In this section:
(1) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 102 of the Federally
Recognized Indian Tribe List Act of 1994 (25 U.S.C.
479a).
(2) Institution of higher education.--The term
``institution of higher education'' has the meaning
given the term in section 101.
(3) Pell grant recipient.--
(A) Definition.--The term ``Pell Grant
recipient'' means a student who--
(i) attends a public institution of
higher education on not less than a
half-time basis;
(ii) is a recipient of a Federal Pell
Grant under subpart 1 of part A of
title IV of this Act;
(iii) is maintaining satisfactory
progress (as defined in section 484(c))
in the student's course of study;
(iv) is enrolled in an eligible
program (as defined in section 481(b));
and
(v) either--
(I) qualifies for in-State
resident institution of higher
education tuition, as
determined by the State or
Indian tribe; or
(II) would qualify for such
in-State tuition, but for the
immigration status of such
student.
(B) Special rule.--An otherwise Pell Grant
recipient shall lose eligibility under this
section--
(i) after 3 years of receiving
benefits under this section for
enrollment at a community college (as
defined in section 499F); and
(ii) after 6 years of receiving
benefits under this section for
enrollment in a 4-year institution of
higher education.
(4) Recognized postsecondary credential.--The term
``recognized postsecondary credential'' has the meaning
as described in section 3 of the Workforce Innovation
and Opportunity Act (29 U.S.C. 3102).
(5) State.--The term ``State'' has the meaning given
the term in section 103.
(6) Unmet need.--The term ``unmet need'' means, with
respect to a Pell Grant recipient, the amount
determined by calculating the difference between--
(A) the institution's cost of attendance (as
defined in section 472) for the year for which
the determination is made; and
(B) the sum of--
(i) the total amount of need-based
grant aid and merit-based grant aid,
from Federal, State, and institutional
sources, provided to such Pell Grant
recipient for the year for which the
determination is made; and
(ii) the expected family contribution
for such Pell Grant recipient for the
year for which the determination is
made.
(f) Appropriations.--
(1) Authorization and appropriations.--For the
purpose of making grants under this section there are
authorized to be appropriated such sums as may be
necessary to carry out this section for fiscal year
2021 and each succeeding fiscal year.
(2) Availability.--Funds appropriated under paragraph
(1) shall remain available to the Secretary until
expended.
(3) Insufficient funds.--If the amount appropriated
under paragraph (1) for a fiscal year is not sufficient
to award each participating State and Indian tribe a
grant under this section that is equal to the minimum
amount of the Federal share described in subsection
(b), the Secretary may ratably reduce the amount of
each such grant or take other actions necessary to
ensure an equitable distribution of such amount.
(4) Transfer availability.--The Secretary is
authorized, subject to the availability of
appropriations, to transfer amounts authorized to be
appropriated to carry out subpart 1 for a fiscal year
to make grants under this section if all grants
eligible to be made under such subpart have been made
for such fiscal year.
SEC. 499U. UNMET NEED FOR STUDENTS.
(a) In General.--
(1) Grant program.--Subject to paragraph (2), from
amounts appropriated under subsection (f) for any
fiscal year, the Secretary may award grants to eligible
States and Indian tribes described in paragraph (3) to
pay the Federal share of expenditures needed to carry
out the activities and services described in subsection
(d).
(2) Limitation.--The Secretary may not make grants
under paragraph (1) in fiscal year unless--
(A) all grants eligible to be made under
subpart 1 have been made for such fiscal year;
and
(B) all grants eligible to be made under
section 499T have been made for such fiscal
year.
(3) Eligibility.--A State or Indian tribe may only be
eligible for a grant under this section in a fiscal
year if such State or Indian tribe received--
(A) a grant under subpart 1 for such fiscal
year; and
(B) a grant under 499T for such fiscal year.
(b) Federal Share; Non-Federal Share.--
(1) Federal share.--
(A) Formula.--Subject to paragraph (2), the
Federal share of a grant under this section
shall be based on a formula, determined by the
Secretary, that--
(i) accounts for the State or Indian
tribe's share of eligible students;
(ii) provides, for each eligible
student in the State or Indian tribe, a
per-student amount that is at least 75
percent of--
(I) for the first award year
for which grants are made under
this section, the average unmet
need of eligible students in
all States for the most recent
year for which data are
available; and
(II) for each subsequent
award year, the amount
determined under this
subparagraph for the preceding
award year, increased by the
lesser of--
(aa) a percentage
equal to the estimated
percentage increase in
the Consumer Price
Index (as determined by
the Secretary) since
the date of such
determination; or
(bb) 3 percent.
(B) Exception for certain indian tribes.--In
any case in which not less than 75 percent of
the students at the institutions of higher
education operated or controlled by an Indian
tribe are low-income students, the amount of
the Federal share for such Indian tribe shall
be not less than 95 percent of the total amount
needed to waive tuition and fees for all
eligible students enrolled in such institutions
of higher education.
(2) State or tribal share.--
(A) Formula.--
(i) In general.--The State or tribal
share of a grant under this section for
each fiscal year shall be the amount
needed to pay 25 percent of the average
unmet need of eligible students in all
States in the first award year for
which grants are made under this
section for all eligible students in
the State or Indian tribe,
respectively, for such fiscal year,
except as provided in clause (ii).
(ii) Exception for certain indian
tribes.--In the case of an Indian tribe
described in paragraph (1)(B), the
amount of such Indian tribe's tribal
share shall not exceed 5 percent of the
total amount needed to pay the average
unmet need for all eligible students
enrolled in the institutions of higher
education described in such
subparagraph.
(B) Need-based aid.--A State or Indian tribe
may include, as part of the State or tribal
share, any need-based financial aid that--
(i) is provided from State or tribal
funds to an eligible student; and
(ii) may be used by such student to
pay costs of attendance other than
tuition and fees.
(3) Determining number of eligible students.--
(A) In general.--The Secretary shall develop
and implement a process for accurately
estimating the number of eligible students in a
State or Indian tribe for purposes of
paragraphs (1) and (2).
(B) Initial determination.--For the first
year for which grants are awarded under this
section, the number of eligible students in a
State or Indian tribe shall be considered to be
equal to the number of eligible students that
were in the State or tribe for the preceding
school year.
(4) Adjustment of grant amount.--Not later than 180
days after the date on which a State or Indian tribe
receives a grant under this section, the Secretary
shall--
(A) in consultation with the State or tribe
concerned, determine whether the actual number
of eligible students in the State or Tribe for
the year covered by the grant is greater than
the estimated number of such students that was
used to determine the amount of the grant; and
(B) if it is determined under paragraph (1)
that the actual number of eligible students in
the State or Tribe is higher than such
estimate, issue a supplementary grant payment
to the State or tribe in an amount that ensures
that the total amount of the grant funds
received by the State or tribe under this
section for the year covered by the grant
accurately reflects the higher number of
eligible students.
(c) Applications.--In order to receive a grant under this
section, a State or tribe shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require.
(d) Allowable Uses of Funds.--
(1) In general.--A State or Indian tribe shall use a
grant under this section only to provide to each
eligible student a grant that equals the unmet need of
such recipient.
(2) Annual report.--A State or Indian tribe receiving
a grant under this section shall submit an annual
report to the Secretary describing the uses of grant
funds under this section, the progress made in
fulfilling the requirements of the grant, and rates of
transfer, graduation, and attainment of recognized
postsecondary credentials at institutions of higher
education in the State or Indian tribe, including such
rates disaggregated by race, income, and age, and
including any other information as the Secretary may
require.
(3) Reporting by the secretary.--The Secretary
annually shall--
(A) compile and analyze the information
described in paragraph (2); and
(B) prepare and submit a report to the
Committee on Health, Education, Labor, and
Pensions of the Senate and the Committee on
Education and Labor of the House of
Representatives containing the analysis
described in subparagraph (A) and an
identification of State and Indian tribe best
practices for achieving the purpose of this
section.
(4) Technical assistance.--The Secretary shall
provide technical assistance to eligible States and
Indian tribes concerning best practices regarding the
promising and evidence-based institutional reforms and
innovative practices to improve student outcomes and
shall disseminate such best practices among the States
and Indian tribes.
(5) Continuation of funding.--
(A) In general.--A State or Indian tribe
receiving a grant under this section for a
fiscal year may continue to receive funding
under this section for future fiscal years
conditioned on the availability of budget
authority and on meeting the requirements of
the grant, as determined by the Secretary.
(B) Discontinuation.--The Secretary may
discontinue funding of the Federal share of a
grant under this section if the State or Indian
tribe has violated the terms of the grant.
(6) 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.
(e) Definitions.--In this section:
(1) Eligible student.--
(A) Definition.--The term ``eligible
student'' means a student who--
(i) attends a public institution of
higher education on not less than a
half-time basis;
(ii) is not a recipient of a Federal
Pell Grant under subpart 1 of part A of
title IV of this Act;
(iii) is maintaining satisfactory
progress (as defined in section 484(c))
in the student's course of study;
(iv) is enrolled in an eligible
program (as defined in section 481(b));
and
(v) either--
(I) qualifies for in-State
resident institution of higher
education tuition, as
determined by the State or
Indian tribe; or
(II) would qualify for such
in-State tuition, but for the
immigration status of such
student.
(B) Special rule.--An otherwise eligible
student shall lose eligibility under this
section--
(i) after 3 years of receiving
benefits under this section for
enrollment at a community college (as
defined in section 499F); and
(ii) after 6 years of receiving
benefits under this section for
enrollment in a 4-year institution of
higher education.
(2) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 102 of the Federally
Recognized Indian Tribe List Act of 1994 (25 U.S.C.
479a).
(3) Institution of higher education.--The term
``institution of higher education'' has the meaning
given the term in section 101.
(4) Recognized postsecondary credential.--The term
``recognized postsecondary credential'' has the meaning
as described in section 3 of the Workforce Innovation
and Opportunity Act (29 U.S.C. 3102).
(5) State.--The term ``State'' has the meaning given
the term in section 103.
(6) Unmet need.--The term ``unmet need'' means, with
respect to an eligible student, the amount determined
by calculating the difference between--
(A) the institution's cost of attendance (as
defined in section 472) for the year for which
the determination is made; and
(B) the sum of--
(i) the total amount of need-based
grant aid and merit-based grant aid,
from Federal, State, and institutional
sources, provided to such eligible
student for the year for which the
determination is made; and
(ii) the expected family contribution
for such eligible student for the year
for which the determination is made.
(f) Appropriations.--
(1) Authorization and appropriations.--For the
purpose of making grants under this section there are
authorized to be appropriated such sums as may be
necessary to carry out this section for fiscal year
2021 and each succeeding fiscal year.
(2) Availability.--Funds appropriated under paragraph
(1) shall remain available to the Secretary until
expended.
(3) Insufficient funds.--If the amount appropriated
under paragraph (1) for a fiscal year is not sufficient
to award each participating State and Indian tribe a
grant under this section that is equal to the minimum
amount of the Federal share described in subsection
(b), the Secretary may ratably reduce the amount of
each such grant or take other actions necessary to
ensure an equitable distribution of such amount.
(4) Transfer availability.--The Secretary is
authorized, subject to the availability of
appropriations, to transfer amounts authorized to be
appropriated to carry out subpart 1 or to carry out
section 499T for a fiscal year to make grants under
this section if--
(A) all grants eligible to be made under such
subpart have been made for such fiscal year;
and
(B) all grants eligible to be made under such
section have been made for such fiscal year.
SEC. 499V. TUITION WAIVERS.
(a) In General.--
(1) Grant program.--Subject to paragraph (2), from
amounts appropriated under subsection (g) for any
fiscal year, the Secretary may award grants to eligible
States and Indian tribes to pay the Federal share of
expenditures needed to carry out the activities and
services described in subsection (d).
(2) Limitation.--The Secretary may not make grants
under paragraph (1) in fiscal year unless--
(A) all grants eligible to be made under
subpart 1 have been made for such fiscal year;
(B) all grants eligible to be made under 499T
have been made for such fiscal year; and
(C) all grants eligible to be made under 499U
have been made for such fiscal year.
(3) Eligibility.--A State or Indian tribe may only be
eligible for a grant under this section in a fiscal
year if such State or Indian tribe received--
(A) a grant under subpart 1 for such fiscal
year;
(B) a grant under section 499T for such
fiscal year; and
(C) a grant under 499U for such fiscal year.
(b) Federal Share; Non-Federal Share.--
(1) Federal share.--
(A) Formula.--Subject to paragraph (2), the
Federal share of a grant under this section
shall be based on a formula, determined by the
Secretary, that--
(i) accounts for the State or Indian
tribe's share of eligible students;
(ii) provides, for each eligible
student in the State or Indian tribe, a
per-student amount that is at least 75
percent of--
(I) for the first award year
for which grants are made under
this section, the average
resident public 4-year
institutions of higher
education tuition and fees per
student in all States for the
most recent year for which data
are available; and
(II) for each subsequent
award year, the amount
determined under this
subparagraph for the preceding
award year, increased by the
lesser of--
(aa) a percentage
equal to the estimated
percentage increase in
the Consumer Price
Index (as determined by
the Secretary) since
the date of such
determination; or
(bb) 3 percent.
(B) Exception for certain indian tribes.--In
any case in which not less than 75 percent of
the students at the institutions of higher
education operated or controlled by an Indian
tribe are low-income students, the amount of
the Federal share for such Indian tribe shall
be not less than 95 percent of the total amount
needed to waive tuition and fees for all
eligible students enrolled in such institutions
of higher education.
(2) State or tribal share.--
(A) Formula.--
(i) In general.--The State or tribal
share of a grant under this section for
each fiscal year shall be the amount
needed to pay 25 percent of the average
resident public 4-year institutions of
higher education tuition and fees for
eligible students in all States in
first award year for which grants are
made under this section for all
eligible students in the State or
Indian tribe, respectively, for such
fiscal year, except as provided in
clause (ii).
(ii) Exception for certain indian
tribes.--In the case of an Indian tribe
described in paragraph (1)(B), the
amount of such Indian tribe's tribal
share shall not exceed 5 percent of the
total amount needed to waive tuition
and fees for all eligible students
enrolled in the institutions of higher
education described in such paragraph.
(B) Need-based aid.--A State or Indian tribe
may include, as part of the State or tribal
share, any need-based financial aid that--
(i) is provided from State or tribal
funds to an eligible student; and
(ii) may be used by such student to
pay costs of attendance other than
tuition and fees.
(3) Determining number of eligible students.--
(A) In general.--The Secretary shall develop
and implement a process for accurately
estimating the number of eligible students in a
State or Indian tribe for purposes of
paragraphs (1) and (2).
(B) Initial determination.--For the first
year for which grants are awarded under this
section, the number of eligible students in a
State or Indian tribe shall be considered to be
equal to the number of eligible students that
were in the State or tribe for the preceding
school year.
(4) Adjustment of grant amount.--Not later than 180
days after the date on which a State or Indian tribe
receives a grant under this section, the Secretary
shall--
(A) in consultation with the State or tribe
concerned, determine whether the actual number
of eligible students in the State or Tribe for
the year covered by the grant is greater than
the estimated number of such students that was
used to determine the amount of the grant; and
(B) if it is determined under paragraph (1)
that the actual number of eligible students in
the State or Tribe is higher than such
estimate, issue a supplementary grant payment
to the State or tribe in an amount that ensures
that the total amount of the grant funds
received by the State or tribe under this
section for the year covered by the grant
accurately reflects the higher number of
eligible students.
(c) Applications.--In order to receive a grant under this
section, a State or tribe shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require.
(d) General Requirements.--As a condition of receiving a
grant under this subpart a State or Indian tribe shall meet the
following requirements:
(1) For each year of the grant the total amount of
public 4-year institution of higher education resident
tuition and fees charged to an eligible student in the
State or Indian tribe shall be $0.
(2) For each year of the grant no amount of financial
assistance for which an eligible student qualifies may
be applied to such tuition or fees.
(e) Allowable Uses of Funds.--
(1) In general.--A State or Indian tribe shall use a
grant under this section only to provide funds to
participating public 4-year institutions to enable such
public 4-year institutions to waive resident tuition
and fees for eligible students as required under
subsection (d).
(2) Annual report.--A State or Indian tribe receiving
a grant under this section shall submit an annual
report to the Secretary describing the uses of grant
funds under this section, the progress made in
fulfilling the requirements of the grant, and rates of
transfer, graduation, and attainment of recognized
postsecondary credentials at institutions of higher
education in the State or Indian tribe, including such
rates disaggregated by race, income, and age, and
including any other information as the Secretary may
require.
(3) Reporting by the secretary.--The Secretary
annually shall--
(A) compile and analyze the information
described in paragraph (2); and
(B) prepare and submit a report to the
Committee on Health, Education, Labor, and
Pensions of the Senate and the Committee on
Education and Labor of the House of
Representatives containing the analysis
described in subparagraph (A) and an
identification of State and Indian tribe best
practices for achieving the purpose of this
section.
(4) Technical assistance.--The Secretary shall
provide technical assistance to eligible States and
Indian tribes concerning best practices regarding the
promising and evidence-based institutional reforms and
innovative practices to improve student outcomes and
shall disseminate such best practices among the States
and Indian tribes.
(5) Continuation of funding.--
(A) In general.--A State or Indian tribe
receiving a grant under this section for a
fiscal year may continue to receive funding
under this section for future fiscal years
conditioned on the availability of budget
authority and on meeting the requirements of
the grant, as determined by the Secretary.
(B) Discontinuation.--The Secretary may
discontinue funding of the Federal share of a
grant under this section if the State or Indian
tribe has violated the terms of the grant.
(6) 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.
(f) Definitions.--In this section:
(1) Eligible student.--
(A) Definition.--The term ``eligible
student'' means a student who--
(i) attends a public institution of
higher education on not less than a
half-time basis;
(ii) is maintaining satisfactory
progress (as defined in section 484(c))
in the student's course of study;
(iii) is enrolled in an eligible
program (as defined in section 481(b));
and
(iv) either--
(I) qualifies for in-State
resident institution of higher
education tuition, as
determined by the State or
Indian tribe; or
(II) would qualify for such
in-State tuition, but for the
immigration status of such
student.
(B) Special rule.--An otherwise eligible
student shall lose eligibility under this
section after 6 years of receiving benefits
under this section.
(2) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 102 of the Federally
Recognized Indian Tribe List Act of 1994 (25 U.S.C.
479a).
(3) Institution of higher education.--The term
``institution of higher education'' has the meaning
given the term in section 101.
(4) Recognized postsecondary credential.--The term
``recognized postsecondary credential'' has the meaning
as described in section 3 of the Workforce Innovation
and Opportunity Act (29 U.S.C. 3102).
(5) State.--The term ``State'' has the meaning given
the term in section 103.
(g) Appropriations.--
(1) Authorization and appropriations.--For the
purpose of making grants under this section there are
authorized to be appropriated such sums as may be
necessary to carry out this section for fiscal year
2021 and each succeeding fiscal year.
(2) Availability.--Funds appropriated under paragraph
(1) shall remain available to the Secretary until
expended.
(3) Insufficient funds.--If the amount appropriated
under paragraph (1) for a fiscal year is not sufficient
to award each participating State and Indian tribe a
grant under this section that is equal to the minimum
amount of the Federal share described in subsection
(b), the Secretary may ratably reduce the amount of
each such grant or take other actions necessary to
ensure an equitable distribution of such amount.
(4) Transfer availability.--The Secretary is
authorized, subject to the availability of
appropriations, to transfer amounts authorized to be
appropriated to carry out subpart 1, to carry out 499T,
and to carry out 499U for a fiscal year to make grants
under this section if--
(A) all grants eligible to be made under such
subpart have been made for such fiscal year;
(B) all grants eligible to be made under 499T
have been made for such year; and
(C) all grants eligible to be made under 499U
have been made for such fiscal year.
SEC. 499W. EXPANSION FOR PRIVATE INSTITUTIONS.
(a) Authority.--The Secretary may establish a program under
which--
(1) a State that participates in section 499T may
elect to carry out the grant programs under such
section to students who--
(A) meet the requirements under clauses (ii)
through (iv) of subparagraph (A) and
subparagraph (B) of subsection (e)(3) of such
section; and
(B) attend a nonprofit private institution of
higher education in such State on not less than
a half time basis; and
(2) a State that participates in section 499U may
elect to carry out the grant programs under such
section to students who--
(A) meet the requirements under clauses (ii)
through (iv) of subparagraph (A) and
subparagraph (B) of subsection (e)(1) of such
section; and
(B) attend a nonprofit private institution of
higher education in such State on not less than
a half time basis.
(b) Program Requirements.--The Secretary shall set
eligibility standards for nonprofit private institutions of
higher education which shall, at a minimum, include--
(1) benchmarks for the enrollment of low-income
students;
(2) a requirement that any nonprofit private
institution of higher education that participates in a
grant program pursuant to this section may not reduce
the funding for institutional need-based aid; or
(3) a requirement that grant amounts for students at
such institutions of higher education shall not exceed
grants for students with similar levels of financial
need (as measured by expected family contribution) at
public institutions of higher education.
(c) Authorization of Appropriations.--For the purpose of
making grants under this section there are authorized to be
appropriated such sums as may be necessary to carry out this
section for fiscal year 2021 and each succeeding fiscal year.
TITLE V--DEVELOPING INSTITUTIONS
PART A--HISPANIC-SERVING INSTITUTIONS
* * * * * * *
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 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.
(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, 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) Promoting opportunities for international
education, including through the development of
partnerships with institutions of higher education
outside the United States.
[(16)] (17) 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] non-Federal funds
(which may include gifts to the endowment fund
restricted for a specific purpose) an amount [equal to
or greater than] equal to 50 percent of 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) Scholarships.--An eligible institution that uses
grant funds provided under this title to establish or
increase an endowment fund may use the interest
proceeds from such endowment to provide scholarships to
students for the purposes of attending such
institution.
* * * * * * *
PART B--PROMOTING POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC
AMERICANS
* * * * * * *
SEC. 512. PROGRAM AUTHORITY AND ELIGIBILITY.
(a) Program Authorized.--Subject to the availability of funds
appropriated to carry out this part, the Secretary shall award
grants, on a competitive basis, to eligible institutions to
enable the eligible institutions to carry out the authorized
activities described in section 513.
(b) Eligibility.--For the purposes of this part, an
``eligible institution'' means an institution of higher
education that--
(1) is a Hispanic-serving institution (as defined in
section 502); and
(2) offers a postbaccalaureate certificate or
postbaccalaureate degree granting program.
(c) Minimum Grants Awarded.--Of the funds appropriated to
carry out this part for a fiscal year, the Secretary--
(1) shall--
(A) use not less than one-third of such funds
to award grants to carry out the activities
described in section 513(b); and
(B) use not less than one-third of such funds
to award grants to carry out the activities
described in section 513(c); and
(2) may use any funds remaining (after using the
funds in accordance with paragraph (1)) to award grants
to carry out activities described in subsection (b) or
(c) of section 513.
[SEC. 513. AUTHORIZED ACTIVITIES
[Grants awarded under this part shall be used for one or
more of the following activities:
[(1) Purchase, rental, or lease of scientific or
laboratory equipment for educational purposes,
including instructional and research purposes.
[(2) Construction, maintenance, renovation, and
improvement of classrooms, libraries, laboratories, and
other instructional facilities, including purchase or
rental of telecommunications technology equipment or
services.
[(3) Purchase of library books, periodicals,
technical and other scientific journals, microfilm,
microfiche, and other educational materials, including
telecommunications program materials.
[(4) Support for low-income postbaccalaureate
students including outreach, academic support services,
mentoring, scholarships, fellowships, and other
financial assistance to permit the enrollment of such
students in postbaccalaureate certificate and
postbaccalaureate degree granting programs.
[(5) Support of faculty exchanges, faculty
development, faculty research, curriculum development,
and academic instruction.
[(6) Creating or improving facilities for Internet or
other distance education technologies, including
purchase or rental of telecommunications technology
equipment or services.
[(7) Collaboration with other institutions of higher
education to expand postbaccalaureate certificate and
postbaccalaureate degree offerings.
[(8) Other activities proposed in the application
submitted pursuant to section 514 that--
[(A) contribute to carrying out the purposes
of this part; and
[(B) are approved by the Secretary as part of
the review and acceptance of such application.]
SEC. 513. AUTHORIZED ACTIVITIES.
(a) Requirements.--
(1) In general.--Grants awarded under this part shall
be used for--
(A) one or more of the activities described
in subsection (b); or
(B) one or more of the activities described
in subsection (c).
(2) Prohibition.--A grant awarded under this part may
not be used for activities under both subsections (b)
and (c).
(b) Promoting Postbaccalaureate Opportunities for Hispanic
Americans Activities.--Grants awarded under this part may be
used for one or more of the following activities promoting
postbaccalaureate opportunities for Hispanic Americans:
(1) Purchase, rental, or lease of scientific or
laboratory equipment for educational purposes,
including instructional and research purposes.
(2) Construction, maintenance, renovation, and
improvement of classrooms, libraries, laboratories, and
other instructional facilities, including purchase or
rental of telecommunications technology equipment or
services.
(3) Purchase of library books, periodicals, technical
and other scientific journals, microfilm, microfiche,
and other educational materials, including
telecommunications program materials.
(4) Support for low-income postbaccalaureate students
including outreach, academic support services,
mentoring, scholarships, fellowships, and other
financial assistance to permit the enrollment of such
students in postbaccalaureate certificate and
postbaccalaureate degree granting programs.
(5) Creating or improving facilities for Internet or
other distance education technologies, including
purchase or rental of telecommunications technology
equipment or services.
(6) Collaboration with other institutions of higher
education to expand postbaccalaureate certificate and
postbaccalaureate degree offerings.
(7) 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.
(c) Faculty Development Activities.--Grants awarded under
this part may be used for one or more of the following
activities for faculty development:
(1) Support of faculty exchanges, faculty
development, faculty research, curriculum development,
and academic instruction.
(2) Financial support to graduate students planning
to pursue academic careers who desire to become faculty
at Hispanic-serving institutions.
(3) Career services in preparing for an academic
career and identifying opportunities.
(4) Developing partnerships between Hispanic-serving
institutions to help graduate students and hiring
institutions connect with each other.
(5) Faculty recruitment efforts with an emphasis on
graduates from Hispanic-serving institutions and other
minority-serving institutions.
(6) Recruitment and retention incentives to allow
Hispanic-serving institutions to make competitive
offers to potential faculty, including use of funds for
student loan repayment.
(7) Research support specifically for early career
faculty.
* * * * * * *
PART C--GENERAL PROVISIONS
* * * * * * *
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]
$350,000,000 for fiscal year [2009] 2021 and such sums
as may be necessary for each of the five succeeding
fiscal years.
(2) Part b.--There are authorized to be appropriated
to carry out part B [$100,000,000] $115,000,000 for
fiscal year [2009] 2021 and such sums as may be
necessary for each of the five succeeding fiscal years.
(3) Reservation for technical assistance.--From the
amounts appropriated under paragraph (1) to carry out
part A for a fiscal year, the Secretary shall reserve
0.75 percent to carry out technical assistance and
administrative training for staff and faculty at
Hispanic-serving institutions under such part.
(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), (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[.]; or
(V) the beginning, intermediate, or
advanced study of a foreign language
related to the area of specialization.
(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 of higher education or
consortium of such institutions desiring a grant under this
section shall submit an application to the Secretary at such
time, in such manner, and accompanied by such information and
assurances as the Secretary may require. Each such application
shall include--
(1) an explanation of how the activities funded by
the grant will reflect diverse perspectives and a wide
range of views and generate debate on world regions and
international affairs; and
(2) a description of how the applicant will encourage
government service in areas of national need, as
identified by the Secretary, as well as in areas of
need in the education, business, and nonprofit sectors.
* * * * * * *
[SEC. 605. RESEARCH; STUDIES; ANNUAL REPORT.
[(a) Authorized Activities.--The Secretary may, directly or
through grants or contracts, conduct research and studies that
contribute to achieving the purposes of this part. 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. 605. INTERNATIONAL RESEARCH AND INNOVATION.
(a) Purpose.--It is the purpose of this section to support
essential international and foreign language education research
and innovation projects with the goal of assessing and
strengthening international education capacity, coordination,
delivery, and outcomes to meet national needs.
(b) Authority.--
(1) In general.--From the amount provided to carry
out this section, the Secretary shall carry out the
following activities:
(A) Conduct research and studies that
contribute to the purpose described in
subsection (a), which shall include research to
provide a systematic understanding of the
United States' international and foreign
language education capacity, structures, and
effectiveness in meeting growing demands by
education, government, and the private sector
(including business and other professions).
(B) Create innovative paradigms or enhance or
scale up proven strategies and practices that
address systemic challenges to developing and
delivering international and foreign language
education resources and expertise across
educational disciplines, institutions,
employers, and other stakeholders.
(C) Develop and manage a national
standardized database that--
(i) includes the strengths, gaps, and
trends in the United States'
international and foreign language
education capacity; and
(ii) documents the outcomes of
programs funded under this title for
every grant cycle.
(2) Grants or contracts.--The Secretary shall carry
out activities to achieve the outcomes described in
paragraph (1)--
(A) directly; or
(B) through grants awarded under subsection
(d) or (e).
(c) Eligible Entity Defined.--In this section, the term
``eligible entity'' means--
(1) an institution of higher education;
(2) a public or private nonprofit library;
(3) a nonprofit educational organization;
(4) an entity that--
(A) received a grant under this title for a
preceding fiscal year; or
(B) is receiving a grant under this title as
of the date of application for a grant under
this section; or
(5) a partnership of two or more entities described
in paragraphs (1) through (4).
(d) Research Grants.--
(1) Program authorized.--For any fiscal year for
which the Secretary carries out activities under
subsection (b)(1) through research grants under this
subsection, the Secretary shall award such grants, on a
competitive basis, to eligible entities.
(2) Required activities.--An eligible entity that
receives a grant under this subsection shall use the
grant funds for the systematic development, collection,
analysis, publication, and dissemination of data, and
other information resources in a manner that is easily
understandable, made publicly available, and that
contributes to achieving the purposes of subsection (a)
and carries out at least one activity under subsection
(b)(1).
(3) Discretionary activities.--An eligible entity
that receives a grant under this subsection may use the
grant to carry out the following activities:
(A) Assess and document international and
foreign language education capacity and supply
through studies or surveys that--
(i) determine the number of foreign
language courses, programs, and
enrollments at all levels of education
and in all languages, including a
determination of gaps in those deemed
critical to the national interest;
(ii) measure the number and types of
degrees or certificates awarded in area
studies, global studies, foreign
language studies, and international
business and professional studies,
including identification of gaps in
those deemed critical to the national
interest;
(iii) measure the number of foreign
language, area or international studies
faculty, including international
business faculty, and elementary school
and secondary school foreign language
teachers by language, degree, and world
area; or
(iv) measure the number of
undergraduate and graduate students
engaging in long- or short-term
education or internship abroad programs
as part of their curriculum, including
countries of destination.
(B) Assess the demands for, and outcomes of,
international and foreign language education
and their alignment, through studies, surveys,
and conferences to--
(i) determine demands for increased
or improved instruction in foreign
language, area or global studies, or
other international fields, and the
demand for employees with such skills
and knowledge in the education,
government, and private sectors
(including business and other
professions);
(ii) assess the employment or
utilization of graduates of programs
supported under this title by
educational, governmental, and private
sector organizations (including
business and other professions); or
(iii) assess standardized outcomes
and effectiveness and benchmarking of
programs supported under this title.
(C) Develop and publish specialized materials
for use in foreign language, area, global, or
other international studies, including in
international business or other professional
education or technical training, as
appropriate.
(D) Conduct studies or surveys that identify
and document systemic challenges and changes
needed in higher education and elementary
school and secondary school systems to make
international and foreign language education
available to all students as part of the basic
curriculum, including challenges in current
evaluation standards, entrance and graduation
requirements, program accreditation, student
degree requirements, or teacher and faculty
legal workplace barriers to education and
research abroad.
(E) With respect to underrepresented
institutions of higher education (including
minority-serving institutions or community
colleges), carry out studies or surveys that
identify and document--
(i) current systemic challenges and
changes incentives, and partnerships
needed to comprehensively and
sustainably internationalize
educational programming; or
(ii) short- and long-term outcomes of
successful internationalization
strategies and funding models.
(F) Evaluate the extent to which programs
assisted under this title--
(i) reflect diverse perspectives and
a wide range of views; and
(ii) generate debate on world regions
and international affairs
(e) Innovation Grants.--
(1) Program authorized.--For any fiscal year for
which the Secretary carries out activities to achieve
the outcomes described in subsection (b)(1) through
innovation grants under this subsection, the Secretary
shall award such grants, on a competitive basis, to
eligible entities.
(2) Uses of funds.--An eligible entity that receives
an innovation grant under this subsection shall use the
grant funds to fund projects consistent with this
section, which may include one or more of the
following:
(A) Innovative paradigms to improve
communication, sharing, and delivery of
resources that further the purposes described
in subsection (a) including the following:
(i) Networking structures and systems
to more effectively match graduates
possessing international and foreign
language education skills with
employment needs.
(ii) Sharing international specialist
expertise across institutions of higher
education or in the workforce to pursue
specialization or learning
opportunities not available at any
single institution of higher education,
such as shared courses for studying
less commonly taught languages, world
areas or regions, international
business or other professional areas,
or specialized research topics of
national strategic interest.
(iii) Producing, collecting,
organizing, preserving, and widely
disseminating international and foreign
language education expertise,
resources, courses, and other
information through the use of
electronic technologies and other
techniques.
(iv) Collaborative initiatives to
identify, capture, and provide
consistent access to, and creation of,
digital global library resources that
are beyond the capacity of any single
eligible entity receiving a grant under
this section or any single institution
of higher education, including the
professional development of library
staff.
(v) Utilization of technology to
create open-source resources in
international, area, global, and
foreign language studies that are
adaptable to multiple educational
settings and promote interdisciplinary
partnerships between technologists,
curriculum designers, international and
foreign language education experts,
language teachers, and librarians.
(B) Innovative curriculum, teaching, and
learning strategies, including the following:
(i) New initiatives for
collaborations of disciplinary programs
with foreign language, area, global,
and international studies, and
education abroad programs that address
the internationalization of such
disciplinary studies with the purpose
of producing globally competent
graduates.
(ii) Innovative collaborations
between established centers of
international and foreign language
education excellence and
underrepresented institutions and
populations seeking to further their
goals for strengthening international,
area, global, and foreign language
studies, including at minority-serving
institutions or community colleges.
(iii) Teaching and learning
collaborations among foreign language,
area, global, or other international
studies with diaspora communities,
including heritage students.
(iv) New approaches and methods to
teaching emerging global issues, cross-
regional interactions, and
underrepresented regions or countries,
such as project- and team-based
learning.
(C) Innovative assessment and outcome tools
and techniques that further the purposes
described in subsection (a), including the
following:
(i) International and foreign
language education assessment
techniques that are coupled with
outcome-focused training modules, such
as certificates or badges, immersion
learning, or e-portfolio systems.
(ii) Effective and easily accessible
methods of assessing professionally
useful levels of proficiency in foreign
languages or competencies in area,
culture, and global knowledge or other
international fields in programs under
this title, which may include use of
open access online and other cost-
effective tools for students and
educators at all educational levels and
in the workplace.
(f) Application.--Each eligible entity 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 shall require, including--
(1) a description of each proposed project the
eligible entity plans to carry out under this section
and how such project meets the purposes described in
subsection (a);
(2) if applicable, a demonstration of why the entity
needs a waiver or reduction of the matching requirement
under subsection (g); and
(3) an assurance that each such proposed project will
be self-sustainable after the grant term is completed.
(g) Matching Requirement.--
(1) In general.--The Federal share of the total cost
for carrying out a project supported by a grant under
this section shall be no more than 66.66 percent of the
cost of the project.
(2) Non-federal share contributions.--The non-Federal
share of such cost may be provided either in-kind or in
cash, from institutional and non-institutional funds,
including contributions from State or private sector
corporations, nonprofits, or foundations.
(3) Special rule.--The Secretary may waive or reduce
the share required under paragraph (1) for eligible
entities that--
(A) are minority-serving institutions or are
community colleges; or
(B) demonstrate need in an application for
such a waiver or reduction under subsection
(f)(2).
(h) Database and Reporting.--The Secretary shall directly, or
through grants or contracts with an eligible grant recipient--
(1) establish, curate, maintain, and update at least
every grant cycle, a publically available website which
shall showcase the results of this section and serve as
a user-friendly repository of the information,
resources, and best practices generated through
activities conducted under this section; and
(2) prepare, publish, and disseminate to Congress and
the public at least once every 5 years, a report that
summarizes key findings and policy issues from the
activities conducted under this section, including as
such activities relate to international and foreign
language education and outcomes.
SEC. [607.] 606. 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.] 607. 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.] 608. 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. 611. FINDINGS AND PURPOSES.
(a) Findings.--The Congress finds that--
[(1) the future economic welfare of the United States
will depend substantially on increasing international
skills in the business and educational community and
creating an awareness among the American public of the
internationalization of our economy;
[(2) concerted efforts are necessary to engage
business schools, language and area study programs,
professional international affairs education programs,
public and private sector organizations, and United
States business in a mutually productive relationship
which benefits the Nation's future economic interests;]
(1) the future welfare of the United States will
depend substantially on increasing international and
global skills in business, educational, and other
professional communities and creating an awareness
among the American public of the internationalization
of our economy and numerous other professional areas
important to the national interest;
(2) concerted efforts are necessary to engage
business and other professional education and technical
training programs, language, area, and global study
programs, professional international affairs education
programs, public and private sector organizations, and
United States' business community in a mutually
productive relationship which benefits the Nation's
future economic and security interests;
(3) few linkages presently exist between the manpower
and information needs of United States business [and
the international] and other professional fields and
the international and global education, language
training and research capacities of institutions of
higher education in the United States, and public and
private organizations; and
(4) organizations such as world trade councils, world
trade clubs, chambers of commerce and State departments
of commerce, as well as other professional
organizations are not adequately used to link
universities and business or other professions for
joint venture exploration and program development.
(b) Purposes.--It is the purpose of this part--
(1) to enhance the broad objective of this Act by
increasing and promoting the Nation's capacity for
international understanding [and economic enterprise],
economic enterprise, and security through the provision
of suitable international education and training for
business and other professional personnel in various
stages of professional development; and
(2) to promote institutional and noninstitutional
educational and training activities that will
contribute to the ability of United States business [to
prosper in an international] and other professional
fields to prosper in a global economy.
* * * * * * *
[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.]
SEC. 613. PROFESSIONAL AND TECHNICAL EDUCATION FOR GLOBAL
COMPETITIVENESS.
(a) Purpose.--The purpose of this section is to support
innovative strategies that provide undergraduate and graduate
students with the global professional competencies,
perspectives, and skills needed to strengthen and enrich global
engagement and competitiveness in a wide variety of
professional and technical fields important to the national
interest.
(b) Program Authorized.--The Secretary shall make grants to,
or enter into contracts with eligible entities to pay the
Federal share of the cost of programs designed to--
(1) establish an interdisciplinary global focus in
the undergraduate and graduate curricula of business,
science, technology, engineering, and other
professional education and technical training programs
to be determined by the Secretary based on national
needs;
(2) produce graduates with proficiencies in both the
global aspects of their professional education or
technical training fields and international, cross-
cultural, and foreign language skills; and
(3) provide appropriate services to or partnerships
with the corporate, government, and nonprofit
communities in order to expand knowledge and capacity
for global engagement and competitiveness and provide
internship or employment opportunities for students and
graduates with international skills.
(c) Mandatory Activities.--An eligible entity that receives a
grant under this section shall use the grant to carry out the
following:
(1) With respect to undergraduate or graduate
professional education and technical training
curricula, incorporating--
(A) foreign language programs that lead to
proficiency, including immersion opportunities;
(B) international, area, or global studies
programs;
(C) education, internships, or other
innovative or technological linkages abroad;
and
(D) global business, economic, and trade
studies, where appropriate.
(2) Innovating and improving international, global,
and foreign language education curricula to serve the
needs of business and other professional and nonprofit
communities, including development of new programs for
nontraditional, mid-career, or part-time students.
(3) Establishing education or internship abroad
programs, domestic globally focused internships, or
other innovative approaches to enable undergraduate or
graduate students in professional education or
technical training to develop foreign language skills
and knowledge of foreign cultures, societies, and
global dimensions of their professional fields.
(4) Developing collaborations between institutions of
higher education and corporations or nonprofit
organizations in order to strengthen engagement and
competitiveness in global business, trade, or other
global professional activities.
(d) Discretionary Activities.--An eligible entity that
receives a grant under this section may use the grant to carry
out the following:
(1) Developing specialized teaching materials and
courses, including foreign language and area or global
studies materials, and innovative technological
delivery systems appropriate for professionally
oriented students.
(2) Establishing student fellowships or other
innovative support opportunities, including for
underrepresented populations, first generation college
students (defined in section 402A(h)), and heritage
learners, for education and training in global
professional development activities.
(3) Developing opportunities or fellowships for
faculty or junior faculty of professional education or
technical training (including the faculty of minority-
serving institutions or community colleges) to acquire
or strengthen international and global skills and
perspectives.
(4) Creating institutes that take place over academic
breaks, like the summer, including through
technological means, and cover foreign language, world
area, global, or other international studies in
learning areas of global business, science, technology,
engineering, or other professional education and
training fields.
(5) Internationalizing curricula at minority-serving
institutions or community colleges to further the
purposes of this section.
(6) Establishing international linkages or
partnerships with institutions of higher education,
corporations, or organizations that contribute to the
objectives of this section.
(7) Developing programs to inform the public of
increasing global interdependence in professional
education and technical training fields.
(8) Establishing trade education programs through
agreements with regional, national, global, bilateral,
or multilateral trade centers, councils, or
associations.
(e) Application.--Each eligible entity desiring a grant under
this section shall submit an application to the Secretary at
such time, in such manner, and including such information as
the Secretary may reasonably require, including assurances
that--
(1) each proposed project will be self-sustainable
after the grant term is completed;
(2) the institution of higher education will use the
assistance provided under this section to supplement
and not supplant activities described in subsection (c)
or (d) that are conducted by the institution of higher
education;
(3) in the case of eligible entities that are
consortia of institutions of higher education, or
partnership described in subsection (g)(1)(C), a copy
of their partnership agreement that demonstrates
compliance with subsection (c) will be provided to the
Secretary;
(4) the activities funded by the grant will reflect
diverse perspectives and a wide range of views of world
regions and international affairs where applicable; and
(5) if applicable, a demonstration of why the
eligible entity needs a waiver or reduction of the
matching requirement under subsection (f).
(f) Matching Requirement.--
(1) In general.--The Federal share of the total cost
for carrying out a program supported by a grant under
this section shall be not more than 50 percent of the
total cost of the project.
(2) Non-federal share contributions.--The non-Federal
share of such cost may be provided either in-kind or in
cash, from institutional and non-institutional funds,
including contributions from State and private sector
corporations, nonprofits, or foundations.
(3) Special rule.--The Secretary may waive or reduce
the share required under paragraph (1) for eligible
entities that--
(A) are minority-serving institutions or are
community colleges; or
(B) have submitted a grant application as
required by subsection (e) that demonstrates a
need for such a waiver or reduction.
(g) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity''
means--
(A) an institution of higher education;
(B) a consortia of such institutions; or
(C) a partnership between--
(i) an institution of higher
education or a consortia of such
institutions; and
(ii) at least one corporate or
nonprofit entity.
(2) Professional education and technical training.--
The term ``professional education and technical
training'' means a program at an institution of higher
education that offers undergraduate, graduate, or
postgraduate level education in a professional or
technical field that is determined by the Secretary as
meeting a national need for global or international
competency (which may include business, science,
technology, engineering, law, health, energy,
environment, agriculture, transportation, or
education).
(h) Funding Rule.--Notwithstanding any other provision of
this title, funds made available to the Secretary for a fiscal
year may not be obligated or expended to carry out this section
unless the funds appropriated for such fiscal year to carry out
this title exceeds $65,103,000.
[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 of Agriculture for
Trade and Foreign Agricultural Affairs, or the
designee of that Under Secretary;
[(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--GENERAL PROVISIONS
SEC. 631. 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) 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) 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) 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;
(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) 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[.];
(11) the term ``community college'' has the meaning
given the term ``junior or community college'' in
section 312(f);
(12) the term ``heritage student'' means a
postsecondary student who--
(A) was born in the United States to
immigrant parents or immigrated to the United
States at an early age;
(B) is proficient in English, but raised in a
family primarily speaking 1 or more languages
of the country of origin; and
(C) maintains a close affinity with the
family's culture and language of origin; and
(13) the term ``minority-serving institution'' means
an institution of higher education that is eligible to
receive a grant under part A or B of title III or title
V.
(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. 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.] 637. 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.
SEC. 638. PRIORITY TO MINORITY-SERVING INSTITUTIONS.
(a) Priority.--In seeking applications and awarding grants
under this title, the Secretary, may give priority to--
(1) minority-serving institutions; or
(2) institutions of higher education that apply for
such grants that propose significant and sustained
collaborative activities with one or more minority-
serving institutions.
(b) Technical Assistance.--The Secretary shall provide
technical assistance to minority-serving institutions to ensure
maximum distribution of grants to eligible minority-serving
institutions and among each category of such institutions.
SEC. 639. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Subject to subsection (b), there are
authorized to be appropriated to carry out this title
$125,000,000 for fiscal year 2021 and each of the 5 succeeding
fiscal years.
(b) Adjustment for Inflation.--
(1) In general.--The amount authorized to be
appropriated under subsection (a) for fiscal year 2022
and each of the 4 succeeding fiscal years shall be
deemed increased by a percentage equal to the annual
adjustment percentage.
(2) Definition.--In this subsection, the term
``annual adjustment percentage'' as applied to a fiscal
year, means 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 fiscal year.
TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
* * * * * * *
PART A--GRADUATE EDUCATION PROGRAMS
* * * * * * *
Subpart 2--Graduate Assistance in Areas of National Need
* * * * * * *
SEC. 716. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated $35,000,000 for
fiscal year [2009] 2021 and each of the five succeeding fiscal
years to carry out this subpart.
* * * * * * *
Subpart 4--Masters Degree Programs at Historically Black Colleges and
Universities and Predominantly Black Institutions
SEC. 723. MASTERS DEGREE PROGRAMS AT HISTORICALLY BLACK COLLEGES AND
UNIVERSITIES.
(a) Grant Program Authorized.--
(1) In general.--Subject to the availability of funds
appropriated to carry out this section, the Secretary
shall award program grants to each of the institutions
listed in subsection (b)(1) that is determined by the
Secretary to be making a substantial contribution to
graduate education opportunities at the masters level
in mathematics, engineering, the physical or natural
sciences, computer science, information technology,
nursing, allied health, or other scientific disciplines
for Black Americans.
(2) Assurance of non-federal matching funds.--No
grant in excess of $1,000,000 may be made under this
section unless the institution provides assurances that
50 percent of the cost of the purposes for which the
grant is made will be paid from non-Federal sources,
except that no institution shall be required to match
any portion of the first $1,000,000 of the
institution's award from the Secretary. After funds are
made available to each eligible institution under the
funding rules described in subsection (f), the
Secretary shall distribute, on a pro rata basis, any
amounts which were not so made available (by reason of
the failure of an institution to comply with the
matching requirements of this paragraph) among the
institutions that have complied with such matching
requirement.
(3) Minimum award.--Subject to subsections (f) and
(g), the amount awarded to each eligible institution
listed in subsection (b)(1) for a fiscal year shall be
not less than $500,000.
(4) Duration of grants.--A grant awarded under this
section shall be for a period of not more than six
years, but may be periodically renewed for a period to
be determined by the Secretary.
(b) Institutional Eligibility.--
(1) In general.--Institutions eligible for grants
under subsection (a) are the following:
(A) Albany State University.
(B) Alcorn State University.
(C) Claflin University.
(D) Coppin State University.
(E) Elizabeth City State University.
(F) Fayetteville State University.
(G) Fisk University.
(H) Fort Valley State University.
(I) Grambling State University.
(J) Kentucky State University.
(K) Mississippi Valley State University.
(L) Savannah State University.
(M) South Carolina State University.
(N) University of Arkansas, Pine Bluff.
(O) Virginia State University.
(P) West Virginia State University.
(Q) Wilberforce University.
(R) Winston-Salem State University.
(S) Each institution not listed under
subparagraphs (A) through (R) that is eligible
to receive funds under part B of title III and
that offers a qualified masters degree program.
(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] or 724, or subpart 5 or 6 of this part 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] after the
application of paragraph (2), the remaining amount
shall be made available to each of the eligible
institutions identified in subparagraphs (A) through
[(R)](S) of subsection (b)(1), pursuant to a formula
developed by the Secretary that uses the following
elements:
(A) The ability of the institution to match
Federal funds with non-Federal funds.
(B) The number of students enrolled in the
qualified masters degree program at the
eligible institution in the previous academic
year.
(C) The average cost of attendance per
student, for all full-time students enrolled in
the qualified masters degree program at such
institution.
(D) The number of students in the previous
year who received a degree in the qualified
masters degree program at such institution.
(E) The contribution, on a percent basis, of
the programs for which the institution is
eligible to receive funds under this section to
the total number of African Americans receiving
masters degrees in the disciplines related to
the programs for the previous year.
(g) Hold Harmless Rule.--Notwithstanding paragraphs (2) and
(3) of subsection (f), no eligible institution identified in
subsection (b)(1) that receives a grant under this section for
fiscal year 2009 and that is eligible to receive a grant for a
subsequent fiscal year shall receive a grant amount for any
such subsequent fiscal year that is less than the grant amount
received for fiscal year 2009, unless--
(1) the amount appropriated is not sufficient to
provide such grant amounts to all such institutions and
programs that received grants under this section for
such fiscal year and that are eligible to receive a
grant in such subsequent fiscal year; or
(2) the institution cannot provide sufficient
matching funds to meet the requirements of this
section.
SEC. 724. MASTERS DEGREE PROGRAMS AT PREDOMINANTLY BLACK INSTITUTIONS.
(a) Grant Program Authorized.--
(1) In general.--Subject to the availability of funds
appropriated to carry out this section, the Secretary
shall award program grants to each of the institutions
listed in subsection (b)(1) that is determined by the
Secretary to be making a substantial contribution to
graduate education opportunities at the masters level
in mathematics, engineering, the physical or natural
sciences, computer science, information technology,
nursing, allied health, or other scientific disciplines
for Black Americans.
(2) Assurance of non-federal matching funds.--No
grant in excess of $1,000,000 may be made under this
section unless the institution provides assurances that
50 percent of the cost of the purposes for which the
grant is made will be paid from non-Federal sources,
except that no institution shall be required to match
any portion of the first $1,000,000 of the
institution's award from the Secretary. After funds are
made available to each eligible institution under the
funding rules described in subsection (f), the
Secretary shall distribute, on a pro rata basis, any
amounts which were not so made available (by reason of
the failure of an institution to comply with the
matching requirements of this paragraph) among the
institutions that have complied with such matching
requirement.
(3) Minimum award.--Subject to subsections (f) and
(g), the amount awarded to each eligible institution
listed in subsection (b)(1) for a fiscal year shall be
not less than $500,000.
(4) Duration of grants.--A grant awarded under this
section shall be for a period of not more than six
years, but may be periodically renewed for a period to
be determined by the Secretary.
(b) Institutional Eligibility.--
(1) In general.--Institutions eligible for grants
under subsection (a) are the following:
(A) Chicago State University.
(B) Columbia Union College.
(C) Long Island University, Brooklyn campus.
(D) Robert Morris College.
(E) York College, The City University of New
York.
(F) Each institution not listed in
subparagraph (A) through (E) that is eligible
to receive funds under section 318 and that
offers a qualified masters degree program.
(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] or 723, or subpart 5 or 6 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] after the
application of paragraph (2), any remaining amount
shall be made available to each of the eligible
institutions identified in subparagraphs (A) through
[(E)] (F) 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.
* * * * * * *
Subpart 5--Graduate Opportunities at Asian American and Native American
Pacific Islander Serving Institutions
SEC. 726. GRANT PROGRAM ESTABLISHED.
(a) In General.--Subject to the availability of funds
appropriated to carry out this subpart, the Secretary shall
award grants, on a competitive basis, to eligible institutions
to enable the eligible institutions to carry out the activities
described in section 727.
(b) Award of Grant Funds.--Of the funds appropriated to carry
out this subpart for a fiscal year, the Secretary--
(1) shall reserve--
(A) not less than one-third of such funds to
award grants to carry out the activities
described in section 727(b); and
(B) not less than one-third of such funds to
award grants to carry out the activities
described in section 727(c); and
(2) may use the amount of funds remaining after the
reservation required under paragraph (1) to award
grants to carry out the activities described in
subsections (b) and (c) of section 727.
(c) Duration.--Grants under this subpart shall be awarded for
a period not to exceed five years.
(d) Limitation on Number of Awards.--The Secretary may not
award more than one grant under this subpart in any fiscal year
to any Asian American and Native American Pacific Islander-
serving institutions.
(e) Application.--Any eligible institution may apply for a
grant under this subpart 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 Asian American and Native American Pacific
Islander and low-income students.
(f) Interaction With Other Grant Programs.--No institution
that is eligible for and receives an award under section 326,
512, 723, or 724, or subpart 6 of this part for a fiscal year
shall be eligible to apply for a grant, or receive grant funds,
under this subpart for the same fiscal year.
(g) Eligible Institution Defined.--For the purposes of this
subpart, an ``eligible institution'' means an institution of
higher education that--
(1) is an Asian-American and Native American Pacific
Islander-serving institution (as defined in section
320); and
(2) offers a postbaccalaureate certificate or
postbaccalaureate degree granting program.
SEC. 727. USE OF FUNDS.
(a) In General.--
(1) Activities.--An eligible institution that
receives a grant under this subpart shall use such
funds to carry out--
(A) one or more of the activities described
in subsection (b); or
(B) one or more of the activities described
in subsection (c).
(2) Requirement.--An eligible institution that
receives a grant under this subpart may not use such
funds for activities under both subsections (b) and
(c).
(b) Graduate Program Activities.--Grants awarded under this
subpart may be used for one or more of the following activities
promoting postbaccaulaureate opportunities for Asian American
and Native American Pacific Islander students:
(1) Purchase, rental, or lease of scientific or
laboratory equipment for educational purposes,
including instructional and research purposes.
(2) Construction, maintenance, renovation, and
improvement of classrooms, libraries, laboratories, and
other instructional facilities, including purchase or
rental of telecommunications technology equipment or
services.
(3) Purchase of library books, periodicals, technical
and other scientific journals, microfilm, microfiche,
and other educational materials, including
telecommunications program materials.
(4) Support for low-income postbaccalaureate students
including outreach, academic support services and
mentoring, scholarships, fellowships, and other
financial assistance to permit the enrollment of such
students in postbaccalaureate certificate and
postbaccalaureate degree granting programs.
(5) Creating or improving facilities for Internet or
other distance education technologies, including
purchase or rental of telecommunications technology
equipment or services.
(6) Collaboration with other institutions of higher
education to expand postbaccalaureate certificate and
postbaccalaureate degree offerings.
(7) Other activities proposed in the application
submitted pursuant to section 726 that--
(A) contribute to carrying out the purposes
of this subpart; and
(B) are approved by the Secretary as part of
the review and acceptance of such application.
(c) Faculty Development Activities.--Grants awarded under
this subpart may be used for one or more of the following
activities for faculty development:
(1) Support of faculty exchanges, faculty
development, faculty research, curriculum development,
and academic instruction.
(2) Financial support to graduate students planning
to pursue academic careers who desire to become faculty
at Asian American and Native American Pacific Islander-
serving institutions.
(3) Career services in preparing for an academic
career and identifying opportunities.
(4) Developing partnerships between Asian American
and Native American Pacific Islander-serving
institutions to facilitate connections between graduate
students and hiring institutions.
(5) Faculty recruitment efforts with an emphasis on
graduates from Asian American and Native American
Pacific Islander-serving institutions and other
minority-serving institutions.
(6) Recruitment and retention incentives to allow
Asian American and Native American Pacific Islander-
serving institutions to make competitive offers to
potential faculty, including use of funds for student
loan repayment.
(7) Research support for early career faculty.
(8) Other activities proposed in the application
submitted pursuant to section 726 that--
(A) contribute to carrying out the purposes
of this subpart; and
(B) are approved by the Secretary as part of
the review and acceptance of such application.
SEC. 728. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this
subpart $30,000,000 for fiscal year 2021 and each of the 5
succeeding fiscal years.
Subpart 6--Graduate Opportunities at Tribal Colleges and Universities
SEC. 729. GRANT PROGRAM ESTABLISHED.
(a) In General.--Subject to the availability of funds
appropriated to carry out this subpart, the Secretary shall
award grants, on a competitive basis, to eligible institutions
to enable the eligible institutions to carry out the activities
described in section 730.
(b) Award of Grant Funds.--Of the funds appropriated to carry
out this subpart for a fiscal year, the Secretary--
(1) shall reserve--
(A) not less than one-third of such funds to
award grants to carry out the activities
described in section 730(b); and
(B) not less than one-third of such funds to
award grants to carry out the activities
described in section 730(c); and
(2) may use the amount of funds remaining after the
reservation required under paragraph (1) to award
grants to carry out the activities described in
subsections (b) and (c) of section 730.
(c) Duration.--Grants under this part shall be awarded for a
period not to exceed five years.
(d) Limitation on Number of Awards.--The Secretary may not
award more than one grant under this subpart in any fiscal year
to any Tribal College and University.
(e) Application.--Any eligible institution may apply for a
grant under this subpart 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 American Indian and Alaska Native students.
(f) Interaction With Other Grant Programs.--No institution
that is eligible for and receives an award under section 326,
512, 723, or 724, or subpart 5 of this part for a fiscal year
shall be eligible to apply for a grant, or receive grant funds,
under this section for the same fiscal year.
(g) Eligible Institution Defined.--For the purposes of this
subpart, an ``eligible institution'' means an institution of
higher education that--
(1) is a Tribal College or University (as defined in
section 316); and
(2) offers a postbaccalaureate certificate or
postbaccalaureate degree granting program.
SEC. 730. USE OF FUNDS.
(a) In General.--
(1) Activities.--An eligible institution that
receives a grant under this subpart shall use such
funds to carry out--
(A) one or more of the activities described
in subsection (b); or
(B) one or more of the activities described
in subsection (c).
(2) Requirement.--An eligible institution that
receives a grant under this subpart may not use such
funds for activities under both subsections (b) and
(c).
(b) Graduate Program Activities.--Grants awarded under this
subpart may be used for one or more of the following activities
promoting postbaccalaureate opportunities for American Indian
and Alaska Native students:
(1) Purchase, rental, or lease of scientific or
laboratory equipment for educational purposes,
including instructional and research purposes.
(2) Construction, maintenance, renovation, and
improvement of classrooms, libraries, laboratories, and
other instructional facilities, including purchase or
rental of telecommunications technology equipment or
services.
(3) Purchase of library books, periodicals, technical
and other scientific journals, microfilm, microfiche,
and other educational materials, including
telecommunications program materials.
(4) Support for American Indian and Alaska Native
postbaccalaureate students including outreach, academic
support services and mentoring, scholarships,
fellowships, and other financial assistance to permit
the enrollment of such students in postbaccalaureate
certificate and postbaccalaureate degree granting
programs.
(5) Creating or improving facilities for Internet or
other distance education technologies, including
purchase or rental of telecommunications technology
equipment or services.
(6) Collaboration with other institutions of higher
education to expand postbaccalaureate certificate and
postbaccalaureate degree offerings.
(7) Other activities proposed in the application
submitted pursuant to section 729 that--
(A) contribute to carrying out the purposes
of this subpart; and
(B) are approved by the Secretary as part of
the review and acceptance of such application.
(c) Faculty Development Activities.--Grants awarded under
this subpart may be used for one or more of the following
activities for faculty development:
(1) Support of faculty exchanges, faculty
development, faculty research, curriculum development,
and academic instruction.
(2) Financial support to graduate students planning
to pursue academic careers who desire to become faculty
at Tribal Colleges and Universities.
(3) Career services in preparing for an academic
career and identifying opportunities.
(4) Developing partnerships between Tribal Colleges
and Universities to facilitate connections between
graduate students and hiring institutions.
(5) Faculty recruitment efforts with an emphasis on
graduates from Tribal Colleges and Universities and
other minority-serving institutions.
(6) Recruitment and retention incentives to allow
Tribal Colleges and Universities to make competitive
offers to potential faculty, including use of funds for
student loan repayment.
(7) Research support for early career faculty.
(8) Other activities proposed in the application
submitted pursuant to section 729 that--
(A) contribute to carrying out the purposes
of this subpart; and
(B) are approved by the Secretary as part of
the review and acceptance of such application.
SEC. 731. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this
subpart $5,000,000 for fiscal year 2021 and each of the 5
succeeding fiscal years.
Subpart [5] 7--General Provisions
SEC. [731.] 735. ADMINISTRATIVE PROVISIONS FOR SUBPARTS [1 THROUGH 4]
1 THROUGH 6.
(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] 1 through 6 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] 1 through 6, 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) 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, 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] subparts 1 through 6 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. 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] 2021
and each of the five succeeding fiscal years.
PART C--FUNDING INNOVATIONS AT MINORITY-SERVING INSTITUTIONS
SEC. 751. PURPOSE.
It is the purpose of this part to assist minority-serving
institutions in planning, developing, implementing, validating,
and replicating innovations that provide solutions to
persistent challenges in enabling economically and
educationally disadvantaged students to enroll in, persist
through, and graduate from college, including innovations
designed to--
(1) increase the successful recruitment at minority-
serving institutions of--
(A) students from low-income families of all
races;
(B) students who begin college when over 21
years of age; and
(C) military-affiliated students;
(2) increase the rate at which students enrolled in
minority-serving institutions make adequate or
accelerated progress toward graduation, and
successfully graduate from such institutions;
(3) increase the number of students pursuing and
completing degrees in science, technology, engineering,
and mathematics at minority-serving institutions and
pursuing graduate work in such fields, including
through the establishment of innovation ecosystems on
the campuses of such institutions;
(4) redesign course offerings and other instructional
strategies at minority-serving institutions to improve
student outcomes and reduce postsecondary education
costs;
(5) enhance the quality and number of traditional and
alternative route teacher preparation programs offered
by minority-serving institutions;
(6) expand the effective use of technology at
minority-serving institutions; and
(7) strengthen postgraduate employment outcomes for
students enrolled in minority-serving institutions.
SEC. 752. DEFINITION.
In this part:
(1) Eligible entity.--The term ``eligible entity''
means--
(A) a minority-serving institution; or
(B) a consortium of a minority-serving
institution and--
(i) one or more other institutions of
higher education;
(ii) a private nonprofit
organization;
(iii) a local educational agency;
(iv) a high school that--
(I) receives funding under
part A of title I of the
Elementary and Secondary
Education Act of 1965 (20
U.S.C. 6311 et seq.); and
(II) has been identified for
comprehensive support and
improvement under section
1111(c)(4)(D)(i) of such Act
(20 U.S.C. 6311(c)(4)(D)(i));
or
(v) any combination of the entities
described in clauses (i) through (iv).
(2) Minority serving institution.--The term
``minority serving institution'' means an institution
of higher education described in paragraph (1), (2),
(3), (4), (5), (6), or (7) of section 371(a).
SEC. 753. GRANTS AUTHORIZED.
(a) In General.--Except as provided in subsection (b)(2),
with the funds made available for this part under section 757,
the Secretary shall make planning and implementation grants, as
described in subsections (b) and (c), to eligible entities to
enable such entities to plan for the implementation of, in the
case of a planning grant, and implement, in the case of an
implementation grant, innovations described in section 751 and
to support the planning, development, implementation,
validation, scaling up, and replication of such innovations.
(b) Planning Grants.--
(1) In general.--Except as provided in paragraph (2),
with the funds made available under section 757 for a
fiscal year, the Secretary shall use not more than 5
percent or $42,500,000 (whichever is greater) to award
planning grants to enable eligible entities to plan,
design, and develop innovations described in section
751.
(2) Type of institution.--Planning grants shall be
awarded to minority-serving institutions in proportion
to the allocations made in subparagraphs (A) through
(G) of section 757(1).
(3) Order of consideration.--Subject to paragraph (2)
and the priority described in section 755(a), planning
grants shall be awarded to eligible entities satisfying
the application requirements under section 754 in the
order in which received by the Secretary.
(4) Duration.--A planning grant authorized under this
subsection shall be for the duration of 1 year.
(5) Grant amounts.--Each planning grant authorized
under this subsection shall be in an amount that is not
more than $150,000.
(c) Implementation Grants.--
(1) In general.--With funds made available for this
part under section 757, the Secretary shall award
implementation grants on a competitive basis to enable
eligible entities to further develop, pilot, field-
test, implement, document, validate, and, as
applicable, scale up and replicate, innovations
described in section 751.
(2) Duration.--An implementation grant authorized
under this subsection shall be for a duration of 5
years, except that the Secretary may not continue
providing funds under the grant after year 3 of the
grant period unless the eligible entity demonstrates
that the entity has achieved satisfactory progress
toward carrying out the educational innovations,
activities, and projects described in their application
pursuant to section 754(d), as determined by the
Secretary.
(3) Grant amount.--Each implementation grant
authorized under this subsection shall be in an amount
sufficient to enable the eligible entity to achieve the
purposes of its proposed activities and projects, but
shall not exceed $10,000,000.
(d) Special Rules for Consortiums.--
(1) Fiscal agent.--
(A) In general.--In the case of an eligible
entity applying for a grant under this part as
a consortium, each member of the consortium
shall agree on 1 such member of such
eligibility entity to serve as a fiscal agent
of such entity.
(B) Responsibilities.--The fiscal agent of an
eligible entity, as described in subparagraph
(A), shall act on behalf of such entity in
performing the financial duties of such entity
under this part.
(C) Written agreement.--The agreement
described in subparagraph (A) shall be in
writing and signed by each member of the
consortium.
(2) Subgrants.--In the case of an eligible entity
applying for a grant under this part as a consortium,
the fiscal agent for such entity (as described in
paragraph (1)) may use the funds provided by the grant
to make subgrants to members of the consortium.
SEC. 754. APPLICATIONS.
(a) In General.--An eligible entity desiring to receive a
grant under this part shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may reasonably require.
(b) Consortium Entities.--An application under this section
which is submitted by an eligible entity applying as a
consortium shall include the written agreement described in
section 753(d)(1)(C).
(c) Planning Grants.--The Secretary shall ensure that the
application requirements under this section for a planning
grant authorized under section 753(b) include, in addition to
the requirement in subsection (b) (if applicable), only those
minimal requirements that are necessary to review the proposed
process of an eligible entity for the planning, design, and
development of one or more of the innovations described in
section 751.
(d) Implementation Grants.--An application under this section
for an innovation grant authorized under section 753(c) shall
include, in addition to the requirement under subsection (b)
(if applicable), descriptions of--
(1) each innovation described in section 751 that the
eligible entity would implement using the funds made
available by such grant, including, as applicable, a
description of the evidence base supporting such
innovation;
(2) how each such innovation will address the purpose
of this part, as described in section 751, and how each
such innovation will further the institutional or
organizational mission of the minority-serving
institution that is part of the eligible entity;
(3) the specific activities that the eligible entity
will carry out with funds made available by such grant,
including, in the case of an eligible entity applying
as a consortium, a description of the activities that
each member of the consortium will carry out and a
description of the capacity of each such member to
carry out those activities;
(4) the performance measures that the eligible entity
will use to track its progress in implementing each
such innovation, including a description of how the
entity will implement those performance measures and
use information on performance to make adjustments and
improvements to its implementation activities, as
needed, over the course of the grant period;
(5) how the eligible entity will provide for an
independent evaluation of the implementation and impact
of the projects funded by such grant, including--
(A) an interim report (evaluating the
progress made in the first 3 years of the
grant); and
(B) a final report (completed at the end of
the grant period); and
(6) the plan of the eligible entity for continuing
each proposed innovation after the grant has ended.
SEC. 755. PRIORITY.
(a) Planning Grants.--In awarding planning grants under this
part, the Secretary shall give priority to applications that
were submitted with respect to the prior award year, but did
not receive a planning grant due to insufficient funds.
(b) Implementation Grants.--In awarding implementation grants
under this part, the Secretary shall give--
(1) first priority to applications for programs at
minority-serving institutions that have not previously
received an implementation grant under this part; and
(2) second priority to applications that address
issues of major national need, including--
(A) innovative partnerships between minority-
serving institutions and local educational
agencies that are designed to increase the
enrollment of historically underrepresented
populations in higher education;
(B) educational innovations designed to
increase the rate of postsecondary degree
attainment for populations within minority
groups that have low relative rates of
postsecondary degree attainment;
(C) educational innovations that support
programs and initiatives at minority-serving
institutions to enhance undergraduate and
graduate programs in science, technology,
engineering, and mathematics;
(D) innovative partnerships between minority-
serving institutions and other organizations to
establish innovation ecosystems in support of
economic development, entrepreneurship, and the
commercialization of technology supported by
research funded through this grant;
(E) educational innovations that enhance the
quality and number of traditional and
alternative route teacher preparation programs
at minority-serving institutions to enable
teachers to be highly effective in the
classroom and to enable such programs to meet
the demands for diversity and accountability in
teacher education; and
(F) educational innovations that strengthen
postgraduate employment outcomes of minority-
serving institutions through the implementation
of comprehensive and strategic career pathways
for students.
SEC. 756. USES OF FUNDS.
(a) Planning Grants.--An eligible entity receiving a planning
grant under section 753(b) shall use funds made available by
such grant to conduct an institutional planning process that
includes--
(1) an assessment of the needs of the minority-
serving institution;
(2) research on educational innovations described in
section 751 that will meet the needs described in
paragraph (1);
(3) the selection of one or more such educational
innovations for implementation;
(4) an assessment of the capacity of the minority-
serving institution to implement such educational
innovation; and
(5) activities to further develop such capacity.
(b) Implementation Grants.--An eligible entity receiving an
implementation grant under section 753(c) shall use the funds
made available by such grant to further develop, pilot, field-
test, implement, document, validate, and, as applicable, scale
up, and replicate innovations described in section 751, such as
innovations designed to--
(1) create a college-bound culture at secondary
schools (including efforts targeting high-achieving
students from low-income families) through activities
undertaken in partnership with local educational
agencies and nonprofit organizations, such as--
(A) activities that promote postsecondary
school awareness, including recruitment,
organizing campus visits, and providing
assistance with entrance and financial aid
application completion; and
(B) postsecondary school preparation efforts
such as--
(i) aligning high school coursework
and high school graduation requirements
with the requirements for entrance into
credit-bearing coursework at 4-year
institutions of higher education;
(ii) early identification and support
for students at risk of not graduating
from high school, or at risk of
requiring remediation upon enrolling in
postsecondary education; and
(iii) dual-enrollment programs;
(2) improve student achievement, such as through
activities designed to increase the number or
percentage of students who successfully complete
developmental or remedial coursework (which may be
accomplished through the evidence-based redesign of
such coursework) and pursue and succeed in
postsecondary studies;
(3) increase the number of minority males who attain
a postsecondary degree, such as through evidence-based
interventions that integrate academic advising with
social and cultural supports and assistance with job
placement;
(4) increase the number or percentage of students who
make satisfactory or accelerated progress toward
graduation from postsecondary school and the number or
percentage who graduate from postsecondary school on
time, such as through the provision of comprehensive
academic and nonacademic student support services.
(5) activities to promote a positive climate on
campuses of institutions of higher education and to
increase the sense of belonging among eligible
students, including through first year support programs
such as mentoring and peer networks and advisories;
(6) increase the number or percentage of students,
particularly students who are members of historically
underrepresented populations, who enroll in science,
technology, engineering, and mathematics courses,
graduate with degrees in such fields, and pursue
advanced studies in such fields;
(7) develop partnerships between minority-serving
institutions and other organizations to establish
innovation ecosystems in support of economic
development, entrepreneurship, and the
commercialization of technology supported by funded
research;
(8) implement evidence-based improvements to courses,
particularly high-enrollment courses, to improve
student outcomes and reduce education costs for
students, including costs of remedial courses;
(9) enhance the quality and number of traditional and
alternative route teacher and school leader preparation
programs at minority-serving institutions that enable
graduates to be profession-ready and highly effective
in the classroom and to enable such programs to meet
the demands for diversity and accountability in
educator preparation;
(10) expand the effective use of technology in higher
education, such as through collaboration between
institutions on implementing technology-enabled
delivery models (including hybrid models) or through
the use of open educational resources and digital
content;
(11) strengthen postgraduate employment outcomes
through the implementation of comprehensive and
strategic career pathways for students, which may
include aligning curricula with workforce needs,
experiential learning, integration of career services,
and developing partnerships with employers and business
organizations; and
(12) provide a continuum of solutions by
incorporating activities that address multiple
objectives described in paragraphs (1) through (11).
SEC. 757. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out
activities under this part $850,000,000 for fiscal year 2021
and each of the 5 succeeding fiscal years, to be allocated as
follows:
(1) for institutions described in paragraph (1) of
section 371(a), $224,987,083;
(2) for institutions described in paragraph (2) of
section 371(a), $214,446,428;
(3) for institutions described in paragraph (3) of
section 371(a), $78,056,743;
(4) for institutions described in paragraph (4) of
section 371(a), $20,662,079;
(5) for institutions described in paragraph (5) of
section 371(a), $130,859,834;
(6) for institutions described in paragraph (6) of
section 371(a), $122,305,533; and
(7) for institutions described in paragraph (7) of
section 371(a), $58,682,300.
PART D--PROGRAMS TO PROVIDE STUDENTS WITH DISABILITIES WITH A QUALITY
HIGHER EDUCATION
[SEC. 760. DEFINITIONS
[In this part:
[(1) Comprehensive transition and postsecondary
program for students with intellectual disabilities.--
The term ``comprehensive transition and postsecondary
program for students with intellectual disabilities''
means a degree, certificate, or nondegree program that
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.]
SEC. 760. DEFINITIONS.
In this part:
(1) Comprehensive transition and postsecondary
program for students with intellectual disabilities.--
The term ``comprehensive transition and postsecondary
program for students with intellectual disabilities''
means a program that leads to a degree, certificate, or
recognized postsecondary credential issued by an
institution of higher education that meets each of the
following requirements:
(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 and competitive
integrated employment.
(C) Includes student advising and a program
of study.
(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 and career development components
and occurring through one or more of the
following activities:
(i) Regular enrollment in credit-
bearing courses with students without
disabilities that are offered by the
institution.
(ii) Auditing or participating in
courses with students without
disabilities that are offered by the
institution and for which the student
does not receive regular academic
credit.
(iii) Enrollment in noncredit-
bearing, nondegree courses with
students without disabilities.
(iv) Participation in internships,
registered apprenticeships, or work-
based experiences in competitive
integrated settings for a semester, or
multiple semesters.
(E) Requires students with intellectual
disabilities to be socially and academically
integrated with students without disabilities
to the maximum extent practicable.
(F) Does not require the work components (ii)
to occur each semester.
(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) Institution of higher education.--The term
``institution of higher education'' has the meaning
given such term in section 101.
(4) Office of accessibility.--The term ``Office of
Accessibility'' has the meaning given to the office of
disability services of the institution or equivalent
office.
(5) Recognized postsecondary credential.--The term
``recognized postsecondary credential'' has the meaning
given the term in section 101 of the Workforce
Innovation and Opportunity Act.
(6) 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;
(B) who is currently, or was formerly,
eligible for a free appropriate public
education under the Individuals with
Disabilities Education Act (20 U.S.C. 1400 et
seq.); and
(C) or, in the case of a student who has not
currently or formerly been found eligible for a
free appropriate education under the
Individuals with Disabilities Education Act, or
a student who has not previously been found
eligible as a student with an intellectual
disability under IDEA, documentation
establishing that the student has an
intellectual disability, such as--
(i) a documented comprehensive and
individualized psycho-educational
evaluation and diagnosis of an
intellectual disability by a
psychologist or other qualified
professional; or
(ii) a record of the disability from
a local or State educational agency, or
government agency, such as the Social
Security Administration or a vocational
rehabilitation agency, that identifies
the intellectual disability.
Subpart 1--Demonstration Projects to Support Postsecondary Faculty,
Staff, and Administrators in Educating Students with Disabilities
* * * * * * *
[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. 762. GRANTS AUTHORIZED.
(a) Competitive Grants Authorized to Support Postsecondary
Faculty, Staff, and Administrators in Providing an Accessible
Education.--
(1) In general.--From amounts appropriated under
section 765C, the Secretary shall award grants, 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 5 grants shall be awarded to
institutions of higher education that provide
professional development and technical assistance in
order to improve access to, and completion of,
postsecondary education for students, including
students with disabilities.
(b) Duration; Activities.--
(1) Duration.--A grant under this section shall be
awarded for a period of 5 years.
(2) Authorized activities.--A grant awarded under
this section shall be used to carry out one or more of
the following activities:
(A) Teaching methods and strategies.--The
development and implementation of training to
provide innovative, effective, and evidence-
based 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
(including 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) Implementing accommodations.--The
development and implementation of training to
provide postsecondary faculty, staff, and
administrators methods and strategies of
providing appropriate accommodations consistent
with the principles of universal design for
learning for students with disabilities,
including descriptions of legal obligations of
the institution of higher education to provide
such accommodations.
(C) Effective transition practices.--The
development and implementation of innovative,
effective, and evidence-based teaching methods
and strategies to provide postsecondary
faculty, staff, and administrators with the
skills and supports necessary to ensure the
successful and smooth transition of students
with disabilities from secondary school to
postsecondary education. The teaching methods
and strategies may include supporting students
in the development of self-advocacy skills to
improve transition to, and completion of,
postsecondary education.
(D) Distance learning.--The development and
implementation of training to provide
innovative, effective, and evidence-based
teaching methods and strategies to enable
postsecondary faculty, staff, and
administrators to provide accessible distance
education programs or classes that would
enhance the access of students (including
students with disabilities) to postsecondary
education, including the use of accessible
curricula and electronic communication for
instruction and advising that meet the
requirements of section 508 of the
Rehabilitation Act of 1973 (29 U.S.C. 794d).
(E) Career pathway guidance.--The development
and implementation of effective and evidence-
based teaching methods and strategies to
provide postsecondary faculty, staff, and
administrators with the ability to advise
students with disabilities with respect to
their chosen career pathway, which shall
include at least one of the following:
(i) Supporting internships,
apprenticeships, or work-based learning
opportunities.
(ii) Counseling on coursework to meet
the recognized educational credential
or recognized postsecondary credential
appropriate for the field chosen.
(iii) Developing self-advocacy skills
to advocate for appropriate
accommodations once in the workplace.
(iv) Support with selecting a career
pathway that leads to competitive,
integrated employment.
(3) Mandatory evaluation and dissemination.--An
institution of higher education awarded a grant under
this section shall evaluate and disseminate to other
institutions of higher education the information
obtained through the activities described in
subparagraphs (A) through (E) of paragraph (2).
(c) Considerations in Making Awards.--In awarding grants,
contracts, or cooperative agreements under this section, 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.
(d) Reports.--
(1) Initial report.--Not later than one year after
the date of enactment of the College Affordability Act,
the Secretary shall prepare and submit to the
authorizing committees, and make available to the
public, a report on all projects awarded grants under
this part, including a review of the activities and
program performance of such projects based on existing
information as of the date of the report.
(2) Subsequent report.--Not later than five years
after the date of the first award of a grant under this
section after the date of enactment of the College
Affordability 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 projects authorized under
subsection (b); 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 under section 762 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
section 762(b) that the institution proposes to carry
out, and how such institution plans to conduct such
activities in order to further the purposes of this
subpart;
(2) a description of how the institution consulted
with a broad range of people including students with
disabilities and individuals with expertise in
disability supports or special education 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 of
accessibility; 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. 765A. OFFICE OF ACCESSIBILITY.
(a) Establishment.--Each institution of higher education
shall establish an office of accessibility to develop and
implement policies to support students who enter postsecondary
education with disabilities and students who acquire a
disability while enrolled in an institution of higher
education.
(b) Duties.--Each office of accessibility shall--
(1) inform students, during student orientation,
about services provided at the institution of higher
education, and continually update such information
through the accessibility office's website and other
communications to improve accessibility of such
services;
(2) provide information to students regarding
accommodations and modifications provided by the
institution of higher education with respect to
internships, practicums, work-based learning,
apprenticeships, or other work-related environments
that--
(A) the student may engage in through
courses; or
(B) are necessary for completion of a
recognized educational credential or recognized
postsecondary credential;
(3) provide information to students regarding their
legal rights under the Americans with Disabilities Act
(42 U.S.C. 12101 et seq.) and section 504 of the
Rehabilitation Act (29 U.S.C. 794); and
(4) in order to provide appropriate accommodations to
students with disabilities, carry out the following:
(A) Adopt policies that, at a minimum, make
any of the following documentation submitted by
an individual sufficient to establish that such
individual is an individual with a disability:
(i) Documentation that the individual
has had an individualized education
program (in this clause referred to as
an ``IEP'') in accordance with section
614(d) of the Individuals with
Disabilities Education Act (20 U.S.C.
1414(d)), including an IEP that may not
be current on the date of the
determination that the individual has a
disability. The office of accessibility
may ask for additional documentation
from an individual who had an IEP but
who was subsequently evaluated and
determined to be ineligible for
services under the Individuals with
Disabilities Education Act (20 U.S.C.
1400 et seq.), including an individual
determined to be ineligible during
elementary school.
(ii) Documentation describing
services or accommodations provided to
the individual pursuant to section 504
of the Rehabilitation Act of 1973 (29
U.S.C. 794) (commonly referred to as a
``Section 504 plan'').
(iii) A plan or record of service for
the individual from a private school, a
local educational agency, a State
educational agency, or an institution
of higher education provided in
accordance with the Americans with
Disabilities Act of 1990 (42 U.S.C.
12101 et seq.).
(iv) A record or evaluation from a
relevant licensed professional finding
that the individual has a disability.
(v) A plan or record of disability
from another institution of higher
education.
(vi) Documentation of a disability
due to service in the uniformed
services, as defined in section
484C(a).
(B) Adopt policies that are transparent and
explicit regarding the process by which the
institution determines eligibility for
accommodations.
(C) Disseminate the information described in
subparagraph (B) to students, parents, and
faculty--
(i) in an accessible format;
(ii) during student orientation; and
(iii) by making such information
readily available on a public website
of the institution.
(D) Provide accommodations to students with
mental health disabilities, and students with
disabilities associated with pregnancy.
(E) Provide outreach and consult with
students in inclusive higher education.
SEC. 765B. COMPETITIVE GRANT FOR INNOVATION AND ACCESSIBILITY.
(a) Grants Authorized.--
(1) In general.--From amounts appropriated under
section 765C, the Secretary may award grants on a
competitive basis to institutions of higher education
to enable the institutions to carry out the activities
described under subsection (c).
(2) Duration.--A grant under this section shall be
awarded for a period of 5 years.
(3) Consideration in making awards.--In awarding
grants under this section, the Secretary shall consider
the following:
(A) Providing an equitable geographic
distribution of such awards.
(B) Ensuring that the activities to be
assisted are developed for a range of types and
sizes of institutions of higher education.
(b) Application.--Each institution of higher education
desiring to receive 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 include--
(1) a description of how the institution will carry
out the activities under subsection (c);
(2) a description of the consultation the institution
has had with a broad range of people within the
institution, including students with disabilities and
individuals with expertise in disability supports or
special education, in developing the information under
paragraph (1);
(3) a plan for the sustainability of the program
after the end of the grant period; and
(4) a written business plan for revenue and
expenditures to be provided to the Department under
subsection (d).
(c) Activities.--A grant awarded under this section shall be
used to--
(1) develop and implement across the institution of
higher education, a universal design for learning
framework for course design and instructional materials
to improve campus-wide accessibility to instruction,
materials, and the learning environment; or
(2) develop or improve distance education courses
consistent with the principles of universal design for
learning to improve accessibility of instruction and
materials.
(d) Reports.--
(1) Grant recipient reports.--An institution of
higher education awarded a grant under this section
shall evaluate and disseminate to other institutions of
higher education, the information obtained through the
activities described in subsection (c).
(2) Initial report by secretary.--Not later than one
year after the date of the enactment of this section,
the Secretary shall prepare and submit to the
authorizing committees, and make available to the
public, a report on all projects awarded grants under
this section, including a review of the activities and
program performance of such projects based on existing
information as of the date of the report.
(3) Final report by secretary.--Not later than 6
years after the date of the first award of a grant
under this section, 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 projects authorized under
this section; and
(B) provides guidance and recommendations on
how effective projects can be replicated.
SEC. [765.] 765C. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
subpart such sums as may be necessary for fiscal year [2009]
2021 and each of the five succeeding fiscal years.
Subpart 2--Transition Programs for Students with Intellectual
Disabilities Into Higher Education
[SEC. 766. PURPOSE.
[It is the purpose of this subpart to support model
demonstration programs that promote the successful transition
of students with intellectual disabilities into higher
education.
[SEC. 767. MODEL COMPREHENSIVE TRANSITION AND POSTSECONDARY PROGRAMS
FOR STUDENTS WITH INTELLECTUAL DISABILITIES.
[(a) Grants Authorized.--
[(1) In general.--From amounts appropriated under
section 769(a), the Secretary shall annually award
grants, on a competitive basis, to institutions of
higher education (or consortia of institutions of
higher education), to enable the institutions or
consortia to create or expand high quality, inclusive
model comprehensive transition and postsecondary
programs for students with intellectual disabilities.
[(2) Administration.--The program under this section
shall be administered by the office in the Department
that administers other postsecondary education
programs.
[(3) Duration of grants.--A grant under this section
shall be awarded for a period of 5 years.
[(b) Application.--An institution of higher education (or a
consortium) desiring a grant under this section shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require.
[(c) Award Basis.--In awarding grants under this section, the
Secretary shall--
[(1) provide for an equitable geographic distribution
of such grants;
[(2) provide grant funds for model comprehensive
transition and postsecondary programs for students with
intellectual disabilities that will serve areas that
are underserved by programs of this type; and
[(3) give preference to applications submitted under
subsection (b) that agree to incorporate into the model
comprehensive transition and postsecondary program for
students with intellectual disabilities carried out
under the grant one or more of the following elements:
[(A) The formation of a partnership with any
relevant agency serving students with
intellectual disabilities, such as a vocational
rehabilitation agency.
[(B) In the case of an institution of higher
education that provides institutionally owned
or operated housing for students attending the
institution, the integration of students with
intellectual disabilities into the housing
offered to nondisabled students.
[(C) The involvement of students attending
the institution of higher education who are
studying special education, general education,
vocational rehabilitation, assistive
technology, or related fields in the model
program.
[(d) Use of Funds.--An institution of higher education (or
consortium) receiving a grant under this section shall use the
grant funds to establish a model comprehensive transition and
postsecondary program for students with intellectual
disabilities that--
[(1) serves students with intellectual disabilities;
[(2) provides individual supports and services for
the academic and social inclusion of students with
intellectual disabilities in academic courses,
extracurricular activities, and other aspects of the
institution of higher education's regular postsecondary
program;
[(3) with respect to the students with intellectual
disabilities participating in the model program,
provides a focus on--
[(A) academic enrichment;
[(B) socialization;
[(C) independent living skills, including
self-advocacy skills; and
[(D) integrated work experiences and career
skills that lead to gainful employment;
[(4) integrates person-centered planning in the
development of the course of study for each student
with an intellectual disability participating in the
model program;
[(5) participates with the coordinating center
established under section 777(b) in the evaluation of
the model program;
[(6) partners with one or more local educational
agencies to support students with intellectual
disabilities participating in the model program who are
still eligible for special education and related
services under the Individuals with Disabilities
Education Act, including the use of funds available
under part B of such Act to support the participation
of such students in the model program;
[(7) plans for the sustainability of the model
program after the end of the grant period; and
[(8) creates and offers a meaningful credential for
students with intellectual disabilities upon the
completion of the model program.
[(e) Matching Requirement.--An institution of higher
education (or consortium) that receives a grant under this
section shall provide matching funds toward the cost of the
model comprehensive transition and postsecondary program for
students with intellectual disabilities carried out under the
grant. Such matching funds may be provided in cash or in-kind,
and shall be in an amount of not less than 25 percent of the
amount of such costs.
[(f) Report.--Not later than five years after the date of the
first grant awarded under this section, the Secretary shall
prepare and disseminate a report to the authorizing committees
and to the public that--
[(1) reviews the activities of the model
comprehensive transition and postsecondary programs for
students with intellectual disabilities funded under
this section; and
[(2) provides guidance and recommendations on how
effective model programs can be replicated.]
SEC. 766. PURPOSE.
It is the purpose of this subpart to support inclusive
programs that promote the successful transition of students
with intellectual disabilities into higher education and the
earning of a recognized educational credential or recognized
postsecondary credential issued by the institution of higher
education.
SEC. 767. INCLUSIVE HIGHER EDUCATION PROGRAMS FOR STUDENTS WITH
INTELLECTUAL DISABILITIES.
(a) Grants Authorized.--
(1) In general.--From amounts appropriated under
section 769(a), the Secretary shall annually award
grants, on a competitive basis, to institutions of
higher education (or consortia of three or more
institutions of higher education), to enable such
institutions or consortia to create or expand a
comprehensive transition and postsecondary education
program for students with intellectual disabilities.
(2) Eligibility and appropriations limits.--
(A) Relation to other grants.--An institution
of higher education that received a grant under
this section before the date of the enactment
of the College Affordability Act may not
receive an additional grant under this section
unless--
(i) the institution receives a grant
as part of a consortium of three or
more institutions of higher education;
or
(ii) the grant term of such preceding
grant has ended.
(B) Limitation on amounts.--
(i) Institution of higher
education.--A grant under this section
made to an institution of higher
education may not be in an amount
greater than $300,000.
(ii) Consortium A grant under this
section made to a consortia of
institutions of higher education may
not be in an amount greater than
$500,000.
(3) Administration.--The program under this section
shall be administered by the office in the Department
that administers other postsecondary education programs
in collaboration with the Office of Postsecondary
Education and the Office of Special Education and
Rehabilitative Services of the Department of Education.
(4) Duration of grants.--A grant under this section
shall be awarded for a period of 5 years.
(b) Application.--An institution of higher education or a
consortium desiring a grant under this section shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require.
(c) Award Basis.--In awarding grants under this section, the
Secretary shall--
(1) provide for an equitable geographic distribution
of such grants;
(2) to the extent possible, provide for an equitable
distribution of such grants between 4-year institutions
of higher education and 2-year institutions of higher
education, including community colleges;
(3) provide grant funds for high-quality, inclusive
higher education programs for students with
intellectual disabilities, herein after referred to as
inclusive higher education programs, that will serve
areas that are underserved by programs of this type;
(4) in the case of an institution of higher education
that provides institutionally owned or operated housing
for students attending the institution, award grants
only to such institutions that integrate students with
intellectual disabilities into the housing offered to
students without disabilities or to institutions that
provide such integrated housing through providing
supports to students directly or through partnerships
with other organizations;
(5) provide grant funds to encourage involvement of
students attending institutions of higher education in
the fields of special education, general education,
vocational rehabilitation, assistive technology, or
related fields in the program;
(6) select applications that--
(A) demonstrate an existing comprehensive
transition and postsecondary education program
for students with intellectual disabilities
that is title IV eligible; or
(B) agree to establish such a program; and
(7) give preference to applications submitted under
subsection (b) that agree to incorporate into the
inclusive higher education 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) Applications that represent
geographically underserved States.
(d) Use of Funds; Requirements.--An institution of higher
education or consortium receiving a grant under this section
shall--
(1) use the grant funds to establish an inclusive
higher education program for students with intellectual
disabilities that--
(A) serves students with intellectual
disabilities;
(B) 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 regular postsecondary
program, including access to health and mental
health services, offices of accessibility, and
graduation ceremonies;
(C) with respect to the students with
intellectual disabilities participating in the
program, provides a focus on--
(i) academic and career development;
(ii) socialization and inclusion with
the general student population;
(iii) independent living skills,
including self-advocacy skills; and
(iv) integrated work experiences and
career skills that lead to competitive
integrated employment;
(D) integrates person-centered planning in
the development of the course of study for each
student with an intellectual disability
participating in the program;
(E) plans for the sustainability of the
program after the end of the grant period, with
a written business plan for revenue and
expenditures to be provided to the Department
by the end of year 3; and
(F) awards a degree, certificate, or
recognized postsecondary credential for
students with intellectual disabilities upon
the completion of the program;
(2) in the case of an institution of higher education
that provides institutionally owned or operated housing
for students attending the institution or integrated
housing through providing supports to students directly
or through partnerships with other organizations,
provide for the integration of students with
intellectual disabilities into housing offered to
students without disabilities;
(3) participate with the coordinating center
established under section 777(b) in the evaluation of
the program, including by regularly submitting data on
experiences and outcomes of individual students
participating in the program; and
(4) partner with one or more local educational
agencies to support students with intellectual
disabilities participating in the program who are
eligible for special education and related services
under the Individuals with Disabilities Education Act
(20 U.S.C. 1400 et seq.), including the use of funds
available under part B of such Act (20 U.S.C. 1411 et
seq.) to support the participation of such students in
the program.
(e) Matching Requirement.--An institution of higher education
(or consortium) that receives a grant under this section shall
provide matching funds toward the cost of the inclusive higher
education 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) Data Collection and Transmission.--
(1) In general.--An institution or consortium
receiving a grant under this section shall collect and
transmit to the coordinating center established under
section 777(b) on an annual basis for each student who
is enrolled in the program, student-level information
related to the experiences and outcomes of students who
participate in the inclusive higher education program
for students with intellectual disabilities.
(2) Longitudinal data.--Each grantee shall collect
longitudinal outcome data from each student
participating in the program and transmit such data to
the coordinating center established under section
777(b). Such longitudinal data shall be collected for
every student each year for 5 years after the student
graduates from, or otherwise exits, the program.
(3) Data to be collected.--The program-level
information and data and student-level information and
data to be collected under this subsection shall
include--
(A) the number and type of postsecondary
education courses taken and completed by the
student;
(B) academic outcomes;
(C) competitive, integrated employment
outcomes;
(D) independent living outcomes; and
(E) social outcomes, including community
integration.
(4) Disaggregation.--The information determined under
paragraph (3) shall be disaggregated by race, gender,
socioeconomic status, Federal Pell Grant eligibility
status, status as a first generation college student,
and veteran or active duty status.
(g) Report.--Not later than 5 years after the date of the
first grant awarded under this section, the Secretary shall
prepare and disseminate a report to the authorizing committees
and to the public that--
(1) reviews the activities of the inclusive higher
education programs for students with intellectual
disabilities funded under this section; and
(2) provides guidance and recommendations on how
effective programs can be replicated.
* * * * * * *
SEC. 769. AUTHORIZATION OF APPROPRIATIONS AND RESERVATION.
(a) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this subpart such sums as may be
necessary for fiscal year [2009] 2021 and each of the five
succeeding fiscal years.
(b) Reservation of Funds.--For any fiscal year for which
appropriations are made for this subpart, the Secretary shall
reserve funds to enter into a cooperative agreement to
establish the coordinating center under section 777(b), in an
amount that is--
(1) not less than $240,000 for any year in which the
amount appropriated to carry out this subpart is
$8,000,000 or less; or
(2) equal to 3 percent of the amount appropriated to
carry out this subpart for any year in which such
amount appropriated is greater than $8,000,000.
* * * * * * *
Subpart 4--National Technical Assistance Center; Coordinating Center
* * * * * * *
[SEC. 777. NATIONAL TECHNICAL ASSISTANCE CENTER; COORDINATING CENTER.
[(a) National Center.--
[(1) In general.--From amounts appropriated under
section 778, the Secretary shall award a grant to, or
enter into a contract or cooperative agreement with, an
eligible entity to provide for the establishment and
support of a National Center for Information and
Technical Support for Postsecondary Students with
Disabilities (in this subsection referred to as the
``National Center''). The National Center shall carry
out the duties set forth in paragraph (4).
[(2) Administration.--The program under this section
shall be administered by the office in the Department
that administers other postsecondary education
programs.
[(3) Eligible entity.--In this subpart, the term
``eligible entity'' means an institution of higher
education, a nonprofit organization, or partnership of
two or more such institutions or organizations, with
demonstrated expertise in--
[(A) supporting students with disabilities in
postsecondary education;
[(B) technical knowledge necessary for the
dissemination of information in accessible
formats;
[(C) working with diverse types of
institutions of higher education, including
community colleges; and
[(D) the subjects supported by the grants,
contracts, or cooperative agreements authorized
in subparts 1, 2, and 3.
[(4) Duties.--The duties of the National Center shall
include the following:
[(A) Assistance to students and families.--
The National Center shall provide information
and technical assistance to students with
disabilities and the families of students with
disabilities to support students across the
broad spectrum of disabilities, including--
[(i) information to assist
individuals with disabilities who are
prospective students of an institution
of higher education in planning for
postsecondary education while the
students are in secondary school;
[(ii) information and technical
assistance provided to individualized
education program teams (as defined in
section 614(d)(1) of the Individuals
with Disabilities Education Act) for
secondary school students with
disabilities, and to early outreach and
student services programs, including
programs authorized under subparts 2,
4, and 5 of part A of title IV, to
support students across a broad
spectrum of disabilities with the
successful transition to postsecondary
education;
[(iii) research-based supports,
services, and accommodations which are
available in postsecondary settings,
including services provided by other
agencies such as vocational
rehabilitation;
[(iv) information on student
mentoring and networking opportunities
for students with disabilities; and
[(v) effective recruitment and
transition programs at postsecondary
educational institutions.
[(B) Assistance to institutions of higher
education.--The National Center shall provide
information and technical assistance to
faculty, staff, and administrators of
institutions of higher education to improve the
services provided to, the accommodations for,
the retention rates of, and the completion
rates of, students with disabilities in higher
education settings, which may include--
[(i) collection and dissemination of
best and promising practices and
materials for accommodating and
supporting students with disabilities,
including practices and materials
supported by the grants, contracts, or
cooperative agreements authorized under
subparts 1, 2, and 3;
[(ii) development and provision of
training modules for higher education
faculty on exemplary practices for
accommodating and supporting
postsecondary students with
disabilities across a range of academic
fields, which may include universal
design for learning and practices
supported by the grants, contracts, or
cooperative agreements authorized under
subparts 1, 2, and 3; and
[(iii) development of technology-
based tutorials for higher education
faculty and staff, including new
faculty and graduate students, on best
and promising practices related to
support and retention of students with
disabilities in postsecondary
education.
[(C) Information collection and
dissemination.--The National Center shall be
responsible for building, maintaining, and
updating a database of disability support
services information with respect to
institutions of higher education, or for
expanding and updating an existing database of
disabilities support services information with
respect to institutions of higher education.
Such database shall be available to the general
public through a website built to high
technical standards of accessibility
practicable for the broad spectrum of
individuals with disabilities. Such database
and website shall include available information
on--
[(i) disability documentation
requirements;
[(ii) support services available;
[(iii) links to financial aid;
[(iv) accommodations policies;
[(v) accessible instructional
materials;
[(vi) other topics relevant to
students with disabilities; and
[(vii) the information in the report
described in subparagraph (E).
[(D) Disability support services.--The
National Center shall work with organizations
and individuals with proven expertise related
to disability support services for
postsecondary students with disabilities to
evaluate, improve, and disseminate information
related to the delivery of high quality
disability support services at institutions of
higher education.
[(E) Review and report.--Not later than three
years after the establishment of the National
Center, and every two years thereafter, the
National Center shall prepare and disseminate a
report to the Secretary and the authorizing
committees analyzing the condition of
postsecondary success for students with
disabilities. Such report shall include--
[(i) a review of the activities and
the effectiveness of the programs
authorized under this part;
[(ii) annual enrollment and
graduation rates of students with
disabilities in institutions of higher
education from publicly reported data;
[(iii) recommendations for effective
postsecondary supports and services for
students with disabilities, and how
such supports and services may be
widely implemented at institutions of
higher education;
[(iv) recommendations on reducing
barriers to full participation for
students with disabilities in higher
education; and
[(v) a description of strategies with
a demonstrated record of effectiveness
in improving the success of such
students in postsecondary education.
[(F) Staffing of the center.--In hiring
employees of the National Center, the National
Center shall consider the expertise and
experience of prospective employees in
providing training and technical assistance to
practitioners.
[(b) Coordinating Center.--
[(1) Definition of eligible entity.--In this
subsection, the term ``eligible entity'' means an
entity, or a partnership of entities, that has
demonstrated expertise in the fields of--
[(A) higher education;
[(B) the education of students with
intellectual disabilities;
[(C) the development of comprehensive
transition and postsecondary programs for
students with intellectual disabilities; and
[(D) evaluation and technical assistance.
[(2) In general.--From amounts appropriated under
section 778, the Secretary shall enter into a
cooperative agreement, on a competitive basis, with an
eligible entity for the purpose of establishing a
coordinating center for institutions of higher
education that offer inclusive comprehensive transition
and postsecondary programs for students with
intellectual disabilities, including institutions
participating in grants authorized under subpart 2, to
provide--
[(A) recommendations related to the
development of standards for such programs;
[(B) technical assistance for such programs;
and
[(C) evaluations for such programs.
[(3) Administration.--The program under this
subsection shall be administered by the office in the
Department that administers other postsecondary
education programs.
[(4) Duration.--The Secretary shall enter into a
cooperative agreement under this subsection for a
period of five years.
[(5) Requirements of cooperative agreement.--The
eligible entity entering into a cooperative agreement
under this subsection shall establish and maintain a
coordinating center that shall--
[(A) serve as the technical assistance entity
for all comprehensive transition and
postsecondary programs for students with
intellectual disabilities;
[(B) provide technical assistance regarding
the development, evaluation, and continuous
improvement of such programs;
[(C) develop an evaluation protocol for such
programs that includes qualitative and
quantitative methodologies for measuring
student outcomes and program strengths in the
areas of academic enrichment, socialization,
independent living, and competitive or
supported employment;
[(D) assist recipients of grants under
subpart 2 in efforts to award a meaningful
credential to students with intellectual
disabilities upon the completion of such
programs, which credential shall take into
consideration unique State factors;
[(E) develop recommendations for the
necessary components of such programs, such
as--
[(i) academic, vocational, social,
and independent living skills;
[(ii) evaluation of student progress;
[(iii) program administration and
evaluation;
[(iv) student eligibility; and
[(v) issues regarding the equivalency
of a student's participation in such
programs to semester, trimester,
quarter, credit, or clock hours at an
institution of higher education, as the
case may be;
[(F) analyze possible funding streams for
such programs and provide recommendations
regarding the funding streams;
[(G) develop model memoranda of agreement for
use between or among institutions of higher
education and State and local agencies
providing funding for such programs;
[(H) develop mechanisms for regular
communication, outreach and dissemination of
information about comprehensive transition and
postsecondary programs for students with
intellectual disabilities under subpart 2
between or among such programs and to families
and prospective students;
[(I) host a meeting of all recipients of
grants under subpart 2 not less often than once
each year; and
[(J) convene a workgroup to develop and
recommend model criteria, standards, and
components of such programs as described in
subparagraph (E), that are appropriate for the
development of accreditation standards, which
workgroup shall include--
[(i) an expert in higher education;
[(ii) an expert in special education;
[(iii) a disability organization that
represents students with intellectual
disabilities;
[(iv) a representative from the
National Advisory Committee on
Institutional Quality and Integrity;
and
[(v) a representative of a regional
or national accreditation agency or
association.
[(6) Report.--Not later than five years after the
date of the establishment of the coordinating center
under this subsection, the coordinating center shall
report to the Secretary, the authorizing committees,
and the National Advisory Committee on Institutional
Quality and Integrity on the recommendations of the
workgroup described in paragraph (5)(J).
[SEC. 778. AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated to carry out this
subpart such sums as may be necessary for fiscal year 2009 and
each of the five succeeding fiscal years.]
SEC. 777. NATIONAL TECHNICAL ASSISTANCE CENTER AND NATIONAL
COORDINATING CENTER FOR INCLUSION OF STUDENTS WITH
INTELLECTUAL DISABILITIES.
(a) National Technical Assistance Center.--
(1) In general.--From amounts appropriated under
paragraph (5), 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 Technical Assistance Center. The
National Technical Assistance 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
in consultation with the Office of Special Education
and Rehabilitative Services.
(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) transitioning students with disabilities
from secondary school to postsecondary
education;
(B) supporting students with disabilities in
postsecondary education;
(C) technical knowledge necessary for the
dissemination of information in accessible
formats; and
(D) working with diverse types of
institutions of higher education, including
community colleges.
(4) Duties.--The duties of the National Technical
Assistance Center shall include the following:
(A) Assistance to students and families.--The
National Technical Assistance 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 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 Technical Assistance
Center shall provide information and technical
assistance to faculty, staff, and
administrators of institutions of higher
education to improve the services provided to,
the accommodations for, the retention rates of,
and the completion rates of, students with
disabilities in higher education settings,
which may include--
(i) collection and dissemination of
best and promising practices and
materials for accommodating and
supporting students with disabilities,
including practices and materials
supported by the grants, contracts, or
cooperative agreements authorized under
subparts 1, 2, and 3;
(ii) development and provision of
training modules for higher education
faculty on exemplary practices for
accommodating and supporting
postsecondary students with
disabilities across a range of academic
fields, which may include universal
design for learning and practices
supported by the grants, contracts, or
cooperative agreements authorized under
subparts 1, 2, and 3; and
(iii) development of technology-based
tutorials for higher education faculty
and staff, including new faculty and
graduate students, on best and
promising practices related to support
and retention of students with
disabilities in postsecondary
education.
(C) Information collection and
dissemination.--The National Technical
Assistance 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 Technical Assistance 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
Technical Assistance Center, and every two
years thereafter, the National Technical
Assistance 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 Technical Assistance
Center, the National Technical Assistance
Center shall consider the expertise and
experience of prospective employees in
providing training and technical assistance to
practitioners.
(5) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection $10,000,000.
(b) The National Coordinating Center for Inclusion of
Students with Intellectual Disabilities.--
(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 inclusive higher
education programs for students with
intellectual disabilities; and
(D) evaluation and technical assistance.
(2) In general.--From amounts appropriated under
paragraph (7), 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 higher education
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, including
systematic collection of data on the
experiences and outcomes of individuals with
intellectual disabilities.
(3) Administration.--The program under this
subsection shall be administered by the Office of
Postsecondary Education, in collaboration with the
Office of Special Education and Rehabilitative
Services.
(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 inclusive higher education programs and
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) evaluate such programs using qualitative
and quantitative methodologies for measuring
program strengths in the areas of academic
access, academic enrichment, socialization,
competitive integrated employment, attainment
of a degree, certificate, or recognized
postsecondary credential, and independent
living;
(D) evaluate participant progress by creating
and maintaining a database of student-level
information and data related to the experiences
and outcomes of youth who participate in each
inclusive higher education program that
receives a grant under this subpart;
(E) create and maintain a mechanism for
continuing to collect outcome information from
students who participated in inclusive higher
education programs that were developed in
previous grant award cycles;
(F) assist recipients of a grant under this
subpart in efforts to award a degree,
certificate, or recognized postsecondary
credential;
(G) create and maintain a database of student
and program level data reflecting
implementation of the inclusive higher
education program that receives a grant under
this subpart;
(H) create and maintain a mechanism to
consolidate follow up data on student outcomes
collected by inclusive higher education
programs funded through previous grant cycles;
(I) assist recipients of grants under subpart
2 in efforts to award a degree, certificate, or
recognized postsecondary credential to students
with intellectual disabilities upon the
completion of such programs;
(J) identify model memoranda of agreement for
use between or among institutions of higher
education and State and local agencies
providing funding for such programs;
(K) develop recommendations for the necessary
components of such programs, such as--
(i) academic, career and technical,
social, and independent living skills;
(ii) evaluation of student progress;
(iii) program administration and
evaluation;
(iv) student eligibility;
(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; and
(vi) access to student housing for
students participating in the inclusive
higher education programs, including
accommodations and services that
support independent living;
(L) review and analyze--
(i) the impact of State and Federal
policy on inclusive higher education
legislation; and
(ii) funding streams for such
programs;
(M) provide recommendations regarding the
funding streams described in paragraph (H)(ii);
(N) develop mechanisms for regular
communication, outreach and dissemination of
information about inclusive higher education
programs for students with intellectual
disabilities under subpart 2 between or among
such programs and to families and prospective
students;
(O) host a meeting of all recipients of
grants under subpart 2 not less often than once
each year; and
(P) convene a work group to continue the
development of and recommendations for model
criteria, standards, and components of
inclusive higher education programs and
comprehensive transition and postsecondary
programs for students with intellectual
disabilities, that are appropriate for the
development of accreditation standards--
(i) which work group shall include--
(I) an expert in community
college education;
(II) an expert in career
technical education;
(III) an expert in 4-year
institutions of higher
education;
(IV) an expert in special
education;
(V) a disability organization
that represents students with
intellectual disabilities;
(VI) a representative from
the National Advisory Committee
on Institutional Quality and
Integrity; and
(VII) a representative of a
regional or national
accreditation agency or
association; and
(ii) the work group will carry out
the following activities--
(I) conduct outreach to
accrediting agencies;
(II) develop a technical
guidance document to support
implementation of the model
standards;
(III) develop and conduct a
protocol for implementing the
model standards; and
(IV) update recommendations
for the model standards,
criteria, and components of
such programs, as applicable.
(6) Report.--Not later than 5 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 activities described in paragraph (5).
(7) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection such sums as may be necessary for fiscal
year 2021 and each of the five succeeding fiscal years.
* * * * * * *
PART F--GRANTS FOR IMPROVING ACCESS TO AND SUCCESS IN HIGHER EDUCATION
FOR FOSTER YOUTH AND HOMELESS YOUTH
SEC. 791. DEFINITIONS.
In this part:
(1) Foster youth.--The term ``foster youth''--
(A) means an individual whose care and
placement is the responsibility of the State or
tribal agency that administers a State or
tribal plan under part B or E of title IV of
the Social Security Act (42 U.S.C. 621 et seq.;
670 et seq.), without regard to whether foster
care maintenance payments are made under
section 472 of such Act (42 U.S.C. 672) on
behalf of the individual; and
(B) includes any individual--
(i) whose care and placement was the
responsibility of such a State or
tribal agency when, or at any time
after, the individual attained 13 years
of age, without regard to whether
foster care maintenance payments were
made under section 472 of such Act (42
U.S.C. 672) on behalf of the
individual; and
(ii) who is no longer under the care
and responsibility of such a State or
tribal agency, without regard to any
subsequent adoption, guardianship
arrangement, or other form of
permanency option.
(2) Homeless youth.--The term ``homeless youth'' has
the meaning given the term `homeless children and
youths' in section 725 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11434a).
(3) Indian tribe; tribal organization.--The terms
``Indian Tribe'' and ``tribal organization'' have the
meanings given the terms in section 4 of the Indian
Self-Determination and Education Assistance Act (25
U.S.C. 5304).
(4) Institution of higher education.--The term
``institution of higher education'' has the meaning
given the term in section 101.
(5) State.--The term ``State'' means each of the
several States and the District of Columbia.
(6) Territory.--The term ``territory'' means Puerto
Rico, United States Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern Mariana
Islands, the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of
Palau.
SEC. 792. FORMULA GRANTS TO STATES TO IMPROVE ACCESS TO AND SUCCESS IN
HIGHER EDUCATION FOR FOSTER YOUTH AND HOMELESS
YOUTH.
(a) Grant Program Established.--From the amount appropriated
under subsection (h), the Secretary shall make allotments under
subsection (b), to States having applications approved under
subsection (c), to enable each State to--
(1) carry out the Statewide transition initiative
described in subsection (d); and
(2) make subgrants described in subsection (e).
(b) Allocations.--
(1) Formula.--
(A) Reservation for indian tribes and
territories.--
(i) In general.--From the amount
appropriated under subsection (h) for a
fiscal year and subject to clause (ii),
the Secretary shall reserve--
(I) not more than 3 percent
for grants to Indian Tribes,
consortia of Indian Tribes, or
Tribal organizations; and
(II) not more than 2 percent
for grants to territories.
(ii) Requirements.--In awarding
grants under this subparagraph, the
Secretary--
(I) shall not award a grant
under subclause (I) or (II) of
clause (i) for a fiscal year
for which no Indian Tribe (or
consortium of Indian Tribes) or
Tribal organization, or
territory, respectively,
submits a satisfactory
application for a grant under
such subclause;
(II) shall require that any
Indian Tribe, consortium,
Tribal organization, or
territory that receives a grant
under this subparagraph provide
an assurance of a partnership
among relevant education, child
welfare, and homeless agencies
or organizations; and
(III) may determine any other
requirements with respect to
such grants (including the
allocation, application, and
use of fund requirements),
which to the extent possible,
shall be consistent with the
requirements for States under
this part, except that
appropriate adjustments shall
be made based on the needs and
size of populations served by
the Indian Tribe, consortium,
Tribal organization, or
territory applying for the
grant.
(B) Reservation for department activities.--
From the amount appropriated under subsection
(h) for a fiscal year, the Secretary may
reserve--
(i) not more than 7 percent to--
(I) provide technical
assistance, in consultation
with Secretary of Health and
Human Services, to States
carrying out activities under
this section; and
(II) complete the evaluations
required by subsection (g)(1);
and
(ii) not more than 3 percent for
administrative expenses.
(C) Allocations.--From the amount
appropriated under subsection (h) for a fiscal
year and remaining after the Secretary reserves
funds under subparagraphs (A) and (B), the
Secretary shall allocate to each State the
greater of--
(i) $500,000; or
(ii) the amount that bears the same
proportion to the remaining
appropriated amount for such fiscal
year as the number of foster youth and
homeless youth in the State bears to
the number of foster youth and homeless
youth in all States.
(D) Ratable reduction.--If the amount
appropriated under subsection (h) for a fiscal
year and remaining after the Secretary reserves
funds under subparagraphs (A) and (B) is less
than the amount required to be allocated to
States under subparagraph (C), then the amount
of the allocation to each State shall be
ratably reduced.
(2) State reservation.--From the amounts awarded a
State under paragraph (1)(C) for a fiscal year, the
State may reserve not more than 5 percent for
administrative expenses.
(3) Temporary ineligibility for subsequent
payments.--
(A) In general.--The Secretary shall
determine a State to be temporarily ineligible
to receive a grant payment under this
subsection for a fiscal year if--
(i) the State fails to submit an
annual report under subsection (f) for
the preceding fiscal year; or
(ii) the Secretary determines, based
on information in such annual report,
that the State is not effectively--
(I) meeting the outcomes
described in the application of
such State under subsection
(c)(2)(C), and does not have a
plan to improve the outcomes;
(II) monitoring and
evaluating the activities under
subsections (d) and (e); or
(III) using funds as required
under subsections (d) and (e).
(B) Reinstatement.--If the Secretary
determines that a State is ineligible under
subparagraph (A), the Secretary may enter into
an agreement with the State setting forth the
terms and conditions under which the State may
regain eligibility to receive payments under
this section.
(c) Applications.--
(1) In general.--For each fiscal year for which a
State desires an allotment under subsection (b), the
State shall submit an application to the Secretary at
such time, in such manner, and containing the
information described in paragraph (2).
(2) Information required.--An application submitted
under paragraph (1) shall include the following:
(A) A plan for how the State will carry out
the activities under subsections (d) and (e).
(B) A description of the State's capacity to
carry out such activities.
(C) A description of intended outcomes for
such activities.
(D) A plan for how the State will monitor and
evaluate such activities, including how the
State will use data to continually update and
improve such activities.
(E) A description of how students will be
identified and recruited for participation in
the Statewide transition initiative under
subsection (d).
(F) An estimate of the number and
characteristics of the populations targeted for
participation in the Statewide transition
initiative under subsection (d) with attention
to the diverse needs of homeless youth and
foster youth in the State.
(G) A description of how the State will
coordinate services provided under the grant
with services provided to foster youth and
homeless youth under the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11301 et
seq.), the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6301 et seq.), the
Runaway and Homeless Youth Act (42 U.S.C. 5701
et seq.), and other services provided to foster
youth and homeless youth by the State.
(H) An assurance that the State will comply
with subtitle B of title VII of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11431
et seq.).
(I) An assurance that the State will partner
with State educational agencies, local
educational agencies, institutions of higher
education, State and local child welfare
authorities, and other relevant organizations
that serve foster youth or homeless youth.
(J) An assurance that the State will submit
the annual report required under subsection
(f).
(K) A budgetary analysis of the use of funds
awarded under this section.
(L) Such other information as the Secretary
may require.
(d) Statewide Transition Initiative.--
(1) Use of funds.--Subject to subsection (b)(2), and
in consultation and coordination with the entities
described in paragraph (2) of this subsection, a State
receiving a grant award under this section shall use
not less than 25 percent of the funds to--
(A) provide intensive outreach and support to
foster youth and homeless youth to--
(i) improve the understanding and
preparation of such youth for
enrollment in institutions of higher
education;
(ii) increase the number of
applications to institutions of higher
education submitted by such youth; and
(iii) increase the number of
enrollments at institutions of higher
education;
(B) provide education to foster youth and
homeless youth with respect to--
(i) the benefits and opportunities of
postsecondary education;
(ii) planning for postsecondary
education;
(iii) financial aid opportunities
that assist youth with covering the
cost of attendance of an institution of
higher education;
(iv) the Federal and State services
and benefits available to foster youth
and homeless youth while enrolled at an
institution of higher education,
including health and mental health
services;
(v) career exploration; and
(vi) financial literacy training,
including security from identity theft;
(C) assist foster youth and homeless youth
with submitting applications for--
(i) enrollment at an institution of
higher education;
(ii) financial aid for such
enrollment; and
(iii) scholarships available for such
students, including under a State
educational and training voucher
program referred to in section 477(i)
of the Social Security Act; and
(D) provide free programming, which may
include free transportation to and from such
programming, for foster youth and homeless
youth to prepare such individuals socially and
academically for the rigors of postsecondary
education during the summer before such
individuals first attend an institution of
higher education.
(2) Required consultation and coordination.--In
carrying out the activities described in paragraph (1),
a State shall consult and coordinate with State
educational agencies, local educational agencies,
institutions of higher education, State and local child
welfare authorities, and other relevant organizations
that serve foster youth or homeless youth.
(e) Subgrants to Create Institutions of Excellence.--
(1) In general.--Subject to the subsection (b)(2), a
State receiving a grant under this section shall,
acting through the administering State agency, use not
less than 70 percent of the funds to award, on a
competitive basis, subgrants to eligible institutions
to enable such institutions to become institutions of
excellence by improving college access, retention, and
completion rates for foster and homeless youth as
described in paragraph (3).
(2) Application.--
(A) In general.--An eligible institution
desiring a subgrant under this subsection shall
submit an application to the State in which
such eligible institution is located, at such
time, in such manner, and containing such
information as the State may require.
(B) Technical assistance.--States shall
provide outreach and technical assistance to
eligible institutions with respect to
applications for subgrants under this
subsection.
(3) Activities.--An eligible institution that
receives a grant under this subsection shall use the
grant funds to carry out the following activities with
respect to homeless youth and foster youth:
(A) Provide flexibility and assistance in
completing the application process to enroll at
such institution.
(B) Coordinate programs with relevant on- and
off-campus stakeholders to increase the
enrollment of such youth at the institution and
align services at the institution for such
youth.
(C) Adjust the cost of attendance for such
youth at such eligible institution to include
the cost of housing during periods of non-
enrollment.
(D) Provide institutional aid to such
students to meet the cost of attendance that is
not covered by other Federal or State
educational grants.
(E) Provide outreach to such students to
ensure that such youth are aware of housing
resources available during periods of non-
enrollment.
(F) Subsidize any fees for such students
associated with orientation and offer free
transportation to college orientation or move-
in week.
(G) Hire and provide training for at least
one full-time staff at the eligible institution
to serve as a point of contact to provide case
management services and monthly face-to-face
meetings with students who are foster youth or
homeless youth. Such individual shall have an
advanced degree and at least two years of
relevant experience.
(H) Establish or enhance campus support
programs to provide such students with a wide-
range of on-campus services including--
(i) assistance with financial aid;
(ii) career advice; and
(iii) leadership development.
(I) Ensure the availability of robust student
health services (physical and mental) that meet
the specific needs of foster youth and homeless
youth.
(J) Establish or expand early alert systems
to identify and support such students who may
be struggling academically.
(K) For each such student with reasonable,
unanticipated expenses that would not be
covered by the institutional aid provided under
subparagraph (D) and that would be necessary
for the student to persist in college during an
academic year, provide the student with access
to an emergency grant to help cover such
expenses.
(L) Collect, review, and monitor data for
program improvement.
(4) Reliance on institutional aid.--Any institutional
aid provided to a student under paragraph (3)(D) by an
eligible institution during the grant period of the
institution's grant under this section shall continue
to be provided during the student's continuous
enrollment at the institution, without regard to
whether the grant period ends during such enrollment.
(5) Definitions.--In this subsection:
(A) Administering state agency.--The term
``administering State agency'' means a State
agency--
(i) designated by the Governor or
executive of the State to administer
the subgrants under this subsection;
and
(ii) that, with respect to such
State, has jurisdiction over--
(I) foster youth;
(II) homeless youth;
(III) elementary and
secondary education; or
(IV) higher education.
(B) Eligible institution.--The term
``eligible institution'' means an institution
of higher education--
(i) that is in partnership with--
(I) the State child welfare
agency that is responsible for
the administration of the State
plan under part B or E of title
IV of the Social Security Act
(42 U.S.C. 621 et seq.; 670 et
seq.); and
(II) an organization that
serves homeless youth (such as
a youth shelter or outreach
program); and
(ii) that may partner with any other
provider, agency, official, or entity
that serves foster youth and homeless
youth, or former foster youth and
homeless youth.
(f) State Reports.--For each year in which a State receives
an allotment under subsection (b), the State shall prepare and
submit a report to the Secretary that includes--
(1) each activity or service that was carried out
under this section;
(2) the cost of providing each such activity or
service;
(3) the number of students who received each activity
or service disaggregated by each subgroup of students
described in subclauses (I) through (VI) of section
1111(b)(2)(B)(xi) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6311(b)(2)(B)(xi));
(4) using qualitative and quantitative analysis, how
the State--
(A) improved access to higher education for
foster youth and homeless youth; and
(B) measured youth satisfaction with
activities carried out under this part;
(5) an analysis of the implementation and progress of
the Statewide transition initiative under subsection
(d), including challenges and changes made to the
initiative throughout the preceding year;
(6) if, based on the analysis under paragraph (5),
the State determines that the program is not on track
to meet the intended outcomes described in the
application of the State under subsection (c)(2)(C), a
description of how the State plans to meet such
intended outcomes; and
(7) information on the eligible institutions
receiving subgrants, including how such institutions
used subgrant funds to carry out the activities
described in subsection (e)(3).
(g) Department Activities.--
(1) Evaluations.--Beginning on the date on which
funds are first allotted under subsection (b), and
annually thereafter, the Secretary shall evaluate
recipients of allotments and subgrants under this
section. The results of such evaluations shall be made
publicly available on the website of the Department.
(2) Report to congress.--Not later than 1 year after
the date on which funds are first allocated under
subsection (b), and annually thereafter, the Secretary
shall submit a report to Congress that includes--
(A) the amount of each allotment under
subsection (b);
(B) the amount of each subgrant under
subsection (e); and
(C) with respect to the year for which such
report is made, the results of the evaluations
under paragraph (1).
(h) Authorization of Appropriations.--
(1) In general.--Subject to paragraph (2), there are
authorized to be appropriated to carry out this part
$150,000,000 for fiscal year 2021 and each of the 5
succeeding fiscal years.
(2) Adjustment for inflation.--
(A) In general.--The amount authorized to be
appropriated under paragraph (1) for fiscal
year 2022 and each of the 4 succeeding fiscal
years shall be deemed increased by the annual
adjustment percentage.
(B) Definition.--In this paragraph, the term
``annual adjustment percentage'', as applied to
a fiscal year, means 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 before the
beginning of that fiscal year.
* * * * * * *
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] A--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 A--RONALD V. DELLUMS MEMORIAL STEAM SCHOLARS
SEC. 801. RONALD V. DELLUMS MEMORIAL STEAM SCHOLARS PROGRAM.
(a) Program authorized.--
(1) Grants for scholarships.--The Secretary shall
award grants under this section to institutions of
higher education (as defined in section 101) to provide
scholarships to eligible students for the purpose of
enabling such students to enter into the STEAM
workforce and increasing the number of underrepresented
students in STEAM fields.
(2) Eligible students.--A student is eligible for a
scholarship under this section if the student--
(A) meets the requirements of section 484(a);
(B) is an at least half-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 at
the institution with a major in a STEAM 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 Secretary shall
set a priority for awarding scholarships under this
section for students agreeing to work after graduation
in a STEAM field.
(4) Students from minority-serving institutions and
historically black colleges and universities.--The
Secretary shall ensure that not fewer than 50 percent
of the scholarships awarded under this section are
awarded to eligible students who attend historically
Black colleges and universities and other minority-
serving institutions, including Hispanic-serving
institutions, Asian American and Native American
Pacific Islander-serving institutions, American Indian
Tribally controlled colleges and universities, Alaska
Native and Native Hawaiian-serving institutions,
Predominantly Black Institutions, and Native American-
serving, Nontribal institutions.
(5) Amount and duration of scholarship.--Scholarship
amounts awarded under this section shall not exceed--
(A) $10,000 per student for an academic year;
and
(B) $40,000 per student in the aggregate.
(b) Matching requirement.--In order to receive a grant under
this section, an institution of higher education shall provide
matching funds for the scholarships awarded under this section
in an amount equal to 25 percent of the Federal funds received.
(c) Application.--An 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. Each application shall include a
description of how the institution will meet the matching
requirement of subsection (b).
(d) Reports.--Not later than 2 years after the date on which
the first scholarship is awarded under this section, and each
academic year thereafter, the Secretary shall submit to the
Congress a report containing--
(1) a description and analysis of the demographic
information of students who receive scholarships under
this section, including information with respect to
such students regarding--
(A) race;
(B) ethnicity;
(C) gender; and
(D) eligibility to receive a Pell Grant;
(2) the total number of underrepresented students in
STEAM fields who obtain a degree with scholarship funds
each year; and
(3) an analysis of the effects of the program on the
goals of increasing the number of underrepresented
students in STEAM fields and the number of such
students who enter into the STEAM workforce.
(e) Authorization of appropriations.--There are authorized to
be appropriated to carry out this section $5,000,000 for fiscal
year 2021 and each of the five succeeding fiscal years.
(f) Definitions.--For purposes of this section:
(1) The term ``minority-serving institution'' means
an institution eligible to receive assistance under
title III or V.
(2) The term ``STEAM'' means science, technology,
engineering, arts, and mathematics.
(3) The term ``underrepresented student in STEAM
fields'' means a student who is a member of a minority
group for which the number of individuals in such group
who annually receive bachelor's degrees in the STEAM
fields per 10,000 individuals in such group is
substantially less than the number of white, non-
Hispanic individuals who annually receive bachelor's
degrees in the STEAM fields per 10,000 such
individuals.
* * * * * * *
PART [F] B--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.]
(C) $30,000,000 for fiscal year 2021 and each
of the 5 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] C--PATSY T. MINK FELLOWSHIP PROGRAM
SEC. [807.] 811. 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.]
(f) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this section $10,000,000 for
fiscal year 2021 and each of the 5 succeeding fiscal years.
* * * * * * *
PART [J] D--IMPROVING SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS
EDUCATION WITH A FOCUS ON ALASKA NATIVE AND NATIVE HAWAIIAN STUDENTS
SEC. [819.] 816. IMPROVING SCIENCE, TECHNOLOGY, ENGINEERING, AND
MATHEMATICS EDUCATION WITH A FOCUS ON [ALASKA
NATIVE AND NATIVE HAWAIIAN] NATIVE AMERICAN
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]
American Indians, Alaska Natives, Native Hawaiians and
other Native American Pacific Islanders to enable them
to succeed in these fields.
(b) Definitions.--In this section:
[(1)] (2) Alaska native.--The term ``Alaska Native''
has the meaning given such term in section 6306 of the
Elementary and Secondary Education Act of 1965.
* * * * * * *
(1) Native american.--The term ``Native American''
includes Alaska Natives, American Indians, Native
Hawaiians and Native American Pacific Islanders.
(3) American indian.--The term ``American Indian''
has the meaning given the term ``Indian'' in section
202 of the Indian Land Consolidation Act (25 U.S.C.
2201).
[(2)] (4) 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)] (5) Institution of higher education.--The term
``institution of higher education'' has the meaning
given such term in section 101(a).
[(4)] (6) 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 create or expand programs
for the development of Native American 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] programs that serve Native American
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]
programs that serve Native American 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]
Native American 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] 30 percent or more of the program
participants are Native American.
(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] $5,000,000 for fiscal year 2021 and each of the 5
succeeding fiscal years.
* * * * * * *
[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 [Q] E--RURAL DEVELOPMENT GRANTS FOR RURAL-SERVING COLLEGES AND
UNIVERSITIES
SEC. [861.] 821. 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.]
(g) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this section $20,000,000 for
fiscal year 2021 and each of the 5 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] F--TRAINING FOR REALTIME WRITERS
SEC. [872.] 826. 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 3 of the Workforce Innovation and
Opportunity Act) 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] 2021 and each of the five
succeeding fiscal years.
[PART [T] G--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 G--GRANTS FOR VETERAN STUDENT CENTERS
SEC. 831. GRANTS FOR VETERAN STUDENT CENTERS.
(a) Grants Authorized.--Subject to the availability of
appropriations under subsection (i), the Secretary shall award
grants to institutions of higher education or consortia of
institutions of higher education to assist in the
establishment, maintenance, improvement, and operation of
Veteran Student Centers. The Secretary shall award not more
than 30 grants in a fiscal year under this section.
(b) Eligibility.--
(1) Application.--An institution or consortium
seeking a grant under subsection (a) shall submit to
the Secretary an application at such time, in such
manner, and containing such information as the
Secretary may require.
(2) Criteria.--The Secretary may award a grant under
subsection (a) to an institution or a consortium if the
institution or consortium meets each of the following
criteria:
(A) The institution or consortium enrolls in
undergraduate or graduate courses--
(i) a significant number of veteran
students, members of the Armed Forces
serving on active duty, and members of
a reserve component of the Armed
Forces; or
(ii) a significant percentage of
veteran students, as measured by
comparing the overall enrollment of the
institution or consortium to the
number, for the most recent academic
year for which data are available, of
veteran students, members of the Armed
Forces serving on active duty, and
members of a reserve component of the
Armed Forces who are enrolled in
undergraduate or graduate courses at
the institution or consortium.
(B) The institution or consortium presents a
sustainability plan to demonstrate that the
Veteran Student Center of such institution or
consortium will be maintained and will continue
operations upon conclusion of the grant period
under subsection (a).
(3) Additional criteria.--
(A) Mandatory considerations.--In awarding
grants under subsection (a), the Secretary
shall consider institutions or consortia
representing a broad spectrum of sectors and
sizes, including institutions or consortia from
urban, suburban, and rural regions of the
United States.
(B) Discretionary criteria.--In awarding
grants under subsection (a), the Secretary may
provide consideration to institutions or
consortia that meet one or more of the
following criteria:
(i) The institution or consortium is
located in a region or community that
has a significant population of
veterans.
(ii) The institution or consortium
carries out programs or activities that
assist veterans in the local community
and the spouses of veteran students.
(iii) The institution or consortium
partners in its veteran-specific
programming with nonprofit veteran
service organizations, local workforce
development organizations, or
institutions of higher education.
(iv) The institution or consortium
commits to hiring staff at the Veteran
Student Center that includes veterans
(including veteran student volunteers
and veteran students participating in a
Federal work-study program under part C
of title IV, a work-study program
administered by the Secretary of
Veteran Affairs, or a State work-study
program).
(v) The institution or consortium
commits to using a portion of the grant
received under this section to develop
and implement an early-warning veteran
student retention program designed to
alert staff at the Veteran Student
Center that a veteran student may be
facing difficulties that could lead to
the non-completion of the course of
study of such veteran.
(vi) The institution or consortium
commits to providing mental health
counseling to its veteran students and
their spouses.
(vii) The institution or consortium
carries out programs or activities that
assist individuals pursuing a course of
education using educational assistance
under chapter 31 of title 38, United
States Code.
(c) Use of Funds.--
(1) In general.--An institution or consortium that is
awarded a grant under subsection (a) shall use such
grant to establish, maintain, improve, or operate a
Veteran Student Center.
(2) Other allowable uses.--An institution or
consortium receiving a grant under subsection (a) may
use a portion of such funds to carry out supportive
instruction services for student veterans, including--
(A) assistance with special admissions and
transfer of credit from previous postsecondary
education or experience; and
(B) any other support services the
institution or consortium determines to be
necessary to ensure the success of veterans on
campus in achieving education and career goals.
(d) Amounts Awarded.--
(1) Duration.--Each grant awarded under subsection
(a) shall be for a 4-year period.
(2) Total amount of grant and schedule.--Each grant
awarded under subsection (a) may not exceed a total of
$500,000. The Secretary shall disburse to an
institution or consortium the amounts awarded under the
grant in such amounts and at such times during the
grant period as the Secretary determines appropriate.
(e) Report.--From the amounts appropriated to carry out this
section, and not later than 3 years after the date on which the
first grant is awarded under subsection (a), the Secretary
shall submit to Congress a report on the grant program
established under subsection (a), including--
(1) the number of grants awarded;
(2) the institutions of higher education and
consortia that have received grants;
(3) with respect to each such institution of higher
education and consortium--
(A) the amounts awarded;
(B) how such institution or consortium used
such amounts;
(C) a description of the students to whom
services were offered as a result of the award;
and
(D) data enumerating whether the use of the
amounts awarded helped veteran students at the
institution or consortium toward completion of
a degree, certificate, or credential;
(4) best practices for veteran student success,
identified by reviewing data provided by institutions
and consortia that received a grant under this section;
and
(5) a determination by the Secretary with respect to
whether the grant program under this section should be
extended or expanded.
(f) Termination.--The authority of the Secretary to carry out
the grant program established under subsection (a) shall
terminate on the date that is 4 years after the date on which
the first grant is awarded under subsection (a).
(g) Department of Education Best Practices Website.--Subject
to the availability of appropriations under subsection (i) and
not later than 3 years after the date on which the first grant
is awarded under subsection (a), the Secretary shall develop
and implement a website for veteran student services at
institutions of higher education, which details best practices
for serving veteran students at institutions of higher
education.
(h) Definitions.--In this section:
(1) Institution of higher education.--The term
``institution of higher education'' has the meaning
given the term in section 101.
(2) Veteran student center.--The term ``Veteran
Student Center'' means a dedicated space on a campus of
an institution of higher education that provides
students who are veterans or members of the Armed
Forces with the following:
(A) A lounge or meeting space for such
veteran students, their spouses or partners,
and veterans in the community.
(B) A centralized office for veteran services
that--
(i) is a single point of contact to
coordinate comprehensive support
services for veteran students;
(ii) is staffed by trained employees
and volunteers, which includes veterans
and at least one full-time employee or
volunteer who is trained as a veterans'
benefits counselor;
(iii) provides veteran students with
assistance relating to--
(I) transitioning from the
military to student life;
(II) transitioning from the
military to the civilian
workforce;
(III) networking with other
veteran students and veterans
in the community;
(IV) understanding and
obtaining benefits provided by
the institution of higher
education, Federal Government,
and State for which such
students may be eligible;
(V) understanding how to
succeed in the institution of
higher education, including by
understanding academic
policies, the course selection
process, and institutional
policies and practices related
to the transfer of academic
credits; and
(VI) understanding their
disability-related rights and
protections under the Americans
with Disabilities Act of 1990
(42 U.S.C. 12101 et seq.) and
section 504 of the
Rehabilitation Act of 1973 (29
U.S.C. 794); and
(iv) provides comprehensive academic
and tutoring services for veteran
students, including peer-to-peer
tutoring and academic mentorship.
(i) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this part $15,000,000 for fiscal
year 2021 and each of the 5 succeeding fiscal years.
PART [U] H--UNIVERSITY SUSTAINABILITY PROGRAMS
SEC. [881.] 836. 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.]
(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 the teaching and practice of sustainability,
including in the areas of staff and faculty
professional development, energy management, greenhouse
gas emissions reductions, green building, waste
management, transportation, resilience, green
workforce, and other aspects of sustainability that
integrate the local community 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) a nonprofit consortium, association,
alliance, or collaboration operating in
partnership with more than one institution of
higher education.
(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 in alignment with local
community needs:
(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] scale established
initiatives in the areas of energy management,
greenhouse gas emissions reductions, green
building, waste management, [purchasing, toxics
management,] transportation, resilience, green
workforce, 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, economics, law, political science,
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]
relating to 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, city and State
governments, 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]
$200,000 or more than $500,000.
(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] 2021 and each of the five
succeeding fiscal years.
PART [V] I--MODELING AND SIMULATION PROGRAMS
SEC. [891.] 841. 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.] There is authorized to be
appropriated to carry out this section $75,000,000 for fiscal
year 2021 and each of the 5 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] J--PATH TO SUCCESS
SEC. [892.] 846. 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] 2021 and each of the five
succeeding fiscal years.
* * * * * * *
PART [AA] K--MASTERS AND POSTBACCALAUREATE PROGRAMS
SEC. [897.] 851. 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] $13,500,000 for fiscal year
2021 and each succeeding fiscal year 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.] 852. POSTBACCALAUREATE PROGRAMS.
[In addition] (a) Additional Appropriations for Part B of
Title V._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] $21,000,000 for
fiscal year 2021 and each succeeding fiscal year to carry out
part B of title V.
(b) Additional Appropriations for Part a of Title VII.--In
addition to any amounts appropriated under subpart 5 of part A
of title VII, there are authorized to be appropriated, and
there are appropriated, out of any funds in the Treasury not
otherwise appropriated, $13,000,000 for fiscal year 2021 and
each of the 5 succeeding fiscal years to carry out subpart 5 of
part A of title VII.
PART L--ACCESS TO OPEN EDUCATIONAL RESOURCES
SEC. 856. AFFORDABLE COLLEGE TEXTBOOKS.
(a) Grant Program.--
(1) Grants authorized.--From the amounts appropriated
under paragraph (8), the Secretary shall make grants,
on a competitive basis, to eligible entities to support
projects that expand the use of high-quality open
textbooks in order to achieve savings for students
while improving instruction and student learning
outcomes.
(2) Applications.--
(A) In general.--Each eligible entity
desiring a grant under this subsection, after
consultation with relevant faculty, shall
submit an application to the Secretary at such
time, in such manner, and containing such
information as the Secretary may reasonably
require.
(B) Contents.--Each application submitted
under subparagraph (A) shall include--
(i) a description of the proposed
project to be completed with grant
funds;
(ii) a plan for promoting and
tracking the use of open textbooks in
postsecondary courses offered by the
eligible entity, including an estimate
of the projected savings that will be
achieved for students through the use
of such textbooks;
(iii) a description of how the
eligible entity will evaluate whether
existing open educational resources
could be used or adapted into open
educational resources before creating
new open educational resources;
(iv) a plan for quality review
(including peer review), review of
accuracy, and review of accessibility
of any open educational resources
created or adapted through the grant;
(v) a plan for assessing the impact
of open textbooks on instruction and
student learning outcomes at the
eligible entity;
(vi) a plan for disseminating
information about the results of the
project to institutions of higher
education outside of the eligible
entity, including promoting the
adoption of any open textbooks created
or adapted through the grant;
(vii) a statement on consultation
with relevant faculty, including those
engaged in the creation of open
educational resources, in the
development of the application; and
(viii) an assurance that open
educational resources utilized,
developed, or researched will be
available in accessible formats, which
may include braille, audio books,
closed captioning, and audio
descriptions.
(3) Special consideration.--In awarding grants under
this section, the Secretary shall give special
consideration to applications that demonstrate the
greatest potential to--
(A) achieve the highest level of savings for
students through sustainable expanded use of
high-quality open textbooks in postsecondary
courses offered by the eligible entity;
(B) achieve improvements in student learning
and student outcomes;
(C) expand the use of open textbooks at
institutions of higher education outside of the
eligible entity; and
(D) produce--
(i) the highest quality and most
accessible open textbooks;
(ii) open textbooks that can be most
easily utilized and adapted by faculty
members at institutions of higher
education;
(iii) open textbooks that correspond
to the highest enrollment courses at
institutions of higher education;
(iv) open textbooks created or
adapted in partnership with entities,
including campus bookstores, that will
assist in marketing and distribution of
the open textbook; and
(v) open textbooks that conform to
accessibility standards under section
508 of the Rehabilitation Act of 1973
(29 U.S.C. 794d).
(4) Use of funds.--
(A) Mandatory uses of funds.--An eligible
entity that receives a grant under this section
shall use the grant funds to carry out the
following activities to expand the use of open
textbooks:
(i) Professional development for any
faculty and staff members at
institutions of higher education,
including the search for and review of
open textbooks.
(ii) Creation or adaptation of high-
quality open educational resources that
conform to accessibility standards
under section 508 of the Rehabilitation
Act of 1973 (29 U.S.C. 794d),
especially open textbooks, and the
quality assurance of such open
educational resources.
(iii) Development or improvement of
tools and informational resources that
support the use of open textbooks,
including improving accessible
instructional materials for students
with disabilities that conform to
accessibility standards under section
508 of the Rehabilitation Act of 1973
(29 U.S.C. 794d).
(iv) Research evaluating the efficacy
of the use of open textbooks for
achieving savings for students and the
impact on instruction and student
learning outcomes.
(B) Discretionary use of funds.--An eligible
entity that receives a grant under this section
may use grant funds to purchase or maintain
electronic equipment necessary for the
operation or use of digital open educational
resources, including mobile computer devices
and accompanying hardware, software
applications, computer systems and platforms,
and other digital and online services and
support.
(5) Open licensing requirement.--
(A) Copyright.--An eligible entity receiving
a grant under this section may, with prior
approval from the Secretary, assert a copyright
in a copyrightable work first produced under
the grant.
(B) Open license requirement.--
(i) Requirement.--With respect to
each copyrightable work first produced
under the grant, except as provided in
clause (ii), an eligible entity that
asserts a copyright under subparagraph
(A) shall provide to the public a non-
exclusive, royalty-free, perpetual,
irrevocable, worldwide license to carry
out each exclusive right provided to
that eligible entity under section 106
of title 17, United States Code.
(ii) Exception.--With respect to a
copyrightable work first produced under
the grant that employs preexisting
material, the requirement described
under such subparagraph shall apply to
such work to the extent that--
(I) no copyright subsists in
such preexisting material; or
(II) the eligible entity is
authorized to license such
material in the manner
described under such
subparagraph.
(C) Rule of construction.--Nothing in this
subsection may be construed as affecting the
application of the requirements of chapter 18
of title 35, United States Code (commonly known
as the ``Bayh-Dole Act'').
(D) Copyrightable work defined.--In this
subsection, the term ``copyrightable work''
means a work subject to protection under title
17, United States Code, but does not include a
work that may be patentable or otherwise
protectable under title 35, United States Code.
(6) Access and distribution.--The full and complete
digital content of each educational resource created or
adapted under paragraph (5) shall be made available
free of charge to the public--
(A) on an easily accessible and interoperable
website, which shall be identified to the
Secretary by the eligible entity;
(B) in a machine readable, digital format
that anyone can directly download, edit with
attribution, and redistribute; and
(C) in a fully accessible format in
compliance with the Americans with Disabilities
Act of 1990 (42 U.S.C. 12101 et seq.) and
section 508 of the Rehabilitation Act of 1973
(29 U.S.C. 794d).
(7) Report.--Upon an eligible entity's completion of
a project for which the eligible entity received a
grant under this section, the eligible entity shall
prepare and submit a report to the Secretary
regarding--
(A) the effectiveness of the project in
expanding the use of high-quality open
textbooks and in achieving savings for
students;
(B) the impact of the project on expanding
the use of open textbooks at institutions of
higher education outside of the eligible
entity;
(C) educational resources created or adapted
under the grant, including instructions on
where the public can access each educational
resource under the terms of paragraphs (5) and
(6);
(D) information about the quality review
process that was used to ensure quality and
accuracy;
(E) the impact of the project on instruction
and student learning outcomes; and
(F) all project costs, including the value of
any volunteer labor and institutional capital
used for the project.
(8) Authorization of appropriations.--There are
authorized to be appropriated to carry out this section
$5,000,000 for fiscal year 2021 and each of the 5
succeeding fiscal years.
(b) Report to Congress.--Not later than 2 years after the
date of enactment of College Affordability Act, the Secretary
shall prepare and submit a report to authorizing committees
detailing--
(1) the high-quality open textbooks created or
adapted under this section;
(2) the adoption of such open textbooks;
(3) the savings generated for students, States,
territories, and the Federal Government through the use
of open textbooks; and
(4) the impact of open textbooks on instruction and
student learning outcomes.
(c) GAO Report.--Not later than 3 years after the date of
enactment of College Affordability Act, the Comptroller General
of the United States shall prepare and submit a report to the
authorizing committees on the cost of textbooks to students at
institutions of higher education. The report shall include--
(1) the change of the cost of textbooks between the
date of the enactment of the College Affordability Act
and the date of such report;
(2) the factors that have contributed to such change
in the cost of textbooks, including the impact of open
textbooks on the cost;
(3) the extent to which open textbooks are used at
institutions of higher education compared to the use of
open textbooks before the date of the enactment of this
subsection;
(4) how institutions are tracking the impact of open
textbooks on instruction and student learning outcomes;
(5) the availability of accessible forms of open
textbooks and the barriers faced by students with
disabilities in accessing accessible forms of open
educational resources compared to the barriers faced in
accessing traditional educational materials; and
(6) the barriers faced by other student populations,
including low-income students, in accessing high-
quality open educational resources compared to the
barriers faced in accessing traditional educational
materials.
(d) Definitions.--In this section:
(1) Educational resource.--The term ``educational
resource'' means a print or digital educational
material that can be used in postsecondary instruction,
including textbooks and other written or audiovisual
works.
(2) Eligible entity.--The term ``eligible entity''
means an institution of higher education or a consortia
of such institutions of higher education.
(3) Institution of higher education.--The term
``institution of higher education'' has the meaning
given the term in section 101.
(4) Open educational resource.--The term ``open
educational resource'' means a print or digital
educational resource that either resides in the public
domain or has been released under an intellectual
property license that permits its free use, reuse,
modification, and sharing with others.
(5) Open textbook.--The term ``open textbook'' means
an open educational resource or set of open educational
resources that either is a textbook or can be used in
place of a textbook for a postsecondary course at an
institution of higher education.
(6) Relevant faculty.--The term ``relevant faculty''
means both tenure track and contingent faculty members
who may be involved in the creation of open educational
resources or the use of open educational resources
created as part of the grant application.
PART M--MENTAL HEALTH AND SUICIDE PREVENTION
SEC. 861. ENCOURAGING CAMPUS COMPREHENSIVE MENTAL HEALTH AND SUICIDE
PREVENTION PLANS.
(a) In General.--The Secretary shall make efforts to
encourage institutions of higher education to develop and
implement comprehensive campus mental health and suicide
prevention plans. Such efforts--
(1) shall be conducted in coordination with the
Secretary of Health and Human Services (acting through
the Administrator of the Substance Abuse and Mental
Health Services Administration);
(2) shall align with--
(A) the efforts of the Suicide Prevention
Resource Center, specifically the Center's
model of nine strategies that form a
comprehensive approach to suicide prevention;
(B) the 21st Century Cures Act (42 U.S.C. 201
note); and
(C) the programs authorized under the Garrett
Lee Smith Memorial Act (42 U.S.C. 201 note;
Public Law 108-355);
(3) shall take into consideration existing State
efforts to address mental health and suicide prevention
at institutions of higher education; and
(4) may be carried out in collaboration with
nonprofit organizations and other experts and
stakeholders in the field of campus mental health and
suicide prevention.
(b) Reports.--The Secretary, or a designee of the Secretary,
shall report to Congress on the efforts of the Secretary
carried out under this section--
(1) not later than one year after the date of
enactment of the College Affordability Act; and
(2) three years after the date of enactment of such
Act.
(c) Construction.--Nothing in this section shall be construed
as creating new statutory requirements for institutions of
higher education or granting the Secretary new regulatory
authority.
----------
HIGHER EDUCATION OPPORTUNITY ACT
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Higher
Education Opportunity Act''.
(b) Table of Contents.--The table of contents for this Act is
as follows:
Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. General effective date.
TITLE I--GENERAL PROVISIONS
* * * * * * *
[Sec. 119. Certification regarding the use of certain Federal funds.]
* * * * * * *
TITLE I--GENERAL PROVISIONS
* * * * * * *
[SEC. 119. CERTIFICATION REGARDING THE USE OF CERTAIN FEDERAL FUNDS.
[(a) Prohibition.--No Federal funds received under the Higher
Education Act of 1965 ( et seq.) by an institution of higher
education or other postsecondary educational institution may be
used to pay any person for influencing or attempting to
influence an officer or employee of any agency, a Member of
Congress, an officer or employee of Congress, or an employee of
a Member of Congress in connection with any Federal action
described in subsection (b).
[(b) Applicability.--The prohibition in subsection (a)
applies with respect to the following Federal actions:
[(1) The awarding of any Federal contract.
[(2) The making of any Federal grant.
[(3) The making of any Federal loan.
[(4) The entering into of any Federal cooperative
agreement.
[(5) The extension, continuation, renewal, amendment,
or modification of any Federal contract, grant, loan,
or cooperative agreement.
[(c) Lobbying and Earmarks.--No Federal student aid funding
under the Higher Education Act of 1965 ( et seq.) may be used
to hire a registered lobbyist or pay any person or entity for
securing an earmark.
[(d) Certification.--Each institution of higher education or
other postsecondary educational institution receiving Federal
funding under the Higher Education Act of 1965 ( et seq.), as a
condition for receiving such funding, shall annually certify to
the Secretary of Education that the requirements of subsections
(a) through (c) have been met.
[(e) Actions To Implement and Enforce.--The Secretary of
Education shall take such actions as are necessary to ensure
that the provisions of this section are implemented and
enforced.]
* * * * * * *
----------
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] four public members of whom (i) [one] two
shall be a United States [Senator] Senators appointed
by the President of the Senate, and (ii) two shall be
Representatives appointed by the Speaker 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 academic content
standards, challenging student academic achievement
standards, and academic assessments of a State, adopted
and implemented, as appropriate, pursuant to paragraphs
(1) and (3) of section 1111(b) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
6311(b)(1)and (3)) and approved by the Secretary; and
[(ii) implement such standards and assessments for
such programs by not later than the beginning of the
2009-2010 academic year;
[(B) annually determine whether such programs at the
Clerc Center are making adequate yearly progress, as
determined according to the definition of adequate
yearly progress defined (pursuant to section
1111(b)(2)(C) of such Act (20 U.S.C. 6311(b)(2)(C))) by
the State that has adopted and implemented the
standards and assessments selected under subparagraph
(A)(i); and
[(C) publicly report the results of the academic
assessments implemented under subparagraph (A), except
where such reporting would not yield statistically
reliable information or would reveal personally
identifiable information about an individual student,
and whether the programs at the Clerc Center are making
adequate yearly progress, as determined under
subparagraph (B).]
(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 the University 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).
* * * * * * *
TITLE II--GENERAL PROVISIONS
* * * * * * *
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.--
(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).
(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 [(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 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, [amounts
contributed to the fund from non-Federal sources, and]
and the related 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) Effective Date.--The provisions of this section shall
take effect as if included in this Act as enacted on August 4,
1986.
* * * * * * *
----------
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] and 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] individuals 16 years of age or
older 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.] credit hours, except that the provisions of
paragraphs (1) and (3) shall not apply to any
determination under this paragraph.
(5) Eligible credits earned in a continuing education
program--
(A) shall be determined as one credit hour
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 determined as one academic
credit hour for every three continuing
education program credits earned in the case of
an institution on a semester system (which may
be adjusted by the Secretary, if necessary, for
institutions using academic periods other than
semesters, such as trimesters or quarters); and
[(B)] (C) 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.
AUTHORIZATION OF APPROPRIATIONS
Sec. 3. (a)(1) There are authorized to be appropriated to
carry out sections 105, 107, 112(b), and 113 such sums as may
be necessary for fiscal year 2021 and each of the five
succeeding fiscal years.
(2) Funds appropriated pursuant to the authorization under
paragraph (1) shall be transferred by the Secretary of the
Treasury through the most expeditious method available, with
each of the tribally controlled colleges or universities being
designated as its own certifying agency.
(b) There are authorized to be appropriated to carry out
title III such sums as may be necessary for fiscal year 2021
and each of the five succeeding fiscal years. Any funds
appropriated pursuant to this subsection are authorized to
remain available until expended.
(c) There are authorized to be appropriated to carry out
titles IV and V such sums as may be necessary for fiscal year
2021 and each of the five succeeding fiscal years.
(d)(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).
TITLE I--TRIBALLY CONTROLLED COLLEGES OR UNIVERSITIES
* * * * * * *
[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, or (2) to
determine the need and potential for the establishment of such
colleges or 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.]
ANNUAL REPORT ON EMERGING TRIBAL COLLEGES
Sec. 104. Not later than December 31 of each year, the
Secretary shall submit a report to the Senate Committee on
Indian Affairs, the Senate Committee on Health, Education,
Labor and Pensions, the House Committee on Natural Resources,
the House Committee on Education and Labor, the Senate
Appropriations Subcommittee on the Interior, and the House
Appropriations Subcommittee on the Interior on developing and
emerging tribally controlled colleges or universities. Such
report shall include information on--
(1) inquiries received by the Secretary from
federally recognized Indian Tribes and tribal
organizations regarding the process for establishing a
tribally controlled college or university;
(2) the status of ongoing efforts to establish
tribally controlled colleges or universities;
(3) the geographic location, current and projected
size, and anticipated application time frame of each
reported institution; and
(4) such other data as the Secretary may deem
relevant.
* * * * * * *
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] for the
second 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--] drawn from the general
administrative appropriations to the Secretary.
[(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
Sec. 107. (a) Grants shall be made under this title only in
response to applications by tribally controlled community
colleges or 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.] given to institutions which
received payments under this title in fiscal year 2019 or were
affiliated with an institution which received payments under
this title in fiscal year 2019.
(d) In making grants pursuant to this section, the Secretary
shall, to the extent practicable, consult with national Indian
higher education 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.]
(2) Exceptions.--
(A) If the sum appropriated for any fiscal
year for payments under this section is not
sufficient to pay in full the total amount that
approved applicants are eligible to receive
under this section for such fiscal year, the
Secretary shall first allocate to each such
applicant that received funds under this part
for the preceding fiscal year an amount equal
to 100 percent of the product of the per capita
payment for the preceding fiscal year and such
applicant's Indian student count for the
current program year, plus an amount equal to
the actual cost of any increase to the per
capita figure resulting from inflationary
increases to necessary costs beyond the
institution's control.
(B) 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.
(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 are eligible under section 108 shall
not be altered because of funds allocated to any such colleges
or 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 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.
[(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.
[(4) Funds appropriated pursuant to the authorizations under
this section for the fiscal year 2009 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
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)] 3(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 under section 107
for such fiscal year by the sum of the Indian student counts of
such colleges or 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. Such study shall consider the
condition of currently existing Bureau of Indian Affairs
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 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, 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 that receive funding under this Act or the Navajo
Community 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.
[(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)).]
REPORT ON FACILITIES
Sec. 112. (a) The Secretary shall provide for the conduct of
a study on the condition of tribally controlled college or
university facilities, which, for purposes of this section,
shall include the facilities of a Tribal College or University,
as defined in section 316(b) of the Higher Education Act of
1965 (20 U.S.C. 1059c(b)). Such study shall identify the need
for new construction, renovation, and infrastructure
enhancements of tribally controlled college or university
facilities.
(b) The study required in subsection (a) may be conducted
directly by the Secretary or by contract.
(c) A report on the results of the study required in
subsection (a) shall be submitted to the Senate Committee on
Indian Affairs, the Senate Committee on Health, Education,
Labor and Pensions, the House Committee on Natural Resources,
the House Committee on Education and Labor, the Senate
Appropriations Subcommittee on the Interior, and the House
Appropriations Subcommittee on the Interior not later than 18
months after the date of the enactment of the College
Affordability Act.
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] under
section 112(c) 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.] a tribally controlled college or
university shall be a Tribal College or University, as
defined in section 316(b) of the Higher Education Act
of 1965 (20 U.S.C. 1059c(b)).
(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) Activities eligible for a grant under this section shall
be activities that address a wide variety of facilities and
infrastructure needs including--
(1) building of new facilities;
(2) renovating or expanding existing or acquired
facilities;
(3) providing new and existing facilities with
equipment and infrastructure, including laboratory
equipment, computer infrastructure and equipment,
broadband infrastructure and equipment, library books,
and furniture; and
(4) property acquisition.
[(d)] (e) 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)] (f) 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)] (g) 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] Except as provided in sections 112
and 113, 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
* * * * * * *
establishment of program; program agreements
Sec. 302. (a) From the amount appropriated pursuant to
[section 306] section 3(b), 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] Dine 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]
section 3(b);
(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.
(c) The period of a grant under this section shall be not
more than 20 years. During the grant period, an institution may
withdraw and expend interest income generated by the endowment
for any operating or academic purpose. An institution may not
withdraw or expend any of the endowment fund corpus. After the
termination of the grant period, an institution may use the
endowment fund corpus for any operating or academic purpose.
(d)(1) If at any time during the grant period an institution
withdraws part of the endowment fund corpus, the institution
shall repay to the Secretary an amount equal to 150 percent of
the withdrawn amount. The Secretary may use up to 75 percent of
such repaid funds to make additional endowment grants to, or to
increase existing endowment grants at, other eligible
institutions.
(2) Notwithstanding subsection (c) and paragraph(1), the
Secretary may allow an institution to expend part of the
endowment fund corpus if the institution demonstrates such an
expenditure is necessary because of--
(A) a financial emergency, such as a pending
insolvency or temporary liquidity problem;
(B) a life-threatening situation occasioned by a
natural disaster or arson; or
(C) any other unusual occurrence or exigent
circumstance.
* * * * * * *
allocation of funds
Sec. 305. (a) From the amount appropriated pursuant to
[section 306] section 3(b), 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] section 3(b) 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 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.]
TITLE V--TRIBALLY CONTROLLED POSTSECONDARY CAREER AND TECHNICAL
INSTITUTIONS
* * * * * * *
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,] From the amount made available under section 3(c)
for each fiscal year, 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,] From the amount made
available under section 3(c) for each fiscal year, 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.]
(a) Participation of Tribally Controlled Postsecondary Career
and Technical Institutions Under Other Titles.--For purposes of
the preceding titles of this Act, a tribally controlled
postsecondary career and technical institution shall not be
considered to be a tribally controlled college or university
except as follows:
(1) For purposes of section 105(a)(1), the Secretary
shall provide, upon request from a tribally controlled
postsecondary career and technical institution,
technical assistance either directly or through
contract.
(2) For purposes of section 113, title III, and title
IV, a tribally controlled postsecondary career and
technical institution shall be considered to be a
tribally controlled college or university.
(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.]
----------
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 educational 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 purposes 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 educational 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 program, 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 26 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.
* * * * * * *
----------
EDUCATION SCIENCES REFORM ACT OF 2002
* * * * * * *
TITLE I--EDUCATION SCIENCES REFORM
* * * * * * *
PART C--NATIONAL CENTER FOR EDUCATION STATISTICS
* * * * * * *
SEC. 153. DUTIES.
(a) General Duties.--The Statistics Center shall collect,
report, analyze, and disseminate statistical data related to
education in the United States and in other nations,
including--
(1) collecting, acquiring, compiling (where
appropriate, on a State-by-State basis), and
disseminating full and complete statistics
(disaggregated by the population characteristics
described in paragraph (3)) on the condition and
progress of education, at the preschool, elementary,
secondary, postsecondary, and adult levels in the
United States, including data on--
(A) State and local education reform
activities;
(B) State and local early childhood school
readiness activities;
(C) student achievement in, at a minimum, the
core academic areas of reading, mathematics,
and science at all levels of education;
(D) secondary school completions, dropouts,
and adult literacy and reading skills;
(E) access to, and opportunity for,
postsecondary education, including data on
financial aid to postsecondary students;
(F) teaching, including--
(i) data on in-service professional
development, including a comparison of
courses taken in the core academic
areas of reading, mathematics, and
science with courses in noncore
academic areas, including technology
courses; and
(ii) the percentage of teachers who
are highly qualified (as such term is
defined in section 9101 of the
Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7801)) in each State
and, where feasible, in each local
educational agency and school;
(G) instruction, the conditions of the
education workplace, and the supply of, and
demand for, teachers;
(H) the incidence, frequency, seriousness,
and nature of violence affecting students,
school personnel, and other individuals
participating in school activities, as well as
other indices of school safety, including
information regarding--
(i) the relationship between victims
and perpetrators;
(ii) demographic characteristics of
the victims and perpetrators; and
(iii) the type of weapons used in
incidents, as classified in the Uniform
Crime Reports of the Federal Bureau of
Investigation;
(I) the financing and management of
education, including data on revenues and
expenditures;
(J) the social and economic status of
children, including their academic achievement;
(K) the existence and use of educational
technology and access to the Internet by
students and teachers in elementary schools and
secondary schools;
(L) access to, and opportunity for, early
childhood education;
(M) the availability of, and access to,
before-school and after-school programs
(including such programs during school
recesses);
(N) student participation in and completion
of secondary and postsecondary vocational and
technical education programs by specific
program area; and
(O) the existence and use of school
libraries;
(2) conducting and publishing reports on the meaning
and significance of the statistics described in
paragraph (1);
(3) collecting, analyzing, cross-tabulating, and
reporting, to the extent [feasible, information]
feasible--
(A) information by gender, race, ethnicity,
socioeconomic status, limited English
proficiency, mobility, disability, urban,
rural, suburban districts, and other population
characteristics, when such disaggregated
information will facilitate educational and
policy decisionmaking; and
(B) information from the Integrated
Postsecondary Education Data Survey, the
postsecondary student data system established
under section 132(l), or a successor system
(whichever includes the most recent data), that
is disaggregated by race in a manner that
captures all the racial groups specified in the
American Community Survey of the Bureau of the
Census;
(4) assisting public and private educational
agencies, organizations, and institutions in improving
and automating statistical and data collection
activities, which may include assisting State
educational agencies and local educational agencies
with the disaggregation of data and with the
development of longitudinal student data systems;
(5) determining voluntary standards and guidelines to
assist State educational agencies in developing
statewide longitudinal data systems that link
individual student data consistent with the
requirements of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6301 et seq.), promote linkages
across States, and protect student privacy consistent
with section 183, to improve student academic
achievement and close achievement gaps;
(6) acquiring and disseminating data on educational
activities and student achievement (such as the Third
International Math and Science Study) in the United
States compared with foreign nations;
(7) conducting longitudinal and special data
collections necessary to report on the condition and
progress of education;
(8) assisting the Director in the preparation of a
biennial report, as described in section 119; and
(9) determining, in consultation with the National
Research Council of the National Academies, methodology
by which States may accurately measure graduation rates
(defined as the percentage of students who graduate
from secondary school with a regular diploma in the
standard number of years), school completion rates, and
dropout rates.
(b) Training Program.--The Statistics Commissioner may
establish a program to train employees of public and private
educational agencies, organizations, and institutions in the
use of standard statistical procedures and concepts, and may
establish a fellowship program to appoint such employees as
temporary fellows at the Statistics Center, in order to assist
the Statistics Center in carrying out its duties.
* * * * * * *
----------
SECTION 1710 OF THE UNITED STATES INSTITUTE OF PEACE ACT
funding
Sec. 1710.
(a) Authorization of Appropriations.--
(1) In general.--For the purpose of carrying out this
title, there are authorized to be appropriated such
sums as may be necessary for [fiscal years 2009 through
2014] fiscal year 2021 and each of the 5 succeeding
fiscal years.
(2) Availability.--Funds appropriated pursuant to the
authority of paragraph (1) shall remain available until
expended.
(b) The Board of Directors may transfer to the legal entity
authorized to be established under section 1704(c) any funds
not obligated or expended from appropriations to the Institute
for a fiscal year, and such funds shall remain available for
obligation or expenditure for the purposes of such legal entity
without regard to fiscal year limitations. Any use by such
legal entity of appropriated funds shall be reported to each
House of the Congress and to the President of the United
States.
(c) Any authority provided by this title to enter into
contracts shall be effective for a fiscal year only to such
extent or in such amounts as are provided in appropriation
Acts.
(d) Extension.--Any authorization of appropriations made for
the purposes of carrying out this title shall be extended in
the same manner as applicable programs are extended under
section 422 of the General Education Provisions Act.
MINORITY VIEWS
INTRODUCTION--THE NEED FOR REFORM
There is urgent and growing need to reform the Higher
Education Act of 1965 (HEA), a law authorizing the annual
disbursement of billions of federal taxpayer dollars in
institutional and student aid. Reform is necessary because the
postsecondary education system is not serving America's college
students well. Tuition is skyrocketing, millions of students do
not complete their program, and the haphazard transition from
classroom to career is murky. Unfortunately, H.R. 4674, the
College Affordability Act, would double down on the failing
status quo rather than address the root causes of these issues.
Excessive tuition hikes have made college increasingly
unaffordable. Tuition and fees at institutions are rising over
3 percent beyond inflation and have for decades.\1\ If the cost
of a new car had risen as fast as tuition over the last three
decades, then the average new vehicle today would cost more
than $80,000.\2\ Over 80 percent of parents say four-year
schools charge too much, and about 50 percent of parents think
four-year schools are inaccessible to middle-class
Americans.\3\
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\1\https://trends.collegeboard.org/sites/default/files/2017-trends-
in-college-pricing_0.pdf
\2\https://www.nytimes.com/2015/04/05/opinion/sunday/the-real-
reason-college-tuition-costs-so-much.html
\3\https://static01.nytimes.com/files/2018/op-ed/0319poll.pdf
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At the same time, completion rates are low and stagnant.
Colleges enroll but do not graduate students, and non-
completers struggle to repay their student loans. The four-year
completion rate for a baccalaureate degree for the 2012
starting cohort is 43.7 percent\4\ and each additional year of
school in a public baccalaureate degree-granting college will
cost a student $22,826 on average.\5\ The total cost of not
graduating on time exceeds $60,000 per year when factoring in
lost wages.\6\
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\4\https://nces.ed.gov/programs/digest/d19/tables/
dt19_326.10.asp?current=yes
\5\https://completecollege.org/article/new-report-4-year-degrees-
now-a-myth-in-american-higher-education/
\6\Id.
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A postsecondary education system that does not prepare
students for careers has real consequences for employers and
society. Just 13 percent of the country believes college
graduates are well prepared for success in the workplace.\7\
This disconnect between education and workforce development is
a contributing factor to the over 7 million unfilled jobs
nationwide as of late 2019.\8\
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\7\http://news.gallup.com/opinion/gallup/182867/america-no-
confidence-vote-college-grads-work-readiness.aspx
\8\https://www.bls.gov/news.release/jolts.a.htm
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The recent worldwide pandemic exposed the weaknesses of the
current federal approach. At a recent Committee hearing,
President of Western Governors University Scott Pulsipher
summed up the enormous roadblocks our existing rigid system
puts in front of students:
Current students also have unique pressures such as
navigating unanticipated online learning experiences,
potentially without adequate broadband or sufficient
support; attempting to choose fields of study that will
provide them with a sound return on their investment at
a time when unemployment is at a record high; and
mapping out a plan of study on a fixed academic
calendar at a time when they may only be able to
reasonably predict their financial and time capacity a
week at a time. Students need education more than ever,
but the circumstances of COVID create additional
barriers to many pathways to opportunity.\9\
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\9\https://republicans-edlabor.house.gov/uploadedfiles/
scott_d._pulsipher_wgu_-_ written_testimony_-_july_ 7_2020.pdf
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Evidence of our systemic failure is also seen in the
overwhelming number of borrowers who cannot afford their
monthly payments and the countless colleges that struggled to
move from traditional modalities of education to online
formats. Too many students finance their education with
unaffordable debt they cannot repay. In a Pew survey conducted
from August through September of 2020, nearly 6 in 10 borrowers
said making their monthly student loan payments would be
somewhat or very difficult if emergency temporary benefits were
removed.\10\ Now is the time to make the transformational
changes required to open more pathways of opportunity and serve
the best interests of students.
---------------------------------------------------------------------------
\10\https://www.pewtrusts.org/en/research-and-analysis/articles/
2020/11/03/outreach-from-borrowers-could-overwhelm-student-loan-system-
when-pandemic-pauses-end
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Any system that is unaffordable for students, impractical
for employers, and a bad investment for taxpayers needs
comprehensive reform. We cannot afford to rubber stamp a law
first created over fifty years ago, or worse, ignore the
lessons from past reauthorizations which compounded existing
problems.
A MISSED OPPORTUNITY FOR BIPARTISANSHIP
Wholesale changes to federal postsecondary education policy
require thoughtful consideration and collaboration with those
from across the ideological spectrum. This is especially
important when our constituents agree there is a significant
problem in higher education. A 2018 Pew Research Center report
found six in 10 Americans say that higher education is going in
the wrong direction.\11\ This viewpoint is generally agreed
upon across the parties, as a majority of both self-identified
Republicans and self-identified Democrats thought higher
education was going in the wrong direction.\12\
---------------------------------------------------------------------------
\11\https://drive.google.com/file/d/1p_pLX-
JwdZNYPE5claH7pKMl2mEIApUg/view
\12\ibid
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Committee Democrats paid lip-service to bipartisanship over
the course of five public hearings on HEA reform, but when it
most suited them they reverted to political gamesmanship at the
expense of students. As Committee Democrats so eloquently
stated last Congress:
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.\13\
---------------------------------------------------------------------------
\13\H. Rept. 115-550, https://www.congress.gov/115/crpt/hrpt550/
CRPT-115hrpt550.pdf
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Committee Republicans agree that there is a bipartisan path
forward to comprehensive HEA reform and urge the majority to
heed their own advice and abandon misguided partisan policies.
Students, taxpayers, and employers cannot afford to perpetuate
a broken federal law. Committee Republicans remain committed to
working on bipartisan HEA reform legislation and urge Committee
Democrats to negotiate in good faith for the American people.
CONGRESSIONAL BUDGET OFFICE ANALYSIS OF H.R. 4674 AND THE TRUE COST TO
AMERICAN TAXPAYERS
Budget gimmicks have masked the true cost of federal
student loan programs for decades. The Congressional Budget
Office (CBO) recommends moving from budgetary estimate
constructs under the Federal Credit Reform Act of 1990 (FCRA)
to fair-value scoring to more accurately account for the cost
of federal credit programs. Fair-value scoring incorporates
market risk, providing a more accurate and fiscally responsible
way to account for liabilities hardworking taxpayers face
through programs like the Federal Direct Loan program.
The inaccurate estimation of federal loan programs has
resulted in poor policy, which has harmed the very students the
HEA intended to benefit by burying them in excessive debt.
CBO's May 2019 baseline for the student loan program compares
the estimated budgetary costs of all the student loan programs
under the FCRA to fair-value scoring. The baseline shows on a
FCRA basis, four out of the five Direct Loan programs would
yield savings and subsidized Stafford loans to undergraduates
would be a cost to the government. Yet, on a fair-value basis,
four out of the five Direct Loan programs would be a cost and
parent PLUS loans would still produce savings under Fair-Value
scoring. This difference between FCRA and Fair-Value
illustrates the importance of using the accounting method that
factors in market risk. The May baseline shows that over the
next 10 years, the federal government will lose money lending
to students regardless of which accounting method is used. FCRA
estimates suggest a loss of $31 billion over 10 years while the
Fair-Value estimate shows losses exceeding $306 billion over 10
years.
Increasing federal spending through hand-picked policies
inefficiently redistributes taxpayer dollars according to the
political whims of career politicians. H.R. 4674 is a perfect
example of this as the bill funnels another $332 billion into a
broken system already projected to cost Americans $300 billion
dollars by 2029. This endeavor is unsustainable and
irresponsible especially considering H.R. 4674 fails to
properly scrutinize poorly performing postsecondary programs.
H.R. 4674 FAILS TO IMPROVE THE HEA ACCOUNTABILITY FRAMEWORK
H.R. 4674 further exacerbates an already dysfunctional
marketplace by pouring $332 billion into a system without
including higher expectations for the return on investment for
students and taxpayers. A recent Pew Charitable Trusts report
calculated that federal spending in higher education, not
including loans and tax deductions, reached over $74 billion in
2017.\14\ Tragically, this significant investment in higher
education has done nothing to help improve the system for
students.
---------------------------------------------------------------------------
\14\https://www.pewtrusts.org/en/research-and-analysis/issue-
briefs/2019/10/two-decades-of-change-in-federal-and-state-higher-
education-funding
---------------------------------------------------------------------------
Student outcomes continue to languish despite the
increasing reliance on federal taxpayer funds. Fewer than 60
percent of students complete their program of study within six
years.\15\ That number drops to a meager 41 percent for
students attending public two-year institutions.\16\ Four in 10
baccalaureate-degree recipients are under-employed in their
first jobs after school, with two-thirds of them still in a job
that does not require a bachelor's degree five years later.\17\
Fewer than two in five employers believe college graduates are
well-prepared for a job in the field in which they studied
demonstrating a clear disconnect between what is expected from
institutions of higher education and the reality of student
outcomes.\18\ The disparity between outcome expectations and
reality must be addressed through stronger accountability
provisions in the HEA.
---------------------------------------------------------------------------
\15\https://nscresearchcenter.org/wp-content/uploads/
Completions_Report_2019.pdf
\16\Ibid.
\17\https://www.wsj.com/articles/study-offers-new-hope-for-english-
majors-1540546200
\18\https://www.forbes.com/sites/ccap/2014/08/06/are-recent-grads-
prepared-for-the-workplace/#735d27796a37
---------------------------------------------------------------------------
H.R. 4674 falls woefully short of establishing an
accountability framework to increase economic opportunity for
all students. For instance, the proposed adjusted Cohort
Default Rate (aCDR) fails to improve the Cohort Default Rate
(CDR), which is one of the few existing HEA provisions to
supposedly hold colleges accountable. The CDR assesses how many
former students default on their loans within three years of
entering repayment and punishes schools with an overall CDR of
30 percent or higher, but this threshold is inadequate to
change institutional behavior. Theoretically, the proposed aCDR
holds colleges more accountable by addressing the issue of
strategic forbearances.\19\ However, this intended purpose is
undermined because it carves out colleges with low borrowing
rates even if the schools' borrowers are struggling with their
debt burden. For instance, under current law, an institution
with a 40 percent CDR and 20 percent borrowing rate would get
kicked out of the Title IV eligibility pool. That same
institution, because of the borrowing rate provision in H.R.
4674, would dodge any sanctions. Because the CDR is also a
mechanism to ensure grant dollars are spent wisely, the aCDR's
flawed borrowing rate exemption hampers policymakers' ability
to judge taxpayer return on investment. The aCDR proposal also
gives financial assistance and other breaks to Democrats'
favored institutions of higher education, ensuring zero
consequences for poor student outcomes at those institutions.
This flawed policy means the bill puts the interests of some
institutions over the interests of students. The Democrats'
proposed aCDR is a toothless idea that would continue rewarding
the institutions that ignore how their students fare after
leaving campus.
---------------------------------------------------------------------------
\19\``Strategic forbearance'' means when institutions or third-
party companies acting on behalf of an institution encourage borrowers
to enter into long-term forbearance to avoid having the borrower
default in the three-year CDR window. https://www.gao.gov/assets/700/
691520.pdf
---------------------------------------------------------------------------
Nothing captures the Committee Democrats' empty posturing
of holding schools accountable more than the bill's proposed
on-time repayment rate. While it is an interesting concept, the
on-time repayment rate passes the buck to the Secretary of
Education (Secretary) to determine the threshold to hold
institutions accountable suggesting Democrat legislators do not
want to be held responsible for legislating tough governing
decisions. If there is a policy goal in mind, then the
legislation should explicitly state in statute the threshold
that institutions must meet to pass the rate. If Congress
really wants colleges and universities to improve their service
of students, then the colleges and universities need to have
certainty about what measures they will need to meet. Instead,
H.R. 4674 relinquishes this legislative authority to the
executive branch to determine such an important metric under
their accountability scheme. The negative consequences of
deferring decisions to the executive branch in this way could
vary dramatically depending on the whims of any particular
Secretary at any particular time.
H.R. 4674 proposes to remove institutions' Title IV
eligibility for schools that flunk arbitrary spending formulas.
This is not so much an accountability metric as it is an
accounting gimmick. Punishing institutions for expenditures
does not have a direct correlation with whether students
succeed. In the rush to bully institutions to spend money on
Democrat priorities, the bill again fails to put forward an
accountability system that puts students first.
The aCDR, on-time repayment rate, and college expenditure
requirements all apply to an institutional, rather than
programmatic, level illustrating how H.R. 4674 misses a prime
opportunity to reform higher education. By moving to
programmatic accountability, taxpayers and students alike could
know they are investing in college programs that lead to stable
outcomes. Institutional metrics, on the other hand, allow too
many inferior programs to continue preying on students.
Additionally, by forcing accountability metrics at the
institutional level, hitting the metric becomes a death knell
for any institution, creating pressure for special treatment.
By keeping the metric at the program level, institutions have
the opportunity to shut down or reform individual programs
without the entire institution's fate hanging in the balance.
Notably, there are indications that Committee Democrats
recognize programmatic accountability as the superior policy in
that H.R. 4674 imposes programmatic requirements on certain
types of academic programs, mostly provided by career-focused
proprietary institutions.
Committee Democrats, in their zeal to excuse disappointing
federal higher education policy, establish oppressive metrics
and nonsensical program participation requirements that target
one sector of postsecondary education while ignoring the
interests of the other 90 plus percent of college students.\20\
While Committee Democrats appear focused exclusively on only
one postsecondary education sector for oversight, Committee
Republicans support accountability for all. Not only does H.R.
4674 establish a system allowing bad schools to continue
harming students, but the relentless drive to eliminate
taxpaying schools can lead to significant negative consequences
for the students who have thrived after choosing to attend
these institutions.
---------------------------------------------------------------------------
\20\https://nces.ed.gov/programs/digest/d19/tables/
dt19_303.70.asp?current=yes
---------------------------------------------------------------------------
Committee Republicans do not understand why Democrats
ignore the educational experience of nine out of every 10
students. Equally concerning is that by demonizing a sector of
postsecondary education, Committee Democrats are condemning the
efforts of the millions of Americans who are proud of their
career-related postsecondary credential by insinuating that
those students are incapable of making decisions that are in
their best interests. Committee Republicans know many students
are looking for the credentials and program flexibility that
fit their lives rather than changing their lives to work within
the antiquated and unfair ivory tower structures of the past.
Proposals based on partisan passions instead of rational, long-
term policymaking eliminates opportunities, options, and
potential. Accordingly, H.R. 4674 propounds senseless policies
that are contrary to the intent of the HEA.
Committee Democrats were inconsistent in applying certain
accountability metrics such as high school earnings
requirements in H.R. 4674, which requires academic programs
that participate in the ``Job Training'' Pell Grant program
have student earnings equal to or above the mean or median high
school earnings. Although accountability metrics that are good
for short-term programs should be applied across the board,
Committee Democrats did not apply this provision to all
programs at all institutions, perhaps because 54 percent of
public institutions cannot show that the majority of their
students are earning more than a high school graduate six years
after enrollment.\21\ This bears restating as most public
institutions, which are the very institutions the Committee
Democrat bill prioritizes over all others, cannot demonstrate
that most of their students are earning more than a high school
graduate.
---------------------------------------------------------------------------
\21\https://www.thirdway.org/report/higher-eds-broken-bridge-to-
the-middle-class
---------------------------------------------------------------------------
Committee Republicans support accountability for every
institution on behalf of every student. It is past time to
ensure federal funds go to programs with the greatest chance of
bolstering the economic prospects of students and their
communities. Committee Republicans urge our colleagues to
abandon these misguided policies and collaborate on bipartisan
HEA reform that aligns the interests of students, institutions,
employers, and taxpayers.
COLLEGE PRICES WILL CONTINUE TO SKYROCKET
True reform of the HEA has never been more important for
American families as demonstrated by the current system which
includes over 40 million Americans carrying over $1.5 trillion
in federal student loan debt. There is some encouraging
evidence that the student debt burden is manageable for the
millennial generation, but there are no doubt negative
consequences as many delay important life decisions like buying
homes, having children, and starting small businesses because
of student loan payments.\22\ The reforms included in the next
HEA update will have lasting consequences on whether this debt
burden continues to drag on the economy. Unfortunately, H.R.
4674 fails in this effort.
---------------------------------------------------------------------------
\22\https://www.manhattan-institute.org/millennials-arent-all-
drowning-student-debt
---------------------------------------------------------------------------
It is critical for Congress to reflect on how postsecondary
education became so dysfunctional in the first place to
identify the best ways of encouraging economic mobility. To
that end, it is vitally important federal policy provide a
framework to: address the underlying drivers of college cost;
make the federal student aid system intuitive to access,
understand, and complete; and best direct limited federal
resources to those students who are most disadvantaged. H.R.
4674 misses the mark on all three accounts.
Federal Involvement Drives Up the Cost of College
H.R. 4674 will not reduce college costs for the vast
majority of Americans. In fact, the bill exacerbates the reason
tuition prices have skyrocketed and will harm low-income
students who are trying to get ahead. Former Secretary of
Education William Bennett once posited that easy access to
federal subsidies meant colleges and universities would raise
tuition prices knowing taxpayer funds would soften the blow of
rising costs.\23\ Independent analyses have found some evidence
to support the Bennett Hypothesis, suggesting that federal
student aid does lead to higher tuition costs for students.\24\
Subsidized loans were the worst offender according to a study
conducted by the New York Federal Reserve which found that
subsidized loans have a pass-through rate of 60 cents on the
dollar. Put another way, institutions raised their tuition
relative to what would have been expected when the government
offers higher subsidized loan limits.
---------------------------------------------------------------------------
\23\https://www.jamesgmartin.center/2017/12/bennett-hypothesis-
still-matter/
\24\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
---------------------------------------------------------------------------
Despite this evidence, Democrats seek to expand subsidized
loans to graduate and professional students who are
statistically likely to go on to join the wealthiest 25 percent
of Americans.\25\ When the maximum Pell Grant was $5,920 in
2017 18, it was 44 percent higher in inflation-adjusted dollars
than it was 20 years earlier,\26\ yet according to at least one
left-leaning thinktank the ``maximum Pell Grant covers the
smallest share of college costs in the program's history.''\27\
Put simply, taxpayers have done their part to make college more
affordable for students but institutions are either unwilling
or unable to accordingly control costs.
---------------------------------------------------------------------------
\25\https://www.urban.org/urban-wire/which-households-hold-most-
student-debt
\26\https://research.collegeboard.org/pdf/trends-student-aid-2018-
full-report.pdf
\27\https://ticas.org/wp-content/uploads/2018/07/Overall-Pell-one-
pager.pdf
---------------------------------------------------------------------------
Committee Democrats argue fiercely that federal funding has
no impact on college prices while contending paradoxically that
state disinvestment has a direct relationship to increasing
college prices. The suggestion that money from one government
source has no effect on college costs while funds from another
government source are solely responsible for tuition hikes is
nonsensical. Committee Republicans acknowledge state funding
decisions over the last decade may affect college prices at
some institutions, but proving causation in complicated
institutional funding decisions is difficult to determine with
certainty. There are limited analyses of the long-term trends
in state postsecondary education investment, but there are two
worth mentioning. The first is a study from Mikyong Minsun Kim
of The George Washington University and Jongwan Ko of
Sungkyunkwan University in Seoul, South Korea, who examined the
effects of state policies on tuition at public universities
between 1998 and 2007. The authors found that an astonishingly
small rate of just 10 cents of every dollar increase in state
public appropriations helps lower tuition for students.\28\
---------------------------------------------------------------------------
\28\https://www.brookings.edu/research/the-disinvestment-
hypothesis-dont-blame-state-budget-cuts-for-rising-tuition-at-public-
universities/
---------------------------------------------------------------------------
The second study including of over three decades of data,
by Andrew Gillen of the Texas Public Policy Foundation,
concluded:
There is no long-term trend of disinvestment
in state funding per student.
State funding is volatile, but within a
narrow range.
Colleges have never had more total funding
than they do today, thanks in large part to sustained
tuition hikes since 1980.
There is no detection of the (weak)
relationship between state funding cuts and increases
in tuition in the [State Higher Education Finance]
data.\29\
---------------------------------------------------------------------------
\29\https://files.texaspolicy.com/uploads/2019/10/21124414/Gillen-
The-Myth-of-State-Disinvestment-in-Higher-Education.pdf
---------------------------------------------------------------------------
Short term trends show similar results as data from the
State Higher Education Executive Officers Association shows
that in the five-year period from 2014 to 2019 funding at
public institutions per student rose $882 but net tuition
revenue increased $490 per student.\30\ In other words, tuition
rose despite an increase in state funding. Students were not
beneficiaries from more government spending. Taken together,
the evidence suggests that the problem of increasing tuition
costs cannot be solved with more government spending. In fact,
increased public spending may actually aggravate the problem.
---------------------------------------------------------------------------
\30\https://shef.sheeo.org/wp-content/uploads/2020/04/
SHEEO_SHEF_FY19_Report.pdf
---------------------------------------------------------------------------
At the same time, there is strong evidence of the impact of
federal regulations on college costs as every dollar spent on
compliance with federal laws and regulations is a dollar not
being spent keeping costs low for students. H.R. 4674 adds
costly new requirements on schools that either increase
consumer prices or make proposed programs unaffordable for
schools to offer. Indeed, some requirements established through
laws and regulations are critical to protect students' rights
and taxpayers' dollars, which is why it is even more important
to evaluate each requirement that exists to keep what is needed
and eliminate what is not.
Since the HEA was passed in 1965, the federal government
has perpetually layered on extraneous requirements, reports,
and rules that contribute to higher postsecondary education
costs. For instance, as far back as 1997, Stanford University
estimated the school spent $29 million on compliance costs.\31\
In 2012, Hartwick College released a report finding the small
institution spent seven percent of its non-compensation
operating budget, or almost $300,000 annually and 7,200 labor
hours, on federal reports and forms.\32\ In 2015, Vanderbilt
estimated the entire U.S. higher education system spends $27
billion a year complying with federal regulations.\33\ This is
robust evidence of the cost of federal requirements on colleges
demonstrating how these tangible federal burdens are passed on
to consumers and contribute to higher college costs.
---------------------------------------------------------------------------
\31\https://www.help.senate.gov/imo/media/
Regulations_Task_Force_Report_2015_FINAL.pdf
\32\Ibid.
\33\https://cdn.vanderbilt.edu/vu-news/files/20190417223557/
Regulatory-Compliance-Report-Final.pdf
---------------------------------------------------------------------------
As previously noted, even after a decades-long layering of
extraneous federal red tape, H.R. 4674 makes matters worse. For
example, the underlying bill adds extensive new requirements
for institutions to track spending categories while imposing
dozens of other new reporting requirements. The short-term Pell
Grant program alone has six pages of requirements for every
participating institution. Furthermore, H.R. 4674 forces
institutions to create multiple new staff positions to carry
out additional regulatory requirements. These well-meaning
requirements are added to the HEA without a clear understanding
of the respective necessity or cost. A serious HEA
reauthorization process would have included significant
bipartisan conversations about how to balance policy goals
while limiting federal requirements and the excess cost passed
along to schools and students. The Committee Democrats did not
do that leaving H.R. 4674 with numerous requirements that would
further increase college costs.
Handouts to the Wealthy Do Not Make Higher Education More Affordable
Student loan refinancing may be the most starkly regressive
policy included in H.R. 4674. Research by New America on
student loan refinancing, titled ``In the Interest of Few,''
shows that more than half of the student loan refinancing
benefit would go to households in the top two income
quintiles.\34\ The average borrower would save just $8 per
month, which is a barely noticeable reduction for those
students struggling to pay monthly bills.\35\ If student loan
refinancing were to pass, then borrowers in the highest earning
households would save almost twice as much as lowest earning
households because those with a lot of income tend to have
graduate and professional degrees that required larger
loans.\36\ Additionally, it is known that, on average,
Americans with a post-baccalaureate degree earn over $1 million
more over their lifetimes than those with a high school diploma
alone.\37\ It is neither fair nor progressive to force the
millions of struggling, low-and-middle income Americans who
either did not go to college or worked hard to not borrow for
college to help repay the loans of those who are set to enter a
much higher income bracket. Federal student loan refinancing
does not address the issue of rising college costs nor does it
stem future acquisition of new student loan debt. In fact, it
could aggravate the situation by signaling to the higher
education system that the federal taxpayer will help bailout
increased prices.
---------------------------------------------------------------------------
\34\https://www.newamerica.org/education-policy/policy-papers/
interest-of-few/
\35\Ibid.
\36\Ibid.
\37\https://www.ssa.gov/policy/docs/research-summaries/education-
earnings.html
---------------------------------------------------------------------------
Borrowers truly struggling with repayment would be better
served enrolling in an available income-driven repayment (IDR)
plan. Unfortunately, H.R. 4674's attempt to reform IDR plans
amounts to a massive new loan forgiveness program that would
wipe away the debts of those with the ability to repay. The
bill increases the exemption threshold used to determine
affordable payments from 150 percent to 250 percent of the
poverty line. To put this in perspective, whereas the typical
baccalaureate degree borrower today\38\ would fully repay the
loan by making affordable monthly payments through the existing
IDR plans, under H.R. 4674, that same borrower would have
$25,473 of federal loan debt forgiveness paid for by the
American taxpayer.\39\ Committee Republicans prioritize
fairness which includes not increasing the burden on the
average American, who does not have a bachelor's degree, to pay
for the college experience of a student set to earn hundreds of
thousands of dollars more in lifetime income. In these ways,
this represents yet another proposal that sounds like it is
reducing college costs, but actually just shifts the costs to
all taxpayers rather than individual students who chose to
benefit from the pursuit of higher education.
---------------------------------------------------------------------------
\38\The typical borrower is assumed to have approximately $28,000
of education debt with a starting salary of $35,000.
\39\https://www.aei.org/education/higher-education/democrats-
double-down-on-a-sneaky-student-loan-forgiveness-plan/
---------------------------------------------------------------------------
Further ensnaring borrowers in the tangled web of
forgiveness options, H.R. 4674 doubles down on a poorly
designed program that has led to borrower confusion and
frustration by creating retroactive borrower eligibility. The
existing, inefficient Public Service Loan Forgiveness (PSLF)
program poorly targets benefits with studies showing that
borrowers with graduate and professional degrees with high
earning potential benefit most from PSLF.\40\ Loan forgiveness
should be directed to those borrowers who truly need the
relief. This point is underscored by the Urban Institute's
analysis of American Community Survey Census data, which found
that not only do most public sector occupations also exist in
the private sector, but there is minimal difference in pay
between the two sectors.\41\
---------------------------------------------------------------------------
\40\Testimony of Beth Akers, Hearing on Challenges and
Opportunities in Higher Education. https://republicans-
edlabor.house.gov/uploadedfiles/akers_written_testimony.pdf.
\41\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.
---------------------------------------------------------------------------
Additionally, some institutions have abused the combination
of unlimited Grad PLUS lending and unlimited forgiveness
options through IDR and PSLF to increase costs and have the
federal taxpayer pay virtually the entire cost of a student's
higher education experience. In the case of one institution,
the expected average amount a law school graduate from the
institution will have forgiven because of current federal
policies is around $158,888.\42\ Taken together, these points
illustrate how H.R. 4674's PSLF changes will force lower-and-
middle-class Americans to shoulder the cost of educating the
privileged. Committee Republicans oppose perpetuating failed
policies that are not targeted to helping those most in need.
Instead, the Committee would have been wise to adopt Rep. Elise
Stefanik's (R-NY) amendment to reform the loan forgiveness
program in a focused and fair manner.
---------------------------------------------------------------------------
\42\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/.
---------------------------------------------------------------------------
According to the Government Accountability Office,
taxpayers are already destined to pay for forgiving $108
billion in loans disbursed between 1998 and 2016.\43\ As
mentioned earlier, even though taxpayers are already projected
to lose over $300 billion dollars over the next 10 years on the
loan program, H.R. 4674 increases that cost by at least $98
billion through proposed changes to refinancing, IDR, and PSLF
programs. Their bill suggests that Committee Democrats believe
there are unlimited federal resources to squander without
consequence. In contrast, if Committee Democrats had
collaborated with Committee Republicans to address these loan
policy concerns, then bipartisan reforms to these programs
could have been pursued in a fair and cost neutral manner.
---------------------------------------------------------------------------
\43\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.
---------------------------------------------------------------------------
``Free'' College
H.R. 4674's headline-grabbing centerpiece plan to address
inequality problems through the creation of a ``free''
community college federal-state partnership program is a
regressive policy idea that will contribute to inequality.
Committee Republicans oppose policies that benefit the wealthy
at the expense of low-income households, especially when those
policies are not ``free'' to state or federal taxpayers. The
defects of this program are extensive. To begin with, it is
unlikely that states could afford to participate in the program
given the onerous state match and maintenance of effort
requirements. The design of the program means the federal-state
partnership leaves wealthier states at a significant advantage
over poorer states, which may need more assistance to help
their residents attain a postsecondary credential. Furthermore,
the policy communicates that only some students in some states
matter. As federal policymakers, our policy should focus on
helping students regardless of what state they live in rather
than creating costly new programs that support postsecondary
systems in only select states.
Committee Democrats equate ``affordable'' for some students
with ``lowering costs,'' which are in many ways dramatically
different concepts. Besides being an overreach of federal
control over state and local decision-making, the requirements
contained in the federal-state partnership would limit academic
freedom and drive up the cost of doing business for
participating states and institutions. Because the program is
designed to funnel students into traditional two-year programs,
students needing greater flexibility to accommodate work or
home obligations, or program of study choices, would likely be
unable to benefit from the ``free'' college proposal. H.R. 4674
would effectively shepherd students into a one-size-fits-all
model, which is the opposite of what contemporary students need
to succeed.
Several media outlets and interest groups claim that
``free'' college proposals would help low-income Americans
attain a postsecondary credential, but in reality the proposed
policy disproportionately benefits wealthy students.\44\ Yet
again, bipartisan collaboration could have included means
testing the program to ensure those most in need benefit most
from the program. Unfortunately, Committee Democrats excluded
such commonsense improvements to the bill.
---------------------------------------------------------------------------
\44\https://www.thirdway.org/memo/why-free-college-could-increase-
inequality
---------------------------------------------------------------------------
If Committee Democrats would like to encourage access to
and successful completion of postsecondary education, then they
should scrap ``free'' college program proposals that limit low-
income students' institutional choice or compromise their
freedom to even seek higher education.\45\ The legislation
promotes community college as the best option, but those
schools may not always serve the best interests of all
students. For example, the three-year default rate of community
colleges is 17 percent, which is one percentage point higher
than that of two-year proprietary colleges the Committee
Democrats aim to legislate out of existence.\46\ It is true
that student loan defaults are a present challenge in all
sectors of higher education, including community colleges, but
the federal-state partnership program would set a damaging
precedent of rewarding schools for below average outcomes.
---------------------------------------------------------------------------
\45\Ibid.
\46\https://www.aei.org/education/the-left-gives-community-
colleges-another-free-pass-for-unpaid-student-loans/
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H.R. 4674 Wastes Money Instead of Making College Affordable
Priorities are defined by where and how limited funding
resources are spent. H.R. 4674 repeatedly diverts money to
colleges over students, the privileged over the needy, and
illegal aliens over middle-class Americans. H.R. 4674 gives
tens of billions of dollars to institutions instead of
investing directly in students and trusting individuals to
follow the educational path best for them. Americans today and
the students of tomorrow deserve better, which is why
Republicans believe in a different set of core principles. We
believe in responsible legislation that values economic
opportunity. We believe in directing hard-working taxpayer
dollars wisely so limited resources reach those most truly in
need. We believe in ameliorating, rather than aggravating, the
underlying causes of surging college costs. We believe in a
simplified student aid structure that helps prepare students
for rewarding careers. Committee Republicans stand ready to
promote evidence-based and practical postsecondary education
reforms to truly make college more affordable.
FEDERAL TAKEOVER OF HIGHER EDUCATION
H.R. 4674 demonstrates how Committee Democrats seek to
drastically enlarge the federal role in postsecondary
education. Instead of respecting the original and worthy
purpose of the HEA, which is to provide everyone that so wishes
the opportunity to pursue a postsecondary credential of his or
her choice, Committee Democrats would limit choice and empower
the federal government to make those decisions for students and
families. In contrast, Committee Republicans would empower
families and students to make their own choices. H.R. 4674
seeks to expand the federal government's role in higher
education to limit academic freedom, turn state and
institutional decisions over to the Secretary, violate student
privacy, and publicly shame those entities expressing
constitutionally protected rights.
As previously mentioned, H.R. 4674 significantly limits
academic freedom by cramming as many people into one of the so-
called ``free'' college pathways even if a student would be
better served by alternative options such as those provided by
public flagship universities, private or independent
institutions, or career-focused colleges. Successful federal
policy should not be measured by how many people are coerced
into a community college education but rather by how the
federal government expands or encourages economic opportunity.
The federal-state partnership fails on this measure. This
proposal attempts to turn our voucher-like higher education
system into a kind of higher education ``No Child Left Behind''
system controlled by the federal government. That did not work
for elementary and secondary school students and it certainly
will not work for students in the diverse postsecondary
education marketplace. But H.R. 4674 goes one step further,
denying students the right to use their federal student aid at
the institution they believe works best for them. Committee
Democrats limit options for incarcerated students and students
seeking additional education who wish to attend a proprietary
institution. H.R. 4674 further proposes onerous standards,
qualifications, accreditor delays, state bureaucracy, and
burdensome requirements for other schools interested in
offering these critical programs. These shortsighted ideas
would deny millions of poor and vulnerable students the
opportunity to pursue the skills development needed to achieve
21st century success.
With H.R. 4674, Committee Democrats would also inject
Congress into domains that are the responsibility of states and
institutions, conditioning state participation in the proposed
federal-state partnership on fulfillment of Secretarial
requirements. One such requirement forces states to amend their
laws to align K12 and postsecondary education academic
standards. The bill forces accreditors to impose uniform bright
line benchmarks for certain student achievement standards that
the Secretary can increase at will, representing an abusive
expansion of federal authority that would undermine the purpose
of accreditation and disregard institutional diversity. The
bill would empower unelected bureaucrats and the Secretary with
setting academic standards, suggesting Democrats trust
Washington officials with better understanding of what local
communities need more than those that actually live there.
Although Republicans oppose creating a national school board
for higher education, Committee Democrats again disregard the
sage truth that the closer one is to the problem, the closer
one is to the solution.
H.R. 4674 brings ``Big Brother'' to life by violating the
privacy of millions of Americans. Under the legislation, the
Department will collect and house students' personally-
identifiable information (PII), regardless of whether a student
participates in the federal student aid system.
The Department, which is historically incompetent at
protecting PII,\47\ has no right to collect PII data on non-
Title IV aid recipients and should never maintain a database of
all students' PII. Not only is the proposed pathway for
students to request access to their PII for inspection deeply
concerning and ripe for abuse by fraudsters, but the bill
entitles unelected bureaucrats to add more data points for
collection without congressional approval setting up an entire
data system ripe for overreach and abuse. There are better ways
to leverage technology to provide the necessary data while
maintaining a limited federal role. Committee Republicans
believe that bipartisan compromise could yield a proposal that
improves institutional accountability without compromising
student privacy.
---------------------------------------------------------------------------
\47\For example, the IRS data retrieval tool, which hundreds of
families use to fill out the FAFSA, was breached by identity thieves to
steal PII. https://www.washingtonpost.com/news/grade-point/wp/2017/04/
06/identity-thieves-may-have-hacked-files-of-up-to-100000-financial-
aid-applicants/.
---------------------------------------------------------------------------
Committee Democrats propose bullying institutions that
freely express their religion with H.R. 4674's proposal
directing the Secretary publish a list of all schools receiving
exemption from Title IX compliance for religious reasons. This
provision emboldens people and entities with differing beliefs
to harass those institutions and their students. Instead of
promoting uniform belief systems, Congress should protect and
respect the spirit and intent of America's foundation of
pluralistic principles. It is also disappointing that H.R. 4674
makes no attempt to protect another First Amendment freedom of
expression. With the rise of speech zones and codes, college
campuses restrict where and when individuals can speak
effectively silencing opposing speech and views that are
essential to critical thought and expression. Free speech is
central to a vibrant democracy, but students' First Amendment
rights are regularly denied. Committee Republicans are
disappointed that H.R. 4674 does not protect students' First
Amendment rights.
H.R. 4674 offers hundreds of billions of dollars in new
spending, but that money comes with more strings attached than
a marionette. Committee Republicans urge Committee Democrats to
craft a bipartisan HEA bill that charges those closest to the
problems with finding solutions, returns the federal government
to its proper role, and respects the rights and privacy of all
students.
WIDENING THE SKILLS GAP
Connecting higher education and employers through federal
policy is vital to encouraging a strong middle-class, which is
why it is disappointing H.R. 4674 excludes reforms necessary to
help close America's skills gap. The postsecondary education
system is not delivering on its promise, and the disconnect
between institutions, employers, and students has tremendous
implications for the country's future. There are over 7 million
unfilled jobs available, the demand for skilled workers is
high, and these pressures are going to continue to rise.
Middle-skill jobs, or positions that require education beyond
high school but not a baccalaureate degree, will be the
plurality of job openings (48 percent) through 2024.\48\ The
technological progress of society and increased work automation
will require those in the workforce to learn new skills and
adapt to different occupations. A report by the McKinsey Global
Institute estimates that 166 million American workers, or up to
32 percent of the workforce, may need to switch occupational
categories between 2016 and 2030.\49\ Experts project that
changes in educational settings are going to be necessary to
help people stay employable in the workforce of the future. The
National Academies of Sciences declared that the ``education
system will need to adapt to prepare individuals for the
changing labor market''\50\ and it is clear that American
workers have internalized this insight. A 2016 Pew Research
Center survey found that 87 percent of workers believe it will
be important or essential for them to get additional education
and develop new job skills throughout their work life in order
to keep up with changes in the workplace.\51\ Instead of going
to college, getting an associate or baccalaureate degree, and
not pursuing further education, many Americans now understand
they must adopt a mindset of lifelong learning in order to get
a job and stay employed.
---------------------------------------------------------------------------
\48\https://www.nationalskillscoalition.org/resources/publications/
2017-middle-skills-fact-sheets/file/United-States-MiddleSkills.pdf.
\49\https://www.mckinsey.com//media/mckinsey/featured%20insights/
future%20of%20 organizations/
what%20the%20future%20of%20work%20will%20mean%20for%20jobs%20skills%
20and%20wages/mgi%20jobs%20lost-jobs%20gained_report_
december%202017.ashx.
\50\https://www.nap.edu/read/24649/chapter/1.
\51\https://www.pewsocialtrends.org/2016/10/06/the-state-of-
american-jobs/.
---------------------------------------------------------------------------
Unfortunately, in their bill, Committee Democrats fail to
reduce government restrictions and advance innovative practices
that help students engage in life-long learning and transition
quickly and cost-effectively from the classroom to a career.
Despite a prime opportunity to propose bold reforms, H.R. 4674
discourages innovation and tethers colleges and universities to
more limitations. The bill declines to fund earn-and-learn
opportunities for students through the Federal Work-Study and
institutional aid programs. Apprenticeship-style programs lead
to high-wage, high-skill, and high-demand careers with little
to no student loan debt, but such partnerships receive no
funding in H.R. 4674. The bill does not permit otherwise
ineligible organizations, such as employers, to provide more
than 50 percent of the programming at a Title IV eligible
institution even though allowing for more integration between
business and school would significantly improve students'
ability to transition to a preferred workplace.
Competency-based education (CBE) is a promising mode of
education delivery that awards credit based on mastery of
skills and information rather than time spent in a classroom.
Not only can this method of learning decrease time and cost to
attaining a postsecondary credential, but it is also a flexible
model that fits into a students' schedule instead of forcing
students to meet the rigid institutional scheduling demands of
an institution. CBE is a bipartisan pathway that has been
implemented by dozens of institutions for decades, yet
Committee Democrats tepidly propose a do-nothing pilot program
instead of creating a full CBE pathway in the HEA. The
excessive, bureaucratic limitations in the Job Training Pell
Grant program make the program unworkable. Although short-term
stackable programs represent cutting-edge ways to produce
qualified employees, increase completion rates, and lower
college costs, H.R. 4674 erects barriers for institutions and
students interested in meeting workforce demand.
Rather than offering real solutions that better prepare
students for work, Committee Democrats have offered yet another
partisan proposal that fails to close America's skills gap and
meet the needs of contemporary students and employers. In
contrast, Committee Republicans offered several amendments
during Committee consideration of the bill to address many of
these deficiencies and help ensure the bill could do more to
help connect workers to the innovative education needed to fill
open jobs and close the skills gap. Unfortunately, Committee
Democrats rejected all of them which is why Committee
Republicans urge the majority to ditch their partisan bill and
engage in true bipartisan collaboration to generate lasting
solutions to economic and societal challenges.
COMMITTEE CONSIDERATION OF H.R. 4674
During consideration of H.R. 4674 there were several
amendments offered. One bipartisan amendment offered by Reps.
Donna Shalala (D-FL) and Mark Walker (R-NC) would study state
licensing restrictions. Another bipartisan amendment was
offered by Reps. Lori Trahan (D-MA) and Brett Guthrie (R-KY) to
improve the net price calculator. There were also four
amendments offered by Republican members that were adopted with
bipartisan support, several of which were modified by Democrats
before completion including:
Rep. Glenn Thompson (R-PA) offered an
amendment, with an improvement included from Rep. Haley
Stevens (D-MI), to add Perkins career and technical
education capacity-building as an allowable use of
funds to the federal-state partnership proposal.
Rep. Greg Murphy (R-NC) offered an amendment
to require institutions to disclose when non-
instructional spending increases by more than five
percent year-over-year. The amendment also requires
schools to disclose how such spending increases would
impact tuition prices.
Rep. Bradley Byrne (R-AL) offered an
amendment, with a modification from Rep. Andy Levin (D-
MI), that allows for Title III funds to be spent on
dual enrollment and other uses to further the career
success of students.
Rep. James Comer (R-KY) offered an amendment
to require institutions to disclose campus policies
regarding required background checks for employees and
volunteers. The amendment further requires campuses to
conduct background checks for employees and volunteers
working with athletes, children, and other youth.
Rejected Amendments to Improve the Bill
During consideration of H.R. 4674, Committee Republicans
offered a comprehensive amendment in the nature of a substitute
and dozens of other amendments to improve the bill that were
unfortunately rejected by the Democrats. While Committee
Republicans believe all the denied amendments are worthy of
adoption there are several that highlight important issues
emblematic of the Democrats' failed reform efforts:
Rep. Lloyd Smucker (R-PA) offered an
amendment to means-test the ``free'' community college
program. As previously stated, ``free'' college
proposals are regressive in that the program
disproportionally benefits high-income households.
Since Committee Republicans oppose policies that
provide taxpayer-funded ``free'' college to the progeny
of millionaires and billionaires, the amendment inserts
the same income thresholds Committee Democrats use in
their proposed IDR plan.
Rep. Lloyd Smucker (R-PA) offered an
amendment to edit the language of financial aid offers
to reflect the bipartisan bill he introduced with Rep.
Lori Trahan (D-MA). Earlier this Congress, Reps.
Smucker and Trahan introduced a bipartisan bill to
standardize some features of financial aid awards for
students and H.R. 4674 incorporated most of the
language but added several partisan provisions. The
amendment sought to restore the policy to its
bipartisan intent by offering subtle, reasonable tweaks
to the legislation.
Rep. Lloyd Smucker (R-PA) offered an
amendment to prohibit registered lobbyists from
receiving PSLF. If it must continue, the PSLF program
should focus on borrowers who are directly helping
individuals and communities, like public school
teachers, law enforcement officers, nurses, and
librarians who sacrifice their time and money to help
others. On the other hand, registered lobbyists that
actively seek to influence government actions should
not receive taxpayer-funded loan forgiveness. It would
be improper for Congress to knowingly provide such an
expensive public benefit to well-paid, professional
lobbyists.
Rep. Elise Stefanik (R-NY) offered an
amendment to replace PSLF with a State Workforce
Incentive program. PSLF is a deeply flawed program and
simply does not work. It is not means-tested. It
rewards borrowers who borrow larger balances by
granting unlimited forgiveness. It does not apply
equally across all occupations. It leads to higher
college costs. It is complex to navigate. All of which
is in contrast to the program offered in this
amendment. The State Workforce Incentive program
provides an annual benefit. It is targeted to low-
income borrowers working in in-demand occupations. It
includes a streamlined, intuitive application process.
It is tailored to the needs of local and state
workforces. Despite these virtues, the Democrats
advanced partisanship ahead of students' interests by
defeating the amendment.
Rep. Dusty Johnson (R-SD) offered an
amendment to require institutions to certify that any
practitioner at an institutionally-affiliated health
care facility provide medical care to any infant born
alive at such facility. Incredibly, during markup, a
representative claimed to have ``never seen such
horrible amendments aimed at hurting children.''
Presumably, this Committee Democrat was not referring
to this amendment. Every baby born in the United States
deserves proper medical care. One might reasonably
assume protecting vulnerable newborns to be a non-
controversial, moral absolute. More than 75 percent of
Americans agree that all newborns, regardless of
desirability or vulnerability, should be given the same
medical treatment.\52\ That there is anyone that would
allow infants to be denied crucial medical care or
killed at a health care facility is heartbreaking, yet
this amendment failed on a party line vote.
---------------------------------------------------------------------------
\52\https://www.sba-list.org/newsroom/press-releases/poll-77-
percent-voters-want-congress-protect-babies-born-alive.
---------------------------------------------------------------------------
Rep. Fred Keller (R-PA) offered an amendment
to strike the 85-15 rule from the substitute and the
90-10 rule from the underlying law. An accountability
system should be applied equally to all institutions,
not favoring one sector of higher education over
another. The 85 15 rule has nothing to do with the
quality of an institution and leads to higher costs for
students. The policy proposal in H.R. 4674
significantly expands the sources that need to be
counted to include all federal education assistance
funds, including veterans and military education
benefits. Veterans have earned their benefits and
should be given as many choices as possible for where
they can spend their benefits. This metric is
completely arbitrary and placed unfairly on the one
sector of higher education that is particularly
flexible and capable of meeting the needs of local
employers. It will also be catastrophic to students as
Mrs. Chairman Bogue, Executive Director of Education
Services at the Department of Veterans Affairs,
asserted during a July 2019 Committee on Veterans
Affairs hearing stating that if G.I. Bill benefits were
included in the 90 percent calculation of the 90 10
rule, it ``would potentially disrupt the education of
133 schools and 60,000 student recipients.'' The impact
of the 85-15 rule will be devastating to the students
served by proprietary institutions of higher education.
REPUBLICAN SUBSTITUTE
In lieu of bipartisan compromise from Majority Democrats,
Committee Republicans offered a bold reform of the Higher
Education Act, which represents an alternative proposal to
address many of H.R. 4674's inherent deficiencies and put
students, employers, and taxpayers first.
Students and families can no longer afford the status quo.
The same tired idea of throwing more money into the existing
system and expecting a different result is the very definition
of insanity. Government overreach and unnecessary intervention
has contributed to a bloated postsecondary education sector at
the expense of students prompting a representative of the
higher education sector to say that H.R. 4674 will ``increase
the cost of doing business for most institutions.''\53\
---------------------------------------------------------------------------
\53\https://www.washingtonpost.com/local/education/house-democrats-
unveil-higher-education-plan-to-lower-college-costs/2019/10/14/
9c8aedb6-eed2-11e9-89eb-ec56cd414732_story.html.
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The Republican substitute, known as the High-Quality
Opportunities in Postsecondary Education (HOPE) Act, offers a
better direction. The Republican substitute included major
reforms to actually reduce costs and increase college
affordability for students. The proposal incorporated elements
reflecting what has worked and what needs to change in order to
create a higher education system that puts students first. To
accomplish this vision, the HOPE Act emphasizes the importance
of completion, simplifies and improves student aid, provides
transparency in price and outcomes, and gets the federal
government out of the way.
The HOPE Act would foster college affordability by:
Creating a Pell Bonus to encourage on-time
completion;
Introducing financial rewards to schools
with high rates of Pell recipient completion;
Simplifying federal student aid into an
intuitive one-grant, one-loan, one work-study
structure;
Granting schools the flexibility to start
college completion grant programs to provide just-in-
time aid to students at risk of dropping out;
Mandating annual and robust loan counseling
to help students understand their options, obligations,
and future payment schedule based on anticipated
occupation;
Creating a central consumer-tested tool that
sets straight the higher education marketplace by
displaying key facts such as program-level debt and
earnings information; and
Repealing, streamlining, and striking dozens
of unnecessary reporting requirements and burdensome
and overreaching regulations.
The HOPE Act could help unite stakeholders to ensure high-
quality education, reverse skyrocketing costs, and prepare
students for lifelong success with a return on investment by:
Creating an effective loan repayment rate
that targets student aid to programs to help graduates
repay their loans and pressure institutions to price
their programs appropriately;
Overhauling the antiquated statute to allow
accreditors to focus on student learning and outcomes
instead of institutional inputs;
Empowering students and families to make
informed decisions by providing prospective college
goers important student outcome information, such as
average debt and earnings of students of all programs
for all institutions participating in federal student
loan and grant programs;
Directing a commission to study risk-sharing
and recommend the best way to ensure institutions have
skin-in-the-game with respect to student success; and
Revising loan limits to put statutory caps
on all types of borrowing and providing institutions
the tools they need to reduce over-borrowing.
For a variety of reasons, including archaic federal higher
education policy, the higher education landscape is remarkably
resistant to change and innovation. Despite the proliferation
of creative learning models and dramatically changing student
demographics, most colleges and universities continue to use
the same worn approaches to instructing students. Institutional
rigidity and outdated federal rules have stifled new deliveries
of education and empowered entrenched stakeholders' interests
over the interests and needs of students. Institutions must
innovate to meet the needs of contemporary students, and the
federal government must remove roadblocks to this kind of
student success. The HOPE Act would deliver true, innovative
reform to meet students where they are in their lives by:
Allowing innovative providers to collaborate
with traditional colleges in offering educational
programming to help students achieve rewarding careers;
Creating a clear pathway for CBE programs to
help students attain an affordable degree in less time;
Fueling the future of career pathways by
investing in short-term stackable credentials and earn-
and-learn opportunities; and
Breaking up the accreditation monopoly to
allow disruptive entrants into higher education to
promote competition and lower college costs.
The HOPE Act further prioritizes students by:
Improving early aid awareness for low-income
individuals wondering what options exist to finance
postsecondary education goals;
Simplifying the Free Application for Federal
Student Aid to ease the annual experience of millions
of families trying to access the aid needed to attend
college;
Expanding college access programs using
evidence-based innovations to ensure these
interventions use the latest and most successful
methods to assist students;
Eliminating origination fees to put more
money in the pockets of borrowers;
Capping total interest accrual on new
student loans so borrowers can start families, be
entrepreneurs, and invest in what matters most to them;
and
Expanding promising initiatives like pay-
for-success and dual enrollment.
Fundamentally, the HOPE Act would lower the cost of college
for students so they can complete an affordable program that
prepares them for the workforce with the skills they need for
lifelong success. With a widening skills gap, this is more
important than ever. While the U.S. is currently experiencing
an economic boom, boasting the lowest unemployment rate in 50
years, more can be done to promote universal opportunities for
success. The HOPE Act embodies real solutions to address the
skills gap by making substantial reforms to equip institutions
with the tools needed to prepare students for successful
careers and fulfill 21st century workforce needs.
Too many Higher Education Act reauthorizations have layered
well-intentioned but impractical proposals on top of obsolete
policies. Committee Republicans believe the next Higher
Education Act reauthorization must adopt a different,
innovative, and bold strategy. The HOPE Act represents a new,
bipartisan, and collaborative direction, incorporating
Republican and Democrat ideas to expand affordable higher
education access, improve student aid, and encourage
institutions to serve students better.
CONCLUSION
Americans have invested trillions of dollars and countless
hours of hard work into higher education hoping to earn better
career opportunities 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 needlessly escalated college
costs and made pursuing and finishing a postsecondary education
unworkable for far too many at a time when more employers are
demanding postsecondary credentials for employees to fill
technical, high-skill, good-paying jobs. Americans deserve
better than H.R. 4674, which doubles down on the failed
policies crippling our postsecondary education system.
Committee Democrats' partisan scheme will cost hundreds of
billions of dollars, limit educational freedom, increase the
cost of college for students, and ignore the needs of those
pursuing the American Dream.
The Chairman began the Congress by talking about the
importance of bipartisanship, yet on this major legislation
Committee Democrats once again showed their actions do not live
up to their words. The pandemic highlights why Congress and the
Majority must advance HEA policies that serve the best
interests of students, families, and taxpayers. With true
collaboration, this Committee can produce HEA reform that will
increase affordability, hold bad actors accountable, and propel
American ingenuity for the next generation.
Virginia Foxx,
Ranking Member.
David P. Roe, M.D.
Glenn ``GT'' Thompson.
Tim Walberg.
Brett Guthrie.
Bradley Byrne.
Glenn Grothman.
Elise M. Stefanik.
Rick W. Allen.
Lloyd Smucker.
Jim Banks.
James Comer.
Ben Cline.
Daniel Meuser.
Fred Keller.
Jefferson Van Drew.
[all]