[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.'').
---------------------------------------------------------------------------
    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).
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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.
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    \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\
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    \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\
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    \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.
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    \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.
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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).
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \83\Id.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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/.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    \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/.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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\
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \135\Pew Charitable Trusts, supra note 125, at 3.
    \136\Id.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.]

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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.

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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.

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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.

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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.

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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\
---------------------------------------------------------------------------
    \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
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \9\https://republicans-edlabor.house.gov/uploadedfiles/
scott_d._pulsipher_wgu_-_ written_testimony_-_july_ 7_2020.pdf
---------------------------------------------------------------------------
    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
---------------------------------------------------------------------------
    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
---------------------------------------------------------------------------
    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
---------------------------------------------------------------------------
    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/
---------------------------------------------------------------------------

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.
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    \52\https://www.sba-list.org/newsroom/press-releases/poll-77-
percent-voters-want-congress-protect-babies-born-alive.
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           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\
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    \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]