    [110th Congress Public Law 315]
    [From the U.S. Government Publishing Office]

    [DOCID: f:publ315.110]

    [[Page 3077]]

                        HIGHER EDUCATION OPPORTUNITY ACT

    [[Page 122 STAT. 3078]]

    Public Law 110-315
    110th Congress

                                     An Act

      To amend and extend the Higher Education Act of 1965, and for other
                purposes. <<NOTE: Aug. 14, 2008 -  [H.R. 4137]>>

        Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress <<NOTE: Higher Education
    Opportunity Act.>> assembled,
    SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

        (a) <<NOTE: 20 USC 1001 note.>>  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. 101. General definition of institution of higher education.
    Sec. 102. Definition of institution of higher education for purposes of
               title IV programs.
    Sec. 103. Additional definitions.
    Sec. 104. Protection of student speech and association rights.
    Sec. 105. Treatment of territories and territorial student assistance.
    Sec. 106. National Advisory Committee on Institutional Quality and
               Integrity.
    Sec. 107. Drug and alcohol abuse prevention.
    Sec. 108. Prior rights and obligations.
    Sec. 109. Diploma mills.
    Sec. 110. Improved information concerning the Federal student financial
               aid website.
    Sec. 111. Transparency in college tuition for consumers.
    Sec. 112. Textbook information.
    Sec. 113. Database of student information prohibited.
    Sec. 114. In-State tuition rates for Armed Forces members, spouses, and
               dependent children.
    Sec. 115. State higher education information system pilot program.
    Sec. 116. State commitment to affordable college education.
    Sec. 117. Performance-based organization for the delivery of Federal
               student financial assistance.
    Sec. 118. Procurement flexibility.
    Sec. 119. Certification regarding the use of certain Federal funds.
    Sec. 120. Institution and lender reporting and disclosure requirements.

                      TITLE II--TEACHER QUALITY ENHANCEMENT

    Sec. 201. Teacher quality enhancement.

                          TITLE III--INSTITUTIONAL AID

    Sec. 301. Program purpose.
    Sec. 302. Definitions; eligibility.
    Sec. 303. American Indian tribally controlled colleges and universities.
    Sec. 304. Alaska Native and Native Hawaiian-serving institutions.
    Sec. 305. Predominantly Black Institutions.
    Sec. 306. Native American-serving, nontribal institutions.
    Sec. 307. Assistance to Asian American and Native American Pacific
               Islander-serving institutions.

    [[Page 122 STAT. 3079]]

    Sec. 308. Part B definitions.
    Sec. 309. Grants to institutions.
    Sec. 310. Allotments.
    Sec. 311. Professional or graduate institutions.
    Sec. 312. Unexpended funds.
    Sec. 313. Endowment Challenge Grants.
    Sec. 314. Historically Black college and university capital financing.
    Sec. 315. Programs in STEM fields.
    Sec. 316. Investing in historically Black colleges and universities and
               other minority-serving institutions.
    Sec. 317. Technical assistance.
    Sec. 318. Waiver authority.
    Sec. 319. Authorization of appropriations.
    Sec. 320. Technical corrections.

                          TITLE IV--STUDENT ASSISTANCE

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

    Sec. 401. Federal Pell Grants.
    Sec. 402. Academic competitiveness grants.
    Sec. 403. Federal TRIO Programs.
    Sec. 404. Gaining early awareness and readiness for undergraduate
               programs.
    Sec. 405. Academic Achievement Incentive Scholarships.
    Sec. 406. Federal Supplemental Educational Opportunity Grants.
    Sec. 407. Leveraging Educational Assistance Partnership program.
    Sec. 408. Special programs for students whose families are engaged in
               migrant and seasonal farmwork.
    Sec. 409. Robert C. Byrd Honors Scholarship Program.
    Sec. 410. Child care access means parents in school.
    Sec. 411. Learning Anytime Anywhere Partnerships.
    Sec. 412. TEACH Grants.

                  PART B--Federal Family Education Loan Program

    Sec. 421. Limitations on amounts of loans covered by Federal insurance.
    Sec. 422. Federal payments to reduce student interest costs.
    Sec. 423. Voluntary flexible agreements.
    Sec. 424. Federal PLUS loans.
    Sec. 425. Federal consolidation loans.
    Sec. 426. Default reduction program.
    Sec. 427. Requirements for disbursement of student loans.
    Sec. 428. Unsubsidized Stafford loan limits.
    Sec. 429. Loan forgiveness for teachers employed by educational service
               agencies.
    Sec. 430. Loan forgiveness for service in areas of national need.
    Sec. 431. Loan repayment for civil legal assistance attorneys.
    Sec. 432. Reports to consumer reporting agencies and institutions of
               higher education.
    Sec. 433. Legal powers and responsibilities.
    Sec. 434. Student loan information by eligible lenders.
    Sec. 435. Consumer education information.
    Sec. 436. Definitions of eligible institution and eligible lender.
    Sec. 437. Discharge and cancellation rights in cases of disability.
    Sec. 438. Conforming amendments for repeal of section 439.

                       PART C--Federal Work-Study Programs

    Sec. 441. Authorization of appropriations.
    Sec. 442. Allowance for books and supplies.
    Sec. 443. Grants for Federal work-study programs.
    Sec. 444. Flexible use of funds.
    Sec. 445. Job location and development programs.
    Sec. 446. Additional funds for off-campus community service.
    Sec. 447. Work colleges.

                       PART D--Federal Direct Student Loan

    Sec. 451. Terms and conditions of loans.
    Sec. 452. Funds for administrative expenses.
    Sec. 453. Guaranty agency responsibilities and payments; reports and
               cost estimates.
    Sec. 454. Loan cancellation for teachers.

                          PART E--Federal Perkins Loans

    Sec. 461. Extension of authority.

    [[Page 122 STAT. 3080]]

    Sec. 462. Allowance for books and supplies.
    Sec. 463. Agreements with institutions.
    Sec. 464. Perkins loan terms and conditions.
    Sec. 465. Cancellation for public service.
    Sec. 466. Sense of Congress regarding Federal Perkins loans.

                              PART F--Need Analysis

    Sec. 471. Cost of attendance.
    Sec. 472. Discretion to make adjustments.
    Sec. 473. Definitions.

            PART G--General Provisions Relating to Student Assistance

    Sec. 481. Definitions.
    Sec. 482. Master calendar.
    Sec. 483. Improvements to paper and electronic forms and processes.
    Sec. 484. Model institution financial aid offer form.
    Sec. 485. Student eligibility.
    Sec. 486. Statute of limitations and State court judgments.
    Sec. 487. Readmission requirements for servicemembers.
    Sec. 488. Institutional and financial assistance information for
               students.
    Sec. 489. National Student Loan Data System.
    Sec. 490. Early awareness of financial aid eligibility.
    Sec. 491. Distance Education Demonstration Programs.
    Sec. 492. Articulation agreements.
    Sec. 493. Program participation agreements.
    Sec. 494. Regulatory relief and improvement.
    Sec. 494A. Transfer of allotments.
    Sec. 494B. Purpose of administrative payments.
    Sec. 494C. Advisory Committee on Student Financial Assistance.
    Sec. 494D. Regional meetings and negotiated rulemaking.
    Sec. 494E. Year 2000 requirements at the Department.
    Sec. 494F. Technical amendment of income-based repayment.

                            PART H--Program Integrity

    Sec. 495. Recognition of accrediting agency or association.
    Sec. 496. Eligibility and certification procedures.
    Sec. 497. Program review and data.
    Sec. 498. Review of regulations.

                 PART I--Competitive Loan Auction Pilot Program

    Sec. 499. Competitive loan auction pilot program evaluation.

                        TITLE V--DEVELOPING INSTITUTIONS

    Sec. 501. Authorized activities.
    Sec. 502. Postbaccalaureate opportunities for Hispanic Americans.
    Sec. 503. Applications.
    Sec. 504. Cooperative arrangements.
    Sec. 505. Authorization of appropriations.

                   TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

    Sec. 601. Findings; purposes; consultation; survey.
    Sec. 602. Graduate and Undergraduate Language and Area Centers and
               Programs.
    Sec. 603. Language Resource Centers.
    Sec. 604. Undergraduate International Studies and Foreign Language
               Programs.
    Sec. 605. Research; studies.
    Sec. 606. Technological innovation and cooperation for foreign
               information access.
    Sec. 607. Selection of certain grant recipients.
    Sec. 608. American overseas research centers.
    Sec. 609. Authorization of appropriations for international and foreign
               language studies.
    Sec. 610. Conforming amendments.
    Sec. 611. Business and international education programs.
    Sec. 612. Minority foreign service professional development program.
    Sec. 613. Institutional development.
    Sec. 614. Study abroad program.
    Sec. 615. Advanced degree in international relations.
    Sec. 616. Internships.
    Sec. 617. Financial assistance.
    Sec. 618. Report.
    Sec. 619. Gifts and donations.

    [[Page 122 STAT. 3081]]

    Sec. 620. Authorization of appropriations for the Institute for
               International Public Policy.
    Sec. 621. Definitions.
    Sec. 622. New provisions.

           TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

    Sec. 701. Purpose.
    Sec. 702. Jacob K. Javits Fellowship program.
    Sec. 703. Graduate assistance in areas of national need.
    Sec. 704. Thurgood Marshall Legal educational opportunity program.
    Sec. 705. Sense of Congress.
    Sec. 706. Masters degree programs at historically Black colleges and
               universities and Predominantly Black Institutions.
    Sec. 707. Fund for the improvement of postsecondary education.
    Sec. 708. Repeal of the urban community service program.
    Sec. 709. Programs to provide students with disabilities with a quality
               higher education.
    Sec. 710. Subgrants to nonprofit organizations.

                         TITLE VIII--ADDITIONAL PROGRAMS

    Sec. 801. Additional programs.
    Sec. 802. National Center for Research in Advanced Information and
               Digital Technologies.
    Sec. 803. Establishment of pilot program for course material rental.

                       TITLE IX--AMENDMENTS TO OTHER LAWS

                    PART A--Education of the Deaf Act of 1986

    Sec. 901. Laurent Clerc National Deaf Education Center.
    Sec. 902. Agreement with Gallaudet University.
    Sec. 903. Agreement for the National Technical Institute for the Deaf.
    Sec. 904. Cultural experiences grants.
    Sec. 905. Audit.
    Sec. 906. Reports.
    Sec. 907. Monitoring, evaluation, and reporting.
    Sec. 908. Liaison for educational programs.
    Sec. 909. Federal endowment programs for Gallaudet University and the
               National Technical Institute for the Deaf.
    Sec. 910. Oversight and effect of agreements.
    Sec. 911. International students.
    Sec. 912. Research priorities.
    Sec. 913. National study on the education of the deaf.
    Sec. 914. Authorization of appropriations.

                  PART B--UNITED STATES INSTITUTE OF PEACE ACT

    Sec. 921. United States Institute of Peace Act.

     PART C--THE HIGHER EDUCATION AMENDMENTS OF 1998; THE HIGHER EDUCATION
                               AMENDMENTS OF 1992

    Sec. 931. Repeals.
    Sec. 932. Grants to States for workplace and community transition
               training for incarcerated individuals.
    Sec. 933. Underground Railroad Educational and Cultural Program.
    Sec. 934. Olympic Scholarships.
    Sec. 935. Establishment of a Deputy Assistant Secretary for
               International and Foreign Language Education.

        PART D--TRIBAL COLLEGE AND UNIVERSITIES; NAVAJO HIGHER EDUCATION

                   subpart 1--tribal colleges and universities

    Sec. 941. Reauthorization of the Tribally Controlled College or
               University Assistance Act of 1978.

                       subpart 2--navajo higher education

    Sec. 945. Short title.
    Sec. 946. Reauthorization of Navajo Community College Act.

           PART E--Omnibus Crime Control and Safe Streets Act of 1968

    Sec. 951. Short title.

    [[Page 122 STAT. 3082]]

    Sec. 952. Loan repayment for prosecutors and defenders.

            PART F--Institutional Loan Repayment Assistance Programs

    Sec. 961. Institutional loan forgiveness programs.

      PART G--Minority Serving Institution Digital and Wireless Technology
                               Opportunity Program

    Sec. 971. Minority Serving Institution Digital and Wireless Technology
               Opportunity Program.
    Sec. 972. Authorization of appropriations.

                    TITLE X--PRIVATE STUDENT LOAN IMPROVEMENT

    Sec. 1001. Short title.
    Sec. 1002. Regulations.
    Sec. 1003. Effective dates.

    Subtitle A--Preventing Unfair and Deceptive Private Educational Lending
                 Practices and Eliminating Conflicts of Interest

    Sec. 1011. Amendment to the Truth in Lending Act.
    Sec. 1012. Civil liability.
    Sec. 1013. Clerical amendment.

          Subtitle B--Improved Disclosures for Private Education Loans

    Sec. 1021. Private education loan disclosures and limitations.
    Sec. 1022. Application of Truth in Lending Act to all private education
               loans.

                        Subtitle C--College Affordability

    Sec. 1031. Community Reinvestment Act credit for low-cost loans.

               Subtitle D--Financial Literacy; Studies and Reports

    Sec. 1041. Definitions.
    Sec. 1042. Coordinated education efforts.

                          TITLE XI--STUDIES AND REPORTS

    Sec. 1101. Study on foreign graduate medical schools.
    Sec. 1102. Employment of postsecondary education graduates.
    Sec. 1103. Study on IPEDS.
    Sec. 1104. Report and study on articulation agreements.
    Sec. 1105. Report on proprietary institutions of higher education.
    Sec. 1106. Analysis of Federal regulations on institutions of higher
               education.
    Sec. 1107. Independent evaluation of distance education programs.
    Sec. 1108. Review of costs and benefits of environmental, health, and
               safety standards.
    Sec. 1109. Study of minority male academic achievement.
    Sec. 1110. Study on bias in standardized tests.
    Sec. 1111. Endowment report.
    Sec. 1112. Study of correctional postsecondary education.
    Sec. 1113. Study of aid to less-than-half-time students.
    Sec. 1114. Study on regional sensitivity in the needs analysis formula.
    Sec. 1115. Study of the impact of student loan debt on public service.
    Sec. 1116. Study on teaching students with reading disabilities.
    Sec. 1117. Report on income contingent repayment through the income tax
               withholding system.
    Sec. 1118. Developing additional measures of degree completion.
    Sec. 1119. Study on the financial and compliance audits of the Federal
               student loan program.
    Sec. 1120. Summit on sustainability.
    Sec. 1121. Nursing school capacity.
    Sec. 1122. Study and report on nonindividual information.
    Sec. 1123. Feasibility study for student loan clearinghouse.
    Sec. 1124. Study on Department of Education oversight of incentive
               compensation ban.
    Sec. 1125. Definition of authorizing committees.

    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

    [[Page 122 STAT. 3083]]

    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. <<NOTE: 20 USC 1001 note.>>  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

    SEC. 101. GENERAL DEFINITION OF INSTITUTION OF HIGHER EDUCATION.

        (a) Amendments.--Section 101 (20 U.S.C. 1001) is amended--
                (1) in subsection (a)--
                        (A) in paragraph (1), by inserting before the
                    semicolon the following: ``, or persons who meet the
                    requirements of section 484(d)(3)''; and
                        (B) in paragraph (3), by inserting ``, or awards a
                    degree that is acceptable for admission to a graduate or
                    professional degree program, subject to review and
                    approval by the Secretary'' after ``such a degree''; and
                (2) by striking paragraph (2) of subsection (b) and
            inserting the following:
                ``(2) a public or nonprofit private educational institution
            in any State that, in lieu of the requirement in subsection
            (a)(1), admits as regular students individuals--
                        ``(A) who are beyond the age of compulsory school
                    attendance in the State in which the institution is
                    located; or
                        ``(B) who will be dually or concurrently enrolled in
                    the institution and a secondary school.''.

        (b) <<NOTE: 20 USC 1001 note.>>  Effective Date.--The amendments
    made by this section shall take effect on July 1, 2010.
    SEC. 102. DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR
                            PURPOSES OF TITLE IV PROGRAMS.

        (a) International Medical Schools and Nursing Schools.--Section
    102(a)(2) (20 U.S.C. 1002(a)(2)) is amended--
                (1) in subparagraph (A)--
                        (A) in the first sentence of the matter preceding
                    clause (i), by inserting ``nursing school,'' after
                    ``graduate medical school,'';
                        (B) in clause (i)--
                              (i) in the matter preceding subclause (I), by
                          inserting ``except as provided in subparagraph
                          (B)(iii)(IV),'' before ``in the case''; and
                              (ii) by striking subclause (II) and inserting
                          the following new subclause:
                                        ``(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;'';
                        (C) in clause (ii), by striking the period at the
                    end and inserting ``; or''; and

    [[Page 122 STAT. 3084]]

                        (D) by adding at the end the following:
                              ``(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 Stafford Loans under
                                    section 428, unsubsidized Federal
                                    Stafford Loans under section 428H, or
                                    Federal PLUS loans under section 428B
                                    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
                                    Stafford Loan under section 428, an
                                    unsubsidized Federal Stafford Loan under
                                    section 428H, or a Federal PLUS loan
                                    under section 428B, received a passing
                                    score on such examination.''; and
                (2) in subparagraph (B), by adding at the end the following:
                              ``(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 B 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

    [[Page 122 STAT. 3085]]

                                    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 B of title IV.
                                        ``(IV) <<NOTE: Deadlines.>>
                                    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 B 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.''.

        (b) Percentage Pass Rate.--Section 102(a)(2)(A)(i)(I)(bb) (20 U.S.C.
    1002(a)(2)(A)(i)(I)(bb)) is amended by striking ``60'' and inserting
    ``75''.
        (c) Conforming Amendment Concerning 90/10 Enforcement.--Section
    102(b)(1) (20 U.S.C. 1002(b)(1)) is amended--
                (1) in subparagraph (D), by adding ``and'' after the
            semicolon;
                (2) in subparagraph (E), by striking ``; and'' and inserting
            a period; and
                (3) by striking subparagraph (F).

        (d) Additional Institutions.--
                (1) Amendment.--Section 102 (20 U.S.C. 1002) is further
            amended--

    [[Page 122 STAT. 3086]]

                        (A) in subsection (b)--
                              (i) by striking paragraph (1)(A) and inserting
                          the following:
                        ``(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;''; and
                              (ii) by striking paragraph (2) and inserting
                          the following:
                ``(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.''; and
                        (B) by striking paragraph (2) of subsection (c) and
                    inserting the following:
                ``(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.''.
                (2) <<NOTE: 20 USC 1002 note.>>  Rule of construction.--
            Nothing in the amendment made by paragraph (1)(A)(i) to section
            102(b)(1)(A) of the Higher Education Act of 1965 (20 U.S.C.
            1002(b)(1)(A)) shall be construed to negate or supercede any
            State laws governing proprietary institutions of higher
            education.

        (e) <<NOTE: 20 USC 1002 note.>>  Effective Date.--The amendments
    made by subsections (a)(1), (b), and (d) shall take effect on July 1,
    2010.
    SEC. 103. ADDITIONAL DEFINITIONS.

        (a) Additional Definitions.--
                (1) Amendment.--Section 103 (20 U.S.C. 1003) is amended by
            adding at the end the following:
                ``(17) 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.
                ``(18) 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

    [[Page 122 STAT. 3087]]

            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.
                ``(19) 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).
                ``(20) 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.
                ``(21) 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

    [[Page 122 STAT. 3088]]

                        ``(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.
                ``(22) 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.
                ``(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.''.
                (2) Redesignation and reordering of definitions.--Section
            103 (as amended by paragraph (1)) (20 U.S.C. 1003) is further
            amended by reordering paragraphs (1) through (16) and the
            paragraphs added by paragraph (1) of this subsection in
            alphabetical order based on the headings of such paragraphs, and
            renumbering such paragraphs as so reordered.

        (b) Conforming Amendments.--The Act (20 U.S.C. 1001 et seq.) is
    amended--
                (1) in section 131(a)(3)(B) (20 U.S.C. 1015(a)(3)(B)), by
            striking ``Committee on Labor and Human Resources of the Senate
            and the Committee on Education and the Workforce of the House of
            Representatives'' and inserting ``authorizing committees'';
                (2) in section 141(d)(4)(B) (20 U.S.C. 1018(d)(4)(B)), by
            striking ``Committee on Education and the Workforce of the House
            of Representatives and the Committee on Labor and Human
            Resources of the Senate'' and inserting ``authorizing
            committees'';
                (3) in section 401(f)(3) (20 U.S.C. 1070a(f)(3)), by
            striking ``to the Committee on Appropriations'' and all that
            follows through ``House of Representatives'' and inserting ``to
            the Committee on Appropriations of the Senate, the Committee on
            Appropriations of the House of Representatives, and the
            authorizing committees'';
                (4) in section 428 (20 U.S.C. 1078)--

    [[Page 122 STAT. 3089]]

                        (A) in subsection (c)(9)(K), by striking ``House
                    Committee on Education and the Workforce and the Senate
                    Committee on Labor and Human Resources'' and inserting
                    ``authorizing committees'';
                        (B) in the matter following paragraph (2) of
                    subsection (g), by striking ``Committee on Labor and
                    Human Resources of the Senate and the Committee on
                    Education and the Workforce of the House of
                    Representatives'' and inserting ``authorizing
                    committees'';
                        (C) in subsection (j)(9)(A) (as added by section
                    5(a) of the Ensuring Continued Access to Student Loans
                    Act of 2008), by striking ``Committee on Health,
                    Education, Labor, and Pensions of the Senate and the
                    Committee on Education and Labor of the House of
                    Representatives'' each place the term appears and
                    inserting ``authorizing committees''; and
                        (D) in subsection (n)(4), by striking ``Committee on
                    Education and the Workforce of the House of
                    Representatives and the Committee on Labor and Human
                    Resources of the Senate'' and inserting ``authorizing
                    committees'';
                (5) in section 428A(c) (20 U.S.C. 1078-1(c))--
                        (A) in the matter preceding subparagraph (A) of
                    paragraph (2), by striking ``Chairperson'' and all that
                    follows through ``House of Representatives'' and
                    inserting ``members of the authorizing committees'';
                        (B) in paragraph (3), by striking ``Chairperson''
                    and all that follows through ``House of
                    Representatives'' and inserting ``members of the
                    authorizing committees''; and
                        (C) in paragraph (5), by striking ``Chairperson''
                    and all that follows through ``House of
                    Representatives'' and inserting ``members of the
                    authorizing committees'';
                (6) in section 432 (20 U.S.C. 1082)--
                        (A) in subsection (f)(1)(C), by striking ``the
                    Committee on Education and the Workforce of the House of
                    Representatives or the Committee on Labor and Human
                    Resources of the Senate'' and inserting ``either of the
                    authorizing committees''; and
                        (B) in the matter following subparagraph (D) of
                    subsection (n)(3), by striking ``Committee on Education
                    and the Workforce of the House of Representatives and
                    the Committee on Labor and Human Resources of the
                    Senate'' and inserting ``authorizing committees'';
                (7) in section 437(c)(1) (20 U.S.C. 1087(c)(1)), by striking
            ``Committee on Education and the Workforce of the House of
            Representatives and the Committee on Labor and Human Resources
            of the Senate'' and inserting ``authorizing committees'';
                (8) in section 455(b)(8)(B) (20 U.S.C. 1087e(b)(8)(B)), by
            striking ``Committee on Labor and Human Resources of the Senate
            and the Committee on Education and the Workforce of the House of
            Representatives'' and inserting ``authorizing committees'';
                (9) in section 482(d) (20 U.S.C. 1089(d)), by striking
            ``Committee on Labor and Human Resources of the Senate and the
            Committee on Education and Labor of the House of
            Representatives'' and inserting ``authorizing committees'';

    [[Page 122 STAT. 3090]]

                (10) in section 483(c) (20 U.S.C. 1090(c)), by striking
            ``Committee on Labor and Human Resources of the Senate and the
            Committee on Education and the Workforce of the House of
            Representatives'' and inserting ``authorizing committees'';
                (11) in section 485(f)(5)(A) (20 U.S.C. 1092(f)(5)(A)), by
            striking ``Committee on Education and the Workforce of the House
            of Representatives and the Committee on Labor and Human
            Resources of the Senate'' and inserting ``authorizing
            committees'';
                (12) in section 486(e) (20 U.S.C. 1093(e)), by striking
            ``Committee on Labor and Human Resources of the Senate and the
            Committee on Education and the Workforce of the House of
            Representatives'' and inserting ``authorizing committees''; and
                (13) in section 487A(a)(5) (20 U.S.C. 1094a(a)(5)), by
            striking ``Committee on Labor and Human Resources of the Senate
            and the Committee on Education and the Workforce of the House of
            Representatives'' and inserting ``authorizing committees''.
    SEC. 104. PROTECTION OF STUDENT SPEECH AND ASSOCIATION RIGHTS.

        Section 112 (20 U.S.C. 1011a) is amended--
                (1) in subsection (a)--
                        (A) by inserting ``(1)'' before ``It is the sense'';
                    and
                        (B) by adding at the end the following:

        ``(2) It is the sense of Congress that--
                ``(A) the diversity of institutions and educational missions
            is one of the key strengths of American higher education;
                ``(B) individual institutions of higher education have
            different missions and each institution should design its
            academic program in accordance with its educational goals;
                ``(C) an institution of higher education should facilitate
            the free and open exchange of ideas;
                ``(D) students should not be intimidated, harassed,
            discouraged from speaking out, or discriminated against;
                ``(E) students should be treated equally and fairly; and
                ``(F) nothing in this paragraph shall be construed to
            modify, change, or infringe upon any constitutionally protected
            religious liberty, freedom, expression, or association.''; and
                (2) in subsection (b)(1), by inserting ``, provided that the
            imposition of such sanction is done objectively and fairly''
            after ``higher education''.
    SEC. 105. TREATMENT OF TERRITORIES AND TERRITORIAL STUDENT
                            ASSISTANCE.

        Section 113 (20 U.S.C. 1011b) is amended--
                (1) by striking ``treatment of territories and territorial
            student assistance'' in the heading of such section and
            inserting ``territorial waiver authority'';
                (2) by striking ``(a) Waiver Authority.--''; and
                (3) by striking subsection (b).
    SEC. 106. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND
                            INTEGRITY.

        (a) Amendment.--Section 114 (20 U.S.C. 1011c) is amended to read as
    follows:

    [[Page 122 STAT. 3091]]

    ``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 <<NOTE: Deadlines.>>  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. <<NOTE: Federal Register, publication. Notice.>>  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).

    [[Page 122 STAT. 3092]]

                ``(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 <<NOTE: Federal
                    Register, publication. Deadline.>>  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 <<NOTE: Federal Register, publication.>>
            Secretary shall annually publish in the Federal Register--
                        ``(A) a list containing, for each member of the
                    Committee--
                              ``(i) the member's name;

    [[Page 122 STAT. 3093]]

                              ``(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) <<NOTE: Public information.>>  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,
    2014.''.
        (b) <<NOTE: 20 USC 1011c note.>>  Transition.--Notwithstanding
    section 114 of the Higher Education Act of 1965 (20 U.S.C. 1011c) (as in
    effect before, during, and after the date of enactment of this Act)--
                (1) the term of each member appointed to the National
            Advisory Committee on Institutional Quality and Integrity before
            the date of enactment of this Act shall expire on the date of
            enactment of this Act;
                (2) no new members shall be appointed to the National
            Advisory Committee on Institutional Quality and Integrity during
            the period beginning on the date of enactment of this Act and
            ending on January 31, 2009; and
                (3) no meeting of the National Advisory Committee on
            Institutional Quality and Integrity shall be convened during
            such period.

        (c) <<NOTE: 20 USC 1011c note.>>  Effective Date.--The amendment
    made by subsection (a) shall take effect on January 1, 2009.
    SEC. 107. DRUG AND ALCOHOL ABUSE PREVENTION.

        Section 120 (20 U.S.C. 1011i) is amended--
                (1) in subsection (a)(2)--
                        (A) in subparagraph (A), by striking ``and'' after
                    the semicolon;
                        (B) by redesignating subparagraph (B) as
                    subparagraph (D); and
                        (C) by inserting after subparagraph (A) the
                    following:
                        ``(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

    [[Page 122 STAT. 3094]]

                    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'';
                (2) in subsection (e)(5), by striking ``$5,000,000'' and all
            that follows through the period at the end and inserting ``such
            sums as may be necessary for fiscal year 2009 and each of the
            five succeeding fiscal years.''; and
                (3) by striking subsection (f).
    SEC. 108. PRIOR RIGHTS AND OBLIGATIONS.

        Section 121(a) (20 U.S.C. 1011j(a)) is amended--
                (1) in paragraph (1), by striking ``1999 and for each of the
            4 succeeding fiscal years'' and inserting ``2009 and for each
            succeeding fiscal year''; and
                (2) in paragraph (2), by striking ``1999 and for each of the
            4 succeeding fiscal years'' and inserting ``2009 and for each
            succeeding fiscal year''.
    SEC. 109. DIPLOMA MILLS.

        Part B of title I (20 U.S.C. 1011 et seq.) is further amended by
    adding at the end the following:
    ``SEC. 123. <<NOTE: 20 USC 1011l.>>  DIPLOMA MILLS.

        ``(a) Information to the Public.--The <<NOTE: Web site.>>  Secretary
    shall maintain information and resources on the Department's website to
    assist students, families, and employers in understanding what a diploma
    mill is and how to identify and avoid diploma mills.

        ``(b) Collaboration.--The Secretary shall continue to collaborate
    with the United States Postal Service, the Federal Trade Commission, the
    Department of Justice (including the Federal Bureau of Investigation),
    the Internal Revenue Service, and the Office of Personnel Management to
    maximize Federal efforts to--
                ``(1) prevent, identify, and prosecute diploma mills; and
                ``(2) broadly disseminate to the public information about
            diploma mills, and resources to identify diploma mills.''.
    SEC. 110. IMPROVED INFORMATION CONCERNING THE FEDERAL STUDENT
                            FINANCIAL AID WEBSITE.

        (a) Promotion of Federal Student Financial Aid Website.--Section 131
    (20 U.S.C. 1015) is amended by striking subsection (d) and inserting the
    following:
        ``(d) Promotion of the Department of Education Federal Student
    Financial Aid Website.--The Secretary shall display a link to the
    Federal student financial aid website of the Department in a prominent
    place on the homepage of the Department's website.
        ``(e) Enhanced Student Financial Aid Information.--
                ``(1) Implementation.--The Secretary shall continue to
            improve the usefulness and accessibility of the information
            provided by the Department on college planning and student
            financial aid.
                ``(2) Dissemination.--The Secretary shall continue to make
            the availability of the information on the Federal student
            financial aid website of the Department widely known, through a
            major media campaign and other forms of communication.

    [[Page 122 STAT. 3095]]

                ``(3) Coordination.--As a part of the efforts required under
            this subsection, the Secretary shall create one website
            accessible from the Department's website that fulfills the
            requirements under subsections (b), (f), and (g).''.

        (b) Improved Information Concerning Financial Aid for Military
    Members and Veterans.--Section 131 (as amended by subsection (a)) (20
    U.S.C. 1015) is further amended by adding at the end the following:
        ``(f) <<NOTE: Web site.>>  Improved Availability and Coordination of
    Information Concerning Student Financial Aid Programs for Military
    Members and Veterans.--
                ``(1) Coordination.--The Secretary, in coordination with the
            Secretary of Defense and the Secretary of Veterans Affairs,
            shall create a searchable website that--
                        ``(A) contains information, in simple and
                    understandable terms, about all Federal and State
                    student financial assistance, readmission requirements
                    under section 484C, and other student services, for
                    which members of the Armed Forces (including members of
                    the National Guard and Reserves), veterans, and the
                    dependents of such members or veterans may be eligible;
                    and
                        ``(B) is easily accessible through the website
                    described in subsection (e)(3).
                ``(2) Implementation.--Not <<NOTE: Deadline.>>  later than
            one year after the date of enactment of the Higher Education
            Opportunity Act, the Secretary shall make publicly available the
            Armed Forces information website described in paragraph (1).
                ``(3) Dissemination.--The Secretary, in coordination with
            the Secretary of Defense and the Secretary of Veterans Affairs,
            shall make the availability of the Armed Forces information
            website described in paragraph (1) widely known to members of
            the Armed Forces (including members of the National Guard and
            Reserves), veterans, the dependents of such members or veterans,
            States, institutions of higher education, and the general
            public.
                ``(4) Definition.--In this subsection, the term `Federal and
            State student financial assistance' means any grant, loan, work
            assistance, tuition assistance, scholarship, fellowship, or
            other form of financial aid for pursuing a postsecondary
            education that is--
                        ``(A) administered, sponsored, or supported by the
                    Department of Education, the Department of Defense, the
                    Department of Veterans Affairs, or a State; and
                        ``(B) available to members of the Armed Forces
                    (including members of the National Guard and Reserves),
                    veterans, or the dependents of such members or veterans.

        ``(g) Promotion of Availability of Information Concerning Other
    Student Financial Aid Programs.--
                ``(1) Definition.--For purposes of this subsection, the term
            `nondepartmental student financial assistance program' means any
            grant, loan, scholarship, fellowship, or other form of financial
            aid for students pursuing a postsecondary education that is--
                        ``(A) distributed directly to the student or to the
                    student's account at an institution of higher education;
                    and

    [[Page 122 STAT. 3096]]

                        ``(B) operated, sponsored, or supported by a Federal
                    department or agency other than the Department of
                    Education.
                ``(2) <<NOTE: Web site.>>  Availability of other student
            financial aid information.--The Secretary shall ensure that--
                        ``(A) <<NOTE: Deadline.>>  not later than 90 days
                    after the Secretary receives the information required
                    under paragraph (3), the eligibility requirements,
                    application procedures, financial terms and conditions,
                    and other relevant information for each nondepartmental
                    student financial assistance program are searchable and
                    accessible through the Federal student financial aid
                    website in a manner that is simple and understandable
                    for students and the students' families; and
                        ``(B) the website displaying the information
                    described in subparagraph (A) includes a link to the
                    National Database on Financial Assistance for the Study
                    of Science, Technology, Engineering, and Mathematics
                    pursuant to paragraph (4), and the information on
                    military benefits under subsection (f), once such
                    Database and information are available.
                ``(3) Nondepartmental student financial assistance
            programs.--The Secretary shall request all Federal departments
            and agencies to provide the information described in paragraph
            (2)(A), and each Federal department or agency shall--
                        ``(A) promptly respond to surveys or other requests
                    from the Secretary for the information described in such
                    paragraph; and
                        ``(B) identify for the Secretary any nondepartmental
                    student financial assistance program operated,
                    sponsored, or supported by such Federal department or
                    agency.
                ``(4) National stem database.--
                        ``(A) <<NOTE: Web site.>>  In general.--The
                    Secretary shall establish and maintain, on the website
                    described in subsection (e)(3), a National Database on
                    Financial Assistance for the Study of Science,
                    Technology, Engineering, and Mathematics (in this
                    paragraph referred to as the `STEM Database'). The STEM
                    Database shall consist of information on scholarships,
                    fellowships, and other programs of Federal, State,
                    local, and, to the maximum extent practicable, private
                    financial assistance available for the study of science,
                    technology, engineering, or mathematics at the
                    postsecondary and postbaccalaureate levels.
                        ``(B) Database contents.--The information maintained
                    on the STEM Database shall be displayed on the website
                    in the following manner:
                              ``(i) Separate information.--The STEM Database
                          shall provide separate information for each of the
                          fields of science, technology, engineering, and
                          mathematics, and for postsecondary and
                          postbaccalaureate programs of financial
                          assistance.
                              ``(ii) Information on targeted assistance.--
                          The STEM Database shall provide specific
                          information on any program of financial assistance
                          that is targeted to individuals based on financial
                          need, merit, or student characteristics.

    [[Page 122 STAT. 3097]]

                              ``(iii) Contact and website information.--The
                          STEM Database shall provide--
                                        ``(I) standard contact information
                                    that an interested person may use to
                                    contact a sponsor of any program of
                                    financial assistance included in the
                                    STEM Database; and
                                        ``(II) if such sponsor maintains a
                                    public website, a link to the website.
                              ``(iv) Search and match capabilities.--The
                          STEM Database shall--
                                        ``(I) have a search capability that
                                    permits an individual to search for
                                    information on the basis of each
                                    category of the information provided
                                    through the STEM Database and on the
                                    basis of combinations of categories of
                                    the information provided, including--
                                                ``(aa) whether the financial
                                            assistance is need- or merit-
                                            based; and
                                                ``(bb) by relevant academic
                                            majors; and
                                        ``(II) have a match capability
                                    that--
                                                ``(aa) searches the STEM
                                            Database for all financial
                                            assistance opportunities for
                                            which an individual may be
                                            qualified to apply, based on the
                                            student characteristics provided
                                            by such individual; and
                                                ``(bb) provides information
                                            to an individual for only those
                                            opportunities for which such
                                            individual is qualified, based
                                            on the student characteristics
                                            provided by such individual.
                              ``(v) Recommendation and disclaimer.--The STEM
                          Database shall provide, to the users of the STEM
                          Database--
                                        ``(I) a recommendation that students
                                    and families should carefully review all
                                    of the application requirements prior to
                                    applying for any aid or program of
                                    student financial assistance; and
                                        ``(II) a disclaimer that the non-
                                    Federal programs of student financial
                                    assistance presented in the STEM
                                    Database are not provided or endorsed by
                                    the Department or the Federal
                                    Government.
                        ``(C) Compilation of financial assistance
                    information.--In carrying out this paragraph, the
                    Secretary shall--
                              ``(i) consult with public and private sources
                          of scholarships, fellowships, and other programs
                          of student financial assistance; and
                              ``(ii) make easily available a process for
                          such entities to provide regular and updated
                          information about the scholarships, fellowships,
                          or other programs of student financial assistance.
                        ``(D) Contract authorized.--In carrying out the
                    requirements of this paragraph, the Secretary is
                    authorized to enter into a contract with a private
                    entity with demonstrated expertise in creating and
                    maintaining databases such as the one required under
                    this paragraph, under which contract the entity shall
                    furnish, and regularly

    [[Page 122 STAT. 3098]]

                    update, all of the information required to be maintained
                    on the STEM Database.
                ``(5) Dissemination of information.--The Secretary shall
            take such actions, on an ongoing basis, as may be necessary to
            disseminate information under this subsection and to encourage
            the use of the information by interested parties, including
            sending notices to secondary schools and institutions of higher
            education.''.

        (c) No User Fees for Department Financial Aid Websites.--Section 131
    (as amended by subsection (b)) (20 U.S.C. 1015) is further amended by
    adding at the end the following:
        ``(h) No User Fees for Department Financial Aid Websites.--No fee
    shall be charged to any individual to access--
                ``(1) a database or website of the Department that provides
            information about higher education programs or student financial
            assistance, including the College Navigator website (or
            successor website) and the websites and databases described in
            this section and section 132; or
                ``(2) information about higher education programs or student
            financial assistance available through a database or website of
            the Department.''.
    SEC. 111. TRANSPARENCY IN COLLEGE TUITION FOR CONSUMERS.

        Part C of title I (20 U.S.C. 1015) is amended by adding at the end
    the following:
    ``SEC. 132. <<NOTE: 20 USC 1015a.>>  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

    [[Page 122 STAT. 3099]]

    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 <<NOTE: Effective
            date. Public information. Web site.>>  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.

    [[Page 122 STAT. 3100]]

                ``(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 <<NOTE: Effective
            date. Deadline.>>  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.

    [[Page 122 STAT. 3101]]

        ``(g) State Higher Education Spending Chart.--
    The <<NOTE: Reports. Web site.>>  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 <<NOTE: Deadline.>>  later than one year after the date of
            enactment of the Higher Education Opportunity Act, the Secretary
            shall, in consultation with institutions of higher education and
            other appropriate experts, develop a net price calculator to
            help current and prospective students, families, and other
            consumers estimate the individual net price of an institution of
            higher education for a student. The calculator shall be
            developed in a manner that enables current and prospective
            students, families, and consumers to determine an estimate of a
            current or prospective student's individual net price at a
            particular institution.
                ``(2) Calculation of individual net price.--For purposes of
            this subsection, an individual net price of an institution of
            higher education shall be calculated in the same manner as the
            net price of such institution is calculated under subsection
            (a)(3), except that the cost of attendance and the amount of
            need-based and merit-based aid available shall be calculated for
            the individual student as much as practicable.
                ``(3) <<NOTE: Deadline. Web site.>>  Use of net price
            calculator by institutions.--Not later than two years after the
            date on which the Secretary makes the calculator developed under
            paragraph (1) available to institutions of higher education,
            each institution of higher education that receives Federal funds
            under title IV shall make publicly available on the
            institution's website a net price calculator to help current and
            prospective students, families, and other consumers estimate a
            student's individual net price at such institution of higher
            education. Such calculator may be a net price calculator
            developed--
                        ``(A) by the Department pursuant to paragraph (1);
                    or
                        ``(B) by the institution of higher education, if the
                    institution's calculator includes, at a minimum, the
                    same data elements included in the calculator developed
                    under paragraph (1).
                ``(4) 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--

    [[Page 122 STAT. 3102]]

                              ``(i) does not represent a final
                          determination, or actual award, of financial
                          assistance;
                              ``(ii) shall not be binding on the Secretary,
                          the institution of higher education, or the State;
                          and
                              ``(iii) may change;
                        ``(B) stating that the student must complete the
                    Free Application for Federal Student Aid described in
                    section 483 in order to be eligible for, and receive, an
                    actual financial aid award that includes Federal grant,
                    loan, or work-study assistance under title IV; and
                        ``(C) including a link to the website of the
                    Department that allows students to access the Free
                    Application for Federal Student Aid described in section
                    483.

        ``(i) Consumer Information.--
                ``(1) <<NOTE: Deadline. Public information. Web site.>>
            Availability of title iv institution information.--Not later
            than one year after the date of enactment of the Higher
            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'.

    [[Page 122 STAT. 3103]]

                        ``(J) The percentages of first-time, full-time,
                    degree- or certificate-seeking undergraduate students
                    enrolled at the institution who obtain a degree or
                    certificate within--
                              ``(i) the normal time for completion of, or
                          graduation from, the student's program;
                              ``(ii) 150 percent of the normal time for
                          completion of, or graduation from, the student's
                          program; and
                              ``(iii) 200 percent of the normal time for
                          completion of, or graduation from, the student's
                          program;
                        ``(K) The number of certificates, associate degrees,
                    baccalaureate degrees, master's degrees, professional
                    degrees, and doctoral degrees awarded by the
                    institution.
                        ``(L) The undergraduate major areas of study at the
                    institution with the highest number of degrees awarded.
                        ``(M) The student-faculty ratio, the number of full-
                    time and part-time faculty, and the number of graduate
                    assistants with primarily instructional
                    responsibilities, at the institution.
                        ``(N)(i) The cost of attendance for first-time,
                    full-time undergraduate students enrolled in the
                    institution who live on campus;
                        ``(ii) the cost of attendance for first-time, full-
                    time undergraduate students enrolled in the institution
                    who live off campus; and
                        ``(iii) in the case of a public institution of
                    higher education and notwithstanding subsection (b)(1),
                    the costs described in clauses (i) and (ii), for--
                              ``(I) first-time, full-time students enrolled
                          in the institution who are residents of the State
                          in which the institution is located; and
                              ``(II) first-time, full-time students enrolled
                          in the institution who are not residents of such
                          State.
                        ``(O) The average annual grant amount (including
                    Federal, State, and institutional aid) awarded to a
                    first-time, full-time undergraduate student enrolled at
                    the institution who receives financial aid.
                        ``(P) The average annual amount of Federal student
                    loans provided through the institution to undergraduate
                    students enrolled at the institution.
                        ``(Q) The total annual grant aid awarded to
                    undergraduate students enrolled at the institution, from
                    the Federal Government, a State, the institution, and
                    other sources known by the institution.
                        ``(R) The percentage of first-time, full-time
                    undergraduate students enrolled at the institution
                    receiving Federal, State, and institutional grants,
                    student loans, and any other type of student financial
                    assistance known by the institution, provided publicly
                    or through the institution, such as Federal work-study
                    funds.
                        ``(S) The number of students enrolled at the
                    institution receiving Federal Pell Grants.
                        ``(T) The institution's cohort default rate, as
                    defined under section 435(m).
                        ``(U) The information on campus safety required to
                    be collected under section 485(i).
                        ``(V) A link to the institution's website that
                    provides, in an easily accessible manner, the following
                    information:

    [[Page 122 STAT. 3104]]

                              ``(i) Student activities offered by the
                          institution.
                              ``(ii) Services offered by the institution for
                          individuals with disabilities.
                              ``(iii) Career and placement services offered
                          by the institution to students during and after
                          enrollment.
                              ``(iv) Policies of the institution related to
                          transfer of credit from other institutions.
                        ``(W) A link to the appropriate section of the
                    Bureau of Labor Statistics website that provides
                    information on regional data on starting salaries in all
                    major occupations.
                        ``(X) Information required to be submitted under
                    paragraph (4) and a link to the institution pricing
                    summary page described in paragraph (5).
                        ``(Y) In the case of an institution that was
                    required to submit a report under subsection (e)(1), a
                    link to such report.
                        ``(Z) The availability of alternative tuition plans,
                    which may include guaranteed tuition plans.
                ``(2) Annual updates.--The <<NOTE: Web site.>>  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 <<NOTE: Web site.>>  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) <<NOTE: Time period.>>  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) <<NOTE: Effective date.>>  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.

    [[Page 122 STAT. 3105]]

                              ``(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 <<NOTE: Web site.>>
                    Secretary shall annually update the lists described in
                    subparagraph (A) on the College Navigator website.
                ``(6) Income categories.--
                        ``(A) In general.--For <<NOTE: Applicability.>>
                    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) <<NOTE: Deadline.>>  Development of multi-year tuition
            calculator.--Not later than one year after the date of enactment
            of the Higher 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,

    [[Page 122 STAT. 3106]]

                    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 <<NOTE: Web site.>>
            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;

    [[Page 122 STAT. 3107]]

                        ``(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) <<NOTE: Public information.>>  Dissemination.--The
            Commissioner for Education Statistics shall disseminate to the
            public, in printed and electronic form, the information
            resulting from the survey.

        ``(l) Regulations.--The Secretary is authorized to issue such
    regulations as may be necessary to carry out this section.''.
    SEC. 112. TEXTBOOK INFORMATION.

        (a) Amendment.--Part C of title I (20 U.S.C. 1015) is further
    amended by adding after section 132 (as added by section 111 of this
    Act) the following new section:
    ``SEC. 133. <<NOTE: 20 USC 1015b.>>  TEXTBOOK INFORMATION.

        ``(a) Purpose and Intent.--The purpose of this section is to ensure
    that students have access to affordable course materials by decreasing
    costs to students and enhancing transparency and disclosure with respect
    to the selection, purchase, sale, and use of course materials. It is the
    intent of this section to encourage all of the involved parties,
    including faculty, students, administrators, institutions of higher
    education, bookstores, distributors, and publishers, to work together to
    identify ways to decrease the cost of college textbooks and supplemental
    materials for students while supporting the academic freedom of faculty
    members to select high quality course materials for students.
        ``(b) Definitions.--In this section:
                ``(1) Bundle.--The term `bundle' means one or more college
            textbooks or other supplemental materials that may be packaged
            together to be sold as course materials for one price.
                ``(2) College textbook.--The term `college textbook' means a
            textbook or a set of textbooks, used for, or in conjunction
            with, a course in postsecondary education at an institution of
            higher education.
                ``(3) Course schedule.--The term `course schedule' means a
            listing of the courses or classes offered by an institution of
            higher education for an academic period, as defined by the
            institution.
                ``(4) Custom textbook.--The term `custom textbook'--

    [[Page 122 STAT. 3108]]

                        ``(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
            college textbook that--
                        ``(A) may include printed materials, computer disks,
                    website access, and electronically distributed
                    materials; and
                        ``(B) is not being used as a component of an
                    integrated textbook.

        ``(c) Publisher Requirements.--
                ``(1) College textbook pricing information.--When a
            publisher provides a faculty member or other person or adopting
            entity in charge of selecting course materials at an institution
            of higher education receiving Federal financial assistance with
            information regarding a college textbook or supplemental
            material, the publisher shall include, with any such information
            and in writing (which may include electronic communications),
            the following:
                        ``(A) The price at which the publisher would make
                    the college textbook or supplemental material available
                    to the bookstore on the campus of, or otherwise
                    associated with, such institution of higher education
                    and, if available, the price at which the publisher
                    makes the college textbook or supplemental material
                    available to the public.
                        ``(B) The copyright dates of the three previous
                    editions of such college textbook, if any.
                        ``(C) A description of the substantial content
                    revisions made between the current edition of the
                    college textbook or supplemental material and the
                    previous edition, if any.

    [[Page 122 STAT. 3109]]

                        ``(D)(i) Whether the college textbook or
                    supplemental material is available in any other format,
                    including paperback and unbound; and
                        ``(ii) for each other format of the college textbook
                    or supplemental material, the price at which the
                    publisher would make the college textbook or
                    supplemental material in the other format available to
                    the bookstore on the campus of, or otherwise associated
                    with, such institution of higher education and, if
                    available, the price at which the publisher makes such
                    other format of the college textbook or supplemental
                    material available to the public.
                ``(2) Unbundling of college textbooks from supplemental
            materials.--A publisher that sells a college textbook and any
            supplemental material accompanying such college textbook as a
            single bundle shall also make available the college textbook and
            each supplemental material as separate and unbundled items, each
            separately priced.
                ``(3) Custom textbooks.--To the maximum extent practicable,
            a publisher shall provide the information required under this
            subsection with respect to the development and provision of
            custom textbooks.

        ``(d) Provision of ISBN College Textbook Information in Course
    Schedules.--To the maximum extent practicable, each institution of
    higher education receiving Federal financial assistance shall--
                ``(1) <<NOTE: Web site.>>  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

    [[Page 122 STAT. 3110]]

                ``(2) for each course or class offered by the institution
            for the subsequent academic period--
                        ``(A) the information required by subsection (d)(1)
                    for each college textbook or supplemental material
                    required or recommended for such course or class;
                        ``(B) the number of students enrolled in such course
                    or class; and
                        ``(C) the maximum student enrollment for such course
                    or class.

        ``(f) Additional Information.--An institution disclosing the
    information required by subsection (d)(1) is encouraged to disseminate
    to students information regarding--
                ``(1) available institutional programs for renting textbooks
            or for purchasing used textbooks;
                ``(2) available institutional guaranteed textbook buy-back
            programs;
                ``(3) available institutional alternative content delivery
            programs; or
                ``(4) other available institutional cost-saving strategies.

        ``(g) GAO Report.--Not later than July 1, 2013, the Comptroller
    General of the United States shall report to the authorizing committees
    on the implementation of this section by institutions of higher
    education, college bookstores, and publishers. The report shall
    particularly examine--
                ``(1) the availability of college textbook information on
            course schedules;
                ``(2) the provision of pricing information to faculty of
            institutions of higher education by publishers;
                ``(3) the use of bundled and unbundled material in the
            college textbook marketplace, including the adoption of
            unbundled materials by faculty and the use of integrated
            textbooks by publishers; and
                ``(4) the implementation of this section by institutions of
            higher education, including the costs and benefits to such
            institutions and to students.

        ``(h) Rule of Construction.--Nothing in this section shall be
    construed to supercede the institutional autonomy or academic freedom of
    instructors involved in the selection of college textbooks, supplemental
    materials, and other classroom materials.
        ``(i) No Regulatory Authority.--The Secretary shall not promulgate
    regulations with respect to this section.''.
        (b) <<NOTE: 20 USC 1015b note.>>  Effective Date.--The amendment
    made by subsection (a) shall take effect on July 1, 2010.
    SEC. 113. DATABASE OF STUDENT INFORMATION PROHIBITED.

        Part C of title I (20 U.S.C. 1015) is further amended by adding
    after section 133 (as added by section 112 of this Act) the following:
    ``SEC. 134. <<NOTE: 20 USC 1015c.>>  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.

    [[Page 122 STAT. 3111]]

        ``(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 the
            Higher 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. 114. IN-STATE TUITION RATES FOR ARMED FORCES MEMBERS,
                            SPOUSES, AND DEPENDENT CHILDREN.

        Part C of title I (20 U.S.C. 1015) is further amended by adding
    after section 134 (as added by section 113 of this Act) the following:
    ``SEC. 135. <<NOTE: 20 USC 1015d.>>  IN-STATE TUITION RATES FOR
                            MEMBERS OF THE ARMED FORCES ON ACTIVE
                            DUTY, SPOUSES, AND DEPENDENT CHILDREN.

        ``(a) Requirement.--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.
        ``(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 in section 101 of title 10, United States Code.''.
    SEC. 115. STATE HIGHER EDUCATION INFORMATION SYSTEM PILOT PROGRAM.

        Part C of title I of the Higher Education Act of 1965 (20 U.S.C.
    1015) is further amended by adding after section 135 (as added by
    section 114 of this Act) the following:

    [[Page 122 STAT. 3112]]

    ``SEC. 136. <<NOTE: 20 USC 1015e.>>  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 (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;

    [[Page 122 STAT. 3113]]

                ``(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.''.
    SEC. 116. STATE COMMITMENT TO AFFORDABLE COLLEGE EDUCATION.

        Part C of title I (20 U.S.C. 1015) is further amended by adding
    after section 136 (as added by section 115 of this Act) the following
    new section:
    ``SEC. 137. <<NOTE: 20 USC 1015f.>>  STATE COMMITMENT TO
                            AFFORDABLE COLLEGE EDUCATION.

        ``(a) <<NOTE: Effective date.>>  Maintenance of Effort Required.--A
    State shall provide--
                ``(1) for public institutions of higher education in such
            State for any academic year beginning on or after July 1, 2008,
            an amount which is equal to or greater than the average amount
            provided for non-capital and non-direct research and development
            expenses or costs by such State to such institutions of higher
            education during the five most recent preceding academic years
            for which satisfactory data are available; and
                ``(2) for private institutions of higher education in such
            State for any academic year beginning on or after July 1, 2008,
            an amount which is equal to or greater than the average amount
            provided for student financial aid for paying costs associated
            with postsecondary education by such State to such institutions
            during the five most recent preceding academic years for which
            satisfactory data are available.

        ``(b) Adjustments for Biennial Appropriations.--The Secretary shall
    take into consideration any adjustments to the calculations under
    subsection (a) that may be required to accurately reflect funding levels
    for postsecondary education in States with biennial appropriation
    cycles.

    [[Page 122 STAT. 3114]]

        ``(c) Waiver.--The Secretary shall waive the requirements of
    subsection (a), if the Secretary determines that such a waiver would be
    equitable due to exceptional or uncontrollable circumstances, such as a
    natural disaster or a precipitous and unforseen decline in the financial
    resources of a State or State educational agency, as appropriate.
        ``(d) Violation of Maintenance of Effort.--Notwithstanding any other
    provision of law, the Secretary shall withhold from any State that
    violates subsection (a) and does not receive a waiver pursuant to
    subsection (c) any amount that would otherwise be available to the State
    under section 781 until such State has made significant efforts to
    correct such violation.''.
    SEC. 117. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF
                            FEDERAL STUDENT FINANCIAL ASSISTANCE.

        Section 141 (20 U.S.C. 1018) is amended--
                (1) in subsection (a)--
                        (A) in paragraph (1), by striking ``operational''
                    and inserting ``administrative and oversight''; and
                        (B) in paragraph (2)(D), by striking ``of the
                    operational functions'' and inserting ``and
                    administration'';
                (2) in subsection (b)--
                        (A) in paragraph (1)--
                              (i) in subparagraph (A), by striking ``the
                          information systems administered by the PBO, and
                          other functions performed by the PBO'' and
                          inserting ``the Federal student financial
                          assistance programs authorized under title IV'';
                          and
                              (ii) by striking subparagraph (C) and
                          inserting the following:
                        ``(C) assist the Chief Operating Officer in
                    identifying goals for--
                              ``(i) the administration of the systems used
                          to administer the Federal student financial
                          assistance programs authorized under title IV; and
                              ``(ii) the updating of such systems to current
                          technology.'';
                        (B) in paragraph (2)--
                              (i) in the matter preceding subparagraph (A)--
                                        (I) by striking ``administration of
                                    the information and financial systems
                                    that support'' and inserting ``the
                                    administration of Federal''; and
                                        (II) by striking ``this title'' and
                                    inserting ``title IV'';
                              (ii) in subparagraph (A)--
                                        (I) in the matter preceding clause
                                    (i), by striking ``of the delivery
                                    system for Federal student assistance''
                                    and inserting ``for the Federal student
                                    financial assistance programs authorized
                                    under title IV'';
                                        (II) by striking clauses (i) and
                                    (ii) and inserting the following:
                              ``(i) the collection, processing, and
                          transmission of data to students, institutions,
                          lenders, State agencies, and other authorized
                          parties;

    [[Page 122 STAT. 3115]]

                              ``(ii) the design and technical specifications
                          for software development and procurement for
                          systems supporting the Federal student financial
                          assistance programs authorized under title IV;'';
                                        (III) in clause (iii), by striking
                                    ``delivery'' and inserting
                                    ``administration'';
                                        (IV) in clause (iv)--
                                                (aa) by inserting ``the
                                            Federal'' after ``supporting'';
                                                (bb) by striking ``under
                                            this title'' and inserting
                                            ``authorized under title IV'';
                                            and
                                                (cc) by striking ``and''
                                            after the semicolon;
                                        (V) in clause (v), by striking
                                    ``systems that support those programs.''
                                    and inserting ``the administration of
                                    the Federal student financial assistance
                                    programs authorized under title IV;
                                    and''; and
                                        (VI) by adding at the end the
                                    following:
                              ``(vi) ensuring the integrity of the Federal
                          student financial assistance programs authorized
                          under title IV.''; and
                              (iii) in subparagraph (B), by striking
                          ``operations and services'' and inserting
                          ``activities and functions''; and
                (3) in subsection (c)--
                        (A) in the subsection heading, by striking
                    ``Performance Plan and Report'' and inserting
                    ``Performance Plan, Report, and Briefing'';
                        (B) in paragraph (1)(C)--
                              (i) by striking ``this title'' each place the
                          term appears and inserting ``under title IV'';
                              (ii) in clause (iii), by striking
                          ``information and delivery''; and
                              (iii) in clause (iv)--
                                        (I) by striking ``Developing an''
                                    and inserting ``Developing''; and
                                        (II) by striking ``delivery and
                                    information system'' and inserting
                                    ``systems'';
                        (C) in paragraph (2)--
                              (i) in subparagraph (A), by inserting ``the''
                          after ``PBO and''; and
                              (ii) in subparagraph (B), by striking
                          ``Officer'' and inserting ``Officers'';
                        (D) in paragraph (3), by inserting ``students,''
                    after ``consult with''; and
                        (E) by adding at the end the following:
                ``(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.'';
                (4) in subsection (d)--
                        (A) in paragraph (1), by striking the second
                    sentence; and
                        (B) in paragraph (5)--

    [[Page 122 STAT. 3116]]

                              (i) in subparagraph (B), by striking
                          ``paragraph (2)'' and inserting ``paragraph (4)'';
                          and
                              (ii) in subparagraph (C), by striking
                          ``this'';
                (5) in subsection (f)--
                        (A) in paragraph (2), by striking ``to borrowers''
                    and inserting ``to students, borrowers,''; and
                        (B) in paragraph (3)(A), by striking ``(1)(A)'' and
                    inserting ``(1)'';
                (6) in subsection (g)(3), by striking ``not more than 25'';
                (7) in subsection (h), by striking ``organizational
            effectiveness'' and inserting ``effectiveness'';
                (8) by striking subsection (i);
                (9) by redesignating subsection (j) as subsection (i); and
                (10) in subsection (i) (as redesignated by paragraph (9)),
            by striking ``, including transition costs''.
    SEC. 118. PROCUREMENT FLEXIBILITY.

        Section 142 (20 U.S.C. 1018a) is amended--
                (1) in subsection (b)--
                        (A) in paragraph (1)--
                              (i) by striking ``for information systems
                          supporting the programs authorized under title
                          IV''; and
                              (ii) by striking ``and'' after the semicolon;
                        (B) in paragraph (2), by striking the period at the
                    end and inserting ``; and''; and
                        (C) by adding at the end the following:
                ``(3) through the Chief Operating Officer--
                        ``(A) to the maximum extent practicable, utilize
                    procurement systems that streamline operations, improve
                    internal controls, and enhance management; and
                        ``(B) assess the efficiency of such systems and
                    assess such systems' ability to meet PBO
                    requirements.'';
                (2) by striking subsection (c)(2) and inserting the
            following:
                ``(2) Fee for service arrangements.--The Chief Operating
            Officer shall, when appropriate and consistent with the purposes
            of the PBO, acquire services related to the functions set forth
            in section 141(b)(2) from any entity that has the capability and
            capacity to meet the requirements set by the PBO. The Chief
            Operating Officer is authorized to pay fees that are equivalent
            to those paid by other entities to an organization that provides
            services that meet the requirements of the PBO, as determined by
            the Chief Operating Officer.'';
                (3) in subsection (d)(2)(B), by striking ``on Federal
            Government contracts'';
                (4) in subsection (g)--
                        (A) in paragraph (4)(A)--
                              (i) in the subparagraph heading, by striking
                          ``Sole source.--'' and inserting ``Single-source
                          basis.--''; and
                              (ii) by striking ``sole-source'' and inserting
                          ``single-source''; and
                        (B) in paragraph (7), by striking ``sole-source''
                    and inserting ``single-source'';
                (5) in subsection (h)(2)(A), by striking ``sole-source'' and
            inserting ``single-source''; and
                (6) in subsection (l), by striking paragraph (3) and
            inserting the following:

    [[Page 122 STAT. 3117]]

                ``(3) Single-source basis.--The term `single-source basis',
            with respect to an award of a contract, means that the contract
            is awarded to a source after soliciting an offer or offers from,
            and negotiating with, only such source (although such source is
            not the only source in the marketplace capable of meeting the
            need) because such source is the most advantageous source for
            purposes of the award.''.
    SEC. 119. <<NOTE: 20 USC 1011m.>>  CERTIFICATION REGARDING THE USE
                            OF CERTAIN FEDERAL FUNDS.

        (a) Prohibition.--No Federal funds received under the Higher
    Education Act of 1965 (20 U.S.C. 1001 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 (20 U.S.C. 1001 et seq.) may be used to
    hire a registered lobbyist or pay any person or entity for securing an
    earmark.
        (d) Certification.--Each <<NOTE: Deadline.>>  institution of higher
    education or other postsecondary educational institution receiving
    Federal funding under the Higher Education Act of 1965 (20 U.S.C. 1001
    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.
    SEC. 120. INSTITUTION AND LENDER REPORTING AND DISCLOSURE
                            REQUIREMENTS.

        Title I (as amended by this title) (20 U.S.C. 1001 et seq.) is
    further amended by adding at the end the following:

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

    ``SEC. 151. <<NOTE: 20 USC 1019.>>  DEFINITIONS.

        ``In this part:
                ``(1) Agent.--The term `agent' means an officer or employee
            of a covered institution or an institution-affiliated
            organization.
                ``(2) Covered institution.--The term `covered institution'
            means any institution of higher education, as such term is

    [[Page 122 STAT. 3118]]

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

    [[Page 122 STAT. 3119]]

                              ``(i) arrangements or agreements with respect
                          to loans under part D of title IV; or
                              ``(ii) arrangements or agreements with respect
                          to loans that originate through the auction pilot
                          program under section 499(b).
                ``(9) Private education loan.--The term `private education
            loan' has the meaning given the term in section 140 of the Truth
            in Lending Act.
    ``SEC. 152. <<NOTE: 20 USC 1019a.>>  RESPONSIBILITIES OF COVERED
                            INSTITUTIONS, INSTITUTION-AFFILIATED
                            ORGANIZATIONS, AND LENDERS.

        ``(a) Responsibilities of Covered Institutions and Institution-
    Affiliated Organizations.--
                ``(1) Disclosures by covered institutions and institution-
            affiliated organizations.--
                        ``(A) <<NOTE: Web site.>>  Preferred lender
                    arrangement disclosures.--In addition to the disclosures
                    required by subsections (a)(27) and (h) of section 487
                    (if applicable), a covered institution, or an
                    institution-affiliated organization of such covered
                    institution, that participates in a preferred lender
                    arrangement shall disclose--
                              ``(i) on such covered institution's or
                          institution-affiliated organization's website and
                          in all informational materials described in
                          subparagraph (C) that describe or discuss
                          education loans--
                                        ``(I) the maximum amount of Federal
                                    grant and loan aid under title IV
                                    available to students, in an easy to
                                    understand format;
                                        ``(II) the information required to
                                    be disclosed pursuant to section
                                    153(a)(2)(A)(i), for each type of loan
                                    described in section 151(3)(A) that is
                                    offered pursuant to a preferred lender
                                    arrangement of the institution or
                                    organization to students of the
                                    institution or the families of such
                                    students; and
                                        ``(III) a statement that such
                                    institution is required to process the
                                    documents required to obtain a loan
                                    under part B of title IV from any
                                    eligible lender the student selects; and
                              ``(ii) on such covered institution's or
                          institution-affiliated organization's website and
                          in all informational materials described in
                          subparagraph (C) that describe or discuss private
                          education loans--
                                        ``(I) in the case of a covered
                                    institution, the information that the
                                    Board of Governors of the Federal
                                    Reserve System requires to be disclosed
                                    under section 128(e)(11) of the Truth in
                                    Lending Act (15 U.S.C. 1638(e)(11)), for
                                    each type of private education loan
                                    offered pursuant to a preferred lender
                                    arrangement of the institution to
                                    students of the institution or the
                                    families of such students; and
                                        ``(II) in the case of an
                                    institution-affiliated organization of a
                                    covered institution, the information the
                                    Board of Governors of the Federal
                                    Reserve System requires to be disclosed
                                    under section 128(e)(1) of the Truth in
                                    Lending Act (15 U.S.C. 1638(e)(1)), for
                                    each type of private education loan

    [[Page 122 STAT. 3120]]

                                    offered pursuant to a preferred lender
                                    arrangement of the organization to
                                    students of such institution or the
                                    families of such students.
                        ``(B) Private education loan disclosures.--A covered
                    institution, or an institution-affiliated organization
                    of such covered institution, that provides information
                    regarding a private education loan from a lender to a
                    prospective borrower shall--
                              ``(i) provide the prospective borrower with
                          the information the Board of Governors of the
                          Federal Reserve System requires to be disclosed
                          under section 128(e)(1) of the Truth in Lending
                          Act (15 U.S.C. 1638(e)(1)) for such loan;
                              ``(ii) inform the prospective borrower that--
                                        ``(I) the prospective borrower may
                                    qualify for loans or other assistance
                                    under title IV; and
                                        ``(II) the terms and conditions of
                                    loans made, insured, or guaranteed under
                                    title IV may be more favorable than the
                                    provisions of private education loans;
                                    and
                              ``(iii) ensure that information regarding
                          private education loans is presented in such a
                          manner as to be distinct from information
                          regarding loans that are made, insured, or
                          guaranteed under title IV.
                        ``(C) Informational materials.--The informational
                    materials described in this subparagraph are
                    publications, mailings, or electronic messages or
                    materials that--
                              ``(i) are distributed to prospective or
                          current students of a covered institution and
                          families of such students; and
                              ``(ii) describe or discuss the financial aid
                          opportunities available to students at an
                          institution of higher education.
                ``(2) Use of institution name.--A covered institution, or an
            institution-affiliated organization of such covered institution,
            that enters into a preferred lender arrangement with a lender
            regarding private education loans shall not agree to the
            lender's use of the name, emblem, mascot, or logo of such
            institution or organization, or other words, pictures, or
            symbols readily identified with such institution or
            organization, in the marketing of private education loans to
            students attending such institution in any way that implies that
            the loan is offered or made by such institution or organization
            instead of the lender.
                ``(3) Use of lender name.--A covered institution, or an
            institution-affiliated organization of such covered institution,
            that enters into a preferred lender arrangement with a lender
            regarding private education loans shall ensure that the name of
            the lender is displayed in all information and documentation
            related to such loans.

        ``(b) Lender Responsibilities.--
                ``(1) Disclosures by lenders.--
                        ``(A) Disclosures to borrowers.--
                              ``(i) Federal education loans.--For each
                          education loan that is made, insured, or
                          guaranteed under part B or D of title IV (other
                          than a loan made under section 428C or a Federal
                          Direct Consolidation Loan),

    [[Page 122 STAT. 3121]]

                          at or prior to the time the lender disburses such
                          loan, the lender shall provide the prospective
                          borrower or borrower, in writing (including
                          through electronic means), with the disclosures
                          described in subsections (a) and (c) of section
                          433.
                              ``(ii) Private education loans.--For each of a
                          lender's private education loans, the lender shall
                          comply with the disclosure requirements under
                          section 128(e) of the Truth in Lending Act (15
                          U.S.C. 1638(e)).
                        ``(B) Disclosures to the secretary.--
                              ``(i) In general.--
                          Each <<NOTE: Deadline. Reports.>>  lender of a
                          loan made, insured, or guaranteed under part B of
                          title IV shall, on an annual basis, report to the
                          Secretary--
                                        ``(I) any reasonable expenses paid
                                    or provided under section 435(d)(5)(D)
                                    or paragraph (3)(B) or (7) of section
                                    487(e) to any agent of a covered
                                    institution who--
                                                ``(aa) is employed in the
                                            financial aid office of a
                                            covered institution; or
                                                ``(bb) otherwise has
                                            responsibilities with respect to
                                            education loans or other
                                            financial aid of the
                                            institution; and
                                        ``(II) any similar expenses paid or
                                    provided to any agent of an institution-
                                    affiliated organization who is involved
                                    in the practice of recommending,
                                    promoting, or endorsing education loans.
                              ``(ii) Contents of reports.--Each report
                          described in clause (i) shall include--
                                        ``(I) the amount for each specific
                                    instance in which the lender provided
                                    such expenses;
                                        ``(II) the name of any agent
                                    described in clause (i) to whom the
                                    expenses were paid or provided;
                                        ``(III) the dates of the activity
                                    for which the expenses were paid or
                                    provided; and
                                        ``(IV) a brief description of the
                                    activity for which the expenses were
                                    paid or provided.
                              ``(iii) Report to congress.--The Secretary
                          shall summarize the information received from the
                          lenders under this subparagraph in a report and
                          transmit such report annually to the authorizing
                          committees.
                ``(2) Certification by lenders.--Not <<NOTE: Deadlines.>>
            later than 18 months after the date of enactment of the Higher
            Education Opportunity Act--
                        ``(A) in addition to any other disclosure required
                    under Federal law, each lender of a loan made, insured,
                    or guaranteed under part B of title IV that participates
                    in one or more preferred lender arrangements shall
                    annually certify the lender's compliance with the
                    requirements of this Act; and
                        ``(B) <<NOTE: Reports.>>  if an audit of a lender is
                    required pursuant to section 428(b)(1)(U)(iii), the
                    lender's compliance with the requirements under this
                    section shall be reported on and attested to annually by
                    the auditor of such lender.

    [[Page 122 STAT. 3122]]

    ``SEC. 153. <<NOTE: 20 USC 1019b.>>  LOAN INFORMATION TO BE
                            DISCLOSED AND MODEL DISCLOSURE FORM FOR
                            COVERED INSTITUTIONS, INSTITUTION-
                            AFFILIATED ORGANIZATIONS, AND LENDERS
                            PARTICIPATING IN PREFERRED LENDER
                            ARRANGEMENTS.

        ``(a) Duties of the Secretary.--
                ``(1) Determination of minimum disclosures.--
                        ``(A) In general.--Not <<NOTE: Deadline.>>  later
                    than 18 months after the date of enactment of the Higher
                    Education Opportunity Act, the Secretary, in
                    coordination with the Board of Governors of the Federal
                    Reserve System, shall determine the minimum information
                    that lenders, covered institutions, and institution-
                    affiliated organizations of such covered institutions
                    participating in preferred lender arrangements shall
                    make available regarding education loans described in
                    section 151(3)(A) that are offered to students and the
                    families of such students.
                        ``(B) Consultation and content of minimum
                    disclosures.--In carrying out subparagraph (A), the
                    Secretary shall--
                              ``(i) consult with students, the families of
                          such students, representatives of covered
                          institutions (including financial aid
                          administrators, admission officers, and business
                          officers), representatives of institution-
                          affiliated organizations, secondary school
                          guidance counselors, lenders, loan servicers, and
                          guaranty agencies;
                              ``(ii) include, in the minimum information
                          under subparagraph (A) that is required to be made
                          available, the information that the Board of
                          Governors of the Federal Reserve System requires
                          to be disclosed under section 128(e)(1) of the
                          Truth in Lending Act (15 U.S.C. 1638(e)(1)),
                          modified as necessary to apply to such loans; and
                              ``(iii) consider the merits of requiring each
                          covered institution, and each institution-
                          affiliated organization of such covered
                          institution, with a preferred lender arrangement
                          to provide to prospective borrowers and the
                          families of such borrowers the following
                          information for each type of education loan
                          offered pursuant to such preferred lender
                          arrangement:
                                        ``(I) The interest rate and terms
                                    and conditions of the loan for the next
                                    award year, including loan forgiveness
                                    and deferment.
                                        ``(II) Information on any charges,
                                    such as origination and Federal default
                                    fees, that are payable on the loan, and
                                    whether those charges will be--
                                                ``(aa) collected by the
                                            lender at or prior to the
                                            disbursal of the loan, including
                                            whether the charges will be
                                            deducted from the proceeds of
                                            the loan or paid separately by
                                            the borrower; or
                                                ``(bb) paid in whole or in
                                            part by the lender.
                                        ``(III) The annual and aggregate
                                    maximum amounts that may be borrowed.
                                        ``(IV) The average amount borrowed
                                    from the lender by students who
                                    graduated from such

    [[Page 122 STAT. 3123]]

                                    institution in the preceding year with
                                    certificates, undergraduate degrees,
                                    graduate degrees, and professional
                                    degrees, as applicable, and who obtained
                                    loans of such type from the lender for
                                    the preceding year.
                                        ``(V) The amount the borrower may
                                    pay in interest, based on a standard
                                    repayment plan and the average amount
                                    borrowed from the lender by students who
                                    graduated from such institution in the
                                    preceding year and who obtained loans of
                                    such type from the lender for the
                                    preceding year, for--
                                                ``(aa) borrowers who take
                                            out loans under section 428;
                                                ``(bb) borrowers who take
                                            out loans under section 428B or
                                            428H, who pay the interest while
                                            in school; and
                                                ``(cc) borrowers who take
                                            out loans under section 428B or
                                            428H, who do not pay the
                                            interest while in school.
                                        ``(VI) The consequences for the
                                    borrower of defaulting on a loan,
                                    including limitations on the discharge
                                    of an education loan in bankruptcy.
                                        ``(VII) Contact information for the
                                    lender.
                                        ``(VIII) Other information suggested
                                    by the persons and entities with whom
                                    the Secretary has consulted under clause
                                    (i).
                ``(2) Required disclosures.--After making the determinations
            under paragraph (1), the Secretary, in coordination with the
            Board of Governors of the Federal Reserve System and after
            consultation with the public, shall--
                        ``(A)(i) provide that the information determined
                    under paragraph (1) shall be disclosed by covered
                    institutions, and institution-affiliated organizations
                    of such covered institutions, with preferred lender
                    arrangements to prospective borrowers and the families
                    of such borrowers regarding the education loans
                    described in section 151(3)(A) that are offered pursuant
                    to such preferred lender arrangements; and
                        ``(ii) make clear that such covered institutions and
                    institution-affiliated organizations may provide the
                    required information on a form designed by the
                    institution or organization instead of the model
                    disclosure form described in subparagraph (B);
                        ``(B) develop a model disclosure form that may be
                    used by covered institutions, institution-affiliated
                    organizations, and preferred lenders that includes all
                    of the information required under subparagraph (A)(i) in
                    a format that--
                              ``(i) is easily usable by students, families,
                          institutions, institution-affiliated
                          organizations, lenders, loan servicers, and
                          guaranty agencies; and
                              ``(ii) is similar in format to the form
                          developed by the Board of Governors of the Federal
                          Reserve System under paragraphs (1) and (5)(A) of
                          section 128(e), in order to permit students and
                          the families of students to easily compare private
                          education loans and education loans described in
                          section 151(3)(A); and

    [[Page 122 STAT. 3124]]

                        ``(C) update such model disclosure form
                    periodically, as necessary.

        ``(b) Duties of Lenders.--Each <<NOTE: Deadline.>>  lender that has
    a preferred lender arrangement with a covered institution, or an
    institution-affiliated organization of such covered institution, with
    respect to education loans described in section 151(3)(A) shall
    annually, by a date determined by the Secretary, provide to such covered
    institution or such institution-affiliated organization, and to the
    Secretary, the information the Secretary requires pursuant to subsection
    (a)(2)(A)(i) for each type of education loan described in section
    151(3)(A) that the lender plans to offer pursuant to such preferred
    lender arrangement to students attending such covered institution, or to
    the families of such students, for the next award year.

        ``(c) Duties of Covered Institutions and Institution-Affiliated
    Organizations.--
                ``(1) Providing information to students and families.--
                        ``(A) In general.--Each covered institution, and
                    each institution-affiliated organization of such covered
                    institution, that has a preferred lender arrangement
                    shall provide the following information to students
                    attending such institution, or the families of such
                    students, as applicable:
                              ``(i) The information the Secretary requires
                          pursuant to subsection (a)(2)(A)(i), for each type
                          of education loan described in section 151(3)(A)
                          offered pursuant to a preferred lender arrangement
                          to students of such institution or the families of
                          such students.
                              ``(ii)(I) In the case of a covered
                          institution, the information that the Board of
                          Governors of the Federal Reserve System requires
                          to be disclosed under section 128(e)(11) of the
                          Truth in Lending Act (15 U.S.C. 1638(e)(11)) to
                          the covered institution, for each type of private
                          education loan offered pursuant to such preferred
                          lender arrangement to students of such institution
                          or the families of such students.
                              ``(II) In the case of an institution-
                          affiliated organization, the information the Board
                          of Governors of the Federal Reserve System
                          requires to be disclosed under section 128(e)(1)
                          of the Truth in Lending Act (15 U.S.C.
                          1638(e)(1)), for each type of private education
                          loan offered pursuant to such preferred lender
                          arrangement to students of the institution with
                          which such organization is affiliated or the
                          families of such students.
                        ``(B) Timely provision of information.--The
                    information described in subparagraph (A) shall be
                    provided in a manner that allows for the students or the
                    families to take such information into account before
                    selecting a lender or applying for an education loan.
                ``(2) Annual report.--Each covered institution, and each
            institution-affiliated organization of such covered institution,
            that has a preferred lender arrangement, shall--
                        ``(A) prepare and submit to the Secretary an annual
                    report, by a date determined by the Secretary, that
                    includes, for each lender that has a preferred lender
                    arrangement with such covered institution or
                    organization--

    [[Page 122 STAT. 3125]]

                              ``(i) the information described in clauses (i)
                          and (ii) of paragraph (1)(A); and
                              ``(ii) a detailed explanation of why such
                          covered institution or institution-affiliated
                          organization entered into a preferred lender
                          arrangement with the lender, including why the
                          terms, conditions, and provisions of each type of
                          education loan provided pursuant to the preferred
                          lender arrangement are beneficial for students
                          attending such institution, or the families of
                          such students, as applicable; and
                        ``(B) <<NOTE: Public information.>>  ensure that the
                    report required under subparagraph (A) is made available
                    to the public and provided to students attending or
                    planning to attend such covered institution and the
                    families of such students.
                ``(3) Code of conduct.--
                        ``(A) In general.--Each covered institution, and
                    each institution-affiliated organization of such covered
                    institution, that has a preferred lender arrangement,
                    shall comply with the code of conduct requirements of
                    subparagraphs (A) through (C) of section 487(a)(25).
                        ``(B) Applicable code of conduct.--For purposes of
                    subparagraph (A), an institution-affiliated organization
                    of a covered institution shall--
                              ``(i) comply with the code of conduct
                          developed and published by such covered
                          institution under subparagraphs (A) and (B) of
                          section 487(a)(25);
                              ``(ii) <<NOTE: Web site.>>  if such
                          institution-affiliated organization has a website,
                          publish such code of conduct prominently on the
                          website; and
                              ``(iii) <<NOTE: Deadline. Notice.>>
                          administer and enforce such code of conduct by, at
                          a minimum, requiring that all of such
                          organization's agents with responsibilities with
                          respect to education loans be annually informed of
                          the provisions of such code of conduct.
    ``SEC. 154. <<NOTE: 20 USC 1019c.>>  LOAN INFORMATION TO BE
                            DISCLOSED AND MODEL DISCLOSURE FORM FOR
                            INSTITUTIONS PARTICIPATING IN THE WILLIAM.
                            D. FORD FEDERAL DIRECT LOAN PROGRAM.

        ``(a) Provision of Disclosures to Institutions by the Secretary.--
    Not later <<NOTE: Deadline.>>  than 180 days after the development of
    the model disclosure form under section 153(a)(2)(B), the Secretary
    shall provide each institution of higher education participating in the
    William D. Ford Direct Loan Program under part D of title IV with a
    completed model disclosure form including the same information for
    Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford
    Loans, and Federal Direct PLUS loans made to, or on behalf of, students
    attending each such institution as is required on such form for loans
    described in section 151(3)(A).

        ``(b) Duties of Institutions.--
                ``(1) In general.--Each institution of higher education
            participating in the William D. Ford Direct Loan Program under
            part D of title IV shall--
                        ``(A) make the information the Secretary provides to
                    the institution under subsection (a) available to
                    students attending or planning to attend the
                    institution, or the families of such students, as
                    applicable; and

    [[Page 122 STAT. 3126]]

                        ``(B) if the institution provides information
                    regarding a private education loan to a prospective
                    borrower, concurrently provide such borrower with the
                    information the Secretary provides to the institution
                    under subsection (a).
                ``(2) Choice of forms.--In providing the information
            required under paragraph (1), an institution of higher education
            may use a comparable form designed by the institution instead of
            the model disclosure form developed under section
            153(a)(2)(B).''.

                      TITLE II--TEACHER QUALITY ENHANCEMENT

    SEC. 201. TEACHER QUALITY ENHANCEMENT.

        Title II (20 U.S.C. 1021 et seq.) is amended--
                (1) by inserting before part A the following:
    ``SEC. 200. <<NOTE: 20 USC 1021.>>  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' has the meaning given the term in section 9101 of the
            Elementary and Secondary Education Act of 1965.
                ``(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 9101
            of the Elementary and Secondary Education 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

    [[Page 122 STAT. 3127]]

                          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
                          5210 of the Elementary and Secondary Education 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.
                ``(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.
                ``(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 6211(b) of the Elementary and
                    Secondary Education Act of 1965; or

    [[Page 122 STAT. 3128]]

                        ``(iv) that meets the eligibility requirements for
                    funding under the Rural and Low-Income School Program
                    under section 6221(b) of the Elementary and Secondary
                    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

    [[Page 122 STAT. 3129]]

                          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.
                ``(13) Highly qualified.--The term `highly qualified' has
            the meaning given such term in section 9101 of the Elementary
            and Secondary Education Act of 1965 and, with respect to special
            education teachers, in section 602 of the Individuals with
            Disabilities Education Act.
                ``(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.

    [[Page 122 STAT. 3130]]

                        ``(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 of 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 in section
            9101 of the Elementary and Secondary Education Act of 1965.
                ``(16) Parent.--The term `parent' has the meaning given the
            term in section 9101 of the Elementary and Secondary Education
            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--

    [[Page 122 STAT. 3131]]

                              ``(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 to become highly qualified;
                          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 9101 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

    [[Page 122 STAT. 3132]]

                    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, earns a
                    master's degree, attains full State teacher
                    certification or licensure, and becomes highly
                    qualified.
                ``(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--

    [[Page 122 STAT. 3133]]

                              ``(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.'';
                (2) <<NOTE: 20 USC 10213et seq.>>  by striking part A and
            inserting the following:

                  ``PART A--TEACHER QUALITY PARTNERSHIP GRANTS

    ``SEC. 201. <<NOTE: 20 USC 1022.>>  PURPOSES.

        ``The purposes of this part are to--
                ``(1) improve student achievement;
                ``(2) improve the quality of prospective and new teachers by
            improving the preparation of prospective teachers and enhancing
            professional development activities for new teachers;
                ``(3) hold teacher preparation programs at institutions of
            higher education accountable for preparing highly qualified
            teachers; and
                ``(4) recruit highly qualified individuals, including
            minorities and individuals from other occupations, into the
            teaching force.
    ``SEC. 202. <<NOTE: 20 USC 1022a.>>  PARTNERSHIP GRANTS.

        ``(a) Program Authorized.--From amounts made available under section
    209, the Secretary is authorized to award grants, on a competitive
    basis, to eligible partnerships, to enable the eligible partnerships to
    carry out the activities described in subsection (c).
        ``(b) Application.--Each eligible partnership desiring a grant under
    this section shall submit an application to the Secretary at such time,
    in such manner, and accompanied by such information as the Secretary may
    require. Each such application shall contain--
                ``(1) a needs assessment of the partners in the eligible
            partnership with respect to the preparation, ongoing training,
            professional development, and retention of general education

    [[Page 122 STAT. 3134]]

            and special education teachers, principals, and, as applicable,
            early childhood educators;
                ``(2) a description of the extent to which the program to be
            carried out with grant funds, as described in subsection (c),
            will prepare prospective and new teachers with strong teaching
            skills;
                ``(3) a description of how such program will prepare
            prospective and new teachers to understand and use research and
            data to modify and improve classroom instruction;
                ``(4) a description of--
                        ``(A) how the eligible partnership will coordinate
                    strategies and activities assisted under the grant with
                    other teacher preparation or professional development
                    programs, including programs funded under the Elementary
                    and Secondary Education Act of 1965 and the Individuals
                    with Disabilities Education Act, and through the
                    National Science Foundation; and
                        ``(B) how the activities of the partnership will be
                    consistent with State, local, and other education reform
                    activities that promote teacher quality and student
                    academic achievement;
                ``(5) an assessment that describes the resources available
            to the eligible partnership, including--
                        ``(A) the integration of funds from other related
                    sources;
                        ``(B) the intended use of the grant funds; and
                        ``(C) the commitment of the resources of the
                    partnership to the activities assisted under this
                    section, including financial support, faculty
                    participation, and time commitments, and to the
                    continuation of the activities when the grant ends;
                ``(6) a description of--
                        ``(A) how the eligible partnership will meet the
                    purposes of this part;
                        ``(B) how the partnership will carry out the
                    activities required under subsection (d) or (e), based
                    on the needs identified in paragraph (1), with the goal
                    of improving student academic achievement;
                        ``(C) if the partnership chooses to use funds under
                    this section for a project or activities under
                    subsection (f) or (g), how the partnership will carry
                    out such project or required activities based on the
                    needs identified in paragraph (1), with the goal of
                    improving student academic achievement;
                        ``(D) the partnership's evaluation plan under
                    section 204(a);
                        ``(E) how the partnership will align the teacher
                    preparation program under subsection (c) with the--
                              ``(i) State early learning standards for early
                          childhood education programs, as appropriate, and
                          with the relevant domains of early childhood
                          development; and
                              ``(ii) student academic achievement standards
                          and academic content standards under section
                          1111(b)(2) of the Elementary and Secondary
                          Education Act of 1965, established by the State in
                          which the partnership is located;

    [[Page 122 STAT. 3135]]

                        ``(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 highly
                    qualified teachers in the classrooms of high-need
                    schools served by the high-need local educational agency
                    in the partnership to--
                              ``(i) provide high-quality professional
                          development activities to strengthen the content
                          knowledge and teaching skills of elementary school
                          and secondary school teachers; and
                              ``(ii) train other classroom teachers to
                          implement literacy programs that incorporate the
                          essential components of reading instruction;
                        ``(I) how the partnership will design, implement, or
                    enhance a year-long and rigorous teaching preservice
                    clinical program component;
                        ``(J) how the partnership will support in-service
                    professional development strategies and activities; and
                        ``(K) how the partnership will collect, analyze, and
                    use data on the retention of all teachers and early
                    childhood educators in schools and early childhood
                    education programs located in the geographic area served
                    by the partnership to evaluate the effectiveness of the
                    partnership's teacher and educator support system; and
                ``(7) with respect to the induction program required as part
            of the activities carried out under this section--
                        ``(A) a demonstration that the schools and
                    departments within the institution of higher education
                    that are part of the induction program will effectively
                    prepare teachers, including providing content expertise
                    and expertise in teaching, as appropriate;
                        ``(B) a demonstration of the eligible partnership's
                    capability and commitment to, and the accessibility to
                    and involvement of faculty in, the use of empirically-
                    based practice and scientifically valid research on
                    teaching and learning;
                        ``(C) a description of how the teacher preparation
                    program will design and implement an induction program
                    to support, through not less than the first two years of
                    teaching, all new teachers who are prepared by the
                    teacher preparation program in the partnership and who
                    teach in the high-need local educational agency in the
                    partnership, and, to the extent practicable, all new
                    teachers who teach in such high-need local educational
                    agency, in the further development of the new teachers'
                    teaching skills, including the use of mentors who are
                    trained and compensated by such program for the mentors'
                    work with new teachers; and
                        ``(D) a description of how faculty involved in the
                    induction program will be able to substantially
                    participate in

    [[Page 122 STAT. 3136]]

                    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
            pre-baccalaureate preparation of teachers under subsection (d),
            a teaching residency program under subsection (e), or a
            combination of such programs; and
                ``(2) may use grant funds to carry out a leadership
            development program under subsection (f).

        ``(d) Partnership Grants for Pre-Baccalaureate Preparation of
    Teachers.--An eligible partnership that receives a grant to carry out an
    effective program for the pre-baccalaureate preparation of teachers
    shall carry out a 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
                                    be highly qualified (including teachers
                                    in rural school districts who may teach
                                    multiple subjects, special educators,
                                    and teachers of students who are limited
                                    English proficient who may teach
                                    multiple subjects);
                                        ``(II) such teachers and, as
                                    applicable, early childhood educators,
                                    to understand empirically-based practice
                                    and scientifically valid research
                                    related to teaching and learning and the
                                    applicability of such practice and
                                    research, including through the
                                    effective use of technology,
                                    instructional techniques, and strategies
                                    consistent with the principles of
                                    universal design for learning, and
                                    through positive behavioral
                                    interventions and support strategies to
                                    improve student achievement; and
                                        ``(III) as applicable, early
                                    childhood educators to be highly
                                    competent; and
                              ``(ii) promoting strong teaching skills and,
                          as applicable, techniques for early childhood
                          educators to improve children's cognitive, social,
                          emotional, and physical development.
                        ``(B) Required reforms.--The reforms described in
                    subparagraph (A) shall include--
                              ``(i) implementing teacher preparation program
                          curriculum changes that improve, evaluate, and
                          assess how well all prospective and new teachers
                          develop teaching skills;
                              ``(ii) using empirically-based practice and
                          scientifically valid research, where applicable,
                          about teaching

    [[Page 122 STAT. 3137]]

                          and learning so that all prospective teachers and,
                          as applicable, early childhood educators--
                                        ``(I) understand and can implement
                                    research-based teaching practices in
                                    classroom instruction;
                                        ``(II) have knowledge of student
                                    learning methods;
                                        ``(III) possess skills to analyze
                                    student academic achievement data and
                                    other measures of student learning, and
                                    use such data and measures to improve
                                    classroom instruction;
                                        ``(IV) possess teaching skills and
                                    an understanding of effective
                                    instructional strategies across all
                                    applicable content areas that enable
                                    general education and special education
                                    teachers and early childhood educators
                                    to--
                                                ``(aa) meet the specific
                                            learning needs of all students,
                                            including students with
                                            disabilities, students who are
                                            limited English proficient,
                                            students who are gifted and
                                            talented, students with low
                                            literacy levels and, as
                                            applicable, children in early
                                            childhood education programs;
                                            and
                                                ``(bb) differentiate
                                            instruction for such students;
                                        ``(V) can effectively participate as
                                    a member of the individualized education
                                    program team, as defined in section
                                    614(d)(1)(B) of the Individuals with
                                    Disabilities Education Act; and
                                        ``(VI) can successfully employ
                                    effective strategies for reading
                                    instruction using the essential
                                    components of reading instruction;
                              ``(iii) ensuring collaboration with
                          departments, programs, or units of a partner
                          institution outside of the teacher preparation
                          program in all academic content areas to ensure
                          that prospective teachers receive training in both
                          teaching and relevant content areas in order to
                          become highly qualified, which may include
                          training in multiple subjects to teach multiple
                          grade levels as may be needed for individuals
                          preparing to teach in rural communities and for
                          individuals preparing to teach students with
                          disabilities as described in section 602(10)(D) of
                          the Individuals with Disabilities Education Act;
                              ``(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

    [[Page 122 STAT. 3138]]

            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.

    [[Page 122 STAT. 3139]]

                ``(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
            highly qualified teachers through the activities of the eligible
            partnership, which may include an emphasis on recruiting into
            the teaching profession--
                        ``(A) individuals from under represented
                    populations;
                        ``(B) individuals to teach in rural communities and
                    teacher shortage areas, including mathematics, science,
                    special education, and the instruction of limited
                    English proficient students; and
                        ``(C) mid-career professionals from other
                    occupations, former military personnel, and recent
                    college graduates with a record of academic distinction.
                ``(6) Literacy training.--Strengthening the literacy
            teaching skills of prospective and, as applicable, new
            elementary school and secondary school teachers--
                        ``(A) to implement literacy programs that
                    incorporate the essential components of reading
                    instruction;
                        ``(B) to use screening, diagnostic, formative, and
                    summative assessments to determine students' literacy
                    levels, difficulties, and growth in order to improve
                    classroom instruction and improve student reading and
                    writing skills;
                        ``(C) to provide individualized, intensive, and
                    targeted literacy instruction for students with
                    deficiencies in literacy skills; and
                        ``(D) to integrate literacy skills in the classroom
                    across subject areas.

        ``(e) Partnership Grants for the Establishment of Teaching Residency
    Programs.--
                ``(1) In general.--An eligible partnership receiving a grant
            to carry out an effective teaching residency program shall carry
            out a program that includes all of the following activities:
                        ``(A) Supporting a teaching residency program
                    described in paragraph (2) for high-need subjects and
                    areas, as determined by the needs of the high-need local
                    educational agency in the partnership.
                        ``(B) Placing graduates of the teaching residency
                    program in cohorts that facilitate professional
                    collaboration, both among graduates of the teaching
                    residency program and between such graduates and mentor
                    teachers in the receiving school.
                        ``(C) Ensuring that teaching residents who
                    participate in the teaching residency program receive--
                              ``(i) effective preservice preparation as
                          described in paragraph (2);
                              ``(ii) teacher mentoring;
                              ``(iii) support required through the induction
                          program as the teaching residents enter the
                          classroom as new teachers; and
                              ``(iv) the preparation described in
                          subparagraphs (A), (B), and (C) of subsection
                          (d)(2).
                ``(2) Teaching residency programs.--
                        ``(A) Establishment and design.--A teaching
                    residency program under this paragraph shall be a
                    program

    [[Page 122 STAT. 3140]]

                    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 to earn 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.

    [[Page 122 STAT. 3141]]

                              ``(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 one-year teaching
                          residency program.
                              ``(ii) Applications for stipends or
                          salaries.--Each teacher residency candidate
                          desiring a stipend

    [[Page 122 STAT. 3142]]

                          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 one-year
                                    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 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 by clause (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 by clause (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.

    [[Page 122 STAT. 3143]]

                                        ``(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

    [[Page 122 STAT. 3144]]

                                    or a local educational agency located in
                                    a rural area in the eligible partnership
                                    and identified by the eligible
                                    partnership; and
                                        ``(II) closely supervised
                                    interaction between prospective school
                                    leaders and faculty, new and experienced
                                    teachers, and new and experienced school
                                    leaders, in such high-need schools.
                              ``(ii) Integrate pedagogy and practice and
                          promote effective leadership skills, meeting the
                          unique needs of urban, rural, or geographically
                          isolated communities, as applicable.
                              ``(iii) Provide for mentoring of new school
                          leaders.
                        ``(E) Creating an induction program for new school
                    leaders.
                        ``(F) Developing and implementing effective
                    mechanisms to ensure that the eligible partnership is
                    able to recruit qualified individuals to become school
                    leaders through the activities of the eligible
                    partnership, which may include an emphasis on recruiting
                    into school leadership professions--
                              ``(i) individuals from underrepresented
                          populations;
                              ``(ii) individuals to serve as
                          superintendents, principals, or other school
                          administrators in rural and geographically
                          isolated communities and school leader shortage
                          areas; and
                              ``(iii) mid-career professionals from other
                          occupations, former military personnel, and recent
                          college graduates with a record of academic
                          distinction.
                ``(2) Selection of individuals for the leadership program.--
            In order to be eligible for the school leadership program under
            this subsection, an individual shall be enrolled in or preparing
            to enroll in an institution of higher education, and shall--
                        ``(A) be a--
                              ``(i) recent graduate of an institution of
                          higher education;
                              ``(ii) mid-career professional from outside
                          the field of education with strong content
                          knowledge or a record of professional
                          accomplishment;
                              ``(iii) current teacher who is interested in
                          becoming a school leader; or
                              ``(iv) school leader who is interested in
                          becoming a superintendent; and
                        ``(B) submit an application to the leadership
                    program.

        ``(g) Partnership With Digital Education Content Developer.--An
    eligible partnership that receives a grant under this section may use
    grant funds provided to carry out the activities described in subsection
    (d) or (e), or both, to partner with a television public broadcast
    station, as defined in section 397(6) of the Communications Act of 1934
    (47 U.S.C. 397(6)), or another entity that develops digital educational
    content, for the purpose of improving the quality of pre-baccalaureate
    teacher preparation programs or to enhance the quality of preservice
    training for prospective teachers.
        ``(h) Evaluation and Reporting.--The Secretary shall--
                ``(1) evaluate the programs assisted under this section; and

    [[Page 122 STAT. 3145]]

                ``(2) <<NOTE: Public information.>>  make publicly available
            a report detailing the Secretary's evaluation of each such
            program.

        ``(i) Consultation.--
                ``(1) In general.--Members of an eligible partnership that
            receives a grant under this section shall engage in regular
            consultation throughout the development and implementation of
            programs and activities carried out under this section.
                ``(2) Regular communication.--To ensure timely and
            meaningful consultation as described in paragraph (1), regular
            communication shall occur among all members of the eligible
            partnership, including the high-need local educational agency.
            Such communication shall continue throughout the implementation
            of the grant and the assessment of programs and activities under
            this section.
                ``(3) Written consent.--The Secretary may approve changes in
            grant activities of a grant under this section only if the
            eligible partnership submits to the Secretary a written consent
            of such changes signed by all members of the eligible
            partnership.

        ``(j) Construction.--Nothing in this section shall be construed to
    prohibit an eligible partnership from using grant funds to coordinate
    with the activities of eligible partnerships in other States or on a
    regional basis through Governors, State boards of education, State
    educational agencies, State agencies responsible for early childhood
    education, local educational agencies, or State agencies for higher
    education.
        ``(k) Supplement, Not Supplant.--Funds made available under this
    section shall be used to supplement, and not supplant, other Federal,
    State, and local funds that would otherwise be expended to carry out
    activities under this section.
    ``SEC. 203. <<NOTE: 20 USC 1022b.>>  ADMINISTRATIVE PROVISIONS.

        ``(a) Duration; Number of Awards; Payments.--
                ``(1) Duration.--A grant awarded under this part shall be
            awarded for a period of five years.
                ``(2) Number of awards.--An eligible partnership may not
            receive more than one grant during a five-year period. Nothing
            in this title shall be construed to prohibit an individual
            member, that can demonstrate need, of an eligible partnership
            that receives a grant under this title from entering into
            another eligible partnership consisting of new members and
            receiving a grant with such other eligible partnership before
            the five-year period described in the preceding sentence
            applicable to the eligible partnership with which the individual
            member has first partnered has expired.

        ``(b) Peer Review.--
                ``(1) Panel.--The Secretary shall provide the applications
            submitted under this part to a peer review panel for evaluation.
            With respect to each application, the peer review panel shall
            initially recommend the application for funding or for
            disapproval.
                ``(2) Priority.--The Secretary, in funding applications
            under this part, shall give priority--
                        ``(A) to eligible partnerships that include an
                    institution of higher education whose teacher
                    preparation program has a rigorous selection process to
                    ensure the highest quality of students entering such
                    program; and

    [[Page 122 STAT. 3146]]

                        ``(B)(i) to applications from broad-based eligible
                    partnerships that involve businesses and community
                    organizations; or
                        ``(ii) to eligible partnerships so that the awards
                    promote an equitable geographic distribution of grants
                    among rural and urban areas.
                ``(3) Secretarial selection.--The Secretary shall determine,
            based on the peer review process, which applications shall
            receive funding and the amounts of the grants. In determining
            grant amounts, the Secretary shall take into account the total
            amount of funds available for all grants under this part and the
            types of activities proposed to be carried out by the eligible
            partnership.

        ``(c) Matching Requirements.--
                ``(1) In general.--Each eligible partnership receiving a
            grant under this part shall provide, from non-Federal sources,
            an amount equal to 100 percent of the amount of the grant, which
            may be provided in cash or in-kind, to carry out the activities
            supported by the grant.
                ``(2) Waiver.--The Secretary may waive all or part of the
            matching requirement described in paragraph (1) for any fiscal
            year for an eligible partnership if the Secretary determines
            that applying the matching requirement to the eligible
            partnership would result in serious hardship or an inability to
            carry out the authorized activities described in this part.

        ``(d) Limitation on Administrative Expenses.--An eligible
    partnership that receives a grant under this part may use not more than
    two percent of the funds provided to administer the grant.
    ``SEC. 204. <<NOTE: 20 USC 1022c.>>  ACCOUNTABILITY AND
                            EVALUATION.

        ``(a) Eligible Partnership Evaluation.--Each <<NOTE: Grants.>>
    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 highly qualified teachers hired
            by the high-need local educational agency participating in the
            eligible partnership;
                ``(B) the percentage of highly qualified teachers hired by
            the high-need local educational agency who are members of
            underrepresented groups;
                ``(C) the percentage of highly qualified teachers 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 highly qualified teachers hired by
            the high-need local educational agency who teach in high-need

    [[Page 122 STAT. 3147]]

            areas (including special education, language instruction
            educational programs for limited English proficient students,
            and early childhood education);
                ``(E) the percentage of highly qualified teachers hired by
            the high-need local educational agency who teach in high-need
            schools, disaggregated by the elementary school and secondary
            school levels;
                ``(F) as applicable, the percentage of early childhood
            education program classes in the geographic area served by the
            eligible partnership taught by early childhood educators who are
            highly competent; and
                ``(G) as applicable, the percentage of teachers trained--
                        ``(i) to integrate technology effectively into
                    curricula and instruction, including technology
                    consistent with the principles of universal design for
                    learning; and
                        ``(ii) to use technology effectively to collect,
                    manage, and analyze data to improve teaching and
                    learning for the purpose of improving student academic
                    achievement.

        ``(b) Information.--An eligible partnership receiving a grant under
    this part shall ensure that teachers, principals, school
    superintendents, faculty, and leadership at institutions of higher
    education located in the geographic areas served by the eligible
    partnership are provided information, including through electronic
    means, about the activities carried out with funds under this part.
        ``(c) Revised Application.--If <<NOTE: Deadline.>>  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 <<NOTE: Reports.>>
    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. <<NOTE: 20 USC 1022d.>>  ACCOUNTABILITY FOR PROGRAMS
                            THAT PREPARE TEACHERS.

        ``(a) Institutional and Program Report Cards on the Quality of
    Teacher Preparation.--
                ``(1) Report card.--Each institution of higher education
            that conducts a traditional teacher preparation program or
            alternative routes to State certification or licensure program
            and that enrolls students receiving Federal assistance under
            this Act shall report annually to the State and the general
            public, in a uniform and comprehensible manner that conforms
            with the definitions and methods established by the Secretary,
            the following:
                        ``(A) Goals and assurances.--

    [[Page 122 STAT. 3148]]

                              ``(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.

    [[Page 122 STAT. 3149]]

                        ``(E) Designation as low-performing.--Whether the
                    program has been designated as low-performing by the
                    State under section 207(a).
                        ``(F) Use of technology.--A description of the
                    activities, including activities consistent with the
                    principles of universal design for learning, that
                    prepare teachers to integrate technology effectively
                    into curricula and instruction, and to use technology
                    effectively to collect, manage, and analyze data in
                    order to improve teaching and learning for the purpose
                    of increasing student academic achievement.
                        ``(G) Teacher training.--A description of the
                    activities that prepare general education and special
                    education teachers to teach students with disabilities
                    effectively, including training related to participation
                    as a member of individualized education program teams,
                    as defined in section 614(d)(1)(B) of the Individuals
                    with Disabilities Education Act, and to effectively
                    teach students who are limited English proficient.
                ``(2) Report.--Each eligible partnership receiving a grant
            under section 202 shall report annually on the progress of the
            eligible partnership toward meeting the purposes of this part
            and the objectives and measures described in section 204(a).
                ``(3) Fines.--The Secretary may impose a fine not to exceed
            $27,500 on an institution of higher education for failure to
            provide the information described in this subsection in a timely
            or accurate manner.
                ``(4) Special rule.--In the case of an institution of higher
            education that conducts a traditional teacher preparation
            program or alternative routes to State certification or
            licensure program and has fewer than 10 scores reported on any
            single initial teacher certification or licensure assessment
            during an academic year, the institution shall collect and
            publish information, as required under paragraph (1)(B), with
            respect to an average pass rate and scaled score on each State
            certification or licensure assessment taken over a three-year
            period.

        ``(b) State Report Card on the Quality of Teacher Preparation.--
                ``(1) In general.--Each <<NOTE: Public information.>>  State
            that receives funds under this Act shall provide to the
            Secretary, and make widely available to the general public, in a
            uniform and comprehensible manner that conforms with the
            definitions and methods established by the Secretary, an annual
            State report card on the quality of teacher preparation in the
            State, both for traditional teacher preparation programs and for
            alternative routes to State certification or licensure programs,
            which shall include not less than the following:
                        ``(A) A description of the reliability and validity
                    of the teacher certification and licensure assessments,
                    and any other certification and licensure requirements,
                    used by the State.
                        ``(B) The standards and criteria that prospective
                    teachers must meet to attain initial teacher
                    certification or licensure and to be certified or
                    licensed to teach particular academic subjects, areas,
                    or grades within the State.

    [[Page 122 STAT. 3150]]

                        ``(C) A description of how the assessments and
                    requirements described in subparagraph (A) are aligned
                    with the State's challenging academic content standards
                    required under section 1111(b)(1) of the Elementary and
                    Secondary Education Act of 1965 and, as applicable,
                    State early learning standards for early childhood
                    education programs.
                        ``(D) For each of the assessments used by the State
                    for teacher certification or licensure--
                              ``(i) for each institution of higher education
                          located in the State and each entity located in
                          the State, including those that offer an
                          alternative route for teacher certification or
                          licensure, the percentage of students at such
                          institution or entity who have completed 100
                          percent of the nonclinical coursework and taken
                          the assessment who pass such assessment;
                              ``(ii) the percentage of all such students at
                          all such institutions and entities who have taken
                          the assessment who pass such assessment;
                              ``(iii) the percentage of students who have
                          taken the assessment who enrolled in and completed
                          a teacher preparation program; and
                              ``(iv) the average scaled score of individuals
                          participating in such a program, or who have
                          completed such a program during the two-year
                          period preceding the first year for which the
                          annual State report card is provided, who took
                          each such assessment.
                        ``(E) A description of alternative routes to teacher
                    certification or licensure in the State (including any
                    such routes operated by entities that are not
                    institutions of higher education), if any, including,
                    for each of the assessments used by the State for
                    teacher certification or licensure--
                              ``(i) the percentage of individuals
                          participating in such routes, or who have
                          completed such routes during the two-year period
                          preceding the date for which the determination is
                          made, who passed each such assessment; and
                              ``(ii) the average scaled score of individuals
                          participating in such routes, or who have
                          completed such routes during the two-year period
                          preceding the first year for which the annual
                          State report card is provided, who took each such
                          assessment.
                        ``(F) A description of the State's criteria for
                    assessing the performance of teacher preparation
                    programs within institutions of higher education in the
                    State. Such criteria shall include indicators of the
                    academic content knowledge and teaching skills of
                    students enrolled in such programs.
                        ``(G) For each teacher preparation program in the
                    State--
                              ``(i) the criteria for admission into the
                          program;
                              ``(ii) the number of students in the program,
                          disaggregated by race, ethnicity, and gender
                          (except that such disaggregation shall not be
                          required in a case in which the number of students
                          in a category is insufficient to yield
                          statistically reliable information or the results
                          would reveal personally identifiable information
                          about an individual student);

    [[Page 122 STAT. 3151]]

                              ``(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 highly
                    qualified teachers, by area of certification or
                    licensure, subject, and specialty, in the State's public
                    schools.
                        ``(J) The extent to which teacher preparation
                    programs prepare teachers, including general education
                    and special education teachers, to teach students with
                    disabilities effectively, including training related to
                    participation as a member of individualized education
                    program teams, as defined in section 614(d)(1)(B) of the
                    Individuals with Disabilities Education Act.
                        ``(K) A description of the activities that prepare
                    teachers to--
                              ``(i) integrate technology effectively into
                          curricula and instruction, including activities
                          consistent with the principles of universal design
                          for learning; and
                              ``(ii) use technology effectively to collect,
                          manage, and analyze data to improve teaching and
                          learning for the purpose of increasing student
                          academic achievement.
                        ``(L) The extent to which teacher preparation
                    programs prepare teachers, including general education
                    and special education teachers, to effectively teach
                    students who are limited English proficient.
                ``(2) Prohibition against creating a national list.--The
            Secretary shall not create a national list or ranking of States,
            institutions, or schools using the scaled scores provided under
            this subsection.

        ``(c) Data Quality.--The <<NOTE: Regulations.>>  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 <<NOTE: Publication.>>  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:

    [[Page 122 STAT. 3152]]

                        ``(A) A comparison of States' efforts to improve the
                    quality of the current and future teaching force.
                        ``(B) A comparison of eligible partnerships' efforts
                    to improve the quality of the current and future
                    teaching force.
                        ``(C) The national mean and median scaled scores and
                    pass rate on any standardized test that is used in more
                    than one State for teacher certification or licensure.
                ``(3) Special rule.--In <<NOTE: Publication. Public
            information.>>  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. <<NOTE: 20 USC 1022e.>>  TEACHER DEVELOPMENT.

        ``(a) Annual Goals.--Each institution of higher education that
    conducts a traditional teacher preparation program (including programs
    that offer any ongoing professional development programs) or alternative
    routes to State certification or licensure program, and that enrolls
    students receiving Federal assistance under this Act, shall set annual
    quantifiable goals for increasing the number of prospective teachers
    trained in teacher shortage areas designated by the Secretary or by the
    State educational agency, including mathematics, science, special
    education, and instruction of limited English proficient students.
        ``(b) Assurances.--Each institution described in subsection (a)
    shall provide assurances to the Secretary that--
                ``(1) training provided to prospective teachers responds to
            the identified needs of the local educational agencies or States
            where the institution's graduates are likely to teach, based on
            past hiring and recruitment trends;
                ``(2) training provided to prospective teachers is closely
            linked with the needs of schools and the instructional decisions
            new teachers face in the classroom;
                ``(3) prospective special education teachers receive course
            work in core academic subjects and receive training in providing
            instruction in core academic subjects;
                ``(4) general education teachers receive training in
            providing instruction to diverse populations, including children
            with disabilities, limited English proficient students, and
            children from low-income families; and
                ``(5) prospective teachers receive training on how to
            effectively teach in urban and rural schools, as applicable.

        ``(c) Rule of Construction.--Nothing in this section shall be
    construed to require an institution to create a new teacher preparation
    area of concentration or degree program or adopt a specific curriculum
    in complying with this section.
    ``SEC. 207. <<NOTE: 20 USC 1022f.>>  STATE FUNCTIONS.

        ``(a) State Assessment.--In order to receive funds under this Act, a
    State shall conduct an assessment to identify low-performing

    [[Page 122 STAT. 3153]]

    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 highly qualified teachers
            in the State, including increasing professional development
            opportunities;
                ``(2) improving student academic achievement for elementary
            and secondary students; and
                ``(3) raising the standards for entry into the teaching
            profession.

        ``(b) Termination of Eligibility.--Any teacher preparation program
    from which the State has withdrawn the State's approval, or terminated
    the State's financial support, due to the low performance of the program
    based upon the State assessment described in subsection (a)--
                ``(1) shall be ineligible for any funding for professional
            development activities awarded by the Department;
                ``(2) may not be permitted to accept or enroll any student
            who receives aid under title IV in the institution's teacher
            preparation program;
                ``(3) shall provide transitional support, including remedial
            services if necessary, for students enrolled at the institution
            at the time of termination of financial support or withdrawal of
            approval; and
                ``(4) shall be reinstated upon demonstration of improved
            performance, as determined by the State.

        ``(c) Negotiated Rulemaking.--If the Secretary develops any
    regulations implementing subsection (b)(2), the Secretary shall submit
    such proposed regulations to a negotiated rulemaking process, which
    shall include representatives of States, institutions of higher
    education, and educational and student organizations.
        ``(d) Application of the Requirements.--The requirements of this
    section shall apply to both traditional teacher preparation programs and
    alternative routes to State certification and licensure programs.
    ``SEC. 208. <<NOTE: 20 USC 1022g.>>  GENERAL PROVISIONS.

        ``(a) Methods.--In complying with sections 205 and 206, the
    Secretary shall ensure that States and institutions of higher education
    use fair and equitable methods in reporting and that the reporting
    methods do not reveal personally identifiable information.
        ``(b) Special Rule.--For each State that does not use content
    assessments as a means of ensuring that all teachers teaching in core
    academic subjects within the State are highly qualified, as required
    under section 1119 of the Elementary and Secondary Education Act of
    1965, 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 is highly qualified by the deadline, as required under
    section 612(a)(14)(C) of the Individuals with Disabilities Education
    Act, the Secretary shall--

    [[Page 122 STAT. 3154]]

                ``(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. <<NOTE: 20 USC 1022h.>>  AUTHORIZATION OF
                            APPROPRIATIONS.

        ``There are authorized to be appropriated to carry out this part
    $300,000,000 for fiscal year 2009 and such sums as may be necessary for
    each of the two succeeding fiscal years.''; and
                (3) <<NOTE: 20 USC 10413et seq.>>  by striking part B and
            inserting the following:

                      ``PART B--ENHANCING TEACHER EDUCATION

    ``SEC. 230. <<NOTE: 20 USC 1031.>>  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. <<NOTE: 20 USC 1032.>>  PROGRAM AUTHORIZED.

        ``(a) Program Authority.--The Secretary is authorized to award
    grants to, or enter into contracts or cooperative agreements

    [[Page 122 STAT. 3155]]

    with, eligible consortia to pay the Federal share of the costs of
    projects to--
                ``(1) serve graduate 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. <<NOTE: 20 USC 1032a.>>  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

    [[Page 122 STAT. 3156]]

            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;

    [[Page 122 STAT. 3157]]

                ``(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. <<NOTE: 20 USC 1032b.>>  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. <<NOTE: 20 USC 1032c.>>  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.

    [[Page 122 STAT. 3158]]

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

    ``SEC. 241. <<NOTE: 20 USC 1033.>>  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' has the meaning given
            such term in section 1208 of the Elementary and Secondary
            Education Act of 1965.
    ``SEC. 242. <<NOTE: 20 USC 1033a.>>  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 are
    highly qualified by carrying out one or more of the following
    activities:
                ``(1) Implementing reforms within teacher preparation
            programs to ensure that such programs are preparing teachers who
            are highly qualified, are able to understand scientifically
            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

    [[Page 122 STAT. 3159]]

                          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 highly qualified teachers and 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. <<NOTE: 20 USC 1034.>>  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.

    [[Page 122 STAT. 3160]]

                ``(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 are highly
                          qualified;
                        ``(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

    [[Page 122 STAT. 3161]]

    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 <<NOTE: Public
            information.>>  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. <<NOTE: 20 USC 1035.>>  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.

    [[Page 122 STAT. 3162]]

        ``(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

    [[Page 122 STAT. 3163]]

                        ``(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 <<NOTE: Reports.>>  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 requirements of section 9101(23)(B)(ii) of
            the Elementary and Secondary Education Act of 1965;
                ``(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 requirements of
            section 9101(23) of such Act.

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

    ``SEC. 258. <<NOTE: 20 USC 1036.>>  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.

    [[Page 122 STAT. 3164]]

        ``(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 highly
            qualified elementary school and secondary school mathematics and
            science teachers, special education teachers, and teachers who
            provide instruction for limited English proficient students.
                ``(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.

    [[Page 122 STAT. 3165]]

                        ``(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 <<NOTE: Waiver authority.>>  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.

    [[Page 122 STAT. 3166]]

        ``(f) Institutional Support for Fellows.--An eligible institution
    that receives a grant under this section may reserve not more than ten
    percent of the grant amount for academic and career transition support
    for graduate fellowship recipients and for meeting the institutional
    obligation described in subsection (e)(3)(B).
        ``(g) Restriction on Use of Funds.--An eligible institution that
    receives a grant under this section may not use grant funds for general
    operational overhead of the institution.

                          ``PART C--GENERAL PROVISIONS

    ``SEC. 261. <<NOTE: 20 USC 1041.>>  LIMITATIONS.

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

                          TITLE III--INSTITUTIONAL AID

    SEC. 301. PROGRAM PURPOSE.

        Section 311 (20 U.S.C. 1057) is amended--
                (1) in subsection (b)--
                        (A) in paragraph (1), by striking ``351'' and
                    inserting ``391''; and
                        (B) in paragraph (3)(F), by inserting ``, including
                    services that will assist in the education of special
                    populations'' before the period; and
                (2) in subsection (c)--
                        (A) in paragraph (6), by inserting ``, 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'' before the period;
                        (B) by redesignating paragraphs (7) through (12) as
                    paragraphs (8) through (13), respectively;
                        (C) by inserting after paragraph (6) the following:

    [[Page 122 STAT. 3167]]

                ``(7) Education or counseling services designed to improve
            the financial literacy and economic literacy of students or the
            students' families.'';
                        (D) in paragraph (12) (as redesignated by
                    subparagraph (B)), by striking ``distance learning
                    academic instruction capabilities'' and inserting
                    ``distance education technologies''; and
                        (E) in the matter preceding subparagraph (A) of
                    paragraph (13) (as redesignated by subparagraph (B)), by
                    striking ``subsection (c)'' and inserting ``subsection
                    (b) and section 391''.
    SEC. 302. DEFINITIONS; ELIGIBILITY.

        Section 312 (20 U.S.C. 1058) is amended--
                (1) in subsection (b)(1)(A), by striking ``subsection (c) of
            this section'' and inserting ``subsection (d)'';
                (2) in subsection (d)(2), by striking ``subdivision'' and
            inserting ``paragraph'';
                (3) by redesignating subsection (g) as subsection (h); and
                (4) by inserting after subsection (f) the following:

        ``(g) Low-Income Individual.--For the purpose of this part, the term
    `low-income individual' means an individual from a family whose taxable
    income for the preceding year did not exceed 150 percent of an amount
    equal to the poverty level determined by using criteria of poverty
    established by the Bureau of the Census.''.
    SEC. 303. AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND
                            UNIVERSITIES.

        Section 316 (20 U.S.C. 1059c) is amended--
                (1) by striking subsection (b)(3) and inserting the
            following:
                ``(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 Assistance Act of 1978 (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).'';
                (2) in subsection (c)(2)--
                        (A) by striking subparagraph (B) and inserting the
                    following:
                        ``(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;'';
                        (B) in subparagraph (C), by inserting before the
                    semicolon at the end the following: ``or in tribal
                    governance or tribal public policy'';
                        (C) in subparagraph (D), by inserting before the
                    semicolon the following: ``and instruction in tribal
                    governance or tribal public policy'';
                        (D) by redesignating subparagraphs (G), (H), (I),
                    (J), (K), and (L) as subparagraphs (H), (I), (J), (K),
                    (L), and (N), respectively;
                        (E) by inserting after subparagraph (F) the
                    following:

    [[Page 122 STAT. 3168]]

                        ``(G) education or counseling services designed to
                    improve the financial literacy and economic literacy of
                    students or the students' families;'';
                        (F) in subparagraph (L) (as redesignated by
                    subparagraph (D)), by striking ``and'' after the
                    semicolon;
                        (G) by inserting after subparagraph (L) (as
                    redesignated by subparagraph (D) and amended by
                    subparagraph (F)) the following:
                        ``(M) developing or improving facilities for
                    Internet use or other distance education technologies;
                    and''; and
                        (H) in subparagraph (N) (as redesignated by
                    subparagraph (D)), by striking ``subparagraphs (A)
                    through (K)'' and inserting ``subparagraphs (A) through
                    (M)''; and
                (3) by striking subsection (d) and inserting the following:

        ``(d) Application, Plan, and Allocation.--
                ``(1) Institutional eligibility.--To be eligible to receive
            assistance under this section, a Tribal College or University
            shall be an eligible institution under section 312(b).
                ``(2) Application.--
                        ``(A) In general.--A Tribal College or University
                    desiring to receive assistance under this section shall
                    submit an application to the Secretary at such time, in
                    such manner, and containing such information as the
                    Secretary may reasonably require.
                        ``(B) Streamlined process.--The Secretary shall
                    establish application requirements in such a manner as
                    to simplify and streamline the process for applying for
                    grants under this section.
                ``(3) Awards and allocations to institutions.--
                        ``(A) Construction grants.--
                              ``(i) In general.--Of the amount appropriated
                          to carry out this section for any fiscal year, the
                          Secretary may reserve 30 percent for the purpose
                          of awarding one-year grants of not less than
                          $1,000,000 to address construction, maintenance,
                          and renovation needs at eligible institutions.
                              ``(ii) Preference.--In providing grants under
                          clause (i) for any fiscal year, the Secretary
                          shall give preference to eligible institutions
                          that have not received an award under this section
                          for a previous fiscal year.
                        ``(B) Allotment of remaining funds.--
                              ``(i) In general.--Except as provided in
                          clause (ii), the Secretary shall distribute the
                          remaining funds appropriated for any fiscal year
                          to each eligible institution as follows:
                                        ``(I) 60 percent of the remaining
                                    appropriated funds shall be distributed
                                    among the eligible Tribal Colleges and
                                    Universities on a pro rata basis, based
                                    on the respective Indian student counts
                                    (as defined in section 2(a) of the
                                    Tribally Controlled Colleges and
                                    Universities Assistance Act of 1978 (25
                                    U.S.C. 1801(a)) of the Tribal Colleges
                                    and Universities.
                                        ``(II) The remaining 40 percent
                                    shall be distributed in equal shares to
                                    the eligible Tribal Colleges and
                                    Universities.

    [[Page 122 STAT. 3169]]

                              ``(ii) Minimum grant.--The amount distributed
                          to a Tribal College or University under clause (i)
                          shall not be less than $500,000.
                ``(4) Special rules.--
                        ``(A) Concurrent funding.--No Tribal College or
                    University that receives funds under this section shall
                    concurrently receive funds under any other provision of
                    this part, part B, or part A of title V.
                        ``(B) Exemption.--Section 313(d) shall not apply to
                    institutions that are eligible to receive funds under
                    this section.''.
    SEC. 304. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING INSTITUTIONS.

        Section 317(c)(2) (20 U.S.C. 1059d(c)(2)) is amended--
                (1) in subparagraph (G), by striking ``and'' after the
            semicolon;
                (2) in subparagraph (H), by striking the period and
            inserting ``; and''; and
                (3) by adding at the end the following:
                        ``(I) education or counseling services designed to
                    improve the financial literacy and economic literacy of
                    students or the students' families.''.
    SEC. 305. PREDOMINANTLY BLACK INSTITUTIONS.

        (a) In General.--Part A of title III (20 U.S.C. 1057 et seq.) is
    amended by adding at the end the following:
    ``SEC. 318. <<NOTE: 20 USC 1059e.>>  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

    [[Page 122 STAT. 3170]]

                        ``(F) is not receiving assistance under part B or
                    part A of title V.
                ``(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.

    [[Page 122 STAT. 3171]]

        ``(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.

    [[Page 122 STAT. 3172]]

                        ``(B) Matching requirement.--In order to be eligible
                    to use grant funds in accordance with subparagraph (A),
                    a Predominantly Black Institution shall provide matching
                    funds from non-Federal sources, in an amount equal to or
                    greater than the Federal funds used in accordance with
                    subparagraph (A), for the establishment or increase of
                    the endowment fund.
                        ``(C) Comparability.--The <<NOTE: Applicability.>>
                    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).
                ``(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

    [[Page 122 STAT. 3173]]

                    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.--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.''.
        (b) Conforming Amendment.--Section 312(d) (20 U.S.C. 1058(d)) is
    amended by striking ``For the purpose'' and inserting ``Except as
    provided in section 318(b), for the purpose''.
    SEC. 306. NATIVE AMERICAN-SERVING, NONTRIBAL INSTITUTIONS.

        Part A of title III (20 U.S.C. 1057 et seq.) is amended by adding
    after section 318 (as added by section 305 of this Act) the following:
    ``SEC. 319. <<NOTE: 20 USC 1059f.>>  NATIVE AMERICAN-SERVING,
                            NONTRIBAL INSTITUTIONS.

        ``(a) Program Authorized.--The <<NOTE: Grants.>>  Secretary shall
    provide grants and related assistance to Native American-serving,
    nontribal institutions to enable such institutions to improve and expand
    their capacity to serve Native Americans and low-income individuals.

        ``(b) Definitions.--In this section:
                ``(1) Native american.--The term `Native American' means an
            individual who is of a tribe, people, or culture that is
            indigenous to the United States.
                ``(2) Native american-serving, nontribal institution.--The
            term `Native American-serving, nontribal institution' means an
            institution of higher education, as defined in section 101(a),
            that, at the time of application--
                        ``(A) is an eligible institution under section
                    312(b);

    [[Page 122 STAT. 3174]]

                        ``(B) has an enrollment of undergraduate students
                    that is not less than 10 percent Native American
                    students; and
                        ``(C) is not a Tribal College or University (as
                    defined in section 316).

        ``(c) Authorized Activities.--
                ``(1) Types of activities authorized.--Grants awarded under
            this section shall be used by Native American-serving, nontribal
            institutions to assist such institutions to plan, develop,
            undertake, and carry out activities to improve and expand such
            institutions' capacity to serve Native Americans and low-income
            individuals.
                ``(2) Examples of authorized activities.--Such programs may
            include--
                        ``(A) the purchase, rental, or lease of scientific
                    or laboratory equipment for educational purposes,
                    including instructional and research purposes;
                        ``(B) renovation and improvement in classroom,
                    library, laboratory, and other instructional facilities;
                        ``(C) support of faculty exchanges, and faculty
                    development and faculty fellowships to assist faculty in
                    attaining advanced degrees in the faculty's field of
                    instruction;
                        ``(D) curriculum development and academic
                    instruction;
                        ``(E) the purchase of library books, periodicals,
                    microfilm, and other educational materials;
                        ``(F) funds and administrative management, and
                    acquisition of equipment for use in strengthening funds
                    management;
                        ``(G) the joint use of facilities such as
                    laboratories and libraries;
                        ``(H) academic tutoring and counseling programs and
                    student support services; and
                        ``(I) education or counseling services designed to
                    improve the financial and economic literacy of students
                    or the students' families.

        ``(d) Application Process.--
                ``(1) Institutional eligibility.--A Native American-serving,
            nontribal institution desiring to receive assistance under this
            section shall submit to the Secretary such enrollment data as
            may be necessary to demonstrate that the institution is a Native
            American-serving, nontribal institution, along with such other
            information and data as the Secretary may reasonably require.
                ``(2) Applications.--
                        ``(A) Authority to submit applications.--Any
                    institution that is determined by the Secretary to be a
                    Native American-serving, nontribal institution may
                    submit an application for assistance under this section
                    to the Secretary.
                        ``(B) Simplified and streamlined format.--The
                    Secretary shall, to the extent possible, continue to
                    prescribe a simplified and streamlined format for
                    applications under this section that takes into account
                    the limited number of institutions that are eligible for
                    assistance under this section.
                        ``(C) Content.--An application submitted under
                    subparagraph (A) shall include--

    [[Page 122 STAT. 3175]]

                              ``(i) a five-year plan for improving the
                          assistance provided by the Native American-
                          serving, nontribal institution to Native Americans
                          and low-income individuals; and
                              ``(ii) such other information and assurances
                          as the Secretary may reasonably require.
                ``(3) Special rules.--
                        ``(A) Eligibility.--No Native American-serving,
                    nontribal institution that receives funds under this
                    section shall concurrently receive funds under any other
                    provision of this part, part B, or part A of title V.
                        ``(B) Exemption.--Section 313(d) shall not apply to
                    institutions that are eligible to receive funds under
                    this section.
                        ``(C) Distribution.--In awarding grants under this
                    section, the Secretary shall, to the extent possible and
                    consistent with the competitive process under which such
                    grants are awarded, ensure maximum and equitable
                    distribution among all eligible institutions.
                        ``(D) Minimum grant amount.--The minimum amount of a
                    grant under this section shall be $200,000.''.
    SEC. 307. ASSISTANCE TO ASIAN AMERICAN AND NATIVE AMERICAN PACIFIC
                            ISLANDER-SERVING INSTITUTIONS.

        Part A of title III (20 U.S.C. 1057 et seq.) is amended by adding
    after section 319 (as added by section 306 of this Act) the following:
    ``SEC. 320. <<NOTE: 20 USC 1059g.>>  ASIAN AMERICAN AND NATIVE
                            AMERICAN PACIFIC ISLANDER-SERVING
                            INSTITUTIONS.

        ``(a) Program Authorized.--The <<NOTE: Grants.>>  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

    [[Page 122 STAT. 3176]]

            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

    [[Page 122 STAT. 3177]]

                    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 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.''.
    SEC. 308. PART B DEFINITIONS.

        Section 322(4) (20 U.S.C. 1061(4)) is amended by inserting ``, in
    consultation with the Commissioner for Education Statistics'' before
    ``and the Commissioner''.
    SEC. 309. GRANTS TO INSTITUTIONS.

        Section 323(a) (20 U.S.C. 1062(a)) is amended--
                (1) in the matter preceding paragraph (1), by striking
            ``360(a)(2)'' and inserting ``399(a)(2)'';
                (2) by redesignating paragraph (12) as paragraphs (15); and
                (3) by inserting after paragraph (11) the following:
                ``(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.''.
    SEC. 310. ALLOTMENTS.

        (a) Minimum Allotment.--Subsection (d) of section 324 (20 U.S.C.
    1063(d)) is amended to read as follows:
        ``(d) Minimum Allotment.--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--

    [[Page 122 STAT. 3178]]

                ``(1) 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
                ``(2) 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.''.

        (b) Conditions for Allotments.--Section 324 (20 U.S.C. 1063) is
    further amended by adding at the end the following new subsection:
        ``(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 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 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.''.
    SEC. 311. PROFESSIONAL OR GRADUATE INSTITUTIONS.

        (a) Duration of Grant.--Section 326(b) (20 U.S.C. 1063b(b)) is
    amended by adding at the end the following: ``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.''.
        (b) Authorized Activities.--Section 326(c) (20 U.S.C. 1063b(c)) is
    amended--
                (1) in paragraph (5), by striking ``establish or improve''
            and inserting ``establishing or improving'';
                (2) in paragraph (6)--
                        (A) by striking ``assist'' and inserting
                    ``assisting''; and

    [[Page 122 STAT. 3179]]

                        (B) by striking ``and'' after the semicolon;
                (3) by striking the period at the end of paragraph (7) and
            inserting a semicolon; and
                (4) by adding at the end the following:
                ``(8) acquisition of real property that is adjacent to the
            campus in connection with the construction, renovation, or
            addition to or improvement of campus facilities;
                ``(9) education or financial information designed to improve
            the financial literacy and economic literacy of students or the
            students' families, especially with regard to student
            indebtedness and student assistance programs under title IV;
                ``(10) services necessary for the implementation of projects
            or activities that are described in the grant application and
            that are approved, in advance, by the Secretary, except that not
            more than two percent of the grant amount may be used for this
            purpose;
                ``(11) tutoring, counseling, and student service programs
            designed to improve academic success; and
                ``(12) other activities proposed in the application
            submitted under subsection (d) that--
                        ``(A) contribute to carrying out the purposes of
                    this part; and
                        ``(B) are approved by the Secretary as part of the
                    review and acceptance of such application.''.

        (c) Eligibility.--
                (1) In general.--Section 326(e)(1) (20 U.S.C. 1063b(e)(1))
            is amended--
                        (A) in the matter preceding subparagraph (A), by
                    inserting a colon after ``the following'';
                        (B) in subparagraph (Q), by striking ``and'' at the
                    end;
                        (C) in subparagraph (R), by striking the period at
                    the end and inserting a semicolon; and
                        (D) by adding at the end the following:
                        ``(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.''.
                (2) Conforming amendment.--Section 326(e)(3) (20 U.S.C.
            1063b(e)(3)) is amended--
                        (A) by striking ``1998'' and inserting ``2008''; and
                        (B) by striking ``(Q) and (R)'' and inserting ``(S)
                    through (X)''.
                (3) Additional eligibility changes.--Section 326(e)(2)(A)
            (20 U.S.C. 1063b(e)(2)(A)) is amended--
                        (A) by inserting ``in law or'' after
                    ``instruction''; and
                        (B) by striking ``mathematics, or'' and inserting
                    ``mathematics, psychometrics, or''.
                (4) One grant per institution.--Section 326(e)(4) (20 U.S.C.
            1063b(e)(4)) is amended by striking ``or university system''.

    [[Page 122 STAT. 3180]]

        (d) Funding Rule.--Section 326(f) (20 U.S.C. 1063b(f)) is amended--
                (1) in paragraph (1)--
                        (A) by striking ``$26,600,000'' and inserting
                    ``$56,900,000''; and
                        (B) by striking ``(P)'' and inserting ``(R)'';
                (2) in paragraph (2)--
                        (A) by striking ``$26,600,000, but not in excess of
                    $28,600,000'' and inserting ``$56,900,000, but not in
                    excess of $62,900,000''; and
                        (B) by striking ``subparagraphs (Q) and (R)'' and
                    inserting ``subparagraphs (S) through (X)''; and
                (3) in the matter preceding subparagraph (A) of paragraph
            (3)--
                        (A) by striking ``$28,600,000'' and inserting
                    ``$62,900,000''; and
                        (B) by striking ``(R)'' and inserting ``(X)''.

        (e) Hold Harmless Rule.--Section 326(g) <<NOTE: 20 USC 1063b.>> (20
    U.S.C. 1063(g)) is amended by striking ``1998'' each place it appears
    and inserting ``2008''.

        (f) Interaction With Other Grant Programs.--Section 326 (as amended
    by this section) (20 U.S.C. 1063) <<NOTE: 20 USC 1063b.>> is further
    amended by adding at the end the following:

        ``(h) Interaction With Other Grant Programs.--No institution that is
    eligible for and receives an award under section 512, 723, or 724 for a
    fiscal year shall be eligible to apply for a grant, or receive grant
    funds, under this section for the same fiscal year.''.
    SEC. 312. UNEXPENDED FUNDS.

        Section 327(b) (20 U.S.C. 1063c(b)) is amended to read as follows:
        ``(b) Use of Unexpended Funds.--Any funds paid to an institution and
    not expended or used for the purposes for which the funds were paid
    during the five-year period following the date of the initial grant
    award, may be carried over and expended during the succeeding five-year
    period, if such funds were obligated for a purpose for which the funds
    were paid during the five-year period following the date of the initial
    grant award.''.
    SEC. 313. ENDOWMENT CHALLENGE GRANTS.

        (a) Amounts.--Section 331(b) (20 U.S.C. 1065(b)) is amended--
                (1) in paragraph (2)(B)(i), by striking ``$500,000'' and
            inserting ``$1,000,000''; and
                (2) in paragraph (5), by striking ``$50,000'' and inserting
            ``$100,000''.

        (b) Technical Assistance.--Section 331 (20 U.S.C. 1065) is further
    amended by adding at the end the following:
        ``(i) Technical Assistance.--The Secretary, directly or by grant or
    contract, may provide technical assistance to eligible institutions to
    prepare the institutions to qualify, apply for, and maintain a grant,
    under this section.''.
    SEC. 314. HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL
                            FINANCING.

        (a) Definitions.--Section 342 (20 U.S.C. 1066a) is amended--
                (1) in paragraph (5)(G), by striking ``by a nationally
            recognized accrediting agency or association'' and inserting
            ``by an

    [[Page 122 STAT. 3181]]

            accrediting agency or association recognized by the Secretary
            under subpart 2 of part H of title IV''; and
                (2) in paragraph (8), by inserting ``capital project'' after
            ``issuing taxable''.

        (b) Federal Insurance for Bonds.--Section 343(b) (20 U.S.C.
    1066b(b)) is amended--
                (1) in paragraph (8)(B)(ii)--
                        (A) by striking ``10'' and inserting ``5''; and
                        (B) by inserting ``within 120 days'' after ``loan
                    proceeds'';
                (2) in paragraph (10), by striking ``and'' after the
            semicolon;
                (3) in paragraph (11), by striking the period at the end and
            inserting ``; and''; and
                (4) by adding at the end the following:
                ``(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) Limitations on Federal Insurance for Bonds Issued by the
    Designated Bonding Authority.--Section 344(a) (20 U.S.C. 1066c(a)) is
    amended--
                (1) in the matter preceding paragraph (1), by striking
            ``$375,000,000'' and inserting ``$1,100,000,000'';
                (2) in paragraph (1), by striking ``$250,000,000'' and
            inserting ``$733,333,333''; and
                (3) in paragraph (2), by striking ``$125,000,000'' and
            inserting ``$366,666,667''.

        (d) Authority of the Secretary.--Section 345 (20 U.S.C. 1066d) is
    amended--
                (1) in paragraph (1), by striking ``enactment of the Higher
            Education Amendments of 1992,'' and inserting ``the date of
            enactment of the Higher Education Opportunity Act,'';
                (2) by redesignating paragraphs (2) through (7) as
            paragraphs (4) through (9), respectively;
                (3) by inserting after paragraph (1) the following:
                ``(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) in paragraph (8) (as redesignated by paragraph (2)), by
            striking ``and'' after the semicolon;
                (5) in paragraph (9) (as redesignated by paragraph (2)), by
            striking the period at the end and inserting ``; and''; and
                (6) by adding at the end the following:
                ``(10) <<NOTE: Deadline. Reports.>> 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

    [[Page 122 STAT. 3182]]

            improving the Historically Black College and Universities
            Capital Financing Program.''.

        (e) HBCU Capital Financing Advisory Board.--Section 347 (20 U.S.C.
    1066f) is amended--
                (1) in subsection (b)(1)--
                        (A) by striking out ``9 members'' and inserting ``11
                    members'';
                        (B) in subparagraph (C), by striking ``Two'' and
                    inserting ``Three''; and
                        (C) by adding at the end the following:
                        ``(G) The president of the Thurgood Marshall College
                    Fund, or the designee of the president.''; and
                (2) by adding at the end the following:

        ``(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 the Higher 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.''.
    SEC. 315. PROGRAMS IN STEM FIELDS.

        (a) YES Partnerships; Entry Into STEM Fields.--Part E of title III
    (20 U.S.C. 1067 et seq.) is amended--
                (1) by redesignating subpart 2 as subpart 3; and
                (2) by inserting after subpart 1 the following new subpart:

                      ``Subpart 2--Programs in STEM Fields

    ``SEC. 355. <<NOTE: 20 USC 1067e.>> YES PARTNERSHIPS GRANT
                            PROGRAM.

        ``(a) Grant Program Authorized.--Subject to the availability of
    appropriations to carry out this subpart, the Secretary shall make
    grants to eligible partnerships (as described in subsection (f)) to
    support the engagement of underrepresented minority youth and youth who
    are low-income individuals (as such term is defined in section 302) in
    science, technology, engineering, and mathematics through outreach and
    hands-on, experiential-based learning projects that encourage students
    in kindergarten through grade 12 who are underrepresented minority youth
    or low-income individuals to

    [[Page 122 STAT. 3183]]

    pursue careers in science, technology, engineering, and mathematics.
        ``(b) Minimum Grant Amount.--A grant awarded to a partnership under
    this subpart shall be for an amount that is not less than $500,000.
        ``(c) Duration.--A grant awarded under this subpart shall be for a
    period of five years.
        ``(d) Non-Federal Matching Share Required.--A partnership receiving
    a grant under this subpart shall provide, from non-Federal sources, in
    cash or in-kind, an amount equal to 50 percent of the costs of the
    project supported by such grant.
        ``(e) Distribution of Grants.--In awarding grants under this
    subpart, the Secretary shall ensure that, to the maximum extent
    practicable, the projects funded under this subpart are located in
    diverse geographic regions of the United States.
        ``(f) Eligible Partnerships.--Notwithstanding the general
    eligibility provision in section 361, eligibility to receive grants
    under this subpart is limited to partnerships described in paragraph (5)
    of such section.
    ``SEC. 356. <<NOTE: 20 USC 1067e-1.>> PROMOTION OF ENTRY INTO STEM
                            FIELDS.

        ``(a) Authority To Contract, Subject to Appropriations.--The
    Secretary is authorized to enter into a contract with a firm with a
    demonstrated record of success in advertising to implement a campaign to
    expand the population of qualified individuals in science, technology,
    engineering, and mathematics fields (referred to in this section as
    `STEM fields') by encouraging young Americans to enter such fields.
        ``(b) Design of Campaign.--The campaign under this section shall be
    designed to enhance the image of education and professions in the STEM
    fields and promote participation in the STEM fields, and may include--
                ``(1) monitoring trends in youths' attitudes toward pursuing
            education and professions in the STEM fields and their
            propensity toward entering the STEM fields;
                ``(2) determining what factors contribute to encouraging and
            discouraging Americans from pursuing study in STEM fields and
            entering the STEM fields professionally;
                ``(3) determining what specific factors limit the
            participation of groups currently underrepresented in STEM
            fields, including Latinos, African-Americans, and women; and
                ``(4) drawing from the market research performed under this
            section and implementing an advertising campaign to encourage
            young Americans to take up studies in STEM fields, beginning at
            an early age.

        ``(c) Required Components.--The campaign under this section shall--
                ``(1) include components that focus tailored messages on
            appropriate age groups, starting with elementary school
            students; and
                ``(2) link participation in the STEM fields to the concept
            of service to one's country, so that young people will be
            encouraged to enter the STEM fields in order fulfill the
            obligation to be of service to their country.

        ``(d) Priority.--The campaign under this section shall hold as a
    high priority making specific appeals to Hispanic Americans, African
    Americans, Native Americans, students with disabilities,

    [[Page 122 STAT. 3184]]

    and women, who are currently underrepresented in the STEM fields, in
    order to increase their numbers in the STEM fields, and shall tailor
    recruitment efforts to each specific group.
        ``(e) Use of Variety of Media.--The campaign under this section
    shall make use of a variety of media, with an emphasis on television
    advertising, to reach its intended audience.
        ``(f) Teaching.--The campaign under this section shall include a
    narrowly focused effort to attract current professionals in the STEM
    fields, through advertising in mediums likely to reach that specific
    group, into teaching in a STEM field in elementary schools and secondary
    schools.
    ``SEC. 357. <<NOTE: 20 USC 1067e-2.>> EVALUATION AND
                            ACCOUNTABILITY PLAN.

        ``The Secretary shall develop an evaluation and accountability plan
    for projects funded under this subpart. Such plan shall include, if the
    Secretary determines that it is practical, an objective measure of the
    impact of such projects, such as a measure of whether underrepresented
    minority student enrollment in courses related to science, technology,
    engineering, and mathematics increases at the secondary and
    postsecondary levels.''.
        (b) Eligibility for Grants.--Section 361 (20 U.S.C. 1067g) is
    amended--
                (1) by striking ``or'' at the end of paragraph (3)(B);
                (2) in paragraph (4)--
                        (A) in subparagraph (A), by striking ``institutions
                    of higher education'' and inserting ``public and private
                    nonprofit institutions of higher education'';
                        (B) in subparagraph (C), by inserting before the
                    semicolon the following: ``, the Department of Defense,
                    or the National Institutes of Health'';
                        (C) by striking subparagraph (D) and inserting the
                    following:
                        ``(D) relevant offices of the National Aeronautics
                    and Space Administration, National Oceanic and
                    Atmospheric Administration, National Science Foundation,
                    and National Institute of Standards and Technology;'';
                        (D) by striking the period at the end of
                    subparagraph (E) and inserting ``; or''; and
                        (E) by adding at the end the following:
                        ``(F) institutions of higher education that have
                    State-sponsored centers for research in science,
                    technology, engineering, and mathematics; or''; and
                (3) by adding at the end the following:
                ``(5) only with respect to grants under subpart 2,
            partnerships of organizations, the membership of which shall
            include--
                        ``(A) at least one institution of higher education
                    eligible for assistance under this title or title V;
                        ``(B) at least one high-need local educational
                    agency (as defined in section 200); and
                        ``(C) at least two community organizations or
                    entities, such as businesses, professional associations,
                    community-based organizations, philanthropic
                    organizations, or State agencies.''.

    [[Page 122 STAT. 3185]]

    SEC. 316. INVESTING IN HISTORICALLY BLACK COLLEGES AND
                            UNIVERSITIES AND OTHER MINORITY-SERVING
                            INSTITUTIONS.

        (a) Redesignation and Relocation.--The Act (20 U.S.C. 1001 et seq.)
    is further amended--
                (1) <<NOTE: 20 USC 10663et seq.>> by redesignating part F of
            title III as part G of title III;
                (2) by redesignating part J of title IV (as added by section
            802 of the College Cost Reduction and Access Act) <<NOTE: 20 USC
            1099e.>> as part F of title III, and moving such part so that
            such part follows part E of title III; and
                (3) by redesignating section 499A (as added by section 802
            of such Act) <<NOTE: 20 USC 1067q.>> as section 371.

        (b) Conforming Amendments.--Section 371 (as redesignated by
    subsection (a)(3)) is amended--
                (1) in subsection (b)(2)(C)(i), by striking ``title III''
            each place the term appears and inserting ``this title''; and
                (2) in subsection (c)(9)(F), by striking ``title III'' and
            inserting ``this title''.

        (c) Availability of Funds.--Paragraph (1) of section 371(b) (as
    redesignated by subsection (a)(3)) is amended to read as follows:
                ``(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 and
                    2009. <<NOTE: Expiration date.>> The authority to award
                    grants under this section shall expire at the end of
                    fiscal year 2009.
                        ``(B) Availability.--Funds made available under
                    subparagraph (A) for a fiscal year shall remain
                    available for the next succeeding fiscal year.''.
    SEC. 317. TECHNICAL ASSISTANCE.

        Section 391 (20 U.S.C. 1068) is amended by adding at the end the
    following:
        ``(e) Technical Assistance.--The Secretary, directly or by grant or
    contract, may provide technical assistance to eligible institutions to
    prepare the institutions to qualify, apply for, and maintain a grant,
    under this title.''.
    SEC. 318. WAIVER AUTHORITY.

        Section 392 (20 U.S.C. 1068a) is amended by adding at the end the
    following:
        ``(c) Waiver Authority With Respect to Institutions Located in an
    Area Affected by a Gulf Hurricane Disaster.--
                ``(1) Waiver authority.--Notwithstanding any other provision
            of law, unless enacted with specific reference to this section,
            for any affected institution that was receiving assistance under
            this title at the time of a Gulf hurricane disaster, the
            Secretary shall, for each of the fiscal years 2009 through 2011
            (and may, for each of the fiscal years 2012 and 2013)--
                        ``(A) waive--
                              ``(i) the eligibility data requirements set
                          forth in section 391(d);
                              ``(ii) the wait-out period set forth in
                          section 313(d);
                              ``(iii) the allotment requirements under
                          section 324; and

    [[Page 122 STAT. 3186]]

                              ``(iv) the use of the funding formula
                          developed pursuant to section 326(f)(3);
                        ``(B) waive or modify any statutory or regulatory
                    provision to ensure that affected institutions that were
                    receiving assistance under this title at the time of a
                    Gulf hurricane disaster are not adversely affected by
                    any formula calculation for fiscal year 2009 or for any
                    of the four succeeding fiscal years, as necessary; and
                        ``(C) make available to each affected institution an
                    amount that is not less than the amount made available
                    to such institution under this title for fiscal year
                    2006, except that for any fiscal year for which the
                    funds appropriated for payments under this title are
                    less than the appropriated level for fiscal year 2006,
                    the amount made available to such institutions shall be
                    ratably reduced among the institutions receiving funds
                    under this title.
                ``(2) Definitions.--In this subsection:
                        ``(A) Affected institution.--The term `affected
                    institution' means an institution of higher education
                    that--
                              ``(i) is--
                                        ``(I) a part A institution (which
                                    term shall have the meaning given the
                                    term `eligible institution' under
                                    section 312(b)); or
                                        ``(II) a part B institution, as such
                                    term is defined in section 322(2), or as
                                    identified in section 326(e);
                              ``(ii) is located in an area affected by a
                          Gulf hurricane disaster; and
                              ``(iii) is able to demonstrate that, as a
                          result of the impact of a Gulf hurricane disaster,
                          the institution--
                                        ``(I) incurred physical damage;
                                        ``(II) has pursued collateral source
                                    compensation from insurance, the Federal
                                    Emergency Management Agency, and the
                                    Small Business Administration, as
                                    appropriate; and
                                        ``(III) was not able to fully reopen
                                    in existing facilities or to fully
                                    reopen to the pre-hurricane enrollment
                                    levels during the 30-day period
                                    beginning on August 29, 2005.
                        ``(B) Area affected by a gulf hurricane disaster;
                    gulf hurricane disaster.--The terms `area affected by a
                    Gulf hurricane disaster' and `Gulf hurricane disaster'
                    have the meanings given such terms in section 209 of the
                    Higher Education Hurricane Relief Act of 2005 (Public
                    Law 109-148, 119 Stat. 2809).''.
    SEC. 319. AUTHORIZATION OF APPROPRIATIONS.

        Section 399(a) (20 U.S.C. 1068h(a)) is amended to read as follows:
        ``(a) Authorizations.--
                ``(1) Part a.--(A) There are authorized to be appropriated
            to carry out part A (other than sections 316 through 320),
            $135,000,000 for fiscal year 2009, and such sums as may be
            necessary for each of the five succeeding fiscal years.
                ``(B) There are authorized to be appropriated to carry out
            section 316, $30,000,000 for fiscal year 2009, and such sums

    [[Page 122 STAT. 3187]]

            as may be necessary for each of the five succeeding fiscal
            years.
                ``(C) There are authorized to be appropriated to carry out
            section 317, $15,000,000 for fiscal year 2009, and such sums as
            may be necessary for each of the five succeeding fiscal years.
                ``(D) There are authorized to be appropriated to carry out
            section 318, $75,000,000 for fiscal year 2009 and each of the
            five succeeding fiscal years.
                ``(E) There are authorized to be appropriated to carry out
            section 319, $25,000,000 for fiscal year 2009, and such sums as
            may be necessary for each of the five succeeding fiscal years.
                ``(F) There are authorized to be appropriated to carry out
            section 320, $30,000,000 for fiscal year 2009, and such sums as
            may be necessary for each of the five succeeding fiscal years.
                ``(2) Part b.--(A) There are authorized to be appropriated
            to carry out part B (other than section 326), $375,000,000 for
            fiscal year 2009, and such sums as may be necessary for each of
            the five succeeding fiscal years.
                ``(B) There are authorized to be appropriated to carry out
            section 326, $125,000,000 for fiscal year 2009, and such sums as
            may be necessary for each of the five succeeding fiscal years.
                ``(3) Part c.--There are authorized to be appropriated to
            carry out part C, $10,000,000 for fiscal year 2009, and such
            sums as may be necessary for each of the five succeeding fiscal
            years.
                ``(4) Part d.--(A) There are authorized to be appropriated
            to carry out part D (other than section 345(9), but including
            section 347), $185,000 for fiscal year 2009, and such sums as
            may be necessary for each of the five succeeding fiscal years.
                ``(B) There are authorized to be appropriated to carry out
            section 345(9) such sums as may be necessary for fiscal year
            2009 and each of the five succeeding fiscal years.
                ``(5) Part e.--(A) There are authorized to be appropriated
            to carry out subpart 1 of part E, $12,000,000 for fiscal year
            2009, and such sums as may be necessary for each of the five
            succeeding fiscal years.
                ``(B) There are authorized to be appropriated to carry out
            subpart 2 of part E, such sums as may be necessary for fiscal
            year 2009 and each of the five succeeding fiscal years.''.
    SEC. 320. TECHNICAL CORRECTIONS.

        Title III (20 U.S.C. 1051 et seq.) is further amended--
                (1) in section 342(5) (20 U.S.C. 1066a(5))--
                        (A) in the matter preceding subparagraph (A), by
                    inserting a comma after ``344(b)''; and
                        (B) in subparagraph (C), by striking ``equipment
                    technology,,'' and inserting ``equipment, technology,'';
                (2) in section 343(e) (20 U.S.C. 1066b(e)), by inserting
            ``Sale of Qualified Bonds.--'' before ``Notwithstanding'';
                (3) in the matter preceding clause (i) of section 365(9)(A)
            (20 U.S.C. 1067k(9)(A)), by striking ``support'' and inserting
            ``supports'';

    [[Page 122 STAT. 3188]]

                (4) in section 391(b)(7)(E) (20 U.S.C. 1068(b)(7)(E)), by
            striking ``subparagraph (E)'' and inserting ``subparagraph
            (D)'';
                (5) in the matter preceding subparagraph (A) of section
            392(b)(2) (20 U.S.C. 1068a(b)(2)), by striking ``eligible
            institutions under part A institutions'' and inserting
            ``eligible institutions under part A''; and
                (6) in the matter preceding paragraph (1) of section 396 (20
            U.S.C. 1068e), by striking ``360'' and inserting ``399''.

                          TITLE IV--STUDENT ASSISTANCE

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

    SEC. 401. FEDERAL PELL GRANTS.

        (a) Authorized Maximums.--
                (1) Amendments.--Section 401(b) (20 U.S.C. 1070a(b)) is
            amended--
                        (A) by amending paragraph (2)(A) to read as follows:

        ``(2)(A) The amount of the Federal Pell Grant for a student eligible
    under this part shall be--
                ``(i) $6,000 for academic year 2009-2010;
                ``(ii) $6,400 for academic year 2010-2011;
                ``(iii) $6,800 for academic year 2011-2012;
                ``(iv) $7,200 for academic year 2012-2013;
                ``(v) $7,600 for academic year 2013-2014; and
                ``(vi) $8,000 for academic year 2014-2015,

    less an amount equal to the amount determined to be the expected family
    contribution with respect to that student for that year.'';
                        (B) by designating the paragraphs following
                    paragraph (2), in the order in which such paragraphs
                    appear, as paragraphs (3) through (8);
                        (C) in paragraph (4) (as designated by subparagraph
                    (B)), by striking ``$400, except'' and all that follows
                    through the period and inserting ``ten percent of the
                    maximum basic grant level specified in the appropriate
                    appropriation Act for such academic year, except that a
                    student who is eligible for a Federal Pell Grant in an
                    amount that is equal to or greater than five percent of
                    such level but less than ten percent of such level shall
                    be awarded a Federal Pell grant in the amount of ten
                    percent of such level.'';
                        (D) by striking paragraph (5) (as designated by
                    subparagraph (B)) and inserting the following:
                ``(5)(A) The Secretary shall award a student not more than
            two Federal Pell Grants during a single award year to permit
            such student to accelerate the student's progress toward a
            degree or certificate if the student is enrolled--
                        ``(i) on at least a half-time basis for a period of
                    more than one academic year, or more than two semesters
                    or an equivalent period of time, during a single award
                    year; and
                        ``(ii) in a program of instruction at an institution
                    of higher education for which the institution awards an
                    associate or baccalaureate degree or a certificate.

    [[Page 122 STAT. 3189]]

                ``(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.'';
                        (E) in paragraph (7) (as designated by subparagraph
                    (B)), by inserting before the period the following: ``or
                    who is subject to an involuntary civil commitment upon
                    completion of a period of incarceration for a forcible
                    or nonforcible sexual offense (as determined in
                    accordance with the Federal Bureau of Investigation's
                    Uniform Crime Reporting Program)''; and
                        (F) in paragraph (8) (as designated by subparagraph
                    (B))--
                              (i) by amending subparagraph (D) to read as
                          follows:
                        ``(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.''; and
                              (ii) by amending subparagraph (F) to read as
                          follows:
                        ``(F) Availability of funds.-- <<NOTE: Time
                    period.>> 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.''.
                (2) <<NOTE: 20 USC 1070a note.>>  Effective date.--
                        (A) In general.--Except as provided in subparagraph
                    (B), the amendments made by paragraph (1) shall take
                    effect on July 1, 2009.
                        (B) Special rule.--The amendments made by
                    subparagraph (F) of paragraph (1) shall take effect on
                    the date of enactment of this Act.

        (b) Maximum Duration of Eligibility.--Section 401(c) (20 U.S.C.
    1070a(c)) is amended by adding at the end the following new paragraph:
        ``(5) <<NOTE: Regulations.>> The period during which a student may
    receive Federal Pell Grants shall not exceed 18 semesters, or the
    equivalent of 18 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. <<NOTE: Applicability.>> The provisions of this paragraph shall
    apply only to a student who receives a Federal Pell Grant for the first
    time on or after July 1, 2008.''.

        (c) Calculation of Federal Pell Grant Eligibility.--
                (1) Amendment.--Section 401(f) (20 U.S.C. 1070a(f)) is
            amended by adding at the end the following new paragraph:

        ``(4)(A) Notwithstanding paragraph (1) or any other provision of
    this section, the expected family contribution of each student described
    in subparagraph (B) shall be deemed to be zero for the

    [[Page 122 STAT. 3190]]

    period during which each such student is eligible to receive a Federal
    Pell Grant under subsection (c).
        ``(B) <<NOTE: Applicability.>> Subparagraph (A) shall apply to any
    student at an institution of higher education--
                ``(i) whose parent or guardian was a member of the Armed
            Forces of the United States who died as a result of performing
            military service in Iraq or Afghanistan after September 11,
            2001; and
                ``(ii) who was less than 24 years of age, or was enrolled as
            a full-time or part-time student at an institution of higher
            education, as of the time of the parent or guardian's death.

        ``(C) 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 subparagraph (B).''.
                (2) <<NOTE: 20 USC 1070a note.>>  Effective date.--The
            amendment made by paragraph (1) shall take effect on July 1,
            2009.
    SEC. 402. ACADEMIC COMPETITIVENESS GRANTS.

        (a) Amendments.--
                (1) In general.--Section 401A (as amended by Public Law 110-
            227) (20 U.S.C. 1070a-1) is amended--
                        (A) in subsection (c)(3)--
                              (i) in subparagraph (A), by striking clause
                          (i) and inserting the following:
                              ``(i)(I) successfully completes, after January
                          1, 2006, but before July 1, 2009, a rigorous
                          secondary school program of study established by a
                          State or local educational agency and recognized
                          as such by the Secretary; or
                              ``(II) successfully completes, on or after
                          July 1, 2009, a rigorous secondary school program
                          of study that prepares students for college--
                                        ``(aa)(AA) that is recognized as
                                    such by the official designated for such
                                    recognition consistent with State law;
                                    and
                                        ``(BB) about which the designated
                                    official has reported to the Secretary,
                                    at such time as the Secretary may
                                    reasonably require, in order to assist
                                    financial aid administrators to
                                    determine that the student is an
                                    eligible student under this section; or
                                        ``(bb) that is recognized as such by
                                    the Secretary in regulations promulgated
                                    to carry out this section, as such
                                    regulations were in effect on May 6,
                                    2008; and''; and
                              (ii) in subparagraph (B), by striking clause
                          (i) and inserting the following:
                              ``(i)(I) successfully completes, after January
                          1, 2005, but before July 1, 2009, a rigorous
                          secondary school program of study established by a
                          State or local educational agency and recognized
                          as such by the Secretary; or
                              ``(II) successfully completes, on or after
                          July 1, 2009, a rigorous secondary school program
                          of study that prepares students for college--

    [[Page 122 STAT. 3191]]

                                        ``(aa)(AA) that is recognized as
                                    such by the official designated for such
                                    recognition consistent with State law;
                                    and
                                        ``(BB) about which the designated
                                    official has reported to the Secretary,
                                    at such time as the Secretary may
                                    reasonably require, in order to assist
                                    financial aid administrators to
                                    determine that the student is an
                                    eligible student under this section; or
                                        ``(bb) <<NOTE: Regulations.>> that
                                    is recognized as such by the Secretary
                                    in regulations promulgated to carry out
                                    this section, as such regulations were
                                    in effect on May 6, 2008; and''; and
                        (B) by amending subsection (e)(2) to read as
                    follows:
                ``(2) Availability of funds.--The amounts made available by
            paragraph (1) for any fiscal year shall be available from
            October 1 of that fiscal year and remain available through
            September 30 of the succeeding fiscal year.''.
                (2) <<NOTE: 20 USC 1070a-1 note.>>  Effective date.--The
            amendment made by paragraph (1)(B) shall take effect on October
            1, 2008.
                (3) Effective date amendment.--Section 10(b) of the Ensuring
            Continued Access to Student Loans Act of 2008 <<NOTE: 20
            USC 1070a-1 note.>> is amended by striking ``January 1'' and
            inserting ``July 1''.

        (b) <<NOTE: 20 USC 1089 note.>>  Waiver of Master Calendar and
    Negotiated Rulemaking Requirements.--Sections 482 and 492 of the Higher
    Education Act of 1965 (20 U.S.C. 1089, 1098a) shall not apply to the
    amendments made by subsection (a), or to any regulations promulgated
    under those amendments.

        (c) Related Amendment to the Ensuring Continued Access to Student
    Loans Act of 2008.--
                (1) Amendment.--Section 11 of the Ensuring Continued Access
            to Student Loans Act of 2008 <<NOTE: 20 USC 1089 note.>> is
            amended by striking ``sections 2 through 9 of''.
                (2) <<NOTE: 20 USC 1089 note.>>  Effective date.--The
            amendment made by paragraph (1) shall take effect as if enacted
            as part of the Ensuring Continued Access to Student Loans Act of
            2008.
    SEC. 403. FEDERAL TRIO PROGRAMS.

        (a) Program Authority; Authorization of Appropriations.--Section
    402A (20 U.S.C. 1070a-11) is amended--
                (1) in subsection (b)--
                        (A) in paragraph (1)--
                              (i) by inserting ``including community-based
                          organizations with experience in serving
                          disadvantaged youth'' after ``private agencies and
                          organizations''; and
                              (ii) by striking ``in exceptional
                          circumstances'' and inserting ``, as appropriate
                          to the purposes of the program'';
                        (B) in paragraph (2)--
                              (i) in the matter preceding subparagraph (A),
                          by striking ``4'' and inserting ``5''; and
                              (ii) by amending subparagraph (A) to read as
                          follows:
                        ``(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

    [[Page 122 STAT. 3192]]

                    chapter, provide a one-time, limited extension of the
                    length of such an award;''; and
                        (C) by striking paragraph (3) and inserting the
                    following:
                ``(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.'';
                (2) in subsection (c)--
                        (A) in paragraph (2)--
                              (i) by striking ``(2) prior experience.--In''
                          and inserting the following:
                ``(2) Considerations.--
                        ``(A) Prior experience.--In'';
                              (ii) by striking ``service delivery'' and
                          inserting ``high quality service delivery, as
                          determined under subsection (f),''; and
                              (iii) by adding at the end the following new
                          subparagraph:
                        ``(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.'';
                        (B) in paragraph (3)(B), by striking ``is not
                    required to'' and inserting ``shall not'';
                        (C) in paragraph (5), by striking ``campuses'' and
                    inserting ``different campuses'';
                        (D) in paragraph (6), by adding at the end the
                    following new sentence: ``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.''; and
                        (E) by adding at the end the following:
                ``(8) Review and notification by the secretary.--
                        ``(A) Guidance.-- <<NOTE: Deadline.>> Not later than
                    180 days after the date of enactment of the Higher
                    Education Opportunity Act, 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

    [[Page 122 STAT. 3193]]

                          processes established by the Secretary under the
                          authority of the General Education Provisions Act;
                              ``(ii) steps the Secretary will take to ensure
                          that the materials submitted by applicants are
                          processed in a proper and timely manner;
                              ``(iii) steps the Secretary will take to
                          ensure that prior experience points for high
                          quality service delivery are awarded in an
                          accurate and transparent manner;
                              ``(iv) steps the Secretary will take to ensure
                          the quality and integrity of the peer review
                          process, including assurances that peer reviewers
                          will consider applications for grants under this
                          chapter in a thorough and complete manner
                          consistent with applicable Federal law; and
                              ``(v) steps the Secretary will take to ensure
                          that the final score of an application, including
                          prior experience points for high quality service
                          delivery and points awarded through the peer
                          review process, is determined in an accurate and
                          transparent manner.
                        ``(B) Updated guidance.--
                    <<NOTE: Deadline. Publication.>> 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) 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,

    [[Page 122 STAT. 3194]]

                                    so as not to interfere with the timely
                                    awarding of grants for the applicable
                                    grant competition.
                              ``(iv) Error in peer review process.--
                                        ``(I) <<NOTE: Panel.>>  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 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

    [[Page 122 STAT. 3195]]

                                    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.'';
                (3) in subsection (e)--
                        (A) by striking ``(g)(2)'' each place it appears and
                    inserting ``(h)(4)''; and
                        (B) by adding at the end the following new
                    paragraph:

        ``(3) Notwithstanding this subsection and subsection (h)(4),
    individuals who are foster care youth (including youth in foster care
    and youth who have left foster care after reaching age 13), or homeless
    children and youths as defined in section 725 of the McKinney-Vento
    Homeless Assistance Act, shall be eligible to participate in programs
    under sections 402B, 402C, 402D, and 402F.'';
                (4) by redesignating subsections (f) and (g) as subsections
            (g) and (h), respectively;
                (5) by inserting after subsection (e) the following:

        ``(f) Outcome Criteria.--
                ``(1) Use for prior experience determination.--For
            competitions for grants under this chapter that begin on or
            after January 1, 2009, the Secretary shall determine an eligible
            entity's prior experience of high quality service delivery, as
            required under subsection (c)(2), based on the outcome criteria
            described in paragraphs (2) and (3).
                ``(2) Disaggregation of relevant data.--The outcome criteria
            under this subsection shall be disaggregated by low-income
            students, first generation college students, and individuals
            with disabilities, in the schools and institutions of higher
            education served by the program to be evaluated.
                ``(3) Contents of outcome criteria.--The outcome criteria
            under this subsection shall measure, annually and for longer
            periods, the quality and effectiveness of programs authorized
            under this chapter and shall include the following:
                        ``(A) For programs authorized under section 402B,
                    the extent to which the eligible entity met or exceeded
                    the entity's objectives established in the entity's
                    application for such program regarding--
                              ``(i) the delivery of service to a total
                          number of students served by the program;
                              ``(ii) the continued secondary school
                          enrollment of such students;
                              ``(iii) the graduation of such students from
                          secondary school with a regular secondary school
                          diploma in the standard number of years;
                              ``(iv) the completion by such students of a
                          rigorous secondary school program of study that
                          will make such students eligible for programs such
                          as the Academic Competitiveness Grants Program;
                              ``(v) the enrollment of such students in an
                          institution of higher education; and

    [[Page 122 STAT. 3196]]

                              ``(vi) to the extent practicable, the
                          postsecondary education completion of such
                          students.
                        ``(B) For programs authorized under section 402C,
                    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;
                              ``(vi) the enrollment of such students in an
                          institution of higher education; and
                              ``(vii) to the extent practicable, the
                          postsecondary education completion of such
                          students.
                        ``(C) For programs authorized under section 402D--
                              ``(i) the extent to which the eligible entity
                          met or exceeded the entity's objectives regarding
                          the retention in postsecondary education of the
                          students served by the program;
                              ``(ii)(I) in the case of an entity that is an
                          institution of higher education offering a
                          baccalaureate degree, the extent to which the
                          entity met or exceeded the entity's objectives
                          regarding the percentage of such students'
                          completion of the degree programs in which such
                          students were enrolled; 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;
                              ``(iii) the extent to which the entity met or
                          exceeded the entity's objectives regarding the
                          delivery of service to a total number of students,
                          as agreed upon by the entity and the Secretary for
                          the period; and
                              ``(iv) the extent to which the entity met or
                          exceeded the entity's objectives regarding the
                          students served under the program who remain in
                          good academic standing.
                        ``(D) For programs authorized under section 402E,
                    the extent to which the entity met or exceeded the
                    entity's objectives for such program regarding--
                              ``(i) the delivery of service to a total
                          number of students served by the program, as
                          agreed upon by the entity and the Secretary for
                          the period;

    [[Page 122 STAT. 3197]]

                              ``(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
                              ``(iv) the continued enrollment of such
                          students in graduate study and the attainment of
                          doctoral degrees by former program participants.
                        ``(E) For programs authorized under section 402F,
                    the extent to which the entity met or exceeded the
                    entity's objectives for such program regarding--
                              ``(i) the enrollment of students without a
                          secondary school diploma or its recognized
                          equivalent, who were served by the program, in
                          programs leading to such diploma or equivalent;
                              ``(ii) the enrollment 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.'';
                (6) in subsection (g) (as redesignated by paragraph (4))--
                        (A) in the first sentence, by striking
                    ``$700,000,000 for fiscal year 1999'' and all that
                    follows through the period and inserting ``$900,000,000
                    for fiscal year 2009 and such sums as may be necessary
                    for each of the five succeeding fiscal years.''; and
                        (B) by striking the fourth sentence; and
                (7) in subsection (h) (as redesignated by paragraph (4))--
                        (A) by redesignating paragraphs (1) through (4) as
                    paragraphs (3) through (6), respectively;
                        (B) by inserting before paragraph (3) (as
                    redesignated by subparagraph (A)) the following:
                ``(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--

    [[Page 122 STAT. 3198]]

                        ``(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.'';
                        (C) in paragraph (5) (as redesignated by
                    subparagraph (A))--
                              (i) in subparagraph (A)--
                                        (I) by striking ``, any part of
                                    which occurred after January 31,
                                    1955,''; and
                                        (II) by striking ``or'' after the
                                    semicolon;
                              (ii) in subparagraph (B)--
                                        (I) by striking ``after January 31,
                                    1955,''; and
                                        (II) by striking the period at the
                                    end and inserting a semicolon; and
                              (iii) by adding at the end the following:
                        ``(C) was a member of a reserve component of the
                    Armed Forces called to active duty for a period of more
                    than 30 days; or
                        ``(D) was a member of a reserve component of the
                    Armed Forces who served on active duty in support of a
                    contingency operation (as that term is defined in
                    section 101(a)(13) of title 10, United States Code) on
                    or after September 11, 2001.''; and
                        (D) in paragraph (6) (as redesignated by
                    subparagraph (A)), by striking ``subparagraph (A) or (B)
                    of paragraph (3)'' and inserting ``subparagraph (A),
                    (B), or (C) of paragraph (5)''.

        (b) Talent Search.--Section 402B (20 U.S.C. 1070a-12) is amended--
                (1) in subsection (a)--
                        (A) in paragraph (2), by inserting ``, and
                    facilitate the application for,'' after ``the
                    availability of''; and
                        (B) in paragraph (3), by striking ``, but who have
                    the ability to complete such programs, to reenter'' and
                    inserting ``to enter or reenter, and complete'';
                (2) by redesignating subsection (c) as subsection (d);
                (3) by striking subsection (b) and inserting the following:

        ``(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--

    [[Page 122 STAT. 3199]]

                        ``(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.

        ``(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 counseling or activities;
                ``(3) information and activities designed to acquaint youth
            with the range of career options available to the youth;
                ``(4) exposure to the campuses of institutions of higher
            education, as well as cultural events, academic programs, and
            other sites or activities not usually available to disadvantaged
            youth;
                ``(5) workshops and counseling for families of students
            served;
                ``(6) mentoring programs involving elementary or secondary
            school teachers or counselors, faculty members at institutions
            of higher education, students, or any combination of such
            persons; and
                ``(7) programs and activities as described in subsection (b)
            or paragraphs (1) through (6) of this subsection that are
            specially designed for students who are limited English
            proficient, students from groups that are traditionally
            underrepresented in postsecondary education, students with
            disabilities, students who are homeless children and youths (as
            such term is defined in section 725 of the McKinney-Vento
            Homeless Assistance Act (42 U.S.C. 11434a)), students who are in
            foster care or are aging out of the foster care system, or other
            disconnected students.''; and
                (4) in the matter preceding paragraph (1) of subsection (d)
            (as redesignated by paragraph (2)), by striking ``talent search
            projects under this chapter'' and inserting ``projects under
            this section''.

        (c) Upward Bound.--Section 402C (20 U.S.C. 1070a-13) is amended--
                (1) by striking subsection (b) and inserting the following:

        ``(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;

    [[Page 122 STAT. 3200]]

                ``(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.'';
                (2) in subsection (c)--
                        (A) in the subsection heading, by striking
                    ``Required Services'' and inserting ``Additional
                    Required Services for Multiple-Year Grant Recipients'';
                    and
                        (B) by striking ``upward bound project assisted
                    under this chapter'' and inserting ``project assisted
                    under this section'';
                (3) by redesignating subsections (d), (e), and (f) as
            subsections (e), (f), and (g), respectively;
                (4) by inserting after subsection (c) the following:

        ``(d) Permissible Services.--Any project assisted under this section
    may provide such services as--
                ``(1) exposure to cultural events, academic programs, and
            other activities not usually available to disadvantaged youth;
                ``(2) information, activities, and instruction designed to
            acquaint youth participating in the project with the range of
            career options available to the youth;
                ``(3) on-campus residential programs;
                ``(4) mentoring programs involving elementary school or
            secondary school teachers or counselors, faculty members at
            institutions of higher education, students, or any combination
            of such persons;
                ``(5) work-study positions where youth participating in the
            project are exposed to careers requiring a postsecondary degree;
                ``(6) special services, including mathematics and science
            preparation, to enable veterans to make the transition to
            postsecondary education; and
                ``(7) programs and activities as described in subsection
            (b), subsection (c), or paragraphs (1) through (6) of this
            subsection that are specially designed for students who are
            limited English proficient, students from groups that are
            traditionally underrepresented in postsecondary education,
            students with disabilities, students who are homeless children
            and youths (as such term is defined in section 725 of the
            McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)),
            students who are in foster care or are aging out of the foster
            care system, or other disconnected students.'';
                (5) in subsection (e) (as redesignated by paragraph (3))--

    [[Page 122 STAT. 3201]]

                        (A) in the matter preceding paragraph (1), by
                    striking ``upward bound projects under this chapter''
                    and inserting ``projects under this section'';
                        (B) in paragraph (2), by striking ``either low-
                    income'' and all that follows through the semicolon and
                    inserting ``low-income individuals, first generation
                    college students, or students who have a high risk for
                    academic failure;'';
                        (C) in paragraph (3), by striking ``and'' after the
                    semicolon;
                        (D) in paragraph (4), by striking the period at the
                    end and inserting ``; and''; and
                        (E) by adding at the end the following:
                ``(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) in subsection (f) (as redesignated by paragraph (3))--
                        (A) by striking ``during June, July, and August''
                    each place the term occurs and inserting ``during the
                    summer school recess, for a period not to exceed three
                    months''; and
                        (B) by striking ``(b)(10)'' and inserting
                    ``(d)(5)''; and
                (7) by adding at the end the following:

        ``(h) 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.''.
        (d) Student Support Services.--Section 402D (20 U.S.C. 1070a-14) is
    amended--
                (1) in subsection (a)--
                        (A) in paragraph (2), by striking ``and'' after the
                    semicolon; and
                        (B) by striking paragraph (3) and inserting the
                    following:
                ``(3) to foster an institutional climate supportive of the
            success of students who are limited English proficient, students
            from groups that are traditionally underrepresented in
            postsecondary education, students with disabilities, students
            who are homeless children and youths (as such term is defined in
            section 725 of the McKinney-Vento Homeless Assistance Act (42
            U.S.C. 11434a)), students who are in foster care or are aging
            out of the foster care system, or other disconnected students;
            and
                ``(4) to improve the financial literacy and economic
            literacy of students, including--
                        ``(A) basic personal income, household money
                    management, and financial planning skills; and
                        ``(B) basic economic decisionmaking skills.'';
                (2) by redesignating subsections (c) and (d) as subsections
            (d) and (e);

    [[Page 122 STAT. 3202]]

                (3) by striking subsection (b) and inserting the following:

        ``(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;
                ``(5) activities designed to assist students participating
            in the project in applying for admission to, and obtaining
            financial assistance for enrollment in, graduate and
            professional programs; and
                ``(6) activities designed to assist students enrolled in
            two-year institutions of higher education in applying for
            admission to, and obtaining financial assistance for enrollment
            in, a four-year program of postsecondary education.

        ``(c) Permissible Services.--A project assisted under this section
    may provide services such as--
                ``(1) individualized counseling for personal, career, and
            academic matters provided by assigned counselors;
                ``(2) information, activities, and instruction designed to
            acquaint students participating in the project with the range of
            career options available to the students;
                ``(3) exposure to cultural events and academic programs not
            usually available to disadvantaged students;
                ``(4) mentoring programs involving faculty or upper class
            students, or a combination thereof;
                ``(5) securing temporary housing during breaks in the
            academic year for--
                        ``(A) students who are homeless children and youths
                    (as such term is defined in section 725 of the McKinney-
                    Vento Homeless Assistance Act (42 U.S.C. 11434a)) or
                    were formerly homeless children and youths; and
                        ``(B) students who are in foster care or are aging
                    out of the foster care system; and
                ``(6) programs and activities as described in subsection (b)
            or paragraphs (1) through (4) of this subsection that are
            specially designed for students who are limited English
            proficient, students from groups that are traditionally
            underrepresented in postsecondary education, students with
            disabilities, students who are homeless children and youths (as
            such term is defined in section 725 of the McKinney-Vento
            Homeless Assistance Act (42 U.S.C. 11434a)), students who are in
            foster care or are aging out of the foster care system, or other
            disconnected students.'';

    [[Page 122 STAT. 3203]]

                (4) in subsection (d)(1) (as redesignated by paragraph (2)),
            by striking ``subsection (b)'' and inserting ``subsection (c)'';
            and
                (5) in the matter preceding paragraph (1) of subsection (e)
            (as redesignated by paragraph (2)), by striking ``student
            support services projects under this chapter'' and inserting
            ``projects under this section''.

        (e) Postbaccalaureate Achievement Program Authority.--Section 402E
    (20 U.S.C. 1070a-15) is amended--
                (1) in subsection (b)--
                        (A) in the subsection heading, by inserting
                    ``Required'' before ``Services'';
                        (B) in the matter preceding paragraph (1), by
                    striking ``A postbaccalaureate achievement project
                    assisted under this section may provide services such
                    as--'' and inserting ``A project assisted under this
                    section shall provide--'';
                        (C) in paragraph (5), by inserting ``and'' after the
                    semicolon;
                        (D) in paragraph (6), by striking the semicolon and
                    inserting a period; and
                        (E) by striking paragraphs (7) and (8);
                (2) by redesignating subsections (c) through (f) as
            subsections (d) through (g), respectively;
                (3) by inserting after subsection (b) the following:

        ``(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.'';
                (4) in subsection (d) (as redesignated by paragraph (2))--
                        (A) in the matter preceding paragraph (1), by
                    striking ``postbaccalaureate achievement''; and
                        (B) in paragraph (2), by inserting after ``graduate
                    education'' the following: ``, including--
                        ``(A) Alaska Natives, as defined in section 7306 of
                    the Elementary and Secondary Education Act of 1965;
                        ``(B) Native Hawaiians, as defined in section 7207
                    of such Act; and
                        ``(C) Native American Pacific Islanders, as defined
                    in section 320.'';
                (5) in the matter preceding paragraph (1) of subsection (f)
            (as redesignated by paragraph (2)), by striking
            ``postbaccalaureate achievement project'' and inserting
            ``project under this section''; and
                (6) in subsection (g) (as redesignated by paragraph (2))--
                        (A) by striking ``402A(f)'' and inserting
                    ``402A(g)''; and
                        (B) by striking ``1993 through 1997'' and inserting
                    ``2009 through 2014''.

        (f) Educational Opportunity Centers.--Section 402F (20 U.S.C. 1070a-
    16) is amended--
                (1) in subsection (a)--
                        (A) in paragraph (1), by striking ``and'' after the
                    semicolon;

    [[Page 122 STAT. 3204]]

                        (B) in paragraph (2), by striking the period at the
                    end and inserting ``; and''; and
                        (C) by adding at the end the following:
                ``(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.''; and
                (2) in subsection (b)--
                        (A) by redesignating paragraphs (5) through (10) as
                    paragraphs (6) through (11), respectively;
                        (B) by inserting after paragraph (4) the following:
                ``(5) education or counseling services designed to improve
            the financial literacy and economic literacy of students;'';
                        (C) by striking paragraph (7) (as redesignated by
                    subparagraph (A)) and inserting the following:
                ``(7) individualized personal, career, and academic
            counseling;''; and
                        (D) by striking paragraph (11) (as redesignated by
                    subparagraph (A)) and inserting the following:
                ``(11) programs and activities as described in paragraphs
            (1) through (10) that are specially designed for students who
            are limited English proficient, students from groups that are
            traditionally underrepresented in postsecondary education,
            students with disabilities, students who are homeless children
            and youths (as such term is defined in section 725 of the
            McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)),
            students who are in foster care or are aging out of the foster
            care system, or other disconnected students.''.

        (g) Staff Development Activities.--Section 402G(b) (20 U.S.C. 1070a-
    17(b)) is amended by adding at the end the following new paragraph:
                ``(5) Strategies for recruiting and serving hard to reach
            populations, including students who are limited English
            proficient, students from groups that are traditionally
            underrepresented in postsecondary education, students with
            disabilities, students who are homeless children and youths (as
            such term is defined in section 725 of the McKinney-Vento
            Homeless Assistance Act (42 U.S.C. 11434a)), students who are in
            foster care or are aging out of the foster care system, or other
            disconnected students.''.

        (h) Reports, Evaluations, and Grants for Project Improvement and
    Dissemination.--Section 402H (20 U.S.C. 1070a-18) is amended--
                (1) by striking the section heading and inserting ``reports,
            evaluations, and grants for project improvement and
            dissemination.'';
                (2) by redesignating subsections (a) through (c) as
            subsections (b) through (d), respectively;
                (3) by inserting before subsection (b) (as redesignated by
            paragraph (2)) the following:

        ``(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--

    [[Page 122 STAT. 3205]]

                        ``(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.''; and
                (4) in subsection (b) (as redesignated by paragraph (2)), by
            striking paragraphs (1) and (2) and inserting the following:
                ``(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. <<NOTE: Deadline.>> The evaluation of the
                    programs and projects assisted under section 402C shall
                    be implemented not later than June 30, 2010.
                        ``(B) Content of upward bound evaluation.--The
                    evaluation of the programs and projects assisted under
                    section 402C that is described in subparagraph (A) shall
                    examine the characteristics of the students who benefit
                    most from the Upward Bound program under section 402C
                    and the characteristics of the programs and projects
                    that most benefit students.
                        ``(C) Implementation.--Each evaluation described in
                    this paragraph shall be implemented in accordance with
                    the requirements of this section.
                ``(2) Practices.--
                        ``(A) In general.--The evaluations described in
                    paragraph (1) shall identify institutional, community,
                    and program or project practices that are effective in--
                              ``(i) enhancing the access of low-income
                          individuals and first-generation college students
                          to postsecondary education;
                              ``(ii) the preparation of such individuals and
                          students for postsecondary education; and
                              ``(iii) fostering the success of the
                          individuals and students in postsecondary
                          education.

    [[Page 122 STAT. 3206]]

                        ``(B) Primary purpose.--Any evaluation conducted
                    under this chapter shall have as the evaluation's
                    primary purpose the identification of particular
                    practices that further the achievement of the outcome
                    criteria determined under section 402A(f)(4).
                        ``(C) Dissemination and use of evaluation
                    findings.--The Secretary shall disseminate to eligible
                    entities and make available to the public the practices
                    identified under subparagraph (B). The practices may be
                    used by eligible entities that receive assistance under
                    this chapter after the dissemination.
                ``(3) Special rule related to evaluation participation.--The
            Secretary shall not require an eligible entity, as a condition
            for receiving, or that receives, assistance under any program or
            project under this chapter to participate in an evaluation under
            this section that--
                        ``(A) requires the eligible entity to recruit
                    additional students beyond those the program or project
                    would normally recruit; or
                        ``(B) results in the denial of services for an
                    eligible student under the program or project.
                ``(4) Consideration.--When designing an evaluation under
            this subsection, the Secretary shall continue to consider--
                        ``(A) the burden placed on the program participants
                    or the eligible entity; and
                        ``(B) whether the evaluation meets generally
                    accepted standards of institutional review boards.''.
    SEC. 404. GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE
                            PROGRAMS.

        (a) Early Intervention and College Awareness Program Authorized.--
    Section 404A (20 U.S.C. 1070a-21) is amended--
                (1) by striking subsection (a) and inserting the following:

        ``(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, 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.'';
                (2) in subsection (b), by striking paragraph (2) and
            inserting the following:
                ``(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

    [[Page 122 STAT. 3207]]

                        ``(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.''; and
                (3) in subsection (c), by striking paragraph (2) and
            inserting the following:
                ``(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.''.

        (b) Requirements.--Section 404B (20 U.S.C. 1070a-22) is amended--
                (1) by striking subsection (a) and inserting the following:

        ``(a) Funding Rules.--In awarding grants 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.'';
                (2) by striking subsections (b), (e), and (f);
                (3) by redesignating subsections (c), (d), and (g), as
            subsections (b), (c), and (d), respectively;
                (4) in subsection (d)(1) (as redesignated by paragraph
            (3))--
                        (A) by striking ``and'' at the end of subparagraph
                    (A);
                        (B) in subparagraph (B)--

    [[Page 122 STAT. 3208]]

                              (i) by inserting ``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''
                          after ``grade level''; and
                              (ii) by striking the period at the end and
                          inserting ``; and''; and
                        (C) by adding at the end the following new
                    subparagraph:
                        ``(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.''; and
                (5) by adding at the end the following:

        ``(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.''.
        (c) Application.--Section 404C (20 U.S.C. 1070a-23) is amended--
                (1) in the section heading, by striking ``eligible entity
            plans'' and inserting ``applications'';
                (2) in subsection (a)--
                        (A) in the subsection heading, by striking ``Plan''
                    and inserting ``Application'';
                        (B) in paragraph (1)--
                              (i) by striking ``a plan'' and inserting ``an
                          application''; and
                              (ii) by striking the second sentence; and
                        (C) by striking paragraph (2) and inserting the
                    following:
                ``(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

    [[Page 122 STAT. 3209]]

                    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).'';
                (3) in subsection (b)--
                        (A) in the matter preceding subparagraph (A) of
                    paragraph (1)--
                              (i) by striking ``a plan'' and inserting ``an
                          application''; and
                              (ii) by striking ``such plan'' and inserting
                          ``such application'';
                        (B) in paragraph (1)(A), by inserting ``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''
                    after ``in cash or in-kind''; and
                        (C) in paragraph (2), by adding at the end the
                    following new sentence: ``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.''; and

    [[Page 122 STAT. 3210]]

                (4) in subsection (c)--
                        (A) in paragraph (1)--
                              (i) by striking ``paid to students from State,
                          local, institutional, or private funds under this
                          chapter'' and inserting ``obligated to students
                          from State, local, institutional, or private funds
                          under this chapter, including pre-existing non-
                          Federal financial assistance programs,''; and
                              (ii) by striking the semicolon at the end and
                          inserting ``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;'';
                        (B) in paragraph (2), by striking ``and'' after the
                    semicolon;
                        (C) in paragraph (3), by striking the period at the
                    end and inserting ``; and''; and
                        (D) by adding at the end the following:
                ``(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) Activities.--Section 404D (20 U.S.C. 1070a-24) is amended to
    read as follows:
    ``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, for
            eligible students.
                ``(2) Conducting outreach activities to recruit priority
            students described in subsection (d) to participate in program
            activities.
                ``(3) Providing supportive services to eligible students.

    [[Page 122 STAT. 3211]]

                ``(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) financial literacy and economic literacy
                    education or counseling;
                        ``(F) volunteer and parent involvement;
                        ``(G) encouraging former or current participants of
                    a program under this chapter to serve as peer
                    counselors;
                        ``(H) skills assessments;
                        ``(I) personal and family counseling, and home
                    visits;
                        ``(J) staff development; and
                        ``(K) programs and activities described in this
                    subsection that are specially designed for students who
                    are limited English proficient.
                ``(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

    [[Page 122 STAT. 3212]]

            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.

        ``(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 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.

    [[Page 122 STAT. 3213]]

                ``(9) Creating community college programs for drop-outs that
            are personalized drop-out recovery programs that allow drop-outs
            to complete a regular secondary school diploma and begin
            college-level work.

        ``(d) Priority Students.--For eligible entities not using a cohort
    approach, the eligible entity shall treat as a priority student any
    student in secondary school who is--
                ``(1) eligible to be counted under section 1124(c) of the
            Elementary and Secondary Education Act of 1965;
                ``(2) eligible for assistance under a State program funded
            under part A or E of title IV of the Social Security Act (42
            U.S.C. 601 et seq., 670 et seq.);
                ``(3) eligible for assistance under subtitle B of title VII
            of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431
            et seq.); or
                ``(4) otherwise considered by the eligible entity to be a
            disconnected student.

        ``(e) Allowable Providers.--In the case of eligible entities
    described in section 404A(c)(1), the activities required by this section
    may be provided by service providers such as community-based
    organizations, schools, institutions of higher education, public and
    private agencies, nonprofit and philanthropic organizations, businesses,
    institutions and agencies sponsoring programs authorized under subpart
    4, and other organizations the State determines appropriate.''.
        (e) Scholarship Component.--Section 404E (20 U.S.C. 1070a-25) is
    amended--
                (1) by striking subsections (e) and (f);
                (2) by redesignating subsections (b), (c), and (d) as
            subsections (d), (f), and (g), respectively;
                (3) by inserting after subsection (a) the following:

        ``(b) Limitation.--
                ``(1) In general.--Subject to paragraph (2), each eligible
            entity described in section 404A(c)(1) that receives a grant
            under this chapter shall use not less than 25 percent and not
            more than 50 percent of the grant funds for activities described
            in section 404D (except for the activity described in subsection
            (a)(4) of such section), with the remainder of such funds to be
            used for a scholarship program under this section in accordance
            with such subsection.
                ``(2) Exception.--Notwithstanding paragraph (1), the
            Secretary may allow an eligible entity to use more than 50
            percent of grant funds received under this chapter for such
            activities, if the eligible entity demonstrates that the
            eligible entity has another means of providing the students with
            the financial assistance described in this section and describes
            such means in the application submitted under section 404C.

        ``(c) Notification of Eligibility.--Each eligible entity providing
    scholarships under this section shall provide information on the
    eligibility requirements for the scholarships to all participating
    students upon the students' entry into the programs assisted under this
    chapter.'';
                (4) in subsection (d) (as redesignated by paragraph (2)), by
            striking ``the lesser of'' and all that follows through the
            period at the end of paragraph (2) of such subsection (d) and
            inserting ``the minimum Federal Pell Grant award under section
            401 for such award year.'';

    [[Page 122 STAT. 3214]]

                (5) by inserting after subsection (d) (as redesignated by
            paragraph (2) and amended by paragraph (4)) the following:

        ``(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).
                ``(2) Requirement for portability.--Funds held in reserve
            under paragraph (1) shall be made available to an eligible
            student when the eligible student has--
                        ``(A) completed a secondary school diploma, its
                    recognized equivalent, or another recognized alternative
                    standard for individuals with disabilities; and
                        ``(B) enrolled in an institution of higher
                    education.
                ``(3) Qualified educational expenses.--Funds available to an
            eligible student under this subsection may be used for--
                        ``(A) tuition, fees, books, supplies, and equipment
                    required for the enrollment or attendance of the
                    eligible student at an institution of higher education;
                    and
                        ``(B) in the case of an eligible student with
                    special needs, expenses for special needs services that
                    are incurred in connection with such enrollment or
                    attendance.
                ``(4) Return of funds.--
                        ``(A) Redistribution.--
                              ``(i) In general.--Funds held in reserve under
                          paragraph (1) that are not used by an eligible
                          student within six years of the student's
                          scheduled completion of secondary school may be
                          redistributed by the eligible entity to other
                          eligible students.
                              ``(ii) Return of excess to the secretary.--If,
                          after meeting the requirements of paragraph (1)
                          and, if applicable, redistributing excess funds in
                          accordance with clause (i) of this subparagraph,
                          an eligible entity has funds held in reserve under
                          paragraph (1) that remain available, the eligible
                          entity shall return such remaining reserved funds
                          to the Secretary for distribution to other
                          grantees under this chapter in accordance with the
                          funding rules described in section 404B(a).
                        ``(B) Nonparticipating entity.--Notwithstanding
                    subparagraph (A), in the case of an eligible entity that
                    does not receive assistance under this subpart for six
                    fiscal years, the eligible entity shall return any funds
                    held in reserve under paragraph (1) that are not awarded
                    or obligated to eligible students to the Secretary for
                    distribution to other grantees under this chapter.'';
                    and
                (6) in subsection (g)(4) (as redesignated by paragraph (2)),
            by striking ``early intervention component required under
            section 404D'' and inserting ``activities required under section
            404D(a)''.

        (f) 21st Century Scholar Certificates.--Section 404F (20 U.S.C.
    1070a-26) is amended by striking subsections (a) and (b) and inserting
    the following:
        ``(a) In General.--An eligible entity that receives a grant under
    this chapter shall provide certificates, to be known as 21st Century

    [[Page 122 STAT. 3215]]

    Scholar Certificates, to all students served by the eligible entity who
    are participating in a program under this chapter.
        ``(b) Information Required.--A 21st Century Scholar Certificate
    shall be personalized for each student and indicate the amount of
    Federal financial aid for college and the estimated amount of any
    scholarship provided under section 404E, if applicable, that a student
    may be eligible to receive.''.
        (g) Evaluation.--Section 404G(c) (20 U.S.C. 1070a-27(c)) is amended
    by adding at the end the following: ``Such evaluation shall include a
    separate analysis of--
                ``(1) the implementation of the scholarship component
            described in section 404E; and
                ``(2) the use of methods for complying with matching
            requirements described in paragraphs (1) and (2) of section
            404C(c).''.

        (h) Authorization of Appropriations.--Section 404H (20 U.S.C. 1070a-
    28) is amended by striking ``$200,000,000 for fiscal year 1999'' and all
    that follows through the period and inserting ``$400,000,000 for fiscal
    year 2009 and such sums as may be necessary for each of the five
    succeeding fiscal years.''.
    SEC. 405. ACADEMIC ACHIEVEMENT INCENTIVE SCHOLARSHIPS.

        Chapter 3 of subpart 2 of part A of title IV (20 U.S.C. 1070a-31 et
    seq.) is repealed.
    SEC. 406. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS.

        (a) Appropriations Authorized.--Section 413A(b)(1) (20 U.S.C.
    1070b(b)(1)) is amended by striking ``$675,000,000 for fiscal year
    1999'' and all that follows through the period and inserting ``such sums
    as may be necessary for fiscal year 2009 and each of the five succeeding
    fiscal years.''.
        (b) Allowance for Books and Supplies.--Section 413D(c)(3)(D) (20
    U.S.C. 1070b-3(c)(3)(D)) is amended by striking ``$450'' and inserting
    ``$600''.
        (c) Technical Correction.--Section 413D(a)(1) (20 U.S.C. 1070b-
    3(a)(1)) is amended by striking ``such institution'' and all that
    follows through the period and inserting ``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).''.
    SEC. 407. LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP PROGRAM.

        (a) Authorization of Appropriations.--Section 415A(b) (20 U.S.C.
    1070c(b)) is amended by striking paragraphs (1) and (2) and inserting
    the following:
                ``(1) In general.--There are authorized to be appropriated
            to carry out this subpart $200,000,000 for fiscal year 2009 and
            such sums as may be necessary for each of the five succeeding
            fiscal years.
                ``(2) Reservation.--For any fiscal year for which the amount
            appropriated under paragraph (1) exceeds $30,000,000, the excess
            amount shall be available to carry out section 415E.''.

        (b) Applications.--Section 415C(b) (20 U.S.C. 1070c-2(b)) is
    amended--
                (1) in paragraph (2), by striking ``not in excess of $5,000
            per academic year'' and inserting ``not to exceed the lesser

    [[Page 122 STAT. 3216]]

            of $12,500 or the student's cost of attendance per academic
            year''; and
                (2) in paragraph (9), by striking ``and'' after the
            semicolon;
                (3) in paragraph (10)--
                        (A) by striking ``a direct appropriation of''; and
                        (B) by striking the period at the end and inserting
                    ``; and''; and
                (4) by adding at the end the following:
                ``(11) provides notification to eligible students that such
            grants are--
                        ``(A) Leveraging Educational Assistance Partnership
                    Grants; and
                        ``(B) funded by the Federal Government, the State,
                    and, where applicable, other contributing partners.''.

        (c) Grants for Access and Persistence.--Section 415E (20 U.S.C.
    1070c-3a) is amended to read as follows:
    ``SEC. 415E. GRANTS FOR ACCESS AND PERSISTENCE.

        ``(a) Purpose.--It is the purpose of this section to expand college
    access and increase college persistence by making allotments to States
    to enable the States to--
                ``(1) expand and enhance partnerships with institutions of
            higher education, early information and intervention, mentoring,
            or outreach programs, private corporations, philanthropic
            organizations, and other interested parties, including
            community-based organizations, in order to--
                        ``(A) carry out activities under this section; and
                        ``(B) provide coordination and cohesion among
                    Federal, State, and local governmental and private
                    efforts that provide financial assistance to help low-
                    income students attend an institution of higher
                    education;
                ``(2) provide need-based grants for access and persistence
            to eligible low-income students;
                ``(3) provide early notification to low-income students of
            the students' eligibility for financial aid; and
                ``(4) encourage increased participation in early information
            and intervention, mentoring, or outreach programs.

        ``(b) Allotments to States.--
                ``(1) In general.--
                        ``(A) Authorization.--From sums reserved under
                    section 415A(b)(2) for each fiscal year, the Secretary
                    shall make an allotment to each State that submits an
                    application for an allotment in accordance with
                    subsection (c) to enable the State to pay the Federal
                    share, as described in paragraph (2), of the cost of
                    carrying out the activities under subsection (d).
                        ``(B) Determination of allotment.--In making
                    allotments under subparagraph (A), the Secretary shall
                    consider the following:
                              ``(i) Continuation of award.--If a State
                          continues to meet the specifications established
                          in such State's application under subsection (c),
                          the Secretary shall make an allotment to such
                          State that is not less than the allotment made to
                          such State for the previous fiscal year.

    [[Page 122 STAT. 3217]]

                              ``(ii) Priority.--The Secretary shall give
                          priority in making allotments to States that meet
                          the requirements described in paragraph
                          (2)(B)(ii).
                ``(2) Federal share.--
                        ``(A) In general.--The Federal share of the cost of
                    carrying out the activities under subsection (d) for any
                    fiscal year shall not exceed 66.66 percent.
                        ``(B) Different percentages.--The Federal share
                    under this section shall be determined in accordance
                    with the following:
                              ``(i) The Federal share of the cost of
                          carrying out the activities under subsection (d)
                          shall be 57 percent if a State applies for an
                          allotment under this section in partnership with
                          any number of degree-granting institutions of
                          higher education in the State whose combined full-
                          time enrollment represents less than a majority of
                          all students attending institutions of higher
                          education in the State, and--
                                        ``(I) philanthropic organizations
                                    that are located in, or that provide
                                    funding in, the State; or
                                        ``(II) private corporations that are
                                    located in, or that do business in, the
                                    State.
                              ``(ii) The Federal share of the cost of
                          carrying out the activities under subsection (d)
                          shall be 66.66 percent if a State applies for an
                          allotment under this section in partnership with
                          any number of degree-granting institutions of
                          higher education in the State whose combined full-
                          time enrollment represents a majority of all
                          students attending institutions of higher
                          education in the State, and--
                                        ``(I) philanthropic organizations
                                    that are located in, or that provide
                                    funding in, the State; or
                                        ``(II) private corporations that are
                                    located in, or that do business in, the
                                    State.
                        ``(C) Non-federal share.--
                              ``(i) In general.--The non-Federal share under
                          this section may be provided in cash or in kind,
                          fairly evaluated.
                              ``(ii) In-kind contribution.--For the purpose
                          of calculating the non-Federal share under this
                          subparagraph, an in-kind contribution is a non-
                          cash contribution that--
                                        ``(I) has monetary value, such as
                                    the provision of--
                                                ``(aa) room and board; or
                                                ``(bb) transportation
                                            passes; and
                                        ``(II) helps a student meet the cost
                                    of attendance at an institution of
                                    higher education.
                              ``(iii) Effect on need analysis.--For the
                          purpose of calculating a student's need in
                          accordance with part F, an in-kind contribution
                          described in clause (ii) shall not be considered
                          an asset or income of the student or the student's
                          parent.

        ``(c) Application for Allotment.--
                ``(1) In general.--

    [[Page 122 STAT. 3218]]

                        ``(A) Submission.--A State that desires to receive
                    an allotment under this section on behalf of a
                    partnership described in paragraph (3) shall submit an
                    application to the Secretary at such time, in such
                    manner, and containing such information as the Secretary
                    may require.
                        ``(B) Content.--An application submitted under
                    subparagraph (A) shall include the following:
                              ``(i) A description of the State's plan for
                          using the allotted funds.
                              ``(ii) An assurance that the State will
                          provide matching funds, in cash or in kind, from
                          State, institutional, philanthropic, or private
                          funds, of not less than 33.33 percent of the cost
                          of carrying out the activities under subsection
                          (d). The State shall specify the methods by which
                          matching funds will be paid. A State that uses
                          non-Federal funds to create or expand partnerships
                          with entities described in subsection (a)(1), in
                          which such entities match State funds for student
                          scholarships, may apply such matching funds from
                          such entities toward fulfilling the State's
                          matching obligation under this clause.
                              ``(iii) An assurance that the State will use
                          funds provided under this section to supplement,
                          and not supplant, Federal and State funds
                          available for carrying out the activities under
                          this title.
                              ``(iv) An assurance that early information and
                          intervention, mentoring, or outreach programs
                          exist within the State or that there is a plan to
                          make such programs widely available.
                              ``(v) A description of the organizational
                          structure that the State has in place to
                          administer the activities under subsection (d),
                          including a description of how the State will
                          compile information on degree completion of
                          students receiving grants under this section.
                              ``(vi) A description of the steps the State
                          will take to ensure that students who receive
                          grants under this section persist to degree
                          completion.
                              ``(vii) An assurance that the State has a
                          method in place, such as acceptance of the
                          automatic zero expected family contribution
                          determination described in section 479(c), to
                          identify eligible low-income students and award
                          State grant aid to such students.
                              ``(viii) An assurance that the State will
                          provide notification to eligible low-income
                          students that grants under this section are--
                                        ``(I) Leveraging Educational
                                    Assistance Partnership Grants; and
                                        ``(II) funded by the Federal
                                    Government and the State, and, where
                                    applicable, other contributing partners.
                ``(2) State agency.--The State agency that submits an
            application for a State under section 415C(a) shall be the same
            State agency that submits an application under paragraph (1) for
            such State.
                ``(3) Partnership.--In applying for an allotment under this
            section, the State agency shall apply for the allotment in
            partnership with--

    [[Page 122 STAT. 3219]]

                        ``(A) not less than one public and one private
                    degree-granting institution of higher education that are
                    located in the State, if applicable;
                        ``(B) new or existing early information and
                    intervention, mentoring, or outreach programs located in
                    the State; and
                        ``(C) not less than one--
                              ``(i) philanthropic organization located in,
                          or that provides funding in, the State; or
                              ``(ii) private corporation located in, or that
                          does business in, the State.
                ``(4) Roles of partners.--
                        ``(A) State agency.--A State agency that is in a
                    partnership receiving an allotment under this section--
                              ``(i) shall--
                                        ``(I) serve as the primary
                                    administrative unit for the partnership;
                                        ``(II) provide or coordinate non-
                                    Federal share funds, and coordinate
                                    activities among partners;
                                        ``(III) encourage each institution
                                    of higher education in the State to
                                    participate in the partnership;
                                        ``(IV) <<NOTE: Notification.>> make
                                    determinations and early notifications
                                    of assistance as described under
                                    subsection (d)(2); and

                                    ``(V) <<NOTE: Deadline. Reports.>> annual
                                    ly report to the Secretary on the
                                    partnership's progress in meeting the
                                    purpose of this section; and
                              ``(ii) may provide early information and
                          intervention, mentoring, or outreach programs.
                        ``(B) Degree-granting institutions of higher
                    education.--A degree-granting institution of higher
                    education that is in a partnership receiving an
                    allotment under this section--
                              ``(i) shall--
                                        ``(I) recruit and admit
                                    participating qualified students and
                                    provide such additional institutional
                                    grant aid to participating students as
                                    agreed to with the State agency;
                                        ``(II) provide support services to
                                    students who receive grants for access
                                    and persistence under this section and
                                    are enrolled at such institution; and
                                        ``(III) assist the State in the
                                    identification of eligible students and
                                    the dissemination of early notifications
                                    of assistance as agreed to with the
                                    State agency; and
                              ``(ii) may provide funding for early
                          information and intervention, mentoring, or
                          outreach programs or provide such services
                          directly.
                        ``(C) Programs.--An early information and
                    intervention, mentoring, or outreach program that is in
                    a partnership receiving an allotment under this section
                    shall provide direct services, support, and information
                    to participating students.
                        ``(D) Philanthropic organization or private
                    corporation.--A philanthropic organization or private
                    corporation that is in a partnership receiving an
                    allotment

    [[Page 122 STAT. 3220]]

                    under this section shall provide funds for grants for
                    access and persistence for participating students, or
                    provide funds or support for early information and
                    intervention, mentoring, or outreach programs.

        ``(d) Authorized Activities.--
                ``(1) In general.--
                        ``(A) Establishment of partnership.--Each State
                    receiving an allotment under this section shall use the
                    funds to establish a partnership to award grants for
                    access and persistence to eligible low-income students
                    in order to increase the amount of financial assistance
                    such students receive under this subpart for
                    undergraduate education expenses.
                        ``(B) Amount of grants.--The amount of a grant for
                    access and persistence awarded by a State to a student
                    under this section shall be not less than--
                              ``(i) the average undergraduate tuition and
                          mandatory fees at the public institutions of
                          higher education in the State where the student
                          resides that are of the same type of institution
                          as the institution of higher education the student
                          attends; minus
                              ``(ii) other Federal and State aid the student
                          receives.
                        ``(C) Special rules.--
                              ``(i) Partnership institutions.--A State
                          receiving an allotment under this section may
                          restrict the use of grants for access and
                          persistence under this section by awarding the
                          grants only to students attending institutions of
                          higher education that are participating in the
                          partnership.
                              ``(ii) Out-of-state institutions.--If a State
                          provides grants through another program under this
                          subpart to students attending institutions of
                          higher education located in another State, grants
                          awarded under this section may be used at
                          institutions of higher education located in
                          another State.
                ``(2) Early notification.--
                        ``(A) In general.-- <<NOTE: Deadline.>> Each State
                    receiving an allotment under this section shall annually
                    notify low-income students in grades seven through 12 in
                    the State, and their families, of their potential
                    eligibility for student financial assistance, including
                    an access and persistence grant, to attend an
                    institution of higher education.
                        ``(B) Content of notice.--The notice under
                    subparagraph (A)--
                              ``(i) shall include--
                                        ``(I) information about early
                                    information and intervention, mentoring,
                                    or outreach programs available to the
                                    student;
                                        ``(II) information that a student's
                                    eligibility for a grant for access and
                                    persistence is enhanced through
                                    participation in an early information
                                    and intervention, mentoring, or outreach
                                    program;
                                        ``(III) an explanation that student
                                    and family eligibility for, and
                                    participation in, other Federal means-
                                    tested programs may indicate eligibility
                                    for

    [[Page 122 STAT. 3221]]

                                    a grant for access and persistence and
                                    other student aid programs;
                                        ``(IV) a nonbinding estimate of the
                                    total amount of financial aid that a
                                    low-income student with a similar income
                                    level may expect to receive, including
                                    an estimate of the amount of a grant for
                                    access and persistence and an estimate
                                    of the amount of grants, loans, and all
                                    other available types of aid from the
                                    major Federal and State financial aid
                                    programs;
                                        ``(V) an explanation that in order
                                    to be eligible for a grant for access
                                    and persistence, at a minimum, a student
                                    shall--
                                                ``(aa) meet the requirement
                                            under paragraph (3);
                                                ``(bb) graduate from
                                            secondary school; and
                                                ``(cc) enroll at an
                                            institution of higher
                                            education--

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                                        ``(VI) information on any additional
                                    requirements (such as a student pledge
                                    detailing student responsibilities) that
                                    the State may impose for receipt of a
                                    grant for access and persistence under
                                    this section; and
                                        ``(VII) instructions on how to apply
                                    for a grant for access and persistence
                                    and an explanation that a student is
                                    required to file a Free Application for
                                    Federal Student Aid authorized under
                                    section 483(a) to be eligible for such
                                    grant and assistance from other Federal
                                    and State financial aid programs; and
                              ``(ii) may include a disclaimer that grant
                          awards for access and persistence are contingent
                          on--
                                        ``(I) a determination of the
                                    student's financial eligibility at the
                                    time of the student's enrollment at an
                                    institution of higher education that is
                                    a partner in the partnership or
                                    qualifies under subsection
                                    (d)(1)(C)(ii);
                                        ``(II) annual Federal and State
                                    spending for higher education; and
                                        ``(III) other aid received by the
                                    student at the time of the student's
                                    enrollment at such institution of higher
                                    education.
                ``(3) Eligibility.--In determining which students are
            eligible to receive grants for access and persistence, the State
            shall ensure that each such student complies with the following
            subparagraph (A) or (B):
                        ``(A) Meets not less than two of the following
                    criteria, with priority given to students meeting all of
                    the following criteria:
                              ``(i) Has an expected family contribution
                          equal to zero, as determined under part F, or a
                          comparable

    [[Page 122 STAT. 3222]]

                          alternative based upon the State's approved
                          criteria in section 415C(b)(4).
                              ``(ii) Qualifies for the State's maximum
                          undergraduate award, as authorized under section
                          415C(b).
                              ``(iii) Is participating in, or has
                          participated in, a Federal, State, institutional,
                          or community early information and intervention,
                          mentoring, or outreach program, as recognized by
                          the State agency administering activities under
                          this section.
                        ``(B) Is receiving, or has received, a grant for
                    access and persistence under this section, in accordance
                    with paragraph (5).
                ``(4) Grant award.--Once a student, including those students
            who have received early notification under paragraph (2) from
            the State, applies for admission to an institution that is a
            partner in the partnership, files a Free Application for Federal
            Student Aid and any related State form, and is determined
            eligible by the State under paragraph (3), the State shall--
                        ``(A) issue the student a preliminary award
                    certificate for a grant for access and persistence with
                    estimated award amounts; and
                        ``(B) inform the student that payment of the grant
                    for access and persistence award amounts is subject to
                    certification of enrollment and award eligibility by the
                    institution of higher education.
                ``(5) Duration of award.--An eligible student who receives a
            grant for access and persistence under this section shall
            receive such grant award for each year of such student's
            undergraduate education in which the student remains eligible
            for assistance under this title, including pursuant to section
            484(c), and remains financially eligible as determined by the
            State, except that the State may impose reasonable time limits
            to degree completion.

        ``(e) Administrative Cost Allowance.--A State that receives an
    allotment under this section may reserve not more than two percent of
    the funds made available annually through the allotment for State
    administrative functions required to carry out this section.
        ``(f) Statutory and Regulatory Relief for Institutions of Higher
    Education.-- <<NOTE: Waiver authority.>> The Secretary may grant, upon
    the request of an institution of higher education that is in a
    partnership described in subsection (b)(2)(B)(ii) and that receives an
    allotment under this section, a waiver for such institution from
    statutory or regulatory requirements that inhibit the ability of the
    institution to successfully and efficiently participate in the
    activities of the partnership.

        ``(g) Applicability Rule.--The provisions of this subpart that are
    not inconsistent with this section shall apply to the program authorized
    by this section.
        ``(h) Maintenance of Effort Requirement.--Each State receiving an
    allotment under this section for a fiscal year shall provide the
    Secretary with an assurance that the aggregate amount expended per
    student or the aggregate expenditures by the State, from funds derived
    from non-Federal sources, for the authorized activities described in
    subsection (d) for the preceding fiscal year

    [[Page 122 STAT. 3223]]

    were not less than the amount expended per student or the aggregate
    expenditure by the State for the activities for the second preceding
    fiscal year.
        ``(i) Special Rule.--Notwithstanding subsection (h), for purposes of
    determining a State's share of the cost of the authorized activities
    described in subsection (d), the State shall consider only those
    expenditures from non-Federal sources that exceed the State's total
    expenditures for need-based grants, scholarships, and work-study
    assistance for fiscal year 1999 (including any such assistance provided
    under this subpart).
        ``(j) <<NOTE: Effective date.>>  Continuation and Transition.--For
    the two-year period that begins on the date of enactment of the Higher
    Education Opportunity Act, the Secretary shall continue to award grants
    under section 415E of the Higher Education Act of 1965 as such section
    existed on the day before the date of enactment of the Higher Education
    Opportunity Act to States that choose to apply for grants under such
    predecessor section.

        ``(k) Reports.--Not later than three years after the date of
    enactment of the Higher Education Opportunity Act and annually
    thereafter, the Secretary shall submit a report describing the
    activities and the impact of the partnerships under this section to the
    authorizing committees.''.
    SEC. 408. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMILIES ARE ENGAGED
                            IN MIGRANT AND SEASONAL FARMWORK.

        Section 418A (20 U.S.C. 1070d-2) is amended--
                (1) in subsection (b)--
                        (A) in paragraph (1)(B)(i), by striking ``parents''
                    and inserting ``immediate family'';
                        (B) in paragraph (3)(B), by inserting ``(including
                    preparation for college entrance examinations)'' after
                    ``college program'';
                        (C) in paragraph (5), by striking ``weekly'';
                        (D) in paragraph (7), by striking ``and'' after the
                    semicolon;
                        (E) in paragraph (8)--
                              (i) by inserting ``(such as transportation and
                          child care)'' after ``services''; and
                              (ii) by striking the period at the end and
                          inserting ``; and''; and
                        (F) by adding at the end the following:
                ``(9) other activities to improve persistence and retention
            in postsecondary education.'';
                (2) in subsection (c)--
                        (A) in paragraph (1)--
                              (i) in subparagraph (A)--
                                        (I) by striking ``parents'' and
                                    inserting ``immediate family''; and
                                        (II) by striking ``(or such part's
                                    predecessor authority)'';
                              (ii) in subparagraph (B)--
                                        (I) in the matter preceding clause
                                    (i), by inserting ``to improve
                                    placement, persistence, and retention in
                                    postsecondary education,'' after
                                    ``services''; and

    [[Page 122 STAT. 3224]]

                                        (II) in clause (i), by striking
                                    ``and career'' and inserting ``career,
                                    and economic education or personal
                                    finance'';
                              (iii) in subparagraph (E), by striking ``and''
                          after the semicolon;
                              (iv) by redesignating subparagraph (F) as
                          subparagraph (G);
                              (v) by inserting after subparagraph (E) the
                          following:
                ``(F) internships; and''; and
                              (vi) in subparagraph (G) (as redesignated by
                          clause (iv)), by striking ``support services'' and
                          inserting ``essential supportive services (such as
                          transportation and child care)'' ; and
                        (B) in paragraph (2)--
                              (i) in subparagraph (A), by striking ``and''
                          after the semicolon;
                              (ii) in subparagraph (B), by striking the
                          period at the end and inserting ``, 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''; and
                              (iii) by adding at the end the following:
                ``(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.'';
                (3) in subsection (e), by striking ``section 402A(c)(1)''
            and inserting ``section 402A(c)(2)'';
                (4) in subsection (f)--
                        (A) in paragraph (1), by striking ``$150,000'' and
                    inserting ``$180,000''; and
                        (B) in paragraph (2), by striking ``$150,000'' and
                    inserting ``$180,000'';
                (5) by redesignating subsections (g) and (h) as subsections
            (h) and (i), respectively;
                (6) by inserting after subsection (f) the following:

        ``(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

    [[Page 122 STAT. 3225]]

                ``(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.'';
                (7) by striking subsection (h) (as redesignated by paragraph
            (5)) and inserting the following:

        ``(h) Data Collection.-- <<NOTE: Deadlines.>> 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) <<NOTE: Reports.>> 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) <<NOTE: Public information.>> make such report
            available to the public.''; and
                (8) by striking subsection (i) (as redesignated by paragraph
            (5)) and inserting the following:

        ``(i) Authorization of Appropriations.--For the purpose of making
    grants and contracts under this section, there are authorized to be
    appropriated $75,000,000 for fiscal year 2009 and such sums as may be
    necessary for the each of the five succeeding fiscal years.''.
    SEC. 409. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM.

        (a) Eligibility of Scholars.--Section 419F(a) (20 U.S.C. 1070d-
    36(a)) is amended by inserting ``(or a home school, whether treated as a
    home school or a private school under State law)'' after ``public or
    private secondary school''.
        (b) Authorization of Appropriations.--Section 419K (20 U.S.C. 1070d-
    41) is amended by striking ``$45,000,000 for fiscal year 1999'' and all
    that follows through the period and inserting ``such sums as may be
    necessary for fiscal year 2009 and each of the five succeeding fiscal
    years.''.
    SEC. 410. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.

        (a) Minimum Grant.--Section 419N(b)(2)(B) (20 U.S.C. 1070e(b)(2)(B))
    is amended--
                (1) by striking ``A grant'' and inserting the following:
                              ``(i) In general.--Except as provided in
                          clause (ii), a grant''; and
                (2) by adding at the end the following:
                              ``(ii) Increase trigger.--For any fiscal year
                          for which the amount appropriated under the
                          authority of subsection (g) is equal to or greater
                          than $20,000,000, a grant under this section shall
                          be awarded in an amount that is not less than
                          $30,000.''.

        (b) Eligible Institutions.--Section 419N(b)(4) (20 U.S.C.
    1070e(b)(4)) is amended by inserting ``, 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' '' before the period.
        (c) Definition of Low-Income Student.--Paragraph (7) of section
    419N(b) (20 U.S.C. 1070e(b)) is amended to read as follows:

    [[Page 122 STAT. 3226]]

                ``(7) Definition of low-income student.--For the purpose of
            this section, the term `low-income student' means a student--
                        ``(A) who is eligible to receive a Federal Pell
                    Grant for the award year for which the determination is
                    made; or
                        ``(B) who would otherwise be eligible to receive a
                    Federal Pell Grant for the award year for which the
                    determination is made, except that the student fails to
                    meet the requirements of--
                              ``(i) section 401(c)(1) because the student is
                          enrolled in a graduate or first professional
                          course of study; or
                              ``(ii) section 484(a)(5) because the student
                          is in the United States for a temporary
                          purpose.''.

        (d) Publicity.--Section 419N(b) (20 U.S.C. 1070e(b)) is further
    amended by adding at the end the following new paragraph:
                ``(8) Publicity.-- <<NOTE: Federal
            Register, publication.>> 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.''.

        (e) Reporting Requirements.--Section 419N(e) (20 U.S.C. 1070e(e)) is
    amended--
                (1) in paragraph (1)(A), by striking ``18 months,'' and all
            that follows through the end and inserting ``annually.''; and
                (2) in paragraph (2)--
                        (A) by striking ``the third annual grant payment''
                    and inserting ``continuation awards''; and
                        (B) by striking ``the 18-month report'' and
                    inserting ``the reports''.

        (f) Authorization of Appropriations.--Section 419N(g) (20 U.S.C.
    1070e(g)) is amended by striking ``$45,000,000 for fiscal year 1999''
    and all that follows through the period and inserting ``such sums as may
    be necessary for fiscal year 2009 and each of the five succeeding fiscal
    years.''.
    SEC. 411. LEARNING ANYTIME ANYWHERE PARTNERSHIPS.

        Subpart 8 of part A of title IV (20 U.S.C. 1070f et seq.) is
    repealed.
    SEC. 412. TEACH GRANTS.

        (a) Amendments.--Subpart 9 of part A of title IV (20 U.S.C. 1070g et
    seq.) is amended--
                (1) in section 420N (20 U.S.C. 1070g-2)--
                        (A) in subsection (b)--
                              (i) in paragraph (1)(E), by striking ``and''
                          after the semicolon;
                              (ii) in paragraph (2), by striking the period
                          at the end and inserting ``; and''; and
                              (iii) by adding at the end the following new
                          paragraph:
                ``(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
                        (B) by adding at the end the following new
                    subsection:

        ``(d) Additional Administrative Provisions.--

    [[Page 122 STAT. 3227]]

                ``(1) Change of high-need designation.--If a recipient of an
            initial grant under this subpart has acquired an academic
            degree, or expertise, in a field that was, at the time of the
            recipient's application for that grant, designated as high need
            in accordance with subsection (b)(1)(C)(vii), but is no longer
            so designated, the grant recipient may fulfill the service
            obligation described in subsection (b)(1) by teaching in that
            field.
                ``(2) Extenuating circumstances.--
            <<NOTE: Regulations.>> 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.''; and
                (2) by adding at the end the following new section:
    ``SEC. 420P. <<NOTE: 20 USC 1070g-4.>> 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.''.

        (b) <<NOTE: 20 USC 1070g-2 note.>>  Effective Date.--The amendments
    made by subsection (a)(1) shall take effect on July 1, 2010.

                  PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM

    SEC. 421. LIMITATIONS ON AMOUNTS OF LOANS COVERED BY FEDERAL
                            INSURANCE.

        Section 424(a) (20 U.S.C. 1074(a)) is amended--
                (1) by striking ``2012'' and inserting ``2014''; and
                (2) by striking ``2016'' and inserting ``2018''.
    SEC. 422. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS.

        (a) Definitions.--
                (1) Amendments.--Subparagraph (C) of section 428(a)(2) (20
            U.S.C. 1078(a)(2)) is amended to read as follows:
                ``(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--

    [[Page 122 STAT. 3228]]

                                        ``(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.''.
                (2) <<NOTE: 20 USC 1078 note.>>  Effective date.--The
            amendments made by paragraph (1) shall take effect on July 1,
            2010.

        (b) Duration of Authority To Make Interest Subsidized Loans.--
    Section 428(a)(5) (20 U.S.C. 1078(a)(5)) is amended--
                (1) by striking ``2012'' and inserting ``2014''; and
                (2) by striking ``2016'' and inserting ``2018''.

        (c) Insurance Program Agreements.--
                (1) Deferment information requirements.--Section
            428(b)(1)(Y) (20 U.S.C. 1078(b)(1)(Y)) is amended--
                        (A) by striking clause (i) and inserting the
                    following:
                              ``(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;'';
                        (B) in clause (ii), by striking the period at the
                    end and inserting ``; and''; and
                        (C) by adding at the end the following:
                              ``(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) Transfer information requirements.--Section
            428(b)(2)(F)(i) (20 U.S.C. 1078(b)(2)(F)(i)) is amended--
                        (A) in subclause (III), by striking ``and'' after
                    the semicolon;
                        (B) in subclause (IV), by striking ``and'' after the
                    semicolon; and
                        (C) by adding at the end the following:
                                        ``(V) the effective date of the
                                    transfer;

    [[Page 122 STAT. 3229]]

                                        ``(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''.

        (d) Restrictions on Inducements, Payments, Mailings, and
    Advertising.--Paragraph (3) of section 428(b) (20 U.S.C. 1078(b)(3)) is
    amended to read as follows:
                ``(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 or
                          the employees of an institution of higher
                          education 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);
                        ``(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
                        ``(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.''.

        (e) Information Regarding Income-Based Repayment Plans.--
                (1) In general.--Section 428(b)(9)(A) (20 U.S.C.
            1078(b)(9)(A)) is amended--
                        (A) in clause (iii), by striking ``and'' after the
                    semicolon;

    [[Page 122 STAT. 3230]]

                        (B) in clause (iv), by striking the period at the
                    end and inserting ``; and''; and
                        (C) by adding at the end the following:
                              ``(v) <<NOTE: Effective date.>> 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.''.
                (2) Conforming amendment.--Section 428(b)(1)(L)(i) (20
            U.S.C. 1078(b)(1)(L)(i)) is amended by striking ``clause (ii) or
            (iii)'' and inserting ``clause (ii), (iii), or (v)''.

        (f) Forbearance Information Requirements in Guaranty Agreements.--
    Section 428(c) (20 U.S.C. 1078(c)) is amended--
                (1) in paragraph (2)(H)(i), by striking ``preclaims'' and
            inserting ``default aversion''; and
                (2) in paragraph (3)(C)--
                        (A) in clause (i), by striking ``and'' after the
                    semicolon;
                        (B) in clause (ii), by striking ``and'' after the
                    semicolon; and
                        (C) by inserting after clause (ii) the following:
                              ``(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
                              ``(iv) <<NOTE: Deadline.>> 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;
                                        ``(IV) the option of the borrower to
                                    pay the interest that has accrued before
                                    the interest is capitalized; and
                                        ``(V) the borrower's option to
                                    discontinue the forbearance at any time;
                                    and''.

        (g) Applicability of Usury Laws.--
                (1) Amendment.--Section 428(d) (20 U.S.C. 1078(d)) is
            amended by inserting ``and section 207 of the Servicemembers
            Civil Relief Act (50 U.S.C. App. 527)'' after ``this Act''.
                (2) Conforming amendment.--Section 438 (20 U.S.C. 1087-1) is
            amended by adding at the end the following new subsection:

        ``(g) Special Rule.--With respect to any loan made under this part
    for which the interest rate is determined under the

    [[Page 122 STAT. 3231]]

    Servicemembers Civil Relief Act (50 U.S.C. App. 527), the applicable
    interest rate to be subtracted in calculating the special allowance for
    such loan under this section shall be the interest rate determined under
    that Act for such loan.''.
                (3) <<NOTE: 20 USC 1078 note.>>  Effective dates.--The
            amendment made by paragraph (1) shall take effect on the date of
            enactment of this Act, and the amendment made by paragraph (2)
            shall take effect for loans for which the first disbursement is
            made on or after July 1, 2008.

        (h) Repeal of Duplicative Notice Requirement.--Subsection (e) of
    section 428 (20 U.S.C. 1078(e)) is repealed.
        (i) Information on Defaults.--Section 428(k) (20 U.S.C. 1078(k)) is
    amended by adding at the end the following:
                ``(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.''.

        (j) Authority to Require Income-Based Repayment.--Section 428(m) (20
    U.S.C. 1078(m)) is amended--
                (1) in the subsection heading, by inserting ``and Income-
            Based'' after ``Income Contingent'';
                (2) in paragraph (1)--
                        (A) by inserting ``or income-based repayment plan''
                    before ``, the terms and conditions''; and
                        (B) by inserting ``or an income-based repayment plan
                    under section 493C, as the case may be'' before the
                    period at the end; and
                (3) in the paragraph heading of paragraph (2), by inserting
            ``or income-based'' after ``income contingent''.
    SEC. 423. VOLUNTARY FLEXIBLE AGREEMENTS.

        Section 428A(a) (20 U.S.C. 1078-1(a)) is amended by adding at the
    end the following:
                ``(3) Report required.--
                        ``(A) In general.--The Secretary, in consultation
                    with the guaranty agencies operating under voluntary
                    flexible agreements, shall report on an annual basis to
                    the authorizing committees regarding the program
                    outcomes that the voluntary flexible agreements have had
                    with respect to--
                              ``(i) program integrity and program and cost
                          efficiencies, delinquency prevention, and default
                          aversion, including a comparison of such outcomes
                          to such outcomes for each guaranty agency
                          operating under an agreement under subsection (b)
                          or (c) of section 428;
                              ``(ii) consumer education programs described
                          in section 433A; and
                              ``(iii) the availability and delivery of
                          student financial aid.
                        ``(B) Contents.--Each report described in
                    subparagraph (A) shall include--

    [[Page 122 STAT. 3232]]

                              ``(i) a description of each voluntary flexible
                          agreement and the performance goals established by
                          the Secretary for each agreement;
                              ``(ii) a list of--
                                        ``(I) guaranty agencies operating
                                    under voluntary flexible agreements;
                                        ``(II) the specific statutory or
                                    regulatory waivers provided to each such
                                    guaranty agency; and
                                        ``(III) any other waivers provided
                                    to other guaranty agencies under
                                    paragraph (1);
                              ``(iii) a description of the standards by
                          which each guaranty agency's performance under the
                          guaranty agency's voluntary flexible agreement was
                          assessed and the degree to which each guaranty
                          agency achieved the performance standards;
                              ``(iv) an analysis of the fees paid by the
                          Secretary, and the costs and efficiencies achieved
                          under each voluntary flexible agreement; and
                              ``(v) an identification of promising practices
                          for program improvement that could be replicated
                          by other guaranty agencies.''.
    SEC. 424. FEDERAL PLUS LOANS.

        (a) Amendments.--Section 428B (20 U.S.C. 1078-2) is amended--
                (1) in subsection (a)(3)(B)(i), by striking subclause (II)
            and inserting the following:
                              ``(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.''; and
                (2) in subsection (d), by striking paragraphs (1) and (2)
            and inserting the following:
                ``(1) Commencement of repayment.--
            <<NOTE: Deadline.>> 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) <<NOTE: Time period.>> 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

    [[Page 122 STAT. 3233]]

                              ``(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 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.''.

        (b) Conforming Amendment.--Section 428(b)(7)(C) (20 U.S.C.
    1078(b)(7)(C)) is amended by striking ``section'' and all that follows
    through ``428C'' and inserting ``section 428B or 428C''.
        (c) <<NOTE: 20 USC 1078 note.>>  Effective Date.--The amendments
    made by this section shall take effect for loans for which the first
    disbursement is made on or after July 1, 2008.
    SEC. 425. FEDERAL CONSOLIDATION LOANS.

        (a) Eligible Borrower.--Section 428C(a)(3)(B)(i)(V) (20 U.S.C. 1078-
    3(a)(3)(B)(i)(V)) is amended--
                (1) in item (aa), by striking ``or'' after the semicolon;
                (2) in item (bb), by striking the period and inserting ``;
            or''; and
                (3) by adding at the end the following:
                              ``(cc) for the purpose of using the no accrual
                          of interest for active duty service members
                          benefit offered under section 455(o).''.

        (b) Consolidation Loan Lender Agreements.--
                (1) In general.--Section 428C(b)(1) (20 U.S.C. 1078-3(b)(1))
            is amended--
                        (A) in subparagraph (E), by striking ``and'' after
                    the semicolon;
                        (B) by redesignating subparagraph (F) as
                    subparagraph (G); and
                        (C) by inserting after subparagraph (E) the
                    following:
                        ``(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--

    [[Page 122 STAT. 3234]]

                                                ``(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''.
                (2) Consolidation loans.--Section 428C(b)(5) (20 U.S.C.
            1078-3(b)(5)) is amended--
                        (A) by inserting after the first sentence the
                    following: ``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.''; and
                        (B) by striking ``Such direct consolidation loan''
                    and inserting ``A direct consolidation loan offered
                    under this paragraph''.
                (3) Conforming amendment.--Section 455(g) (20 U.S.C.
            1087e(g)) is amended by striking ``section 428C(b)(1)(F)'' and
            inserting ``section 428C(b)(1)(G)''.

        (c) Technical Amendment.--Section 203(b)(2)(C) of the College Cost
    Reduction and Access Act (121 Stat. 794) <<NOTE: 20 USC 1078-3.>> is
    amended by striking ``the second sentence'' and inserting ``the third
    sentence''.

        (d) Income-Based Repayment.--
                (1) Amendments.--Section 428C(c) (20 U.S.C. 1078-3(c)) is
            amended--
                        (A) in the matter preceding clause (i) of paragraph
                    (2)(A)--
                              (i) by striking ``or income-sensitive'' and
                          inserting ``income-sensitive, or income-based'';
                          and
                              (ii) by inserting ``or income-based'' after
                          ``such income-sensitive''; and
                        (B) in paragraph (3)--
                              (i) in subparagraph (A)--

    [[Page 122 STAT. 3235]]

                                        (I) by inserting ``except in the
                                    case of an income-based repayment
                                    schedule under section 493C'', before
                                    ``a repayment''; and
                                        (II) by striking ``and'' after the
                                    semicolon;
                              (ii) in subparagraph (B), by striking the
                          period at the end and inserting ``; and''; and
                              (iii) by adding at the end the following:
                        ``(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.''.
                (2) <<NOTE: 20 USC 1078-3 note.>>  Effective date.--The
            amendments made by this subsection shall take effect on July 1,
            2009.

        (e) Extension of Consolidation Loan Authority.--Section 428C(e) (20
    U.S.C. 1078-3(e)) is amended by striking ``2012'' and inserting
    ``2014''.
    SEC. 426. DEFAULT REDUCTION PROGRAM.

        Section 428F (20 U.S.C. 1078-6) is amended--
                (1) in subsection (a)--
                        (A) in paragraph (1)(A), by adding at the end the
                    following: ``Upon the sale of the loan to an eligible
                    lender, the guaranty agency or other holder of the loan
                    shall request any consumer reporting agency to which the
                    guaranty agency or holder, as applicable, reported the
                    default of the loan, to remove the record of default
                    from the borrower's credit history.''; and
                        (B) by adding at the end the following:
                ``(5) Limitation.--A borrower may obtain the benefits
            available under this subsection with respect to rehabilitating a
            loan only one time per loan.''; and
                (2) by adding at the end the following:

        ``(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. 427. REQUIREMENTS FOR DISBURSEMENT OF STUDENT LOANS.

        (a) Special Rule.--Section 428G(a) (20 U.S.C. 1078-7(a)) is amended
    by adding at the end the following:
                ``(4) Amendment to special rule.-- <<NOTE: Effective
            date.>> Beginning on October 1, 2011, the special rule under
            paragraph (3) shall be applied by substituting `15 percent' for
            `10 percent'.''.

        (b) Requirements for Disbursements to First Year Students.--Section
    428G(b) (20 U.S.C. 1078-7(b)) is amended by adding at the end the
    following:
                ``(3) <<NOTE: Effective date.>>  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'.''.
    SEC. 428. UNSUBSIDIZED STAFFORD LOAN LIMITS.

        (a) Amendments.--Section 428H(d) (20 U.S.C. 1078-8(d)) is amended--
                (1) in paragraph (2)--

    [[Page 122 STAT. 3236]]

                        (A) in the paragraph heading, by striking ``Graduate
                    and professional students'' and inserting ``Graduate,
                    professional, and independent postbaccalaureate
                    students''; and
                        (B) in subparagraph (A)--
                              (i) in the matter preceding clause (i), by
                          inserting ``, or a student described in clause
                          (ii),'' after ``graduate or professional
                          student''; and
                              (ii) by striking clause (ii) and inserting the
                          following:
                              ``(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,''; and
                (2) in paragraph (4)(A), by striking clause (iii) and
            inserting the following:
                              ``(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) <<NOTE: 20 USC 1078-8 note.>>  Effective Date.--The amendments
    made by this section shall take effect for loans for which the first
    disbursement is made on or after July 1, 2008.
    SEC. 429. LOAN FORGIVENESS FOR TEACHERS EMPLOYED BY EDUCATIONAL
                            SERVICE AGENCIES.

        Section 428J (20 U.S.C. 1078-10) is amended--
                (1) in subsection (b)(1)(A)--
                        (A) by inserting ``or location'' after ``a school'';
                    and
                        (B) by inserting ``or locations'' after ``schools'';
                (2) in subsection (c)(1), by striking the second sentence;
                (3) in subsection (c)(3)(B)(iii), by inserting ``or, in the
            case of a teacher who is employed by an educational service
            agency, as certified by the chief administrative officer of such
            agency,'' after ``borrower is employed,''; and
                (4) in subsection (g), by striking paragraph (2) and
            inserting the following:
                ``(2) Prevention of double benefits.--No borrower may, for
            the same service, receive a benefit under both this section
            and--
                        ``(A) section 428K;
                        ``(B) section 455(m);
                        ``(C) section 460; or
                        ``(D) subtitle D of title I of the National and
                    Community Service Act of 1990 (42 U.S.C. 12571 et
                    seq.).''.
    SEC. 430. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED.

        Section 428K (20 U.S.C. 1078-11) is amended to read as follows:

    [[Page 122 STAT. 3237]]

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

        ``(a) Program Authorized.--
                ``(1) Loan forgiveness authorized.--The Secretary shall
            forgive, in accordance with this section, the qualified loan
            amount described in subsection (c) of the student loan
            obligation of a borrower who--
                        ``(A) is employed full-time in an area of national
                    need, as described in subsection (b); and
                        ``(B) is not in default on a loan for which the
                    borrower seeks forgiveness.
                ``(2) Method of loan forgiveness.--To provide loan
            forgiveness under paragraph (1), the Secretary is authorized to
            carry out a program--
                        ``(A) through the holder of the loan, to assume the
                    obligation to repay a qualified loan amount for a loan
                    made, insured, or guaranteed under this part (other than
                    an excepted PLUS loan or an excepted consolidation loan
                    (as such terms are defined in section 493C(a))); and
                        ``(B) to cancel a qualified loan amount for a loan
                    made under part D of this title (other than an excepted
                    PLUS loan or an excepted consolidation loan).
                ``(3) Regulations.--The Secretary is authorized to issue
            such regulations as may be necessary to carry out this section.

        ``(b) Areas of National Need.--For purposes of this section, an
    individual is employed in an area of national need if the individual
    meets the requirements of one of the following:
                ``(1) Early childhood educators.--The individual is employed
            full-time as an early childhood educator.
                ``(2) Nurses.--The individual is employed full-time--
                        ``(A) as a nurse in a clinical setting; or
                        ``(B) as a member of the nursing faculty at an
                    accredited school of nursing (as those terms are defined
                    in section 801 of the Public Health Service Act (42
                    U.S.C. 296)).
                ``(3) Foreign language specialists.--The individual--
                        ``(A) has obtained a baccalaureate or advanced
                    degree in a critical foreign language; and
                        ``(B) is employed full-time--
                              ``(i) in an elementary school or secondary
                          school as a teacher of a critical foreign
                          language;
                              ``(ii) in an agency of the United States
                          Government in a position that regularly requires
                          the use of such critical foreign language; or
                              ``(iii) in an institution of higher education
                          as a faculty member or instructor teaching a
                          critical foreign language.
                ``(4) Librarians.--The individual is employed full-time as a
            librarian in--
                        ``(A) a public library that serves a geographic area
                    within which the public schools have a combined average
                    of 30 percent or more of the schools' total student
                    enrollments composed of children meeting a measure of
                    poverty under section 1113(a)(5) of the Elementary and
                    Secondary Education Act of 1965; or
                        ``(B) a school that qualifies under section
                    465(a)(2)(A) for loan cancellation for Perkins loan
                    recipients who teach in such a school.

    [[Page 122 STAT. 3238]]

                ``(5) Highly qualified teachers serving students who are
            limited english proficient, low-income communities, and
            underrepresented populations.--The individual--
                        ``(A) is highly qualified, as such term is defined
                    in section 9101 of the Elementary and Secondary
                    Education Act of 1965; and
                        ``(B) is employed full-time--
                              ``(i) as a teacher educating students who are
                          limited English proficient;
                              ``(ii) as a teacher in a school that qualifies
                          under section 465(a)(2)(A) for loan cancellation
                          for Perkins loan recipients who teach in such a
                          school;
                              ``(iii) as a teacher and is an individual from
                          an underrepresented population in the teaching
                          profession, as determined by the Secretary; or
                              ``(iv) as a teacher in an educational service
                          agency, as such term is defined in section 9101 of
                          the Elementary and Secondary Education Act of
                          1965.
                ``(6) Child welfare workers.--The individual--
                        ``(A) has obtained a degree in social work or a
                    related field with a focus on serving children and
                    families; and
                        ``(B) is employed full-time in public or private
                    child welfare services.
                ``(7) Speech-language pathologists and audiologists.--The
            individual--
                        ``(A) is employed full-time as a speech-language
                    pathologist or audiologist in an eligible preschool
                    program or a school that qualifies under section
                    465(a)(2)(A) for loan cancellation for Perkins loan
                    recipients who teach in such a school; and
                        ``(B) has, at a minimum, a graduate degree in
                    speech-language pathology, audiology, or communication
                    sciences and disorders.
                ``(8) School counselors.--The individual is employed full-
            time as a school counselor (as such term is defined in section
            5421(e) of the Elementary and Secondary Education Act of 1965),
            in a school that qualifies under section 465(a)(2)(A) for loan
            cancellation for Perkins loan recipients who teach in such a
            school.
                ``(9) Public sector employees.--The individual is employed
            full-time in--
                        ``(A) public safety (including as a first responder,
                    firefighter, police officer, or other law enforcement or
                    public safety officer);
                        ``(B) emergency management (including as an
                    emergency medical technician);
                        ``(C) public health (including full-time
                    professionals engaged in health care practitioner
                    occupations and health care support occupations, as such
                    terms are defined by the Bureau of Labor Statistics); or
                        ``(D) public interest legal services (including
                    prosecution, public defense, or legal advocacy in low-
                    income communities at a nonprofit organization).
                ``(10) Nutrition professionals.--The individual--
                        ``(A) is a licensed, certified, or registered
                    dietician who has completed a degree in a relevant
                    field; and

    [[Page 122 STAT. 3239]]

                        ``(B) is employed full-time as a dietician with an
                    agency of the special supplemental nutrition program for
                    women, infants, and children under section 17 of the
                    Child Nutrition Act of 1966 (42 U.S.C. 1786).
                ``(11) Medical specialists.--The individual--
                        ``(A) has received a degree from a medical school at
                    an institution of higher education; and
                        ``(B) has been accepted to, or currently
                    participates in, a full-time graduate medical education
                    training program or fellowship (or both) to provide
                    health care services (as recognized by the Accreditation
                    Council for Graduate Medical Education) that--
                              ``(i) requires more than five years of total
                          graduate medical training; and
                              ``(ii) has fewer United States medical school
                          graduate applicants than the total number of
                          positions available in such program or fellowship.
                ``(12) Mental health professionals.--The individual--
                        ``(A) has not less than a master's degree in social
                    work, psychology, or psychiatry; and
                        ``(B) is employed full-time providing mental health
                    services to children, adolescents, or veterans.
                ``(13) Dentists.--The individual--
                        ``(A)(i) has received a degree from an accredited
                    dental school (as accredited by the Commission on Dental
                    Accreditation);
                        ``(ii) has completed residency training in pediatric
                    dentistry, general dentistry, or dental public health;
                    and
                        ``(iii) is employed full-time as a dentist; or
                        ``(B) is employed full-time as a member of the
                    faculty at a program or school accredited by the
                    Commission on Dental Accreditation.
                ``(14) STEM employees.--The individual is employed full-time
            in applied sciences, technology, engineering, or mathematics.
                ``(15) Physical therapists.--The individual--
                        ``(A) is a physical therapist; and
                        ``(B) is employed full-time providing physical
                    therapy services to children, adolescents, or veterans.
                ``(16) Superintendents, principals, and other
            administrators.--The individual is employed full-time as a
            school superintendent, principal, or other administrator in a
            local educational agency, including in an educational service
            agency, in which 30 percent or more of the schools are schools
            that qualify under section 465(a)(2)(A) for loan cancellation
            for Perkins loan recipients who teach in such a school.
                ``(17) Occupational therapists.--The individual is an
            occupational therapist and is employed full-time providing
            occupational therapy services to children, adolescents, or
            veterans.

        ``(c) Qualified Loan Amount.--
                ``(1) In general.--Subject to paragraph (2), for each
            school, academic, or calendar year of full-time employment in an
            area of national need described in subsection (b) that a
            borrower completes on or after the date of enactment of the
            Higher Education Opportunity Act, the Secretary shall forgive
            not more than $2,000 of the student loan obligation of the
            borrower

    [[Page 122 STAT. 3240]]

            that is outstanding after the completion of each such school,
            academic, or calendar year of employment, respectively.
                ``(2) Maximum amount.--The Secretary shall not forgive more
            than $10,000 in the aggregate for any borrower under this
            section, and no borrower shall receive loan forgiveness under
            this section for more than five years of service.

        ``(d) Priority.--The Secretary shall grant loan forgiveness under
    this section on a first-come, first-served basis, and subject to the
    availability of appropriations.
        ``(e) Rule of Construction.--Nothing in this section shall be
    construed to authorize the refunding of any repayment of a loan.
        ``(f) Ineligibility for Double Benefits.--No borrower may, for the
    same service, receive a reduction of loan obligations under both this
    section and section 428J, 428L, 455(m), or 460.
        ``(g) Definitions.--In this section:
                ``(1) Audiologist.--The term `audiologist' means an
            individual who--
                        ``(A) has received, at a minimum, a graduate degree
                    in audiology from an institution of higher education
                    accredited by an agency or association recognized by the
                    Secretary pursuant to section 496(a); and
                        ``(B)(i) provides audiology services under
                    subsection (ll)(2) of section 1861 of the Social
                    Security Act (42 U.S.C. 1395x(ll)(2)); or
                        ``(ii) meets or exceeds the qualifications for a
                    qualified audiologist under subsection (ll)(4) of such
                    section (42 U.S.C. 1395x(ll)(4)).
                ``(2) Early childhood educator.--The term `early childhood
            educator' means an individual who--
                        ``(A) works directly with children in an eligible
                    preschool program or eligible early childhood education
                    program in a low-income community;
                        ``(B) is involved directly in the care, development,
                    and education of infants, toddlers, or young children
                    age five and under; and
                        ``(C) has completed a baccalaureate or advanced
                    degree in early childhood development or early childhood
                    education, or in a field related to early childhood
                    education.
                ``(3) Eligible preschool program.--The term `eligible
            preschool program' means a program that--
                        ``(A) provides for the care, development, and
                    education of infants, toddlers, or young children age
                    five and under;
                        ``(B) meets any applicable State or local government
                    licensing, certification, approval, and registration
                    requirements, and
                        ``(C) is operated by--
                              ``(i) a public or private school that is
                          supported, sponsored, supervised, or administered
                          by a local educational agency;
                              ``(ii) a Head Start agency serving as a
                          grantee designated under the Head Start Act (42
                          U.S.C. 9831 et seq.);
                              ``(iii) a nonprofit or community based
                          organization; or
                              ``(iv) a child care program, including a home.

    [[Page 122 STAT. 3241]]

                ``(4) Eligible early childhood education program.--The term
            `eligible early childhood education program' means--
                        ``(A) a family child care program, center-based
                    child care program, State prekindergarten program,
                    school program, or other out-of-home early childhood
                    development care program, that--
                              ``(i) is licensed or regulated by the State;
                          and
                              ``(ii) serves two or more unrelated children
                          who are not old enough to attend kindergarten;
                        ``(B) a Head Start Program carried out under the
                    Head Start Act (42 U.S.C. 9831 et seq.); or
                        ``(C) an Early Head Start Program carried out under
                    section 645A of the Head Start Act (42 U.S.C. 9840a).
                ``(5) Low-income community.--The term `low-income community'
            means a school attendance area (as defined in section
            1113(a)(2)(A) of the Elementary and Secondary Education Act of
            1965)--
                        ``(A) in which 70 percent of households earn less
                    than 85 percent of the State median household income; or
                        ``(B) that includes a school that qualifies under
                    section 465(a)(2)(A) for loan cancellation for Perkins
                    loan recipients who teach in such a school.
                ``(6) Nurse.--The term `nurse' means a nurse who meets all
            of the following:
                        ``(A) The nurse graduated from--
                              ``(i) an accredited school of nursing (as
                          those terms are defined in section 801 of the
                          Public Health Service Act (42 U.S.C. 296));
                              ``(ii) a nursing center; or
                              ``(iii) an academic health center that
                          provides nurse training.
                        ``(B) The nurse holds a valid and unrestricted
                    license to practice nursing in the State in which the
                    nurse practices in a clinical setting.
                        ``(C) The nurse holds one or more of the following:
                              ``(i) A graduate degree in nursing, or an
                          equivalent degree.
                              ``(ii) A nursing degree from a collegiate
                          school of nursing (as defined in section 801 of
                          the Public Health Service Act (42 U.S.C. 296)).
                              ``(iii) A nursing degree from an associate
                          degree school of nursing (as defined in such
                          section).
                              ``(iv) A nursing degree from a diploma school
                          of nursing (as defined in such section).
                ``(7) Occupational therapist.--The term `occupational
            therapist' means an individual who--
                        ``(A) has received, at a minimum, a baccalaureate
                    degree in occupational therapy from an institution of
                    higher education accredited by an agency or association
                    recognized by the Secretary pursuant to section 496(a);
                    and
                        ``(B)(i) provides occupational therapy services
                    under section 1861(g) of the Social Security Act (42
                    U.S.C. 1395x(g)); or
                        ``(ii) meets or exceeds the qualifications for a
                    qualified occupational therapist, as determined by State
                    law.
                ``(8) Physical therapist.--The term `physical therapist'
            means an individual who--

    [[Page 122 STAT. 3242]]

                        ``(A) has received, at a minimum, a graduate degree
                    in physical therapy from an institution of higher
                    education accredited by an agency or association
                    recognized by the Secretary pursuant to section 496(a);
                    and
                        ``(B)(i) provides physical therapy services under
                    section 1861(p) of the Social Security Act (42 U.S.C.
                    1395x(p)); or
                        ``(ii) meets or exceeds the qualifications for a
                    qualified physical therapist, as determined by State
                    law.
                ``(9) Speech-language pathologist.--The term `speech-
            language pathologist' means a speech-language pathologist who--
                        ``(A) has received, at a minimum, a graduate degree
                    in speech-language pathology or communication sciences
                    and disorders from an institution of higher education
                    accredited by an agency or association recognized by the
                    Secretary pursuant to section 496(a); and
                        ``(B) provides speech-language pathology services
                    under section 1861(ll)(1) of the Social Security Act (42
                    U.S.C. 1395x(ll)(1)), or meets or exceeds the
                    qualifications for a qualified speech-language
                    pathologist under subsection (ll)(3) of such section (42
                    U.S.C. 1395x(ll)(3)).

        ``(h) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may be necessary for
    fiscal year 2009 and each of the five succeeding fiscal years to provide
    loan forgiveness in accordance with this section.''.
    SEC. 431. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE ATTORNEYS.

        Part B of title IV (20 U.S.C. 1071 et seq.) is amended by inserting
    after section 428K the following:
    ``SEC. 428L. <<NOTE: 20 USC 1078-12.>> LOAN REPAYMENT FOR CIVIL
                              LEGAL ASSISTANCE ATTORNEYS.

        ``(a) Purpose.--The purpose of this section is to encourage
    qualified individuals to enter and continue employment as civil legal
    assistance attorneys.
        ``(b) Definitions.--In this section:
                ``(1) Civil legal assistance attorney.--The term `civil
            legal assistance attorney' means an attorney who--
                        ``(A) is a full-time employee of--
                              ``(i) a nonprofit organization that provides
                          legal assistance with respect to civil matters to
                          low-income individuals without a fee; or
                              ``(ii) a protection and advocacy system or
                          client assistance program that provides legal
                          assistance with respect to civil matters and
                          receives funding under--
                                        ``(I) subtitle C of title I of the
                                    Developmental Disabilities Assistance
                                    and Bill of Rights Act of 2000 (42
                                    U.S.C. 15041 et seq.);
                                        ``(II) section 112 or 509 of the
                                    Rehabilitation Act of 1973 (29 U.S.C.
                                    732, 794e);
                                        ``(III) part A of title I of the
                                    Protection and Advocacy for Individuals
                                    with Mental Illness Act (42 U.S.C. 10801
                                    et seq.);
                                        ``(IV) section 5 of the Assistive
                                    Technology Act of 1998 (29 U.S.C. 3004);

    [[Page 122 STAT. 3243]]

                                        ``(V) section 1150 of the Social
                                    Security Act (42 U.S.C. 1320b-21);
                                        ``(VI) section 1253 of the Public
                                    Health Service Act (42 U.S.C. 300d-53);
                                    or
                                        ``(VII) section 291 of the Help
                                    America Vote Act of 2002 (42 U.S.C.
                                    15461);
                        ``(B) as such employee, provides civil legal
                    assistance as described in subparagraph (A) on a full-
                    time basis; and
                        ``(C) is continually licensed to practice law.
                ``(2) Student loan.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), the term `student loan' means--
                              ``(i) subject to clause (ii), a loan made,
                          insured, or guaranteed under this part, part D, or
                          part E; and
                              ``(ii) a loan made under section 428C or
                          455(g), to the extent that such loan was used to
                          repay--
                                        ``(I) a Federal Direct Stafford
                                    Loan, a Federal Direct Unsubsidized
                                    Stafford Loan, or a Federal Direct PLUS
                                    Loan;
                                        ``(II) a loan made under section
                                    428, 428B, or 428H; or
                                        ``(III) a loan made under part E.
                        ``(B) Exclusion of parent plus loans.--The term
                    `student loan' does not include any of the following
                    loans:
                              ``(i) A loan made to the parents of a
                          dependent student under section 428B.
                              ``(ii) A Federal Direct PLUS Loan made to the
                          parents of a dependent student.
                              ``(iii) A loan made under section 428C or
                          455(g), to the extent that such loan was used to
                          repay--
                                        ``(I) a loan made to the parents of
                                    a dependent student under section 428B;
                                    or
                                        ``(II) a Federal Direct PLUS Loan
                                    made to the parents of a dependent
                                    student.

        ``(c) Program Authorized.--From amounts appropriated under
    subsection (i) for a fiscal year, the Secretary shall carry out a
    program of assuming the obligation to repay a student loan, by direct
    payments on behalf of a borrower to the holder of such loan, in
    accordance with subsection (d), for any borrower who--
                ``(1) is employed as a civil legal assistance attorney; and
                ``(2) is not in default on a loan for which the borrower
            seeks repayment.

        ``(d) Terms of Agreement.--
                ``(1) In general.--To be eligible to receive repayment
            benefits under subsection (c), a borrower shall enter into a
            written agreement with the Secretary that specifies that--
                        ``(A) the borrower will remain employed as a civil
                    legal assistance attorney for a required period of
                    service of not less than three years, unless
                    involuntarily separated from that employment;
                        ``(B) if the borrower is involuntarily separated
                    from employment on account of misconduct, or voluntarily
                    separates from employment, before the end of the period
                    specified in the agreement, the borrower will repay the
                    Secretary the amount of any benefits received by such
                    employee under this agreement;

    [[Page 122 STAT. 3244]]

                        ``(C) if the borrower is required to repay an amount
                    to the Secretary under subparagraph (B) and fails to
                    repay such amount, a sum equal to that amount shall be
                    recoverable by the Federal Government from the employee
                    by such methods as are provided by law for the recovery
                    of amounts owed to the Federal Government;
                        ``(D) <<NOTE: Waiver authority.>> the Secretary may
                    waive, in whole or in part, a right of recovery under
                    this subsection if it is shown that recovery would be
                    contrary to the public interest; and
                        ``(E) the Secretary shall make student loan payments
                    under this section for the period of the agreement,
                    subject to the availability of appropriations.
                ``(2) Repayments.--
                        ``(A) In general.--Any amount repaid by, or
                    recovered from, an individual under this subsection
                    shall be credited to the appropriation account from
                    which the amount involved was originally paid.
                        ``(B) Merger.--Any amount credited under
                    subparagraph (A) shall be merged with other sums in such
                    account and shall be available for the same purposes and
                    period, and subject to the same limitations, if any, as
                    the sums with which the amount was merged.
                ``(3) Limitations.--
                        ``(A) Student loan payment amount.--Student loan
                    repayments made by the Secretary under this section
                    shall be made subject to such terms, limitations, or
                    conditions as may be mutually agreed upon by the
                    borrower and the Secretary in an agreement under
                    paragraph (1), except that the amount paid by the
                    Secretary under this section shall not exceed--
                              ``(i) $6,000 for any borrower in any calendar
                          year; or
                              ``(ii) an aggregate total of $40,000 in the
                          case of any borrower.
                        ``(B) Beginning of payments.--Nothing in this
                    section shall authorize the Secretary to pay any amount
                    to reimburse a borrower for any repayments made by such
                    borrower prior to the date on which the Secretary
                    entered into an agreement with the borrower under this
                    subsection.

        ``(e) Additional Agreements.--
                ``(1) In general.--On completion of the required period of
            service under an agreement under subsection (d), the borrower
            and the Secretary may, subject to paragraph (2), enter into an
            additional agreement in accordance with subsection (d).
                ``(2) Term.--An agreement entered into under paragraph (1)
            may require the borrower to remain employed as a civil legal
            assistance attorney for less than three years.

        ``(f) Award Basis; Priority.--
                ``(1) Award basis.--Subject to paragraph (2), the Secretary
            shall provide repayment benefits under this section on a first-
            come, first-served basis, and subject to the availability of
            appropriations.
                ``(2) Priority.--The Secretary shall give priority in
            providing repayment benefits under this section in any fiscal
            year to a borrower who--

    [[Page 122 STAT. 3245]]

                        ``(A) has practiced law for five years or less and,
                    for not less than 90 percent of the time in such
                    practice, has served as a civil legal assistance
                    attorney;
                        ``(B) received repayment benefits under this section
                    during the preceding fiscal year; and
                        ``(C) has completed less than three years of the
                    first required period of service specified for the
                    borrower in an agreement entered into under subsection
                    (d).

        ``(g) Ineligibility for Double Benefits.--No borrower may, for the
    same service, receive a reduction of loan obligations under both this
    section and section 428K or 455(m).
        ``(h) Regulations.--The Secretary is authorized to issue such
    regulations as may be necessary to carry out this section.
        ``(i) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section $10,000,000 for fiscal year 2009
    and such sums as may be necessary for each of the five succeeding fiscal
    years.''.
    SEC. 432. REPORTS TO CONSUMER REPORTING AGENCIES AND INSTITUTIONS
                            OF HIGHER EDUCATION.

        (a) In General.--Section 430A (20 U.S.C. 1080a) is amended--
                (1) in the section heading, by striking ``credit bureaus''
            and inserting ``consumer reporting agencies'';
                (2) in subsection (a)--
                        (A) in the matter preceding paragraph (1)--
                              (i) in the first sentence--
                                        (I) by striking ``the Secretary,''
                                    and inserting ``the Secretary and''; and
                                        (II) by striking ``agreements with
                                    credit bureau organizations'' and
                                    inserting ``an agreement with each
                                    consumer reporting agency'';
                              (ii) in the second sentence--
                                        (I) by striking ``such
                                    organizations'' each place the term
                                    occurs and inserting ``such consumer
                                    reporting agencies''; and
                                        (II) by striking ``insurance), by''
                                    and inserting ``insurance) or by''; and
                              (iii) in the third sentence--
                                        (I) by striking ``Secretary,'' and
                                    inserting ``Secretary or''; and
                                        (II) by striking ``organizations''
                                    and inserting ``consumer reporting
                                    agencies'';
                        (B) by redesignating paragraphs (1), (2), and (3) as
                    paragraphs (2), (4), and (5), respectively;
                        (C) by inserting before paragraph (2) (as
                    redesignated by subparagraph (B)), the following:
                ``(1) that the loan is an education loan (as such term is
            defined in section 151);''; and
                        (D) by inserting after paragraph (2) (as
                    redesignated by subparagraph (B)) the following:
                ``(3) information concerning the repayment status of the
            loan for inclusion in the file of the borrower, except that
            nothing in this subsection shall be construed to affect any
            otherwise applicable provision of the Fair Credit Reporting Act
            (15 U.S.C. 1681 et seq.);'';
                (3) in subsection (b)--

    [[Page 122 STAT. 3246]]

                        (A) by striking ``organizations'' and inserting
                    ``consumer reporting agencies''; and
                        (B) by striking ``subsection (a)(2)'' and inserting
                    ``subsection (a)(4)'';
                (4) in subsection (c)--
                        (A) in paragraph (2), by striking ``organizations''
                    and inserting ``consumer reporting agencies''; and
                        (B) in paragraph (4)--
                              (i) by striking ``subsection (a)(2)'' and
                          inserting ``subsection (a)(4)''; and
                              (ii) in subparagraph (A), by striking ``credit
                          bureau organizations'' and inserting ``consumer
                          reporting agencies''; and
                (5) in subsection (d), by striking ``credit bureau
            organization'' and inserting ``consumer reporting agency''.

        (b) Conforming Amendments.--The Act (20 U.S.C. 1001 et seq.) is
    further amended--
                (1) in section 427(a)(2)(G) (20 U.S.C. 1077(a)(2)(G))--
                        (A) in clause (i), by striking ``credit bureau
                    organizations'' and inserting ``consumer reporting
                    agencies''; and
                        (B) in clause (ii), by striking ``organizations''
                    and inserting ``consumer reporting agencies'';
                (2) in section 428(c)(3)(A)(iii) (20 U.S.C.
            1078(c)(3)(A)(iii)), by striking ``credit bureau organization''
            and inserting ``consumer reporting agency'';
                (3) in section 428C(b)(4)(E) (20 U.S.C. 1078-3(b)(4)(E))--
                        (A) in clause (i), by striking ``credit bureau
                    organizations'' and inserting ``consumer reporting
                    agencies''; and
                        (B) in clause (ii), by striking ``organizations''
                    and inserting ``consumer reporting agencies'';
                (4) in section 437(c)(5) (20 U.S.C. 1087(c)(5)), by striking
            ``credit bureaus'' and inserting ``consumer reporting
            agencies'';
                (5) in section 463(c) (20 U.S.C. 1087cc(c))--
                        (A) in the subsection heading, by striking ``Credit
                    Bureau Organizations'' and inserting ``Consumer
                    Reporting Agencies'';
                        (B) in paragraph (1), by striking ``credit bureau
                    organizations'' and inserting ``consumer reporting
                    agencies'';
                        (C) in paragraph (2), by striking ``organizations''
                    and inserting ``consumer reporting agencies'';
                        (D) in paragraph (4)(A), by striking ``credit bureau
                    organization'' each place the term occurs and inserting
                    ``consumer reporting agency''; and
                        (E) in paragraph (5)--
                              (i) by striking ``credit bureau
                          organizations'' and inserting ``consumer reporting
                          agencies''; and
                              (ii) by striking ``such organizations'' and
                          inserting ``such consumer reporting agencies'';
                (6) in section 463A(a)(11) (20 U.S.C. 1087cc-1(a)(11)), by
            striking ``credit bureau or credit'' and inserting ``consumer'';
            and
                (7) in section 464 <<NOTE: 20 USC 1087dd.>> (20 U.S.C.
            10877dd)--
                        (A) in subsection (c)(1)(I), by striking ``credit
                    bureau organizations'' and inserting ``consumer
                    reporting agencies''; and
                        (B) in subsection (h)(1)(A), by striking ``credit
                    bureau organization or credit'' and inserting
                    ``consumer''.

    [[Page 122 STAT. 3247]]

    SEC. 433. LEGAL POWERS AND RESPONSIBILITIES.

        (a) Settlement of Claims.--Section 432(b) (20 U.S.C. 1082(b)) is
    amended by adding at the end the following: ``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.''.

        (b) Common Forms and Formats.--Section 432(m)(1)(D)(i) (20 U.S.C.
    1082(m)(1)(D)(i)) is amended by adding at the end the following:
    ``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.''.
    SEC. 434. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.

        (a) Amendment.--Section 433 (20 U.S.C. 1083) is amended to read as
    follows:
    ``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;

    [[Page 122 STAT. 3248]]

                ``(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. <<NOTE: Deadlines.>> 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--

    [[Page 122 STAT. 3249]]

                ``(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;

    [[Page 122 STAT. 3250]]

                ``(8) an explanation of any special options the borrower may
            have for loan consolidation or other refinancing of the loan and
            of the availability and terms of such other options;
                ``(9) except as provided in subsection (d)--
                        ``(A) the projected total of interest charges which
                    the borrower will pay on the loan or loans, assuming
                    that the borrower makes payments exactly in accordance
                    with the repayment schedule; and
                        ``(B) if the borrower has already paid interest on
                    the loan or loans, the amount of interest paid;
                ``(10) the nature of any fees which may accrue or be charged
            to the borrower during the repayment period;
                ``(11) a statement that the borrower has the right to prepay
            all or part of the loan or loans covered by the disclosure at
            any time without penalty;
                ``(12) a description of the options by which the borrower
            may avoid or be removed from default, including any relevant
            fees associated with such options; and
                ``(13) additional resources, including nonprofit
            organizations, advocates, and counselors (including the Student
            Loan Ombudsman of the Department) of which the lender is aware,
            where borrowers may receive advice and assistance on loan
            repayment.

        ``(c) Separate Notification.--Each eligible lender shall, at the
    time such lender notifies a borrower of approval of a loan which is
    insured or guaranteed under this part, provide the borrower with a
    separate notification which summarizes, in simple and understandable
    terms, the rights and responsibilities of the borrower with respect to
    the loan, including a statement of the consequences of defaulting on the
    loan and a statement that each borrower who defaults will be reported to
    a consumer reporting agency. The requirement of this subsection shall be
    in addition to the information required by subsection (a) of this
    section.
        ``(d) Special Disclosure Rules on PLUS Loans, and Unsubsidized
    Loans.--Loans made under sections 428B and 428H shall not be subject to
    the disclosure of projected monthly payment amounts required under
    subsection (b)(7) if the lender, in lieu of such disclosure, provides
    the borrower with sample projections of monthly repayment amounts,
    assuming different levels of borrowing and interest accruals resulting
    from capitalization of interest while the borrower, or the student on
    whose behalf the loan is made, is in school, in simple and
    understandable terms. Such sample projections shall disclose the cost to
    the borrower of--
                ``(1) capitalizing the interest; and
                ``(2) paying the interest as the interest accrues.

        ``(e) Required Disclosures During Repayment.--
                ``(1) Pertinent information about a loan provided on a
            periodic basis.--Each eligible lender shall provide the borrower
            of a loan made, insured, or guaranteed under this part with a
            bill or statement (as applicable) that corresponds to each
            payment installment time period in which a payment is due and
            that includes, in simple and understandable terms--
                        ``(A) the original principal amount of the
                    borrower's loan;
                        ``(B) the borrower's current balance, as of the time
                    of the bill or statement, as applicable;
                        ``(C) the interest rate on such loan;

    [[Page 122 STAT. 3251]]

                        ``(D) the total amount the borrower has paid in
                    interest on the loan;
                        ``(E) the aggregate amount the borrower has paid for
                    the loan, including the amount the borrower has paid in
                    interest, the amount the borrower has paid in fees, and
                    the amount the borrower has paid against the balance;
                        ``(F) a description of each fee the borrower has
                    been charged for the most recently preceding installment
                    time period;
                        ``(G) the date by which the borrower needs to make a
                    payment in order to avoid additional fees and the amount
                    of such payment and the amount of such fees;
                        ``(H) the lender's or loan servicer's address and
                    toll-free phone number for payment and billing error
                    purposes; and
                        ``(I) a reminder that the borrower has the option to
                    change repayment plans, a list of the names of the
                    repayment plans available to the borrower, a link to the
                    appropriate page of the Department's website to obtain a
                    more detailed description of the repayment plans, and
                    directions for the borrower to request a change in
                    repayment plan.
                ``(2) Information provided to a borrower having difficulty
            making payments.--Each eligible lender shall provide to a
            borrower who has notified the lender that the borrower is having
            difficulty making payments on a loan made, insured, or
            guaranteed under this part with the following information in
            simple and understandable terms:
                        ``(A) A description of the repayment plans available
                    to the borrower, including how the borrower should
                    request a change in repayment plan.
                        ``(B) A description of the requirements for
                    obtaining forbearance on a loan, including expected
                    costs associated with forbearance.
                        ``(C) A description of the options available to the
                    borrower to avoid defaulting on the loan, and any
                    relevant fees or costs associated with such options.
                ``(3) Required disclosures during delinquency.--Each
            eligible lender shall provide to a borrower who is 60 days
            delinquent in making payments on a loan made, insured, or
            guaranteed under this part with a notice, in simple and
            understandable terms, of the following:
                        ``(A) The date on which the loan will default if no
                    payment is made.
                        ``(B) The minimum payment the borrower must make to
                    avoid default.
                        ``(C) A description of the options available to the
                    borrower to avoid default, and any relevant fees or
                    costs associated with such options, including a
                    description of deferment and forbearance and the
                    requirements to obtain each.
                        ``(D) Discharge options to which the borrower may be
                    entitled.
                        ``(E) Additional resources, including nonprofit
                    organizations, advocates, and counselors (including the
                    Student Loan Ombudsman of the Department), of which the
                    lender is aware, where the borrower can receive advice
                    and assistance on loan repayment.

    [[Page 122 STAT. 3252]]

        ``(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.''.

        (b) <<NOTE: 20 USC 1083 note.>>  Effective Dates.--
                (1) Regular disclosure requirements and disclosure
            requirements to borrowers having difficulty making payments.--
            Paragraphs (1) and (2) of section 433(e) of the Higher Education
            Act of 1965, as amended by subsection (a), shall apply with
            respect to loans for which the first payment is due on or after
            July 1, 2009.
                (2) Disclosure requirements for borrowers with delinquent
            loans.--Section 433(e)(3) of the Higher Education Act of 1965,
            as amended by subsection (a), shall apply with respect to loans
            that become delinquent on or after July 1, 2009.
    SEC. 435. CONSUMER EDUCATION INFORMATION.

        Part B (20 U.S.C. 1071 et seq.) is amended by inserting after
    section 433 (20 U.S.C. 1083) the following:
    ``SEC. 433A. <<NOTE: 20 USC 1083a.>> CONSUMER EDUCATION
                              INFORMATION.

        ``(a) In General.--Each guaranty agency participating in a program
    under this part, working with the institutions of higher education
    served by such guaranty agency, shall develop and make available high-
    quality educational programs and materials to provide training for
    students and families in budgeting and financial management, including
    debt management and other aspects of financial literacy, such as the
    cost of using high interest loans to pay for postsecondary education,
    particularly as budgeting and financial management relates to student
    loan programs authorized by this title. Such programs and materials
    shall be in formats that are simple and understandable to students and
    families, and shall be provided before, during, and after the students'
    enrollment in an institution of higher education. The activities
    described in this section shall be considered default reduction
    activities for the purposes of section 422.
        ``(b) Rule of Construction.--Nothing in this section shall be
    construed to prohibit--
                ``(1) a guaranty agency from using existing activities,
            programs, and materials in meeting the requirements of this
            section;

    [[Page 122 STAT. 3253]]

                ``(2) a guaranty agency from providing programs or materials
            similar to the programs or materials described in subsection (a)
            to an institution of higher education that provides loans
            exclusively through part D; or
                ``(3) a lender or loan servicer from providing outreach or
            financial aid literacy information in accordance with subsection
            (a).''.
    SEC. 436. DEFINITIONS OF ELIGIBLE INSTITUTION AND ELIGIBLE LENDER.

        (a) Participation Rate Index.--
                (1) Amendments.--Section 435(a) (20 U.S.C. 1085(a)) is
            amended--
                        (A) in paragraph (2)--
                              (i) in subparagraph (A)(ii), by striking
                          ``paragraph (4)'' and inserting ``paragraph (5)'';
                          and
                              (ii) in subparagraph (B)--
                                        (I) by striking ``and'' at the end
                                    of clause (ii); and
                                        (II) by striking clause (iii) and
                                    inserting the following:
                              ``(iii) 25 percent for fiscal year 1994
                          through fiscal year 2011; and
                              ``(iv) 30 percent for fiscal year 2012 and any
                          succeeding fiscal year.'';
                        (B) by redesignating paragraph (6) as paragraph (8),
                    and redesignating paragraphs (3) through (5) as
                    paragraphs (4) through (6), respectively;
                        (C) by inserting after paragraph (2) the following
                    new paragraph:
                ``(3) Appeals for regulatory relief.--
            <<NOTE: Deadlines. Notification.>> 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.'';
                        (D) in paragraph (5)(A) (as redesignated by
                    subparagraph (B)), by striking ``For purposes of
                    paragraph (2)(A)(ii)'' and all that follows through
                    ``following criteria:'' and inserting ``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:'';
                        (E) by inserting after paragraph (6) (as
                    redesignated by subparagraph (B)) the following:
                ``(7) Default prevention and assessment of eligibility based
            on high default rates.--
                        ``(A) First year.--

    [[Page 122 STAT. 3254]]

                              ``(i) In general.-- <<NOTE: Plans.>> An
                          institution whose cohort default rate is equal to
                          or greater than the threshold percentage specified
                          in paragraph (2)(B)(iv) in any fiscal year shall
                          establish a default prevention task force to
                          prepare a plan to--
                                        ``(I) identify the factors causing
                                    the institution's cohort default rate to
                                    exceed such threshold;
                                        ``(II) establish measurable
                                    objectives and the steps to be taken to
                                    improve the institution's cohort default
                                    rate; and
                                        ``(III) specify actions that the
                                    institution can take to improve student
                                    loan repayment, including appropriate
                                    counseling regarding loan repayment
                                    options.
                              ``(ii) Technical assistance.--Each institution
                          subject to this subparagraph shall submit the plan
                          under clause (i) to the Secretary, who shall
                          review the plan and offer technical assistance to
                          the institution to promote improved student loan
                          repayment.
                        ``(B) Second consecutive year.--
                              ``(i) In general.--An institution whose cohort
                          default rate is equal to or greater than the
                          threshold percentage specified in paragraph
                          (2)(B)(iv) for two consecutive fiscal years, shall
                          require the institution's default prevention task
                          force established under subparagraph (A) to review
                          and revise the plan required under such
                          subparagraph, and shall submit such revised plan
                          to the Secretary.
                              ``(ii) Review by the secretary.--The Secretary
                          shall review each revised plan submitted in
                          accordance with this subparagraph, and may direct
                          that such plan be amended to include actions, with
                          measurable objectives, that the Secretary
                          determines, based on available data and analyses
                          of student loan defaults, will promote student
                          loan repayment.''; and
                        (F) in paragraph (8)(A) (as redesignated by
                    subparagraph (B)) by striking ``0.0375'' and inserting
                    ``0.0625''.
                (2) <<NOTE: 20 USC 1085 note.>>  Effective date.--The
            amendment made by paragraph (1)(F) shall take effect for fiscal
            years beginning on or after October 1, 2011.

        (b) Types of Lenders.--Section 435(d)(1)(A)(ii) (20 U.S.C.
    1085(d)(1)(A)(ii)) is amended--
                (1) by striking ``part, or (III)'' and inserting ``part,
            (III)''; and
                (2) by inserting before the semicolon at the end the
            following: ``, or (IV) it is a National or State chartered bank,
            or a credit union, with assets of less than $1,000,000,000''.

        (c) Disqualification.--Paragraph (5) of section 435(d) (20 U.S.C.
    1085(d)(5)) is amended to read as follows:
                ``(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

    [[Page 122 STAT. 3255]]

                    reimbursement, the provision of information technology
                    equipment at below-market value, additional financial
                    aid funds, or other inducements, to any institution of
                    higher education or any employee of an institution of
                    higher education 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);
                        ``(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);
                        ``(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.''.

    [[Page 122 STAT. 3256]]

        (d) School as Lender Program Audit.--Section 435(d) (20 U.S.C.
    1085(d)) is further amended by adding at the end the following:
                ``(8) School as lender program audit.--
            <<NOTE: Deadline.>> 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) Cohort Default Rates.--
                (1) Amendments.--Section 435(m) (20 U.S.C. 1085(m)) is
            amended--
                        (A) in paragraph (1)--
                              (i) in the first sentence of subparagraph (A),
                          by striking ``end of the following fiscal year''
                          and inserting ``end of the second fiscal year
                          following the fiscal year in which the students
                          entered repayment'';
                              (ii) in subparagraph (B), by striking ``such
                          fiscal year'' and inserting ``such second fiscal
                          year'';
                              (iii) in subparagraph (C), by striking ``end
                          of the fiscal year immediately following the year
                          in which they entered repayment'' and inserting
                          ``end of the second fiscal year following the year
                          in which they entered repayment'';
                        (B) in paragraph (2)(C)--
                              (i) by striking ``end of such following fiscal
                          year is not considered as in default for the
                          purposes of this subsection'' and inserting ``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'';
                          and
                              (ii) by striking ``such following fiscal
                          year'' and inserting ``such second fiscal year'';
                          and
                        (C) in paragraph (4)--
                              (i) by amending the paragraph heading to read
                          as follows: ``Collection and reporting of cohort
                          default rates and life of cohort default rates.--
                          ''; and
                              (ii) by amending subparagraph (A) to read as
                          follows:
                ``(A) <<NOTE: Publications. Deadline. Reports.>> 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,

    [[Page 122 STAT. 3257]]

            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. <<NOTE: Publication.>> 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.''.
                (2) <<NOTE: 20 USC 1085 note.>>  Effective date and
            transition.--
                        (A) Effective date.--The amendments made by
                    paragraph (1) shall take effect for purposes of
                    calculating cohort default rates for fiscal year 2009
                    and succeeding fiscal years.
                        (B) Transition.--Notwithstanding subparagraph (A),
                    the method of calculating cohort default rates under
                    section 435(m) of the Higher Education Act of 1965 as in
                    effect on the day before the date of enactment of this
                    Act shall continue in effect, and the rates so
                    calculated shall be the basis for any sanctions imposed
                    on institutions of higher education because of their
                    cohort default rates, until three consecutive years of
                    cohort default rates calculated in accordance with the
                    amendments made by paragraph (1) are available.
    SEC. 437. DISCHARGE AND CANCELLATION RIGHTS IN CASES OF
                            DISABILITY.

        (a) FFEL and Direct Loans.--Section 437(a) (20 U.S.C. 1087(a)) is
    amended--
                (1) by striking ``(a) Repayment in Full for Death and
            Disability.--If a'' and inserting the following:

        ``(a) Repayment in Full for Death and Disability.--
                ``(1) In general.--If a'';
                (2) by inserting ``, 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'' after ``of the Secretary),''; and
                (3) by adding at the end the following: ``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

    [[Page 122 STAT. 3258]]

                              ``(ii) has earned income in excess of the
                          poverty line; or
                        ``(B) the Secretary determines necessary.''.

        (b) Disability Determinations.--Section 437(a) (20 U.S.C. 1087(a))
    is further amended by adding at the end the following:
                ``(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.''.

        (c) <<NOTE: 20 USC 1087 note.>>  Effective Date.--The amendments
    made by subsection (a) shall take effect on July 1, 2010.
    SEC. 438. CONFORMING AMENDMENTS FOR REPEAL OF SECTION 439.

        (a) Part B Amendments.--Part B of title IV (20 U.S.C. 1071 et seq.)
    is amended--
                (1) in section 422A(d)(1) (20 U.S.C. 1072a(d)(1)), by
            striking ``437, and 439(q)'' and inserting ``and 437'';
                (2) in section 428 (20 U.S.C. 1078)--
                        (A) in subsection (b)(1)(G)(i), by striking ``or
                    439(q)'';
                        (B) by striking subsection (h); and
                        (C) in subsection (j)(2)--
                              (i) by inserting ``and'' at the end of
                          subparagraph (C);
                              (ii) by striking ``; and'' at the end of
                          subparagraph (D) and inserting a period; and
                              (iii) by striking subparagraph (E); and
                (3) in section 435(d)(1)(G) (20 U.S.C. 1085(d)(1)(G)), by
            striking ``428C, and 439(q),'' and inserting ``and 428C,''.

        (b) Federal Deposit Insurance Act.--Section 18(s)(4)(C)(ii)(I) of
    the Federal Deposit Insurance Act (12 U.S.C. 1828(s)(4)(C)(ii)(I)) is
    amended by striking ``as amended'' and inserting ``as such section
    existed on the day before the date of the repeal of such section''.

                       PART C--FEDERAL WORK-STUDY PROGRAMS

    SEC. 441. AUTHORIZATION OF APPROPRIATIONS.

        Section 441 (42 U.S.C. 2751) is amended--
                (1) in subsection (b), by striking ``$1,000,000,000 for
            fiscal year 1999'' and all that follows through the period and
            inserting ``such sums as may be necessary for fiscal year 2009
            and each of the five succeeding fiscal years.''; and
                (2) in subsection (c)(1), by inserting ``emergency
            preparedness and response,'' after ``public safety,''.
    SEC. 442. ALLOWANCE FOR BOOKS AND SUPPLIES.

        Section 442(c)(4)(D) (42 U.S.C. 2752(c)(4)(D)) is amended by
    striking ``$450'' and inserting ``$600''.
    SEC. 443. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.

        Section 443 (42 U.S.C. 2753) is amended--
                (1) in subsection (b)(2)--
                        (A) by striking subparagraph (A); and

    [[Page 122 STAT. 3259]]

                        (B) by redesignating subparagraphs (B) and (C) as
                    subparagraphs (A) and (B), respectively; and
                (2) by adding at the end the following new subsection:

        ``(e) Civic Education and Participation Activities.--
                ``(1) Use of funds.--Funds granted to an institution under
            this section may be used in accordance with such subsection to
            compensate (including compensation for time spent in training
            and travel directly related to civic education and participation
            activities) students employed in projects that--
                        ``(A) teach civics in schools;
                        ``(B) raise awareness of government functions or
                    resources; or
                        ``(C) increase civic participation.
                ``(2) Priority for schools.--To the extent practicable, an
            institution shall--
                        ``(A) give priority to the employment of students
                    participating in projects that educate or train the
                    public about evacuation, emergency response, and injury
                    prevention strategies relating to natural disasters,
                    acts of terrorism, and other emergency situations; and
                        ``(B) ensure that any student compensated with the
                    funds described in paragraph (1) receives appropriate
                    training to carry out the educational services required.
                ``(3) Federal share.--The Federal share of the compensation
            of work-study students compensated under this subsection may
            exceed 75 percent.''.
    SEC. 444. FLEXIBLE USE OF FUNDS.

        Section 445 (42 U.S.C. 2755) is amended by adding at the end the
    following new subsection:
        ``(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--

    [[Page 122 STAT. 3260]]

                              ``(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. 445. JOB LOCATION AND DEVELOPMENT PROGRAMS.

        Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amended by striking
    ``$50,000'' and inserting ``$75,000''.
    SEC. 446. ADDITIONAL FUNDS FOR OFF-CAMPUS COMMUNITY SERVICE.

        Section 447 (42 U.S.C. 2756a) is amended--
                (1) by striking ``Each institution participating'' and
            inserting ``(a) Community Service-Learning.--Each institution
            participating''; and
                (2) by adding at the end the following new subsection:

        ``(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. WORK COLLEGES.

        Section 448 (42 U.S.C. 2756b) is amended--
                (1) by striking ``work-learning'' each place it appears and
            inserting ``work-learning-service'';
                (2) by striking subsection (e) and inserting the following:

        ``(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;

    [[Page 122 STAT. 3261]]

                        ``(B) has operated a comprehensive work-learning-
                    service program for at least two years;
                        ``(C) requires students, including at least one-half
                    of all students who are enrolled on a full-time basis,
                    to participate in a comprehensive work-learning-service
                    program for at least five hours each week, or at least
                    80 hours during each period of enrollment, except summer
                    school, unless the student is engaged in an
                    institutionally organized or approved study abroad or
                    externship program; and
                        ``(D) provides students participating in the
                    comprehensive work-learning-service program with the
                    opportunity to contribute to their education and to the
                    welfare of the community as a whole; and
                ``(2) the term `comprehensive student work-learning-service
            program' means a student work-learning-service program that--
                        ``(A) is an integral and stated part of the
                    institution's educational philosophy and program;
                        ``(B) requires participation of all resident
                    students for enrollment and graduation;
                        ``(C) includes learning objectives, evaluation, and
                    a record of work performance as part of the student's
                    college record;
                        ``(D) provides programmatic leadership by college
                    personnel at levels comparable to traditional academic
                    programs;
                        ``(E) recognizes the educational role of work-
                    learning-service supervisors; and
                        ``(F) includes consequences for nonperformance or
                    failure in the work-learning-service program similar to
                    the consequences for failure in the regular academic
                    program.''; and
                (3) in subsection (f), by striking ``$5,000,000'' and all
            that follows through the period and inserting ``such sums as may
            be necessary for fiscal year 2009 and each of the five
            succeeding fiscal years.''.

                       PART D--FEDERAL DIRECT STUDENT LOAN

    SEC. 451. TERMS AND CONDITIONS OF LOANS.

        (a) Income-Based Repayment.--Section 455(d)(1) (20 U.S.C.
    1087e(d)(1)) is amended--
                (1) in subparagraph (C), by striking ``and'' after the
            semicolon;
                (2) in subparagraph (D), by striking the period at the end
            and inserting ``; and''; and
                (3) by adding at the end the following:
                        ``(E) <<NOTE: Effective date.>> 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

    [[Page 122 STAT. 3262]]

                    under section 428B made on behalf of a dependent
                    student.''.

        (b) Public Service Job Definition.--
                (1) In general.--Section 455(m)(3)(B) (20 U.S.C.
            1087e(m)(3)(B)) is amended to read as follows:
                        ``(B) Public service job.--The term `public service
                    job' means--
                              ``(i) a full-time job in emergency management,
                          government (excluding time served as a member of
                          Congress), military service, public safety, law
                          enforcement, public health (including nurses,
                          nurse practitioners, nurses in a clinical setting,
                          and full-time professionals engaged in health care
                          practitioner occupations and health care support
                          occupations, as such terms are defined by the
                          Bureau of Labor Statistics), public education,
                          social work in a public child or family service
                          agency, public interest law services (including
                          prosecution or public defense or legal advocacy on
                          behalf of low-income communities at a nonprofit
                          organization), early childhood education
                          (including licensed or regulated childcare, Head
                          Start, and State funded prekindergarten), public
                          service for individuals with disabilities, public
                          service for the elderly, public library sciences,
                          school-based library sciences and other school-
                          based services, or at an organization that is
                          described in section 501(c)(3) of the Internal
                          Revenue Code of 1986 and exempt from taxation
                          under section 501(a) of such Code; or
                              ``(ii) teaching as a full-time faculty member
                          at a Tribal College or University as defined in
                          section 316(b) and other faculty teaching in high-
                          needs subject areas or areas of shortage
                          (including nurse faculty, foreign language
                          faculty, and part-time faculty at community
                          colleges), as determined by the Secretary.''.
                (2) Ineligibility for double benefits.--Section 455(m) (20
            U.S.C. 1087e(m)) is further amended by adding at the end the
            following:
                ``(4) Ineligibility for double benefits.--No borrower may,
            for the same service, receive a reduction of loan obligations
            under both this subsection and section 428J, 428K, 428L, or
            460.''.

        (c) Identity Fraud Protection.--Section 455 (as amended by this
    section) (20 U.S.C. 1087e) is amended by adding at the end the
    following:
        ``(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.''.
        (d) No Accrual of Interest for Active Duty Service Members.--Section
    455 (as amended by this section) (20 U.S.C. 1087e) is further amended by
    adding at the end the following:
        ``(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

    [[Page 122 STAT. 3263]]

            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 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.''.

        (e) Disclosures.--Section 455 (as amended by this section) (20
    U.S.C. 1087e) is further amended by adding at the end the following:
        ``(p) Disclosures.-- <<NOTE: Regulations.>> 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.''.
    SEC. 452. FUNDS FOR ADMINISTRATIVE EXPENSES.

        Section 458(a) (20 U.S.C. 1087h(a)) is amended--
                (1) in paragraph (2)--
                        (A) in the heading of such paragraph, by striking
                    ``2011'' and inserting ``2014''; and
                        (B) by striking ``2011'' and inserting ``2014''; and
                (2) in paragraph (3), by striking ``2011'' and inserting
            ``2014''.
    SEC. 453. GUARANTY AGENCY RESPONSIBILITIES AND PAYMENTS; REPORTS
                            AND COST ESTIMATES.

        Section 459A of the Higher Education Act of 1965 (20 U.S.C. 1087i-1)
    is amended--
                (1) by redesignating subsection (d) as subsection (f); and
                (2) by inserting after subsection (c) the following:

        ``(d) Guaranty Agency Responsibilities and Payments.--
    Notwithstanding any other provision of this Act, beginning on the date
    on which the Secretary purchases a loan under this section--
                ``(1) the guaranty agency that insured such loan shall cease
            to have any obligations, responsibilities, or rights (including
            rights to any payment) under this Act for any activity related
            to the administration of such loan that is carried out or
            required to be carried out on or after the date of such
            purchase; and
                ``(2) the insurance issued by such agency pursuant to
            section 428(b) for such loan shall cease to be effective with
            respect

    [[Page 122 STAT. 3264]]

            to any default on such loan that occurs on or after the date of
            such purchase.

        ``(e) Reports and Cost Estimates.-- <<NOTE: Public
    information.>> The Secretary shall prepare, transmit to the authorizing
    committees, and make available to the public, the following:
                ``(1) Quarterly reports.--
                        ``(A) Contents.--Not later than 60 days after the
                    end of each quarter during the period beginning July 1,
                    2008, and ending September 30, 2009, a quarterly report
                    on--
                              ``(i) the number of loans the Secretary has
                          agreed to purchase, or has purchased, using the
                          authority provided under this section, and the
                          total amount of outstanding principal and accrued
                          interest of such loans, during such period; and
                              ``(ii) the number of loans in which the
                          Secretary has purchased a participation interest,
                          and the total amount of outstanding principal and
                          accrued interest of such loans, during such
                          period.
                        ``(B) Disaggregated information.--For each quarterly
                    report, the information described in clauses (i) and
                    (ii) of subparagraph (A) shall be disaggregated by
                    lender and, for each lender, by category of institution
                    (using the categories described in section 132(d)) and
                    type of loan.
                ``(2) Estimates of purchase program costs.--Not later than
            February 15, 2010, an estimate of the costs associated with the
            program of purchasing loans described in paragraph (1)(A)(i)
            during the period beginning July 1, 2008, and ending September
            30, 2009, and an estimate of the costs associated with the
            program of purchasing a participation interest in loans
            described in paragraph (1)(A)(ii) during such period. Each such
            estimate shall--
                        ``(A) contain the same level of detail, and be
                    reported in a similar manner, as the budget estimates
                    provided for the loan program under part B and the
                    direct student loan program under this part in the
                    President's annual budget submission to Congress, except
                    that current and future administrative costs shall also
                    be reported;
                        ``(B) include an estimate of the gross and net
                    outlays that have been, or will be, incurred by the
                    Federal Government (including subsidy and administrative
                    costs, and any payments made by the Department to
                    lenders, trusts, or other entities related to such
                    activities) in purchasing such loans or purchasing a
                    participation interest in such loans during such period
                    (as applicable); and
                        ``(C) include a comparison of--
                              ``(i) the average amount of the gross and net
                          outlays (including costs and payments) described
                          in subparagraph (B) for each $100 of loans
                          purchased or for which a participation interest
                          was purchased (as applicable) during such period,
                          disaggregated by type of loan; with
                              ``(ii) the average amount of such gross and
                          net outlays (including costs and payments) to the
                          Federal Government for each $100 of comparable
                          loans made under this part and part B during such
                          period, disaggregated by part and by type of loan.

    [[Page 122 STAT. 3265]]

                ``(3) Annual cost estimates.-- <<NOTE: Deadline.>> Not later
            than February 15 of the fiscal year following each of the fiscal
            years 2008, 2009, and 2010, an annual estimate of the costs
            associated with the program of purchasing loans described in
            paragraph (1)(A)(i), and an annual estimate of the costs
            associated with the program of purchasing a participation
            interest in loans described in paragraph (1)(A)(ii), that
            includes the information described in paragraph (2) for such
            fiscal year.''.
    SEC. 454. LOAN CANCELLATION FOR TEACHERS.

        (a) In General.--Section 460 (20 U.S.C. 1087j) is amended--
                (1) in subsection (b)(1)(A)(i)--
                        (A) by inserting ``or location'' after ``a school'';
                    and
                        (B) by inserting ``or locations'' after ``schools'';
                    and
                (2) in subsection (c)(3)(B)(iii), by inserting ``or, in the
            case of a teacher who is employed by an educational service
            agency, as certified by the chief administrative officer of such
            agency,'' after ``borrower is employed,''.

        (b) Prevention of Double Benefits.--Section 460(g)(2) (20 U.S.C.
    1087j(g)(2)) is amended to read as follows:
                ``(2) Prevention of double benefits.--No borrower may, for
            the same voluntary service, receive a benefit under both this
            section and--
                        ``(A) section 428J;
                        ``(B) section 428K;
                        ``(C) section 455(m); or
                        ``(D) subtitle D of title I of the National and
                    Community Service Act of 1990 (42 U.S.C. 12571 et
                    seq.).''.

        (c) Technical Amendments.--Section 460(b) (as amended by subsection
    (a)(1)) (20 U.S.C. 1087j(b)) is further amended--
                (1) by striking paragraph (2);
                (2) by striking ``Program Authorized.--'' and all that
            follows through ``The Secretary shall'' and inserting ``Program
            Authorized.--The Secretary shall'';
                (3) by redesignating subparagraph (B) as paragraph (2), and
            adjusting the margin accordingly; and
                (4) by redesignating subparagraph (A) as paragraph (1), by
            redesignating clauses (i) and (ii) of such paragraph (as so
            redesignated) as subparagraphs (A) and (B), respectively, and by
            adjusting the margins accordingly.

        (d) Conforming Amendments.--Section 460 (20 U.S.C. 1087j) is further
    amended--
                (1) in subsection (c)(1), by striking ``(b)(1)(A)'' and
            inserting ``(b)(1)'';
                (2) in subsection (c)(3)--
                        (A) in subparagraph (A)(i), by striking ``(b)(1)''
                    and inserting ``(b)''; and
                        (B) in subparagraph (B)(i), by striking ``(b)(1)''
                    and inserting ``(b)''; and
                (3) in subsection (g)(3), by striking ``(b)(1)(A)(ii)'' and
            inserting ``(b)(1)(B)''.

                          PART E--FEDERAL PERKINS LOANS

    SEC. 461. EXTENSION OF AUTHORITY.

        Section 461(b) (20 U.S.C. 1087aa(b)) is amended--

    [[Page 122 STAT. 3266]]

                (1) in paragraph (1), by striking ``$250,000,000 for fiscal
            year 1999'' and all that follows through the period and
            inserting ``$300,000,000 for fiscal year 2009 and for each of
            the five succeeding fiscal years.''; and
                (2) in paragraph (2), by striking ``2003'' each place it
            appears and inserting ``2015''.
    SEC. 462. ALLOWANCE FOR BOOKS AND SUPPLIES.

        Section 462(c)(4)(D) (20 U.S.C. 1087bb(c)(4)(D)) is amended by
    striking ``$450'' and inserting ``$600''.
    SEC. 463. AGREEMENTS WITH INSTITUTIONS.

        (a) Transfers for Collection.--Section 463(a)(4)(B) (20 U.S.C.
    1087cc(a)(4)(B)) is amended to read as follows:
                        ``(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;''.

        (b) Revise Authority To Prescribe Additional Fiscal Controls.--
    Section 463(a)(9) (20 U.S.C. 1087cc(a)(9)) is amended by inserting ``,
    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)'' before the period.
    SEC. 464. PERKINS LOAN TERMS AND CONDITIONS.

        (a) Loan Limits.--Section 464(a) (20 U.S.C. 1087dd(a)) is amended--
                (1) in paragraph (2)(A)--
                        (A) by striking ``$4,000'' in clause (i) and
                    inserting ``$5,500''; and
                        (B) by striking ``$6,000'' in clause (ii) and
                    inserting ``$8,000''; and
                (2) in paragraph (2)(B)--
                        (A) by striking ``$40,000'' in clause (i) and
                    inserting ``$60,000'';
                        (B) by striking ``$20,000'' in clause (ii) and
                    inserting ``$27,500''; and
                        (C) by striking ``$8,000'' in clause (iii) and
                    inserting ``$11,000''.

        (b) Discharge and Cancellation Rights in Cases of Disability.--
                (1) Amendment.--Section 464 (20 U.S.C. 1087dd(c)) is further
            amended--
                        (A) in subsection (c)(1)(F), by striking ``canceled
                    upon the death'' and all that follows through the
                    semicolon and inserting ``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

    [[Page 122 STAT. 3267]]

                          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;''; and
                        (B) by adding at the end the following:

        ``(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.''.
                (2) <<NOTE: 20 USC 1087dd note.>>  Effective date.--The
            amendments made by paragraph (1) shall take effect on July 1,
            2008.

        (c) Forbearance.--Section 464 (20 U.S.C. 1087dd) is further
    amended--
                (1) in subsection (e)--
                        (A) in the matter preceding paragraph (1), by
                    striking ``, upon written request,'' and inserting ``,
                    as documented in accordance with paragraph (2),'';
                        (B) by redesignating paragraphs (1) through (3) as
                    subparagraphs (A) through (C), respectively;
                        (C) by inserting ``(1)'' after ``Forbearance.--'';
                    and
                        (D) by adding at the end the following:

        ``(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.'';
                (2) in subsection (h)(1)(A), by striking ``12 ontime'' and
            inserting ``9 on-time''; and
                (3) in subsection (j)(2), by striking ``(e)(3)'' and
            inserting ``(e)(1)(C)''.
    SEC. 465. CANCELLATION FOR PUBLIC SERVICE.

        Section 465(a) (20 U.S.C. 1087ee(a)) is amended--
                (1) in paragraph (2)--
                        (A) by striking subparagraph (A) and inserting the
                    following:
                ``(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--

    [[Page 122 STAT. 3268]]

                              ``(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) in subparagraph (B), by striking ``Head Start
                    Act which'' and inserting ``Head Start Act, or in a
                    prekindergarten or child care program that is licensed
                    or regulated by the State, that'';
                        (C) in subparagraph (C), by inserting ``, including
                    a system administered by an educational service agency''
                    after ``secondary school system'';
                        (D) by striking subparagraph (F) and inserting the
                    following:
                ``(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;'';
                        (E) in subparagraph (H), by striking ``or'' after
                    the semicolon;
                        (F) in subparagraph (I), by striking the period and
                    inserting a semicolon; and
                        (G) by inserting before the matter following
                    subparagraph (I) the following:
                ``(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

    [[Page 122 STAT. 3269]]

                ``(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.''; and
                (2) in paragraph (3)(A)--
                        (A) in clause (i)--
                              (i) by inserting ``(D),'' after ``(C),''; and
                              (ii) by striking ``or (I)'' and inserting
                          ``(I), (J), (K), (L), or (M)'';
                        (B) in clause (ii), by inserting ``or'' after the
                    semicolon;
                        (C) by striking clause (iii); and
                        (D) by redesignating clause (iv) as clause (iii).
    SEC. 466. SENSE OF CONGRESS REGARDING FEDERAL PERKINS LOANS.

        It is the sense of Congress that the Federal Perkins Loan Program,
    which provides low-interest loans to help needy students finance the
    costs of postsecondary education, is an important part of Federal
    student aid, and should remain a campus-based aid program at colleges
    and universities.

                              PART F--NEED ANALYSIS

    SEC. 471. COST OF ATTENDANCE.

        (a) Amendments.--Section 472(3) (20 U.S.C. 1087ll(3)) is amended--
                (1) in subparagraph (B), by striking ``and'' after the
            semicolon;
                (2) by redesignating subparagraph (C) as subparagraph (D);
            and
                (3) by inserting after subparagraph (B), as amended by
            paragraph (1), the following:
                        ``(C) for students who live in housing located on a
                    military base or for which a basic allowance is provided
                    under section 403(b) of title 37, United States Code,
                    shall be an allowance based on the expenses reasonably
                    incurred by such students for board but not for room;
                    and''.

        (b) <<NOTE: 20 USC 1087ll note.>>  Effective Date.--The amendments
    made by subsection (a) shall take effect on July 1, 2010.
    SEC. 472. DISCRETION TO MAKE ADJUSTMENTS.

        (a) Amendments.--Section 479A(a) (as amended by Public Law 110-84)
    (20 U.S.C. 1087tt(a)) is amended--
                (1) by striking ``medical or dental expenses'' and inserting
            ``medical, dental, or nursing home expenses'';
                (2) by inserting ``or dependent care'' after ``child care'';
                (3) by inserting ``student or'' before ``family member who
            is a dislocated worker''; and
                (4) by striking the second to last sentence and inserting
            the following: ``In addition, nothing in this title shall be
            interpreted as limiting the authority of the student financial
            aid administrator in such cases (1) to request and use
            supplementary information about the financial status or personal
            circumstances of eligible applicants in selecting recipients and
            determining the amount of awards under this title, or (2) to
            offer a dependent student financial assistance under section
            428H or a Federal Direct Unsubsidized Stafford Loan without
            requiring the parents of such student to file the financial aid
            form prescribed under section 483 if the student financial aid

    [[Page 122 STAT. 3270]]

            administrator verifies that the parent or parents of such
            student have ended financial support of such student and refuse
            to file such form.''.

        (b) Effective Date Amendment to the College Cost Reduction and
    Access Act.--Section 603(b) of the College Cost Reduction and Access Act
    (Public Law 110-84) <<NOTE: 20 USC 1087tt note.>> is amended by striking
    ``July 1, 2009'' and inserting ``the date of enactment of the Higher
    Education Opportunity Act''.
    SEC. 473. DEFINITIONS.

        (a) Total Income.--Section 480(a) (as amended by Public Law 110-84)
    (20 U.S.C. 1087vv(a)) is amended--
                (1) in paragraph (1)--
                        (A) by inserting ``(A)'' after ``(1)'';
                        (B) by inserting ``subparagraph (B) and'' after
                    ``provided in''; and
                        (C) by adding at the end the following new
                    subparagraph:

        ``(B) Notwithstanding section 478(a), the Secretary may provide for
    the use of data from the second preceding tax year when and to the
    extent necessary to carry out the simplification of applications
    (including simplification for a subset of applications) used for the
    estimation and determination of financial aid eligibility. Such
    simplification may include the sharing of data between the Internal
    Revenue Service and the Department, pursuant to the consent of the
    taxpayer.''; and
                (2) in paragraph (2), by inserting ``no portion of veterans'
            education benefits received by an individual,'' after ``any
            program by an individual,''.

        (b) Untaxed Income and Benefits.--Section 480(b)(1)(E) (as amended
    by Public Law 110-84) (20 U.S.C. 1087vv(b)(1)(E)) is amended by
    inserting ``, 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'' before the semicolon.
        (c) Independent Student.--Section 480(d)(1) (as amended by Public
    Law 110-84) (20 U.S.C. 1087vv(d)(1)) is amended--
                (1) by striking subparagraph (B) and inserting the
            following:
                        ``(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;''; and
                (2) by striking subparagraph (C) and inserting the
            following:
                        ``(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) Treatment of Cooperative Education Work Income.--Section 480(e)
    (as amended by Public Law 110-84) (20 U.S.C. 1087vv(e)) is amended--
                (1) by redesignating paragraphs (2) through (5) as
            paragraphs (3) through (6), respectively; and

    [[Page 122 STAT. 3271]]

                (2) by inserting after paragraph (1) the following new
            paragraph:
                ``(2) any income earned from work under a cooperative
            education program offered by an institution of higher
            education;''.

        (e) Other Financial Assistance.--Section 480(j)(1) (20 U.S.C.
    1087vv(j)(1)) is amended--
                (1) by striking ``veterans' education benefits as defined in
            subsection (c), and''; and
                (2) by inserting before the period at the end the following:
            ``, but excluding veterans' education benefits as defined in
            subsection (c)''.

        (f) <<NOTE: 20 USC 1087vv note.>>  Effective Date.--The amendments
    made by this section shall take effect on July 1, 2010.

            PART G--GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE

    SEC. 481. DEFINITIONS.

        Section 481 (20 U.S.C. 1088) is amended--
                (1) in subsection (a)(2)(B), by inserting ``and that
            measures program length in credit hours or clock hours'' after
            ``baccalaureate degree''; and
                (2) by adding at the end the following:

        ``(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 9101 of the Elementary and Secondary Education
    Act of 1965.''.
    SEC. 482. MASTER CALENDAR.

        (a) Amendment.--Section 482 (20 U.S.C. 1089) is amended--
                (1) <<NOTE: Deadlines.>> in subsection (a)(1), by striking
            subparagraphs (B) and (C) and inserting the following:
                        ``(B) by March 1: proposed modifications, updates,
                    and notices pursuant to sections 478 and 483(a)(5)
                    published in the Federal Register;
                        ``(C) by June 1: final modifications, updates, and
                    notices pursuant to sections 478 and 483(a)(5) published
                    in the Federal Register;''; and
                (2) by adding at the end the following:

        ``(e) Compliance Calendar.-- <<NOTE: Deadline. Records.>> Prior to
    the beginning of each award year, the Secretary shall provide to
    institutions of higher education a list of all the reports and
    disclosures required under this Act. The list shall include--
                ``(1) the date each report or disclosure is required to be
            completed and to be submitted, made available, or disseminated;
                ``(2) the required recipients of each report or disclosure;
                ``(3) any required method for transmittal or dissemination
            of each report or disclosure;
                ``(4) a description of the content of each report or
            disclosure sufficient to allow the institution to identify the
            appropriate

    [[Page 122 STAT. 3272]]

            individuals to be assigned the responsibility for such report or
            disclosure;
                ``(5) references to the statutory authority, applicable
            regulations, and current guidance issued by the Secretary
            regarding each report or disclosure; and
                ``(6) any other information which is pertinent to the
            content or distribution of the report or disclosure.''.

        (b) <<NOTE: 20 USC 1089 note.>>  Effective Date.--The amendment made
    by subsection (a)(1) shall take effect on July 1, 2010.
    SEC. 483. IMPROVEMENTS TO PAPER AND ELECTRONIC FORMS AND
                            PROCESSES.

        (a) Common Financial Aid Form Development and Processing.--Section
    483 (20 U.S.C. 1090) is amended--
                (1) in subsection (a), by striking paragraphs (1) through
            (7) and inserting the following:
                ``(1) In general.--The Secretary, in cooperation with
            representatives of agencies and organizations involved in
            student financial assistance, shall produce, distribute, and
            process free of charge common financial reporting forms as
            described in this subsection to be used for application and
            reapplication to determine the need and eligibility of a student
            for financial assistance under parts A through E (other than
            subpart 4 of part A). The forms shall be made available to
            applicants in both paper and electronic formats and shall be
            referred to as the `Free Application for Federal Student Aid' or
            the `FAFSA'. The Secretary shall work to make the FAFSA
            consumer-friendly and to make questions on the FAFSA easy for
            students and families to read and understand, and shall ensure
            that the FAFSA is available in formats accessible to individuals
            with disabilities.
                ``(2) Paper format.--
                        ``(A) In general.--The Secretary shall develop, make
                    available, and process--
                              ``(i) a paper version of EZ FAFSA, as
                          described in subparagraph (B); and
                              ``(ii) a paper version of the other forms
                          described in this subsection, in accordance with
                          subparagraph (C), for any applicant who does not
                          meet the requirements of or does not wish to use
                          the process described in subparagraph (B).
                        ``(B) EZ fafsa.--
                              ``(i) In general.--The Secretary shall develop
                          and use, after appropriate field testing, a
                          simplified paper form, to be known as the EZ
                          FAFSA, to be used for applicants meeting the
                          requirements of subsection (b) or (c) of section
                          479.
                              ``(ii) Reduced data requirements.--The EZ
                          FAFSA shall permit an applicant to submit, for
                          financial assistance purposes, only the data
                          elements required to make a determination of
                          whether the applicant meets the requirements under
                          subsection (b) or (c) of section 479.
                              ``(iii) State data.--The Secretary shall
                          include on the EZ FAFSA such data items as may be
                          necessary to award State financial assistance, as
                          provided under paragraph (5), except that the
                          Secretary shall not

    [[Page 122 STAT. 3273]]

                          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.--
                          <<NOTE: Applicability.>> The provisions of
                          paragraph (6) shall apply to the EZ FAFSA, and the
                          data collected by means of the EZ FAFSA shall be
                          available to institutions of higher education,
                          guaranty agencies, and States in accordance with
                          paragraph (10).
                        ``(C) Promoting the use of electronic fafsa.--
                              ``(i) In general.--The Secretary shall make
                          all efforts to encourage all applicants to utilize
                          the electronic version of the forms described in
                          paragraph (3).
                              ``(ii) Maintenance of the fafsa in a printable
                          electronic file.--The Secretary shall maintain a
                          version of the paper forms described in
                          subparagraphs (A) and (B) in a printable
                          electronic file that is easily portable,
                          accessible, and downloadable to students on the
                          same website used to provide students with the
                          electronic version of the forms described in
                          paragraph (3).
                              ``(iii) Requests for printed copy.--The
                          Secretary shall provide a printed copy of the full
                          paper version of FAFSA upon request.
                              ``(iv) Reporting requirement.--The Secretary
                          shall maintain data, and periodically report to
                          Congress, on the impact of the digital divide on
                          students completing applications for aid under
                          this title. The Secretary shall report on the
                          steps taken to eliminate the digital divide and
                          reduce production of the paper form described in
                          subparagraph (A). The Secretary's report shall
                          specifically address the impact of the digital
                          divide on the following student populations:
                                        ``(I) Independent students.
                                        ``(II) Traditionally
                                    underrepresented students.
                                        ``(III) Dependent students.
                ``(3) Electronic format.--
                        ``(A) In general.--The Secretary shall produce,
                    distribute, and process forms in electronic format to
                    meet the requirements of paragraph (1). The Secretary
                    shall develop an electronic version of the forms for
                    applicants who do not meet the requirements of
                    subsection (b) or (c) of section 479.
                        ``(B) Simplified applications: fafsa on the web.--
                              ``(i) In general.--The Secretary shall develop
                          and use a simplified electronic version of the
                          form to be used by applicants meeting the
                          requirements under subsection (b) or (c) of
                          section 479.
                              ``(ii) Reduced data requirements.--The
                          simplified electronic version of the forms shall
                          permit an applicant to submit, for financial
                          assistance purposes, only the data elements
                          required to make a determination of whether the
                          applicant meets the requirements under subsection
                          (b) or (c) of section 479.
                              ``(iii) Use of forms.--Nothing in this
                          subsection shall be construed to prohibit the use
                          of the forms

    [[Page 122 STAT. 3274]]

                          developed by the Secretary pursuant to this
                          paragraph by an eligible institution, eligible
                          lender, guaranty agency, State grant agency,
                          private computer software provider, a consortium
                          thereof, or such other entities as the Secretary
                          may designate.
                        ``(C) State data.--The Secretary shall include on
                    the electronic version of the forms such items as may be
                    necessary to determine eligibility for State financial
                    assistance, as provided under paragraph (5), except the
                    Secretary shall not require an applicant to enter data
                    pursuant to this subparagraph that are required by any
                    State other than the applicant's State of residence.
                        ``(D) Availability and processing.--The data
                    collected by means of the simplified electronic version
                    of the forms shall be available to institutions of
                    higher education, guaranty agencies, and States in
                    accordance with paragraph (10).
                        ``(E) Privacy.--The Secretary shall ensure that data
                    collection under this paragraph complies with section
                    552a of title 5, United States Code, and that any entity
                    using the electronic version of the forms developed by
                    the Secretary pursuant to this paragraph shall maintain
                    reasonable and appropriate administrative, technical,
                    and physical safeguards to ensure the integrity and
                    confidentiality of the information, and to protect
                    against security threats, or unauthorized uses or
                    disclosures of the information provided on the
                    electronic version of the forms. Data collected by such
                    electronic version of the forms shall be used only for
                    the application, award, and administration of aid
                    awarded under this title, State aid, or aid awarded by
                    eligible institutions or such entities as the Secretary
                    may designate. No data collected by such electronic
                    version of the forms shall be used for making final aid
                    awards under this title until such data have been
                    processed by the Secretary or a contractor or designee
                    of the Secretary, except as may be permitted under this
                    title.
                        ``(F) Signature.--Notwithstanding any other
                    provision of this Act, the Secretary may continue to
                    permit an electronic version of the form under this
                    paragraph to be submitted without a signature, if a
                    signature is subsequently submitted by the applicant or
                    if the applicant uses a personal identification number
                    provided by the Secretary under subparagraph (G).
                        ``(G) Personal identification numbers authorized.--
                    The Secretary may continue to assign to an applicant a
                    personal identification number--
                              ``(i) to enable the applicant to use such
                          number as a signature for purposes of completing
                          an electronic version of a form developed under
                          this paragraph; and
                              ``(ii) for any purpose determined by the
                          Secretary to enable the Secretary to carry out
                          this title.
                        ``(H) Personal identification number improvement.--
                    The Secretary shall continue to work with the
                    Commissioner of Social Security to minimize the time
                    required for an applicant to obtain a personal
                    identification number when applying for aid under this
                    title through

    [[Page 122 STAT. 3275]]

                    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 subsequent to an academic
                          year for which such applicant applied for
                          financial assistance under this title.
                              ``(ii) Updating of data elements.--The
                          Secretary shall determine, in cooperation with
                          States, institutions of higher education,
                          agencies, and organizations involved in student
                          financial assistance, the data elements that may
                          be transferred from the previous academic year's
                          application and those data elements that shall be
                          updated.
                              ``(iii) Reduced data authorized.--Nothing in
                          this title shall be construed as limiting the
                          authority of the Secretary to reduce the number of
                          data elements required of reapplicants.
                              ``(iv) Zero family contribution.--Applicants
                          determined to have a zero family contribution
                          pursuant to section 479(c) shall not be required
                          to provide any financial data in a reapplication
                          form, except data that are necessary to determine
                          eligibility under such section.
                        ``(B) Reduction of data elements.--
                              ``(i) Reduction encouraged.--Of the number of
                          data elements on the FAFSA used for the 2009-2010
                          award year, the Secretary, in cooperation with
                          representatives of agencies and organizations
                          involved in student financial assistance and
                          consistent with efforts under subsection (c),
                          shall continue to reduce the number of such data
                          elements required to be entered by all applicants,
                          with the goal of reducing such number by 50
                          percent.
                              ``(ii) Report.--The Secretary shall submit a
                          report on the process of this reduction to each of
                          the authorizing committees by June 30, 2011.
                ``(5) State requirements.--
                        ``(A) In general.--Except as provided in paragraphs
                    (2)(B)(iii), (3)(B), and (4)(A)(ii), the Secretary shall
                    include on the forms developed under this subsection,
                    such State-specific data items as the Secretary
                    determines are necessary to meet State requirements for
                    need-based State aid. Such items shall be selected in
                    consultation with State agencies in order to assist in
                    the awarding of State financial assistance in accordance
                    with the terms of this subsection.
                    The <<NOTE: Notification.>> 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--

    [[Page 122 STAT. 3276]]

                              ``(i) which data items each State requires to
                          award need-based State aid; and
                              ``(ii) if the State will permit an applicant
                          to file a form described in paragraph (2)(B) or
                          (3)(B).
                        ``(C) Federal register notice.--
                    <<NOTE: Deadline.>> Beginning with the forms developed
                    under paragraphs (2)(B) and (3)(B) for the award year
                    2010-2011, the Secretary shall publish on an annual
                    basis a notice in the Federal Register requiring State
                    agencies to inform the Secretary--
                              ``(i) if the State agency is unable to permit
                          applicants to utilize the simplified forms
                          described in paragraphs (2)(B) and (3)(B); and
                              ``(ii) of the State-specific nonfinancial data
                          that the State agency requires for delivery of
                          State need-based financial aid.
                        ``(D) Use of simplified forms encouraged.--The
                    Secretary shall encourage States to take such steps as
                    are necessary to encourage the use of simplified forms
                    under this subsection, including those forms described
                    in paragraphs (2)(B) and (3)(B), for applicants who meet
                    the requirements of subsection (b) or (c) of section
                    479.
                        ``(E) Consequences if state does not accept
                    simplified forms.--If a State does not permit an
                    applicant to file a form described in paragraph (2)(B)
                    or (3)(B) for purposes of determining eligibility for
                    State need-based financial aid, the Secretary may
                    determine that State-specific questions for such State
                    will not be included on a form described in paragraph
                    (2)(B) or (3)(B). If the Secretary makes such
                    determination, the Secretary shall advise the State of
                    the Secretary's determination.
                        ``(F) Lack of state response to request for
                    information.--If a State does not respond to the
                    Secretary's request for information under subparagraph
                    (B), the Secretary shall--
                              ``(i) permit residents of that State to
                          complete simplified forms under paragraphs (2)(B)
                          and (3)(B); and
                              ``(ii) not require any resident of such State
                          to complete any data items previously required by
                          that State under this section.
                        ``(G) Restriction.--The Secretary shall, to the
                    extent practicable, not require applicants to complete
                    any financial or nonfinancial data items that are not
                    required--
                              ``(i) by the applicant's State; or
                              ``(ii) by the Secretary.
                ``(6) Charges to students and parents for use of forms
            prohibited.--The need and eligibility of a student for financial
            assistance under parts A through E (other than under subpart 4
            of part A) may be determined only by using a form developed by
            the Secretary under this subsection. Such forms shall be
            produced, distributed, and processed by the Secretary, and no
            parent or student shall be charged a fee by the Secretary, a
            contractor, a third-party servicer or private software provider,
            or any other public or private entity for the collection,
            processing, or delivery of financial aid through the use of such
            forms. No data collected on a form for which a fee is charged
            shall be used to complete the form prescribed under this
            section, except that a Federal or State income tax form prepared
            by

    [[Page 122 STAT. 3277]]

            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

    [[Page 122 STAT. 3278]]

            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.'';
                (2) by striking subsections (b) and (e);
                (3) by redesignating subsections (c) and (d) (as amended by
            section 103(b)(10)) as subsections (b) and (c), respectively;
                (4) in subsection (c) (as redesignated by paragraph (3)), by
            striking ``that is authorized'' and all that follows through the
            period at the end and inserting ``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 <<NOTE: Communication and tele-
            communications.>> 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.''; and
                (5) by adding at the end the following:

        ``(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

    [[Page 122 STAT. 3279]]

                    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.-- <<NOTE: Deadlines.>> 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--

    [[Page 122 STAT. 3280]]

                        ``(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.--
            <<NOTE: Deadline.>> 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 maximum Federal Pell Grant
                          award 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;

    [[Page 122 STAT. 3281]]

                        ``(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.-- <<NOTE: Notification.>> 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.

    [[Page 122 STAT. 3282]]

                ``(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) identify 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

    [[Page 122 STAT. 3283]]

            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.--
                    <<NOTE: Deadline.>> 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

    [[Page 122 STAT. 3284]]

                    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) <<NOTE: Recommen- dations.>> 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;

    [[Page 122 STAT. 3285]]

                                                ``(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.

    [[Page 122 STAT. 3286]]

                ``(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.
        ``(h) Adjustments.--The Secretary shall disclose, on the form
    notifying a student of the student's expected family contribution, that
    the student may, on a case-by-case basis, qualify for an adjustment
    under section 479A to the cost of attendance or the values of the data
    items required to calculate the expected contribution for the student or
    parent. Such disclosure shall specify--
                ``(1) the special circumstances under which a student or
            family member may qualify for such adjustment; and
                ``(2) additional information regarding the steps a student
            or family member may take in order to seek an adjustment under
            section 479A.''.
    SEC. 484. MODEL <<NOTE: 20 USC 1092 note.>> INSTITUTION FINANCIAL
                            AID OFFER FORM.

        (a) Model Format.-- <<NOTE: Deadlines.>> The Secretary of Education
    shall--
                (1) not later than six months after the date of enactment of
            the Higher Education Opportunity Act, convene a group of
            students, families of students, secondary school guidance
            counselors, representatives of institutions of higher education
            (including financial aid administrators, registrars, and
            business officers), and nonprofit consumer groups for the
            purpose of offering recommendations for improvements that--
                        (A) can be made to financial aid offer forms; and
                        (B) include the information described in subsection
                    (b);
                (2) develop a model format for financial aid offer forms
            based on the recommendations of the group; and
                (3) <<NOTE: Recommen- dations.>> not later than one year
            after the date of enactment of the Higher Education Opportunity
            Act--

    [[Page 122 STAT. 3287]]

                        (A) submit recommendations to the authorizing
                    committees (as defined in section 103 of the Higher
                    Education Act of 1965 (20 U.S.C. 1003); and
                        (B) make the recommendations and model format widely
                    available.

        (b) Contents.--The recommendations developed under subsection (a)
    for model financial aid offer forms shall include, in a consumer-
    friendly manner that is simple and understandable, the following:
                (1) Information on the student's cost of attendance,
            including the following:
                        (A) Tuition and fees.
                        (B) Room and board costs.
                        (C) Books and supplies.
                        (D) Transportation.
                (2) The amount of financial aid that the student does not
            have to repay, such as scholarships, grants, and work-study
            assistance, offered to the student for such year, and the
            conditions of such financial aid.
                (3) The types and amounts of loans under part B, D, or E of
            title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et
            seq., 1087a et seq., 1087aa et seq.) for which the student is
            eligible for such year, and the applicable terms and conditions
            of such loans.
                (4) The net amount that the student, or the student's family
            on behalf of the student, will have to pay for the student to
            attend the institution for such year, equal to--
                        (A) the cost of attendance for the student for such
                    year; minus
                        (B) the amount of financial aid described in
                    paragraphs (2) and (3) that is offered in the financial
                    aid offer form.
                (5) Where a student or the student's family can seek
            additional information regarding the financial aid offered.
                (6) Any other information the Secretary of Education
            determines necessary so that students and parents can make
            informed student loan borrowing decisions.
    SEC. 485. STUDENT ELIGIBILITY.

        (a) Amendments.--Section 484 (20 U.S.C. 1091) is amended--
                (1) in subsection (a)--
                        (A) in paragraph (4)(B), by striking ``number,'' and
                    all that follows through the semicolon and inserting
                    ``number;''; and
                        (B) in paragraph (5)--
                              (i) by inserting ``or'' after ``a permanent
                          resident of the United States,''; and
                              (ii) by striking ``citizen or permanent
                          resident'' and all that follows through the
                          semicolon and inserting ``citizen or permanent
                          resident;'';
                (2) in subsection (b)(1), by inserting ``, or under section
            428H pursuant to an exercise of discretion under section 479A''
            after ``428C'';
                (3) in subsection (d), by adding at the end the following:
                ``(4) 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 six credit hours or
            the

    [[Page 122 STAT. 3288]]

            equivalent coursework that are applicable toward a degree or
            certificate offered by the institution of higher education.'';
                (4) by striking subsection (j);
                (5) by striking subsection (l) and inserting the following:

        ``(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.'';
                (6) by striking subsection (q) and inserting the following:

        ``(q) 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.'';
                (7) in subsection (r)(2)--
                        (A) in subparagraph (A), by striking ``or'' at the
                    end of clause (ii);

    [[Page 122 STAT. 3289]]

                        (B) by redesignating subparagraph (B) as
                    subparagraph (C); and
                        (C) by inserting after subparagraph (A) the
                    following new subparagraph:
                        ``(B) <<NOTE: Criteria. Regulations.>> 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'';
                (8) by adding at the end the following:

        ``(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.-- <<NOTE: Waiver
            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.''; and
                (9) by adding after subsection (s) (as added by paragraph
            (7)) the following:

        ``(t) Data Analysis on Access to Federal Student Aid For Certain
    Populations.--
                ``(1) Development of the system.--
            <<NOTE: Deadline.>> 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

    [[Page 122 STAT. 3290]]

            of students denied Federal student aid based on a drug
            conviction while receiving Federal aid.
                ``(2) Results from analysis.-- <<NOTE: Web site.>> 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.''.

        (b) <<NOTE: 20 USC 1091 note.>>  Effective Date.--The amendments
    made by subsection (a) shall take effect on July 1, 2010, except that
    the amendments made by paragraphs (3), (4), and (8) of such subsection
    shall take effect on the date of enactment of this Act.
    SEC. 486. STATUTE OF LIMITATIONS AND STATE COURT JUDGMENTS.

        Section 484A (20 U.S.C. 1091a) is amended--
                (1) in subsection (b)--
                        (A) in paragraph (1), by striking ``and'' after the
                    semicolon;
                        (B) in paragraph (2), by striking the period and
                    inserting ``; and''; and
                        (C) by adding at the end the following:
                ``(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.''; and
                (2) by adding at the end the following:

        ``(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. 487. READMISSION REQUIREMENTS FOR SERVICEMEMBERS.

        Part G of title IV (20 U.S.C. 1088 et seq.) is amended by inserting
    after section 484B the following:
    ``SEC. 484C. <<NOTE: 20 USC 1091c.>> READMISSION REQUIREMENTS FOR
                              SERVICEMEMBERS.

        ``(a) Definition of Service in the Uniformed Services.--In this
    section, the term `service in the uniformed services' means service
    (whether voluntary or involuntary) on active duty in the Armed Forces,
    including such service by a member of the National Guard or Reserve, for
    a period of more than 30 days under a call or order to active duty of
    more than 30 days.
        ``(b) Discrimination Against Students Who Serve in the Uniformed
    Services Prohibited.--A person who is a member of, applies to be a
    member of, performs, has performed, applies to perform, or has an
    obligation to perform, service in the uniformed services shall not be
    denied readmission to an institution of higher

    [[Page 122 STAT. 3291]]

    education on the basis of that membership, application for membership,
    performance of service, application for service, or obligation.
        ``(c) Readmission Procedures.--
                ``(1) In general.--Any student whose absence from an
            institution of higher education is necessitated by reason of
            service in the uniformed services shall be entitled to
            readmission to the institution of higher education if--
                        ``(A) the student (or an appropriate officer of the
                    Armed Forces or official of the Department of Defense)
                    gives advance written or verbal notice of such service
                    to the appropriate official at the institution of higher
                    education;
                        ``(B) the cumulative length of the absence and of
                    all previous absences from that institution of higher
                    education by reason of service in the uniformed services
                    does not exceed five years; and
                        ``(C) except as otherwise provided in this section,
                    the student submits a notification of intent to reenroll
                    in the institution of higher education in accordance
                    with the provisions of paragraph (4).
                ``(2) Exceptions.--
                        ``(A) Military necessity.--No notice is required
                    under paragraph (1)(A) if the giving of such notice is
                    precluded by military necessity, such as--
                              ``(i) a mission, operation, exercise, or
                          requirement that is classified; or
                              ``(ii) a pending or ongoing mission,
                          operation, exercise, or requirement that may be
                          compromised or otherwise adversely affected by
                          public knowledge.
                        ``(B) Failure to give advance notice.--Any student
                    (or an appropriate officer of the Armed Forces or
                    official of the Department of Defense) who did not give
                    advance written or verbal notice of service to the
                    appropriate official at the institution of higher
                    education in accordance with paragraph (1)(A) may meet
                    the notice requirement by submitting, at the time the
                    student seeks readmission, an attestation to the
                    student's institution of higher education that the
                    student performed service in the uniformed services that
                    necessitated the student's absence from the institution
                    of higher education.
                ``(3) Applicability.--This section shall apply to a student
            who is absent from an institution of higher education by reason
            of service in the uniformed services if such student's
            cumulative period of service in the Armed Forces (including the
            National Guard or Reserve), with respect to the institution of
            higher education for which a student seeks readmission, does not
            exceed five years, except that any such period of service shall
            not include any service--
                        ``(A) that is required, beyond five years, to
                    complete an initial period of obligated service;
                        ``(B) during which such student was unable to obtain
                    orders releasing such student from a period of service
                    in the uniformed services before the expiration of such
                    five-year period and such inability was through no fault
                    of such student; or
                        ``(C) performed by a member of the Armed Forces
                    (including the National Guard and Reserves) who is--

    [[Page 122 STAT. 3292]]

                              ``(i) ordered to or retained on active duty
                          under section 688, 12301(a), 12301(g), 12302,
                          12304, or 12305 of title 10, United States Code,
                          or under section 331, 332, 359, 360, 367, or 712
                          of title 14, United States Code;
                              ``(ii) ordered to or retained on active duty
                          (other than for training) under any provision of
                          law because of a war or national emergency
                          declared by the President or the Congress, as
                          determined by the Secretary concerned;
                              ``(iii) ordered to active duty (other than for
                          training) in support, as determined by the
                          Secretary concerned, of an operational mission for
                          which personnel have been ordered to active duty
                          under section 12304 of title 10, United States
                          Code;
                              ``(iv) ordered to active duty in support, as
                          determined by the Secretary concerned, of a
                          critical mission or requirement of the Armed
                          Forces (including the National Guard or Reserve);
                          or
                              ``(v) called into Federal service as a member
                          of the National Guard under chapter 15 of title
                          10, United States Code, or section 12406 of title
                          10, United States Code.
                ``(4) Notification <<NOTE: Deadlines.>> of intent to
            return.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), a student referred to in subsection
                    (a) shall, upon the completion of a period of service in
                    the uniformed services, notify the institution of higher
                    education of the student's intent to return to the
                    institution not later than three years after the
                    completion of the period of service.
                        ``(B) Hospitalization or convalescence.--A student
                    who is hospitalized for or convalescing from an illness
                    or injury incurred in or aggravated during the
                    performance of service in the uniformed services shall
                    notify the institution of higher education of the
                    student's intent to return to the institution not later
                    than two years after the end of the period that is
                    necessary for recovery from such illness or injury.
                        ``(C) Special rule.--A student who fails to apply
                    for readmission within the period described in this
                    section shall not automatically forfeit such eligibility
                    for readmission to the institution of higher education,
                    but shall be subject to the institution of higher
                    education's established leave of absence policy and
                    general practices.
                ``(5) Documentation.--
                        ``(A) In general.--A student who submits an
                    application for readmission to an institution of higher
                    education under this section shall provide to the
                    institution of higher education documentation to
                    establish that--
                              ``(i) the student has not exceeded the service
                          limitations established under this section; and
                              ``(ii) the student's eligibility for
                          readmission has not been terminated due to an
                          exception in subsection (d).
                        ``(B) Prohibited documentation demands.--An
                    institution of higher education may not delay or attempt
                    to avoid a readmission of a student under this section

    [[Page 122 STAT. 3293]]

                    by demanding documentation that does not exist, or is
                    not readily available, at the time of readmission.
                ``(6) No change in academic status.--A student who is
            readmitted to an institution of higher education under this
            section shall be readmitted with the same academic status as
            such student had when such student last attended the institution
            of higher education.

        ``(d) Exception From Readmission Eligibility.--A student's
    eligibility for readmission to an institution of higher education under
    this section by reason of such student's service in the uniformed
    services terminates upon the occurrence of any of the following events:
                ``(1) A separation of such person from the Armed Forces
            (including the National Guard and Reserves) with a dishonorable
            or bad conduct discharge.
                ``(2) A dismissal of such person permitted under section
            1161(a) of title 10, United States Code.
                ``(3) A dropping of such person from the rolls pursuant to
            section 1161(b) of title 10, United States Code.''.
    SEC. 488. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR
                            STUDENTS.

        (a) Information Dissemination Activities.--Section 485(a) (20 U.S.C.
    1092(a)) is amended--
                (1) in paragraph (1)--
                        (A) in subparagraph (G)--
                              (i) by striking ``program, and'' and inserting
                          ``program,''; and
                              (ii) by inserting ``, and (iv) any plans by
                          the institution for improving the academic program
                          of the institution'' after ``instructional
                          personnel''; and
                        (B) by striking subparagraph (M) and inserting the
                    following:
                        ``(M) the terms and conditions of the loans that
                    students receive under parts B, D, and E;'';
                        (C) in subparagraph (N), by striking ``and'' after
                    the semicolon;
                        (D) in subparagraph (O), by striking the period and
                    inserting a semicolon; and
                        (E) by adding at the end the following:
                        ``(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;

    [[Page 122 STAT. 3294]]

                        ``(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.''; and
                (2) by striking paragraph (4) and inserting the following:
                ``(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 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.''; and
                (3) by adding at the end the following:
                ``(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

    [[Page 122 STAT. 3295]]

            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) <<NOTE: Deadline. Recommen- dations.>> 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) <<NOTE: Deadline.>> 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--
                        ``(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) <<NOTE: Time period.>> during the period
                    beginning on the date of enactment of the Higher
                    Education Opportunity Act, and ending on June 30,
                    2011.''.

        (b) Exit Counseling.--Subsection (b)(1)(A) of section 485 (20 U.S.C.
    1092(b)(1)(A)) is amended to read as follows:
        ``(b) Exit Counseling for Borrowers.--(1)(A) Each eligible
    institution shall, through financial aid offices or otherwise, provide
    counseling to borrowers of loans that are made, insured, or guaranteed
    under part B (other than loans made pursuant to section

    [[Page 122 STAT. 3296]]

    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) information on the repayment plans available,
            including a description of the different features of each plan
            and sample information showing the average anticipated monthly
            payments, and the difference in interest paid and total
            payments, under each plan;
                ``(ii) debt management strategies that are designed to
            facilitate the repayment of such indebtedness;
                ``(iii) an explanation that the borrower has the options to
            prepay each loan, pay each loan on a shorter schedule, and
            change repayment plans;
                ``(iv) 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) 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) the consequences of defaulting on a loan, including
            adverse credit reports, delinquent debt collection procedures
            under Federal law, and litigation;
                ``(vii) 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) a general description of the types of tax benefits
            that may be available to borrowers; and
                ``(ix) 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''.

        (c) Departmental Publication of Descriptions of Assistance
    Programs.--Section 485(d) (20 U.S.C. 1092(d)) is amended--
                (1) in paragraph (1)--
                        (A) by inserting after ``under this title.'' the
                    following: ``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

    [[Page 122 STAT. 3297]]

                    B and income-contingent and income-based repayment plans
                    for loans made under part D.''; and
                        (B) by inserting after ``tax-exempt organization.''
                    the following: ``The Secretary shall also provide
                    information on loan forbearance, including the increase
                    in debt that results from capitalization of interest.'';
                    and
                (2) by adding at the end the following:

        ``(4) <<NOTE: Public information.>> 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.''.

        (d) Disclosure of Athletically Related Graduation Rates.--Section
    485(e)(3) (20 U.S.C. 1092(e)(3)) is amended to read as follows:
                ``(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
                    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.''.

        (e) Criminal Offenses Reported.--Section 485(f) (20 U.S.C. 1092(f))
    is amended--
                (1) in paragraph (1)--
                        (A) in the matter preceding subparagraph (A), by
                    inserting ``, other than a foreign institution higher
                    education,'' after ``under this title'';
                        (B) in subparagraph (C), by striking clauses (i) and
                    (ii) and inserting the following:
                              ``(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.'';
                        (C) in subparagraph (F)(ii)--
                              (i) by striking ``clause (i), and'' and
                          inserting ``clause (i), of larceny-theft, simple
                          assault, intimidation, and destruction, damage, or
                          vandalism of property, and of''; and
                              (ii) by inserting a comma after ``any
                          person''; and

    [[Page 122 STAT. 3298]]

                        (D) by adding at the end the following new
                    subparagraph:
                        ``(J) A statement of current campus policies
                    regarding immediate emergency response and evacuation
                    procedures, including the use of electronic and cellular
                    communication (if appropriate), which policies shall
                    include procedures to--
                              ``(i) immediately notify the campus community
                          upon the confirmation of a significant emergency
                          or dangerous situation involving an immediate
                          threat to the health or safety of students or
                          staff occurring on the campus, as defined in
                          paragraph (6), unless issuing a notification will
                          compromise efforts to contain the emergency;
                              ``(ii) publicize emergency response and
                          evacuation procedures on an annual basis in a
                          manner designed to reach students and staff; and
                              ``(iii) test emergency response and evacuation
                          procedures on an annual basis.'';
                (2) by redesignating paragraph (15) as paragraph (18); and
                (3) by inserting after paragraph (14) the following:
                ``(15) <<NOTE: Deadline. Reports.>> 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) The Secretary may seek the advice and counsel of the
            Attorney General concerning the development, and dissemination
            to institutions of higher education, of best practices
            information about campus safety and emergencies.
                ``(17) Nothing in this subsection shall be construed to
            permit an institution, or an officer, employee, or agent of an
            institution, participating in any program under this title to
            retaliate, intimidate, threaten, coerce, or otherwise
            discriminate against any individual with respect to the
            implementation of any provision of this subsection.''.

        (f) Report.--Section 485(g)(4) (20 U.S.C. 1092(g)(4)) is amended--
                (1) by striking subparagraph (B);
                (2) by redesignating subparagraphs (C) and (D) as
            subparagraphs (B) and (C), respectively;
                (3) in subparagraph (B) (as redesignated by paragraph (2)),
            by striking ``and the report to Congress described in
            subparagraph (B)''; and
                (4) in subparagraph (C) (as redesignated by paragraph (2)),
            by striking ``the information reported under subparagraph (B)
            and''.

        (g) Additional Requirements.--Section 485 (20 U.S.C. 1092) is
    further amended by adding at the end the following new subsections:
        ``(h) Transfer of Credit Policies.--
                ``(1) Disclosure.--Each institution of higher education
            participating in any program under this title shall publicly
            disclose, in a readable and comprehensible manner, the transfer
            of credit policies established by the institution which shall
            include a statement of the institution's current transfer of
            credit policies that includes, at a minimum--

    [[Page 122 STAT. 3299]]

                        ``(A) any established criteria the institution uses
                    regarding the transfer of credit earned at another
                    institution of higher education; and
                        ``(B) a list of institutions of higher education
                    with which the institution has established an
                    articulation agreement.
                ``(2) Rule of construction.--Nothing in this subsection
            shall be construed to--
                        ``(A) authorize the Secretary or the National
                    Advisory Committee on Institutional Quality and
                    Integrity to require particular policies, procedures, or
                    practices by institutions of higher education with
                    respect to transfer of credit;
                        ``(B) authorize an officer or employee of the
                    Department to exercise any direction, supervision, or
                    control over the curriculum, program of instruction,
                    administration, or personnel of any institution of
                    higher education, or over any accrediting agency or
                    association;
                        ``(C) limit the application of the General Education
                    Provisions Act; or
                        ``(D) create any legally enforceable right on the
                    part of a student to require an institution of higher
                    education to accept a transfer of credit from another
                    institution.

        ``(i) Disclosure of Fire Safety Standards and Measures.--
                ``(1) Annual fire safety reports on student housing
            required.-- <<NOTE: Publication.>> 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 eligible institution
            participating in any program under this title shall, on an
            annual basis, submit to the Secretary a copy of the statistics
            required to be made available under paragraph (1)(A).

    [[Page 122 STAT. 3300]]

                ``(3) Current information to campus community.--Each
            eligible institution participating in any program under this
            title shall--
                        ``(A) <<NOTE: Records.>> 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) <<NOTE: Deadline. Reports.>> make annual
                    reports to the campus community on such fires.
                ``(4) Responsibilities of the secretary.--
            <<NOTE: Public. information.>> 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 (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

    [[Page 122 STAT. 3301]]

            of any court, agency, board, or other entity, except with
            respect to an action to enforce this subsection.

        ``(j) Missing <<NOTE: Notification.>> 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

    [[Page 122 STAT. 3302]]

                                        ``(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 484(r)(1) a separate, clear, and conspicuous
            written notice that notifies the student of the loss of
            eligibility and advises the student of the ways in which the
            student can regain eligibility under section 484(r)(2).

        ``(l) Entrance Counseling for Borrowers.--
                ``(1) Disclosure required prior to disbursement.--
                        ``(A) In general.--Each eligible institution shall,
                    at or prior to the time of a disbursement to a first-
                    time borrower of a loan made, insured, or guaranteed
                    under part B (other than a loan made pursuant to section
                    428C or a loan made on behalf of a student pursuant to
                    section 428B) or made under part D (other than a Federal
                    Direct Consolidation Loan or a Federal Direct PLUS loan
                    made on behalf of a student), ensure that the borrower
                    receives comprehensive information on the terms and
                    conditions of the loan and of the responsibilities the
                    borrower has with respect to such loan in accordance
                    with subparagraph (B). 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.

    [[Page 122 STAT. 3303]]

                ``(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.''.
    SEC. 489. NATIONAL STUDENT LOAN DATA SYSTEM.

        Section 485B (20 U.S.C. 1092b) is amended--
                (1) in subsection (a)--
                        (A) by redesignating paragraphs (6) through (10) as
                    paragraphs (7) through (11), respectively;

    [[Page 122 STAT. 3304]]

                        (B) in paragraph (5) (as added by Public Law 101-
                    610), by striking ``effectiveness.'' and inserting
                    ``effectiveness;''; and
                        (C) by redesignating paragraph (5) (as added by
                    Public Law 101-234) as paragraph (6);
                (2) by redesignating subsections (d) through (g) as
            subsections (e) through (h), respectively; and
                (3) by inserting after subsection (c) the following:

        ``(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 (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;

    [[Page 122 STAT. 3305]]

                        ``(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
                (4) by striking subsection (e) (as redesignated by paragraph
            (1)) and inserting the following:

        ``(e) 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 information
                    in the data system;
                        ``(B) the success of any new authorization protocols
                    in more effectively preventing abuse of the data system;
                        ``(C) 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.
                ``(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.''.
    SEC. 490. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY.

        Part G of title IV (20 U.S.C. 1088 et seq.) is amended by inserting
    after section 485D (20 U.S.C. 1092c) the following:
    ``SEC. 485E. <<NOTE: 20 USC 1092f.>> EARLY AWARENESS OF FINANCIAL
                              AID ELIGIBILITY.

        ``(a) In General.--The Secretary shall implement, in cooperation
    with States, institutions of higher education, secondary schools,

    [[Page 122 STAT. 3306]]

    early intervention and outreach programs under this title, other
    agencies and organizations involved in student financial assistance and
    college access, public libraries, community centers, employers, and
    businesses, a comprehensive system of early financial aid information in
    order to provide students and families with early information about
    financial aid and early estimates of such students' eligibility for
    financial aid from multiple sources. Such system shall include the
    activities described in subsection (b).
        ``(b) Communication of Availability of Aid and Aid Eligibility.--
                ``(1) Students who receive benefits.--The Secretary shall--
                        ``(A) <<NOTE: Notification.>> make special efforts
                    to notify students who receive or are eligible to
                    receive benefits under a Federal means-tested benefit
                    program (including the supplemental nutrition assistance
                    program under the Food and Nutrition Act of 2008 (7
                    U.S.C. 2011 et seq.)), or another such benefit program
                    as determined by the Secretary, of such students'
                    potential eligibility for a maximum Federal Pell Grant
                    under subpart 1 of part A; and
                        ``(B) disseminate such informational materials, that
                    are part of the system described in subsection (a), as
                    the Secretary determines necessary.
                ``(2) Secondary school students.--
            <<NOTE: Notification.>> The Secretary, in cooperation with
            States, institutions of higher education, other organizations
            involved in college access and student financial aid, secondary
            schools, and programs under this title that serve secondary
            school students, shall make special efforts to notify students
            in secondary school and their families, as early as possible but
            not later than such students' junior year of secondary school,
            of the availability of financial aid under this title and shall
            provide nonbinding estimates of the amounts of grant and loan
            aid that an individual may be eligible for under this title upon
            completion of an application form under section 483(a). The
            Secretary shall ensure that such information is as accurate as
            possible and that such information is provided in an age-
            appropriate format using dissemination mechanisms suitable for
            students in secondary school.
                ``(3) Adult learners.--The Secretary, in cooperation with
            States, institutions of higher education, other organizations
            involved in college access and student financial aid, employers,
            workforce investment boards, and public libraries, shall make
            special efforts to provide individuals who would qualify as
            independent students, as defined in section 480(d), with
            information regarding the availability of financial aid under
            this title and with nonbinding estimates of the amounts of grant
            and loan aid that an individual may be eligible for under this
            title upon completion of an application form under section
            483(a). The Secretary shall ensure that such information--
                        ``(A) is as accurate as possible;
                        ``(B) includes specific information regarding the
                    availability of financial aid for students qualified as
                    independent students, as defined in section 480(d); and
                        ``(C) uses dissemination mechanisms suitable for
                    adult learners.

    [[Page 122 STAT. 3307]]

                ``(4) Public <<NOTE: Deadline.>> awareness campaign.--Not
            later than two years after the date of enactment of the Higher
            Education Opportunity Act, the Secretary, in coordination with
            States, institutions of higher education, early intervention and
            outreach programs under this title, other agencies and
            organizations involved in college access and student financial
            aid, secondary schools, organizations that provide services to
            individuals that are or were homeless, to individuals in foster
            care, or to other disconnected individuals, local educational
            agencies, public libraries, community centers, businesses,
            employers, employment services, workforce investment boards, and
            movie theaters, shall implement a public awareness campaign in
            order to increase national awareness regarding the availability
            of financial aid under this title. The public awareness campaign
            shall disseminate accurate information regarding the
            availability of financial aid under this title and shall be
            implemented, to the extent practicable, using a variety of
            media, including print, television, radio, and the Internet. The
            Secretary shall design and implement the public awareness
            campaign based upon relevant independent research and the
            information and dissemination strategies found most effective in
            implementing paragraphs (1) through (3).''.
    SEC. 491. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.

        Section 486(f)(3) (20 U.S.C. 1093(f)(3)) is amended--
                (1) in subparagraph (B), by redesignating clauses (i) and
            (ii) as subparagraphs (A) and (B), respectively, and adjusting
            the margins accordingly; and
                (2) by striking ``Reports.--'' and all that follows through
            ``House of Representatives on an annual basis'' and inserting
            ``Annual reports.--The Secretary shall provide reports to the
            authorizing committees on an annual basis''.
    SEC. 492. ARTICULATION AGREEMENTS.

        Part G of title IV is further amended by inserting after section 486
    (20 U.S.C. 1093) the following new section:
    ``SEC. 486A. <<NOTE: 20 USC 1093a.>> ARTICULATION AGREEMENTS.

        ``(a) Definition.--In this section, the term `articulation
    agreement' means an agreement between or among institutions of higher
    education that specifies the acceptability of courses in transfer toward
    meeting specific degree or program requirements.
        ``(b) Program To Encourage Articulation Agreements.--
                ``(1) Program established.--The Secretary shall carry out a
            program for States, in cooperation with public institutions of
            higher education, to develop, enhance, and implement
            comprehensive articulation agreements between or among such
            institutions in a State, and (to the extent practicable) across
            State lines, by 2010. Such <<NOTE: Public information. Web
            site.>>  articulation agreements shall be made widely and
            publicly available on the websites of States and such
            institutions. In developing, enhancing, and implementing
            articulation agreements, States and public institutions of
            higher education may employ strategies, where applicable,
            including--
                        ``(A) common course numbering;
                        ``(B) a general education core curriculum;
                        ``(C) management systems regarding course
                    equivalency, transfer of credit, and articulation; and

    [[Page 122 STAT. 3308]]

                        ``(D) other strategies identified by the Secretary.
                ``(2) Technical assistance provided.--The Secretary shall
            provide technical assistance to States and public institutions
            of higher education for the purposes of developing and
            implementing articulation agreements in accordance with this
            subsection.
                ``(3) Rule of construction.--Nothing in this subsection
            shall be construed to authorize the Secretary to require
            particular policies, procedures, or practices by institutions of
            higher education with respect to articulation agreements.''.
    SEC. 493. PROGRAM PARTICIPATION AGREEMENTS.

        (a) Program Participation Agreement Requirements.--
                (1) Voter registration; 90-10 rule; code of conduct;
            disciplinary proceedings; preferred lender lists; private
            education loan certification; copyrighted material.--
                        (A) Amendment.--Section 487(a) (20 U.S.C. 1094(a))
                    is amended--
                              (i) in paragraph (23)--
                                        (I) by moving subparagraph (C) two
                                    ems to the left; and
                                        (II) by adding at the end the
                                    following:
                        ``(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.'';
                    and
                              (ii) by adding at the end the following:
                ``(24) In the case of a proprietary institution of higher
            education (as defined in section 102(b)), such institution will
            derive not less than ten percent of such institution's revenues
            from sources other than funds provided under this title, as
            calculated in accordance with subsection (d)(1), or will be
            subject to the sanctions described in subsection (d)(2).
                ``(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) <<NOTE: Web site.>> 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

    [[Page 122 STAT. 3309]]

            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 <<NOTE: Lists.>> 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 <<NOTE: Certification.>> 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.''.
                        (B) Effective <<NOTE: 20 USC 1094 note.>> date.--The
                    amendment made by subparagraph (A) with respect to
                    section 487(a)(26) of the Higher Education Act of 1965
                    (as added by subparagraph (A)) shall apply with respect
                    to any disciplinary proceeding conducted by an
                    institution on or after the day that is one year after
                    the date of enactment of this Act.

        (b) Audits; Financial Responsibility; Enforcement of Standards.--
    Section 487(c)(1)(A)(i) (20 U.S.C. 1094(c)(1)(A)(i)) is amended by
    inserting before the semicolon at the end the following: ``, except that
    the Secretary may modify the requirements of this clause with respect to
    institutions of higher education that are foreign institutions, and may
    waive such requirements with respect to a foreign institution whose
    students receives less than $500,000 in loans under this title during
    the award year preceding the audit period''.
        (c) Implementation of Non-Title IV Revenue Requirement; Code of
    Conduct; Institutional Requirements for Teach-Outs; Inspector General
    Report on Gift Ban Violations; Preferred Lender List Requirements.--
    Section 487 (20 U.S.C. 1094) is further amended--

    [[Page 122 STAT. 3310]]

                (1) by redesignating subsections (d) and (e) as subsections
            (i) and (j), respectively; and
                (2) by inserting after subsection (c) the following:

        ``(d) Implementation of Non-Title IV Revenue Requirement.--
                ``(1) Calculation.--In making calculations under subsection
            (a)(24), a proprietary institution of higher education shall--
                        ``(A) use the cash basis of accounting, except in
                    the case of loans described in subparagraph (D)(i) that
                    are made by the proprietary institution of higher
                    education;
                        ``(B) consider as revenue only those funds generated
                    by the institution from--
                              ``(i) tuition, fees, and other institutional
                          charges for students enrolled in programs eligible
                          for assistance under this title;
                              ``(ii) activities conducted by the institution
                          that are necessary for the education and training
                          of the institution's students, if such activities
                          are--
                                        ``(I) conducted on campus or at a
                                    facility under the control of the
                                    institution;
                                        ``(II) performed under the
                                    supervision of a member of the
                                    institution's faculty; and
                                        ``(III) required to be performed by
                                    all students in a specific educational
                                    program at the institution; and
                              ``(iii) funds paid by a student, or on behalf
                          of a student by a party other than the
                          institution, for an education or training program
                          that is not eligible for funds under this title,
                          if the program--
                                        ``(I) is approved or licensed by the
                                    appropriate State agency;
                                        ``(II) is accredited by an
                                    accrediting agency recognized by the
                                    Secretary; or
                                        ``(III) provides an industry-
                                    recognized credential or certification;
                        ``(C) presume that any funds for a program under
                    this title that are disbursed or delivered to or on
                    behalf of a student will be used to pay the student's
                    tuition, fees, or other institutional charges,
                    regardless of whether the institution credits those
                    funds to the student's account or pays those funds
                    directly to the student, except to the extent that the
                    student's tuition, fees, or other institutional charges
                    are satisfied by--
                              ``(i) grant funds provided by non-Federal
                          public agencies or private sources independent of
                          the institution;
                              ``(ii) funds provided under a contractual
                          arrangement with a Federal, State, or local
                          government agency for the purpose of providing job
                          training to low-income individuals who are in need
                          of that training;
                              ``(iii) funds used by a student from savings
                          plans for educational expenses established by or
                          on behalf of the student and which qualify for
                          special tax treatment under the Internal Revenue
                          Code of 1986; or
                              ``(iv) institutional scholarships described in
                          subparagraph (D)(iii);

    [[Page 122 STAT. 3311]]

                        ``(D) include institutional aid as revenue to the
                    school only as follows:
                              ``(i) in the case of loans made by a
                          proprietary institution of higher education on or
                          after July 1, 2008 and prior to July 1, 2012, the
                          net present value of such loans made by the
                          institution during the applicable institutional
                          fiscal year accounted for on an accrual basis and
                          estimated in accordance with generally accepted
                          accounting principles and related standards and
                          guidance, if the loans--
                                        ``(I) are bona fide as evidenced by
                                    enforceable promissory notes;
                                        ``(II) are issued at intervals
                                    related to the institution's enrollment
                                    periods; and
                                        ``(III) are subject to regular loan
                                    repayments and collections;
                              ``(ii) in the case of loans made by a
                          proprietary institution of higher education on or
                          after July 1, 2012, only the amount of loan
                          repayments received during the applicable
                          institutional fiscal year, excluding repayments on
                          loans made and accounted for as specified in
                          clause (i); and
                              ``(iii) in the case of scholarships provided
                          by a proprietary institution of higher education,
                          only those scholarships provided by the
                          institution in the form of monetary aid or tuition
                          discounts based upon the academic achievements or
                          financial need of students, disbursed during each
                          fiscal year from an established restricted
                          account, and only to the extent that funds in that
                          account represent designated funds from an outside
                          source or from income earned on those funds;
                        ``(E) in the case of each student who receives a
                    loan on or after July 1, 2008, and prior to July 1,
                    2011, that is authorized under section 428H or that is a
                    Federal Direct Unsubsidized Stafford Loan, treat as
                    revenue received by the institution from sources other
                    than funds received under this title, the amount by
                    which the disbursement of such loan received by the
                    institution exceeds the limit on such loan in effect on
                    the day before the date of enactment of the Ensuring
                    Continued Access to Student Loans Act of 2008; and
                        ``(F) exclude from revenues--
                              ``(i) the amount of funds the institution
                          received under part C, unless the institution used
                          those funds to pay a student's institutional
                          charges;
                              ``(ii) the amount of funds the institution
                          received under subpart 4 of part A;
                              ``(iii) the amount of funds provided by the
                          institution as matching funds for a program under
                          this title;
                              ``(iv) the amount of funds provided by the
                          institution for a program under this title that
                          are required to be refunded or returned; and
                              ``(v) the amount charged for books, supplies,
                          and equipment, unless the institution includes
                          that amount as tuition, fees, or other
                          institutional charges.
                ``(2) Sanctions.--

    [[Page 122 STAT. 3312]]

                        ``(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 <<NOTE: Termination.>> enforcement.--In
                    addition to such other means of enforcing the
                    requirements of this title as may be available to the
                    Secretary, if a proprietary institution of higher
                    education fails to meet a requirement of subsection
                    (a)(24) for any institutional fiscal year, then the
                    institution's eligibility to participate in the programs
                    authorized by this title becomes provisional for the two
                    institutional fiscal years after the institutional
                    fiscal year in which the institution failed to meet the
                    requirement of subsection (a)(24), except that such
                    provisional eligibility shall terminate--
                              ``(i) on the expiration date of the
                          institution's program participation agreement
                          under this subsection that is in effect on the
                          date the Secretary determines that the institution
                          failed to meet the requirement of subsection
                          (a)(24); or
                              ``(ii) in the case that the Secretary
                          determines that the institution failed to meet a
                          requirement of subsection (a)(24) for two
                          consecutive institutional fiscal years, on the
                          date the institution is determined ineligible in
                          accordance with subparagraph (A).
                ``(3) Publication on college navigator website.--The
            Secretary shall publicly disclose on the College Navigator
            website--
                        ``(A) the identity of any proprietary institution of
                    higher education that fails to meet a requirement of
                    subsection (a)(24); and
                        ``(B) the extent to which the institution failed to
                    meet such requirement.
                ``(4) Report to congress.--Not later than July 1, 2009, and
            July 1 of each succeeding year, the Secretary shall submit to
            the authorizing committees a report that contains, for each
            proprietary institution of higher education that receives
            assistance under this title, as provided in the audited
            financial statements submitted to the Secretary by each
            institution pursuant to the requirements of subsection (a)(24)--
                        ``(A) the amount and percentage of such
                    institution's revenues received from sources under this
                    title; and
                        ``(B) the amount and percentage of such
                    institution's revenues received from other sources.

        ``(e) 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.--

    [[Page 122 STAT. 3313]]

                        ``(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

    [[Page 122 STAT. 3314]]

                                                ``(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

    [[Page 122 STAT. 3315]]

                              ``(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,

    [[Page 122 STAT. 3316]]

                          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.-- <<NOTE: Plans.>> 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)(4), the
            Secretary's regulations on teach-out plans, and the standards of
            the institution's accrediting agency or association.
                ``(2) Teach-out plan defined.--In this subsection, the term
            `teach-out plan' means a written plan that provides for the
            equitable treatment of students if an institution of higher
            education ceases to operate before all students have completed
            their program of study, and may include, if required by the
            institution's accrediting agency or association, an agreement
            between institutions for such a teach-out plan.

        ``(g) 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 (f)(2); and
                ``(2) <<NOTE: Public information. Web site.>> 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

    [[Page 122 STAT. 3317]]

                              ``(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).''.

        (d) Definitions.--Section 487(i) (as redesignated by subsection
    (c)(1)) (20 U.S.C. 1087(i)) <<NOTE: 20 USC 1094.>> is further amended--
                (1) by striking ``(i) Definition of Eligible Institution.--
            For the purpose of this section, the'' and inserting the
            following:

    [[Page 122 STAT. 3318]]

        ``(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''; and
                (2) by adding at the end the following new paragraph:
                ``(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.''.
    SEC. 494. REGULATORY RELIEF AND IMPROVEMENT.

        Section 487A(b) (20 U.S.C. 1094a(b)) is amended--
                (1) by amending paragraph (1) to read as follows:
                ``(1) In general.-- <<NOTE: Effective date.>> 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 <<NOTE: Deadline.>> activities 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, 2009.'';
                (2) in paragraph (2), by striking the matter preceding
            subparagraph (A) and inserting the following:
                ``(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--''; and
                (3) in paragraph (3)--
                        (A) in subparagraph (A)--
                              (i) by striking ``Upon the submission of the
                          report required by paragraph (2), the'' and
                          inserting ``The''; and
                              (ii) by inserting ``periodically'' after
                          ``authorized to'';
                        (B) by striking subparagraph (B);
                        (C) by redesignating subparagraph (C) as
                    subparagraph (B); and
                        (D) in subparagraph (B) (as redesignated by
                    subparagraph (C))--

    [[Page 122 STAT. 3319]]

                              (i) by inserting ``, 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'' after
                          ``requirements in this title'';
                              (ii) by inserting ``(other than an award rule
                          related to an experiment in modular or compressed
                          schedules)'' after ``award rules''; and
                              (iii) by inserting ``unless the waiver of such
                          provisions is authorized by another provision
                          under this title'' before the period at the end.
    SEC. 494A. TRANSFER OF ALLOTMENTS.

        Section 488 (20 U.S.C. 1095) is amended in the first sentence--
                (1) in paragraph (1), by striking ``and'' after the
            semicolon;
                (2) in paragraph (2), by striking ``413D.'' and inserting
            ``413D or 462 (or both); and''; and
                (3) by adding at the end ``(3) transfer 25 percent of the
            institution's allotment under section 413D to the institution's
            allotment under section 442.''.
    SEC. 494B. PURPOSE OF ADMINISTRATIVE PAYMENTS.

        Section 489(b)(1) (20 U.S.C. 1096(b)(1)) is amended by striking
    ``offsetting the administrative costs of'' and inserting
    ``administering''.
    SEC. 494C. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.

        (a) Amendments.--Section 491 (20 U.S.C. 1098) is amended--
                (1) in subsection (a)(2)--
                        (A) in subparagraph (B), by striking ``and'' after
                    the semicolon;
                        (B) in subparagraph (C), by striking the period and
                    inserting a semicolon; and
                        (C) by adding at the end the following:
                        ``(D) to provide knowledge and understanding of
                    early intervention programs, and to make recommendations
                    that will result in early awareness by low- and
                    moderate-income students and families--
                              ``(i) of their eligibility for assistance
                          under this title; and
                              ``(ii) to the extent practicable, of their
                          eligibility for other forms of State and
                          institutional need-based student assistance;
                        ``(E) to make recommendations that will expand and
                    improve partnerships among the Federal Government,
                    States, institutions of higher education, and private
                    entities to increase the awareness and the total amount
                    of need-based student assistance available to low- and
                    moderate-income students; and
                        ``(F) to collect information on Federal regulations,
                    and on the impact of Federal regulations on student
                    financial assistance and on the cost of receiving a
                    postsecondary

    [[Page 122 STAT. 3320]]

                    education, and to make recommendations to help
                    streamline the regulations for institutions of higher
                    education from all sectors.'';
                (2) by striking subsection (c) and inserting the following
            new subsection:

        ``(c) Membership.--(1) The Advisory Committee shall consist of 11
    members appointed as follows:
                ``(A) <<NOTE: President.>> Four members shall be appointed
            by the President pro tempore of the Senate, of whom two members
            shall be appointed from recommendations by the Majority Leader
            of the Senate, and two members shall be appointed from
            recommendations by the Minority Leader of the Senate.
                ``(B) Four members shall be appointed by the Speaker of the
            House of Representatives, of whom two members shall be appointed
            from recommendations by the Majority Leader of the House of
            Representatives, and two members shall be appointed from
            recommendations by the Minority Leader of the House of
            Representatives.
                ``(C) Three members shall be appointed by the Secretary, of
            whom at least one member shall be a student.

        ``(2) Each member of the Advisory Committee, with the exception of a
    student member, shall be appointed on the basis of technical
    qualifications, professional experience, and demonstrated knowledge in
    the fields of higher education, student financial aid, financing post-
    secondary education, and the operations and financing of student loan
    guarantee agencies.
        ``(3) The <<NOTE: Effective date. Publication.>> appointment of a
    member under subparagraph (A) or (B) of paragraph (1) shall be effective
    upon publication of such appointment in the Congressional Record.'';
                (3) in subsection (d)--
                        (A) in paragraph (6), by striking ``, but nothing in
                    this section shall authorize the committee to perform
                    such studies, surveys, or analyses'';
                        (B) in paragraph (8), by striking ``and'' after the
                    semicolon;
                        (C) by redesignating paragraph (9) as paragraph
                    (11); and
                        (D) by inserting after paragraph (8) (as amended by
                    subparagraph (B)) the following:
                ``(9) provide <<NOTE: Deadline. Reports.>> an annual report
            to the authorizing committees that provides analyses and policy
            recommendations regarding--
                        ``(A) the adequacy of need-based grant aid for low-
                    and moderate-income students; and
                        ``(B) the postsecondary enrollment and graduation
                    rates of low- and moderate-income students;
                ``(10) develop <<NOTE: Clearinghouse.>> and maintain an
            information clearinghouse to help institutions of higher
            education understand the regulatory impact of the Federal
            Government on institutions of higher education from all sectors,
            in order to raise awareness of institutional legal obligations
            and provide information to improve compliance with, and to
            reduce the duplication and inefficiency of, Federal regulations;
            and'';
                (4) in subsection (e)--
                        (A) in the matter preceding subparagraph (A) of
                    paragraph (1), by striking ``3'' and inserting ``4'';
                    and
                        (B) in paragraph (2), by striking ``A member of the
                    Advisory Committee shall'' and all that follows through

    [[Page 122 STAT. 3321]]

                    ``on the Advisory Committee.'' and inserting ``A member
                    of the Advisory Committee serving on the date of
                    enactment of the Higher Education Opportunity Act shall
                    be permitted to serve the duration of the member's term,
                    regardless of whether the member was previously
                    appointed to more than one term.'';
                (5) in subsection (j)--
                        (A) in paragraph (1)--
                              (i) by inserting ``and simplifications'' after
                          ``delivery processes''; and
                              (ii) by striking ``including the
                          implementation of a performance-based organization
                          within the Department, and report to Congress
                          regarding such modernization on not less than an
                          annual basis,''; and
                        (B) by striking paragraphs (4) and (5) and inserting
                    the following:
                ``(4) conduct a review and analysis of regulations in
            accordance with subsection (l); and
                ``(5) conduct a study in accordance with subsection (m).'';
                (6) in subsection (k), by striking ``2004'' and inserting
            ``2014''; and
                (7) by adding at the end the following:

        ``(l) Review and Analysis of Regulations.--
                ``(1) Recommendations.--The Advisory Committee shall make
            recommendations to the Secretary and the authorizing committees
            for consideration of future legislative action regarding
            redundant or outdated regulations consistent with the
            Secretary's requirements under section 498B.
                ``(2) Review and analysis of regulations.--
                        ``(A) Review of current regulations.--To meet the
                    requirements of subsection (d)(10), the Advisory
                    Committee shall conduct a review and analysis of the
                    regulations issued by Federal agencies that are in
                    effect at the time of the review and that apply to the
                    operations or activities of institutions of higher
                    education from all sectors. The review and analysis may
                    include a determination of whether the regulation is
                    duplicative, is no longer necessary, is inconsistent
                    with other Federal requirements, or is overly
                    burdensome. In conducting the review, the Advisory
                    Committee shall pay specific attention to evaluating
                    ways in which regulations under this title affecting
                    institutions of higher education (other than
                    institutions described in section 102(a)(1)(C)), that
                    have received in each of the two most recent award years
                    prior to the date of enactment of Higher Education
                    Opportunity Act less than $200,000 in funds through this
                    title, may be improved, streamlined, or eliminated.
                        ``(B) Review and collection of future regulations.--
                    The Advisory Committee shall--
                              ``(i) monitor all Federal regulations,
                          including notices of proposed rulemaking, for
                          their impact or potential impact on higher
                          education; and
                              ``(ii) provide a succinct description of each
                          regulation or proposed regulation that is
                          generally relevant to institutions of higher
                          education from all sectors.

    [[Page 122 STAT. 3322]]

                        ``(C) Maintenance of public website.--The Advisory
                    Committee shall develop and maintain an easy to use,
                    searchable, and regularly updated website that--
                              ``(i) provides information collected in
                          subparagraph (B);
                              ``(ii) provides an area for the experts and
                          members of the public to provide recommendations
                          for ways in which the regulations may be
                          streamlined; and
                              ``(iii) publishes the study conducted by the
                          National Research Council of the National Academy
                          of Sciences under section 1106 of the Higher
                          Education Opportunity Act.
                ``(3) Consultation.--
                        ``(A) In general.--In carrying out the review,
                    analysis, and development of the website required under
                    paragraph (2), the Advisory Committee shall consult with
                    the Secretary, other Federal agencies, relevant
                    representatives of institutions of higher education,
                    individuals who have expertise and experience with
                    Federal regulations, and the review panels described in
                    subparagraph (B).
                        ``(B) Review panels.--The Advisory Committee shall
                    convene not less than two review panels of
                    representatives of the groups involved in higher
                    education, including individuals involved in student
                    financial assistance programs under this title, who have
                    experience and expertise in the regulations issued by
                    the Federal Government that affect all sectors of higher
                    education, in order to review the regulations and to
                    provide recommendations to the Advisory Committee with
                    respect to the review and analysis under paragraph (2).
                    The panels shall be made up of experts in areas such as
                    the operations of the financial assistance programs, the
                    institutional eligibility requirements for the financial
                    assistance programs, regulations not directly related to
                    the operations or the institutional eligibility
                    requirements of the financial assistance programs, and
                    regulations for dissemination of information to students
                    about the financial assistance programs.
                ``(4) Periodic updates to the authorizing committees.--The
            Advisory Committee shall--
                        ``(A) <<NOTE: Deadline. Reports.>> submit, not later
                    than two years after the completion of the negotiated
                    rulemaking process required under section 492 resulting
                    from the amendments to this Act made by the Higher
                    Education Opportunity Act, a report to the authorizing
                    committees and the Secretary detailing the review
                    panels' findings and recommendations with respect to the
                    review of regulations; and
                        ``(B) provide periodic updates to the authorizing
                    committees regarding--
                              ``(i) the impact of all Federal regulations on
                          all sectors of higher education; and
                              ``(ii) suggestions provided through the
                          website for streamlining or eliminating
                          duplicative regulations.
                ``(5) Additional support.--The Secretary and the Inspector
            General of the Department shall provide such assistance and
            resources to the Advisory Committee as the Secretary and
            Inspector General determine are necessary to conduct the review
            and analysis required by this subsection.

    [[Page 122 STAT. 3323]]

        ``(m) Study of Innovative Pathways to Baccalaureate Degree
    Attainment.--
                ``(1) Study required.--The Advisory Committee shall conduct
            a study of the feasibility of increasing baccalaureate degree
            attainment rates by reducing the costs and financial barriers to
            attaining a baccalaureate degree through innovative programs.
                ``(2) Scope of study.--The Advisory Committee shall examine
            new and existing programs that promote baccalaureate degree
            attainment through innovative ways, such as dual or concurrent
            enrollment programs, changes made to the Federal Pell Grant
            program, simplification of the needs analysis process,
            compressed or modular scheduling, articulation agreements, and
            programs that allow two-year institutions of higher education to
            offer baccalaureate degrees.
                ``(3) Required aspects of the study.--In performing the
            study described in this subsection, the Advisory Committee shall
            examine the following aspects of such innovative programs:
                        ``(A) The impact of such programs on baccalaureate
                    attainment rates.
                        ``(B) The degree to which a student's total cost of
                    attaining a baccalaureate degree can be reduced by such
                    programs.
                        ``(C) The ways in which low- and moderate-income
                    students can be specifically targeted by such programs.
                        ``(D) The ways in which nontraditional students can
                    be specifically targeted by such programs.
                        ``(E) The cost-effectiveness for the Federal
                    Government, States, and institutions of higher education
                    to implement such programs.
                ``(4) Consultation.--
                        ``(A) In general.--In performing the study described
                    in this subsection, the Advisory Committee shall consult
                    with a broad range of interested parties in higher
                    education, including parents, students, appropriate
                    representatives of secondary schools and institutions of
                    higher education, appropriate State administrators,
                    administrators of dual or concurrent enrollment
                    programs, and appropriate Department officials.
                        ``(B) Consultation with the authorizing
                    committees.--The Advisory Committee shall consult on a
                    regular basis with the authorizing committees in
                    carrying out the study required by this subsection.
                ``(5) Reports to authorizing committees.--
                        ``(A) Interim report.--The Advisory Committee shall
                    prepare and submit to the authorizing committees and the
                    Secretary an interim report, not later than one year
                    after the date of enactment of the Higher Education
                    Opportunity Act, describing the progress made in
                    conducting the study required by this subsection and any
                    preliminary findings on the topics identified under
                    paragraph (2).
                        ``(B) Final report.--The Advisory Committee shall,
                    not later than three years after the date of enactment
                    of the Higher Education Opportunity Act, prepare and
                    submit to the authorizing committees and the Secretary a
                    final report on the study, including recommendations

    [[Page 122 STAT. 3324]]

                    for legislative, regulatory, and administrative changes
                    based on findings related to the topics identified under
                    paragraph (2).''.

        (b) Conforming Amendments.--Subsections (a)(1), (b), and (d)(6) of
    section 491 (20 U.S.C. 1098) are each amended by striking ``Congress''
    and inserting ``authorizing committees''.
    SEC. 494D. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.

        (a) Regional Meetings.--Section 492(a) (20 U.S.C. 1098a(a)) is
    amended--
                (1) in paragraph (1), by inserting ``State student grant
            agencies,'' after ``institutions of higher education,''; and
                (2) in paragraph (2), by striking ``, as amended by the
            Higher Education Amendments of 1998''.

        (b) Negotiated Rulemaking.--Section 492(b)(1) (20 U.S.C.
    1098a(b)(1)) is amended--
                (1) in the first sentence, by striking ``as amended by the
            Higher Education Amendments of 1998''; and
                (2) in the third sentence--
                        (A) by striking ``To the extent possible, the
                    Secretary'' and inserting ``The Secretary''; and
                        (B) by inserting ``with demonstrated expertise or
                    experience in the relevant subjects under negotiation,''
                    after ``select individuals''.
    SEC. 494E. YEAR 2000 REQUIREMENTS AT THE DEPARTMENT.

        Section 493A (20 U.S.C. 1098c) is repealed.
    SEC. 494F. TECHNICAL AMENDMENT OF INCOME-BASED REPAYMENT.

        Section 493C(b)(1) (20 U.S.C. 1098e(b)(1)) is amended by striking
    ``or is already in default'' and inserting ``or had been in default''.

                            PART H--PROGRAM INTEGRITY

    SEC. 495. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION.

        Section 496 (20 U.S.C. 1099b) is amended--
                (1) in subsection (a)--
                        (A) by striking paragraph (4) and inserting the
                    following:
                ``(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

    [[Page 122 STAT. 3325]]

                    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 <<NOTE: Notification.>> the case
                          that the agency or association is recognized by
                          the Secretary, the agency or association shall not
                          be required to obtain the approval of the
                          Secretary to expand its scope of accreditation to
                          include distance education or correspondence
                          education, provided that the agency or association
                          notifies the Secretary in writing of the change in
                          scope; and
                        ``(ii) the agency or association requires an
                    institution that offers distance education or
                    correspondence education to have processes through which
                    the institution establishes that the student who
                    registers in a distance education or correspondence
                    education course or program is the same student who
                    participates in and completes the program and receives
                    the academic credit;'';
                        (B) in paragraph (5), by amending subparagraph (A)
                    to read as follows:
                        ``(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;'';
                        (C) by striking paragraph (6) and inserting the
                    following:
                ``(6) such <<NOTE: Procedures.>> 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--

    [[Page 122 STAT. 3326]]

                              ``(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.'';
                (2) in subsection (c)--
                        (A) in paragraph (1), by inserting ``, including
                    those regarding distance education'' after ``their
                    responsibilities'';
                        (B) by redesignating paragraphs (2) through (6) as
                    paragraphs (4) through (8);
                        (C) by inserting after paragraph (1) (as amended by
                    subparagraph (A)) the following:
                ``(2) monitors the growth of programs at institutions that
            are experiencing significant enrollment growth;
                ``(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;'';
                        (D) by striking paragraph (7) (as redesignated by
                    subparagraph (B)) and inserting the following:
                ``(7) 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

    [[Page 122 STAT. 3327]]

                    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;'';
                        (E) in paragraph (8) (as redesignated by
                    subparagraph (B)), by striking the period and inserting
                    ``; and''; and
                        (F) by adding at the end the following:
                ``(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.'';
                (3) in subsection (g), by adding at the end the following:
            ``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.'';
                (4) in subsection (o), by adding at the end the following:
            ``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).''; and
                (5) by adding at the end the following new subsection:

        ``(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.''.
    SEC. 496. ELIGIBILITY AND CERTIFICATION PROCEDURES.

        Section 498 (20 U.S.C. 1099c) is amended--
                (1) in subsection (d)(1)(B), by inserting ``and'' after the
            semicolon; and
                (2) by adding at the end the following:

        ``(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.

    [[Page 122 STAT. 3328]]

                ``(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. 497. PROGRAM REVIEW AND DATA.

        Section 498A(b) (20 U.S.C. 1099c-1(b)) is amended--
                (1) in paragraph (4), by striking ``and'' after the
            semicolon;
                (2) in paragraph (5) by striking the period and inserting a
            semicolon; and
                (3) by adding at the end the following:
                ``(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.''.
    SEC. 498. REVIEW OF REGULATIONS.

        Section 498B (20 U.S.C. 1099c-2) is amended by striking subsection
    (d).

                 PART I--COMPETITIVE LOAN AUCTION PILOT PROGRAM

    SEC. 499. COMPETITIVE LOAN AUCTION PILOT PROGRAM EVALUATION.

        Section 499 (20 U.S.C. 1099d) is amended--
                (1) in subsection (b)(3)--
                        (A) in subparagraph (B)--
                              (i) in clause (i), by striking ``and'' after
                          the semicolon;
                              (ii) in clause (ii), by striking the period at
                          the end of the sentence and inserting ``; and'';
                          and
                              (iii) by adding at the end the following:
                              ``(iii) a commitment from such eligible lender
                          that, if the lender has a winning bid under
                          subparagraph (F), the lender will enter into the
                          agreement required under subparagraph (G).'';

    [[Page 122 STAT. 3329]]

                        (B) by striking subparagraph (G) and inserting the
                    following:
                        ``(G) Agreement with secretary; compliance.--
                              ``(i) Agreement.--Each eligible lender having
                          a winning bid under subparagraph (F) shall enter
                          into an agreement with the Secretary under which
                          the eligible lender--
                                        ``(I) agrees to originate eligible
                                    Federal PLUS Loans under this paragraph
                                    to each borrower who--
                                                ``(aa) seeks an eligible
                                            Federal PLUS Loan under this
                                            paragraph to enable a dependent
                                            student to attend an institution
                                            of higher education within the
                                            State;
                                                ``(bb) is eligible for an
                                            eligible Federal PLUS Loan; and
                                                ``(cc) elects to borrow from
                                            the eligible lender; and
                                        ``(II) agrees to accept a special
                                    allowance payment (after the application
                                    of section 438(b)(2)(I)(v)) from the
                                    Secretary with respect to the eligible
                                    Federal PLUS Loans originated under
                                    subclause (I) in the amount proposed in
                                    the second lowest winning bid described
                                    in subparagraph (F) for the applicable
                                    State auction.
                              ``(ii) Compliance.--If an eligible lender with
                          a winning bid under subparagraph (F) fails to
                          enter into the agreement required under clause
                          (i), or fails to comply with the terms of such
                          agreement, the Secretary may sanction such
                          eligible lender through one or more of the
                          following:
                                        ``(I) The assessment of a penalty on
                                    such eligible lender for any eligible
                                    Federal PLUS Loans that such eligible
                                    lender fails to originate under this
                                    paragraph in accordance with the
                                    agreement required under clause (i), in
                                    the amount of the additional costs
                                    (including the amounts of any increase
                                    in special allowance payments) incurred
                                    by the Secretary in obtaining another
                                    eligible lender to originate such
                                    eligible Federal PLUS Loans. The
                                    Secretary shall collect such penalty
                                    by--
                                                ``(aa) reducing the amount
                                            of any payments otherwise due to
                                            such eligible lender from the
                                            Secretary by the amount of the
                                            penalty; or
                                                ``(bb) requesting any other
                                            Federal agency to reduce the
                                            amount of any payments due to
                                            such eligible lender from such
                                            agency by the amount of the
                                            penalty, in accordance with
                                            section 3716 of title 31, United
                                            States Code.
                                        ``(II) A prohibition of bidding by
                                    such lender in other auctions under this
                                    section.
                                        ``(III) The limitation, suspension,
                                    or termination of such eligible lender's
                                    participation in the loan program under
                                    part B.

    [[Page 122 STAT. 3330]]

                                        ``(IV) Any other enforcement action
                                    the Secretary is authorized to take
                                    under part B.''; and
                        (C) by striking subparagraph (J) and inserting the
                    following:
                        ``(J) Guarantee against losses.--Each eligible
                    Federal PLUS Loan originated under this paragraph shall
                    be insured by a guaranty agency in accordance with part
                    B, except that, notwithstanding section 428(b)(1)(G),
                    such insurance shall be in an amount equal to 99 percent
                    of the unpaid principal and interest due on the loan.'';
                    and
                (2) by adding at the end the following new subsections:

        ``(c) Required Initial Evaluation.--The Secretary and Secretary of
    the Treasury shall jointly conduct an evaluation, in consultation with
    the Office of Management and Budget, the Congressional Budget Office,
    and the Comptroller General, of the pilot program carried out by the
    Secretary under this section. The evaluation shall determine--
                ``(1) the extent of the savings to the Federal Government
            that are generated through the pilot program, compared to the
            cost the Federal Government would have incurred in operating the
            PLUS loan program under section 428B in the absence of the pilot
            program;
                ``(2) the number of lenders that participated in the pilot
            program, and the extent to which the pilot program generated
            competition among lenders to participate in the auctions under
            the pilot program;
                ``(3) the number and volume of loans made under the pilot
            program in each State;
                ``(4) the effect of the transition to and operation of the
            pilot program on the ability of--
                        ``(A) lenders participating in the pilot program to
                    originate loans made through the pilot program smoothly
                    and efficiently;
                        ``(B) institutions of higher education participating
                    in the pilot program to disburse loans made through the
                    pilot program smoothly and efficiently; and
                        ``(C) parents to obtain loans made through the pilot
                    program in a timely and efficient manner;
                ``(5) the differential impact, if any, of the auction among
            the States, including between rural and non-rural States; and
                ``(6) the feasibility of using the mechanism piloted to
            operate the other loan programs under part B of this title.

        ``(d) Reports.--
                ``(1) In general.--The Secretary and the Secretary of the
            Treasury shall submit to the authorizing committees--
                        ``(A) not later than September 1, 2010, a
                    preliminary report regarding the findings of the
                    evaluation described in subsection (c);
                        ``(B) not later than September 1, 2012, an interim
                    report regarding such findings; and
                        ``(C) not later than September 1, 2013, a final
                    report regarding such findings.
                ``(2) Contents.--The Secretary shall include, in each report
            required under subparagraphs (A), (B), and (C) of paragraph (1),
            any recommendations, that are based on the findings of the
            evaluation under subsection (c), for--

    [[Page 122 STAT. 3331]]

                        ``(A) improving the operation and administration of
                    the auction; and
                        ``(B) improving the operation and administration of
                    other loan programs under part B.''.

                        TITLE V--DEVELOPING INSTITUTIONS

    SEC. 501. AUTHORIZED ACTIVITIES.

        Section 503(b) (20 U.S.C. 1101b(b)) is amended--
                (1) by redesignating paragraphs (6), (7), (8), (9), (10),
            (11), (12), (13), and (14), as paragraphs (7), (8), (9), (10),
            (11), (12), (13), (14), and (16), respectively;
                (2) in paragraph (5), by inserting ``, 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'' before the period at the end;
                (3) by inserting after paragraph (5) the following:
                ``(6) Articulation agreements and student support programs
            designed to facilitate the transfer from two-year to four-year
            institutions.'';
                (4) by inserting after paragraph (14) (as redesignated by
            paragraph (1)) the following:
                ``(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.''; and
                (5) in paragraph (11) (as redesignated by paragraph (1)), by
            striking ``distance learning academic instruction capabilities''
            and inserting ``distance education technologies''.
    SEC. 502. POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC AMERICANS.

        (a) Amendments.--Title V (20 U.S.C. 1101 et seq.) is amended--
                (1) by <<NOTE: 20 USC 1103.>> redesignating part B as part
            C;
                (2) by <<NOTE: 20 USC 1103-1103g.>> redesignating sections
            511 through 518 as sections 521 through 528, respectively; and
                (3) by inserting after section 505 the following:

        ``PART B--PROMOTING POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC
                                    AMERICANS

    ``SEC. 511. <<NOTE: 20 USC 1102.>> PURPOSES.

        ``The purposes of this part are--
                ``(1) to expand postbaccalaureate educational opportunities
            for, and improve the academic attainment of, Hispanic students;
            and
                ``(2) to expand the postbaccalaureate academic offerings and
            enhance the program quality in the institutions of higher
            education that are educating the majority of Hispanic college
            students and helping large numbers of Hispanic and low-income
            students complete postsecondary degrees.

    [[Page 122 STAT. 3332]]

    ``SEC. 512. <<NOTE: 20 USC 1102a.>> PROGRAM AUTHORITY AND
                            ELIGIBILITY.

        ``(a) Program Authorized.-- <<NOTE: Grants.>> 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.
    ``SEC. 513. <<NOTE: 20 USC 1102b.>> 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. 514. <<NOTE: 20 USC 1102c.>> APPLICATION AND DURATION.

        ``(a) Application.--Any eligible institution may apply for a grant
    under this part by submitting an application to the Secretary at such
    time and in such manner as the Secretary may require. Such application
    shall demonstrate how the grant funds will be used to improve
    postbaccalaureate education opportunities for Hispanic and low-income
    students.
        ``(b) Duration.--Grants under this part shall be awarded for a
    period not to exceed five years.

    [[Page 122 STAT. 3333]]

        ``(c) Limitation.--The Secretary may not award more than one grant
    under this part in any fiscal year to any Hispanic-serving
    institution.''.
        (b) Conforming Amendments.--Title V (20 U.S.C. 1101 et seq.) is
    amended--
                (1) in section <<NOTE: 20 USC 1101a.>> 502--
                        (A) in subsection (a)(2)(A)(ii), by striking
                    ``section 512(b)'' and inserting ``section 522(b)''; and
                        (B) in subsection (b)(2), by striking ``section
                    512(a)'' and inserting ``section 522(a)'';
                (2) in section 521(c)(6) <<NOTE: 20 USC 1103.>> (as
            redesignated by subsection (a)(2)), by striking ``section 516''
            and inserting ``section 526''; and
                (3) in section 526 <<NOTE: 20 USC 1103e.>> (as redesignated
            by subsection (a)(2)), by striking ``section 518'' and inserting
            ``section 528''.
    SEC. 503. APPLICATIONS.

        Section 521(b)(1)(A) (as redesignated by section 502(a)(2)) (20
    U.S.C. 1103(b)(1)(A)) is amended by striking ``subsection (b)'' and
    inserting ``subsection (c)''.
    SEC. 504. COOPERATIVE ARRANGEMENTS.

        Section 524(a) (as redesignated by section 502(a)(2)) (20 U.S.C.
    1103c(a)) is amended by striking ``section 503'' and inserting
    ``sections 503 and 513''.
    SEC. 505. AUTHORIZATION OF APPROPRIATIONS.

        Section 528(a) (as redesignated by section 502(a)(2)) (20 U.S.C.
    1103g(a)) is amended to read as follows:
        ``(a) Authorizations.--
                ``(1) Parts a and c.--There are authorized to be
            appropriated to carry out parts A and C $175,000,000 for fiscal
            year 2009 and such sums as may be necessary for each of the five
            succeeding fiscal years.
                ``(2) Part b.--There are authorized to be appropriated to
            carry out part B $100,000,000 for fiscal year 2009 and such sums
            as may be necessary for each of the five succeeding fiscal
            years.''.

                   TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

    SEC. 601. FINDINGS; PURPOSES; CONSULTATION; SURVEY.

        Section 601 (20 U.S.C. 1121) is amended--
                (1) in the section heading, by striking ``and purposes'' and
            inserting ``; purposes; consultation; survey'';
                (2) in subsection (a)(3), by striking ``post-Cold War'';
                (3) in subsection (b)(1)(D), by inserting ``, including
            through linkages with overseas institutions'' before the
            semicolon; and
                (4) by adding at the end the following:

        ``(c) Consultation.--
                ``(1) In general.--The Secretary shall, prior to requesting
            applications for funding under this title during each grant
            cycle, consult with and receive recommendations regarding
            national need for expertise in foreign languages and world

    [[Page 122 STAT. 3334]]

            regions from the head officials of a wide range of Federal
            agencies.
                ``(2) Considering recommendations; providing information.--
            The Secretary--
                        ``(A) may take into account the recommendations
                    described in paragraph (1); and
                        ``(B) shall--
                              ``(i) provide information collected under
                          paragraph (1) when requesting applications for
                          funding under this title; and
                              ``(ii) make available to applicants a list of
                          areas identified as areas of national need.

        ``(d) Survey.--The Secretary shall assist grantees in developing a
    survey to administer to students who have completed programs under this
    title to determine postgraduate employment, education, or training.
    All <<NOTE: Deadline. Reports.>> grantees, where applicable, shall
    administer such survey once every two years and report survey results to
    the Secretary.''.
    SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE AND AREA CENTERS AND
                            PROGRAMS.

        Section 602 (20 U.S.C. 1122) is amended--
                (1) in subsection (a)--
                        (A) in paragraph (1), by striking subparagraph (A)
                    and inserting the following:
                        ``(A) In <<NOTE: Grants.>> 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) in paragraph (2)--
                              (i) by striking ``and'' at the end of
                          subparagraph (G);
                              (ii) by striking the period at the end of
                          subparagraph (H) and inserting a semicolon; and
                              (iii) by inserting after subparagraph (H) the
                          following new subparagraphs:
                        ``(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.''; and
                        (C) in paragraph (4)--
                              (i) in subparagraph (C)--
                                        (I) by striking ``Programs of
                                    linkage or outreach'' and inserting
                                    ``Partnerships or programs of linkage
                                    and outreach''; and
                                        (II) by inserting ``, including
                                    Federal or State scholarship programs
                                    for students in related areas'' before
                                    the period at the end;
                              (ii) in subparagraph (E)--
                                        (I) by striking ``foreign area'' and
                                    inserting ``area studies'';

    [[Page 122 STAT. 3335]]

                                        (II) by striking ``of linkage and
                                    outreach''; and
                                        (III) by striking ``(C), and (D)''
                                    and inserting ``(D), and (E)'';
                              (iii) by redesignating subparagraphs (C)
                          through (E) (as so amended) as subparagraphs (D)
                          through (F), respectively; and
                              (iv) by inserting after subparagraph (B) the
                          following:
                        ``(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.'';
                (2) in subsection (b)--
                        (A) in the subsection heading, by striking
                    ``Graduate''; and
                        (B) by striking paragraph (2) and inserting the
                    following:
                ``(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.''; and
                (3) by striking subsection (d) and inserting the following:

        ``(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--

    [[Page 122 STAT. 3336]]

                ``(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. 603. LANGUAGE RESOURCE CENTERS.

        Section 603(c) (20 U.S.C. 1123(c)) is amended by inserting ``reflect
    the purposes of this part and'' after ``shall''.
    SEC. 604. UNDERGRADUATE INTERNATIONAL STUDIES AND FOREIGN LANGUAGE
                            PROGRAMS.

        Section 604 (20 U.S.C. 1124) is amended--
                (1) in subsection (a)(1), by striking ``combinations'' each
            place it appears and inserting ``consortia'';
                (2) in subsection (a)(2)--
                        (A) in subparagraph (B), by amending clause (ii) to
                    read as follows:
                              ``(ii) pre-service teacher training and in-
                          service teacher professional development;'';
                        (B) by redesignating subparagraphs (I) through (M)
                    as subparagraphs (J) through (N), respectively; and
                        (C) by inserting after subparagraph (H) the
                    following new subparagraph:
                        ``(I) the provision of grants for educational
                    programs abroad that--
                              ``(i) are closely linked to the program's
                          overall goals; and
                              ``(ii) have the purpose of promoting foreign
                          language fluency and knowledge of world
                          regions;'';
                (3) in subsection (a)(4)(B), by inserting ``that
            demonstrates a need for a waiver or reduction'' before the
            period at the end;
                (4) in subsection (a)(6), by inserting ``reflect the
            purposes of this part and'' after ``shall'';
                (5) in subsection (a)(7)--
                        (A) in subparagraph (C), by striking ``and'' after
                    the semicolon;
                        (B) in subparagraph (D), by striking the period at
                    the end and inserting a semicolon; and
                        (C) by adding at the end the following:
                        ``(E) a description of how the applicant will
                    provide information to students regarding federally
                    funded scholarship programs in related areas;
                        ``(F) an explanation of how the activities funded by
                    the grant will reflect diverse perspectives and a wide
                    range of views and generate debate on world regions and
                    international affairs, where applicable; and
                        ``(G) a description of how the applicant will
                    encourage service in areas of national need, as
                    identified by the Secretary.''; and
                (6) in subsection (c)--
                        (A) by striking ``(c) Funding Support.--The
                    Secretary'' and inserting the following:

        ``(c) Funding Support.--

    [[Page 122 STAT. 3337]]

                ``(1) In general.--The Secretary'';
                        (B) by striking ``10'' and inserting ``20''; and
                        (C) by adding at the end the following:
                ``(2) Grantees.--Of the total amount of grant funds awarded
            to a grantee under this section, the grantee may use not more
            than ten percent of such funds for the activity described in
            subsection (a)(2)(I).''.
    SEC. 605. RESEARCH; STUDIES.

        Section 605(a) (20 U.S.C. 1125(a)) is amended--
                (1) in paragraph (8), by striking ``and'' after the
            semicolon;
                (2) in paragraph (9), by striking the period and inserting a
            semicolon; and
                (3) by adding at the end the following:
                ``(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.''.
    SEC. 606. TECHNOLOGICAL INNOVATION AND COOPERATION FOR FOREIGN
                            INFORMATION ACCESS.

        Section 606 (20 U.S.C. 1126) is amended--
                (1) in subsection (a)--
                        (A) by striking ``or consortia of such institutions
                    or libraries'' and inserting ``or partnerships between
                    such institutions and other such institutions,
                    libraries, or nonprofit educational organizations'';
                        (B) by striking ``new electronic technologies'' and
                    inserting ``electronic technologies'';
                        (C) by inserting ``from foreign sources'' after
                    ``disseminate information'';
                        (D) by striking ``(a) Authority.-- The Secretary''
                    and inserting the following:

        ``(a) Authority.--
                ``(1) In general.--The Secretary''; and
                        (E) by adding at the end the following:
                ``(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.'';
                (2) in subsection (b)--
                        (A) in paragraph (1), by striking ``to facilitate
                    access to'' and inserting ``to acquire, facilitate
                    access to,'';
                        (B) in paragraph (3), by inserting ``or standards
                    for'' after ``means of'';

    [[Page 122 STAT. 3338]]

                        (C) in paragraph (6), by striking ``and'' after the
                    semicolon;
                        (D) in paragraph (7), by striking the period and
                    inserting a semicolon; and
                        (E) by adding at the end the following:
                ``(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.''; and
                (3) in subsection (c), by striking ``institution or
            consortium'' and inserting ``institution of higher education,
            library, or partnership''.
    SEC. 607. SELECTION OF CERTAIN GRANT RECIPIENTS.

        Section 607 (20 U.S.C. 1127) is amended--
                (1) in subsection (a), by striking ``evaluates the
            applications for comprehensive and undergraduate language and
            area centers and programs.'' and inserting ``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.''; and
                (2) in subsection (b), by adding at the end the following:
            ``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.''.
    SEC. 608. AMERICAN OVERSEAS RESEARCH CENTERS.

        Section 609 (20 U.S.C. 1128a) is amended by adding at the end the
    following:
        ``(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. 609. AUTHORIZATION OF APPROPRIATIONS FOR INTERNATIONAL AND
                            FOREIGN LANGUAGE STUDIES.

        Section 610 (20 U.S.C. 1128b) is amended--
                (1) by striking ``$80,000,000'' and inserting ``such sums as
            may be necessary'';
                (2) by striking ``1999'' and inserting ``2009''; and
                (3) by striking ``4'' and inserting ``five''.
    SEC. 610. CONFORMING AMENDMENTS.

        (a) Sections 603(a), 604(a)(5), and 612 (20 U.S.C. 1123(a),
    1124(a)(5), 1130-1) are each amended by striking ``combinations'' each
    place it appears and inserting ``consortia''.

    [[Page 122 STAT. 3339]]

        (b) Section 612 (20 U.S.C. 1130-1) is further amended by striking
    ``combination'' each place it appears and inserting ``consortium''.
    SEC. 611. BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS.

        (a) Centers for International Business Education.--Section 612 (20
    U.S.C. 1130-1) is amended--
                (1) in subsection (a)--
                        (A) by redesignating paragraphs (1) and (2) as
                    paragraphs (2) and (3), respectively; and
                        (B) by inserting before paragraph (2) (as
                    redesignated by subparagraph (A)) the following:
                ``(1) Purpose.--The purpose of this section is to coordinate
            the programs of the Federal Government in the areas of research,
            education, and training in international business and trade
            competitiveness.'';
                (2) in subsection (c)(2)----
                        (A) in subparagraph (E), by inserting ``(including
                    those that are eligible to receive assistance under part
                    A or B of title III or under title V)'' after ``other
                    institutions of higher education'';
                        (B) by striking ``and'' at the end of subparagraph
                    (E);
                        (C) by redesignating subparagraph (F) as
                    subparagraph (G); and
                        (D) by inserting the following new subparagraph
                    after subparagraph (E):
                        ``(F) programs encouraging the advancement and
                    understanding of technology-related disciplines,
                    including manufacturing software systems and technology
                    management; and''; and
                (3) in subsection (f)(3), by inserting ``, and that diverse
            perspectives will be made available to students in programs
            under this section'' before the semicolon.

        (b) Education and Training Programs.--Section 613(c) (20 U.S.C.
    1130a(c)) is amended by adding at the end the following: ``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.''.
        (c) Authorization of Appropriations.--Section 614 (20 U.S.C. 1130b)
    is amended--
                (1) in subsection (a)--
                        (A) by striking ``$11,000,000'' and inserting ``such
                    sums as may be necessary'';
                        (B) by striking ``1999'' and inserting ``2009''; and
                        (C) by striking ``4'' and inserting ``five''; and
                (2) in subsection (b)--
                        (A) by striking ``$7,000,000'' and inserting ``such
                    sums as may be necessary'';
                        (B) by striking ``1999'' and inserting ``2009''; and
                        (C) by striking ``4'' and inserting ``five''.
    SEC. 612. MINORITY FOREIGN SERVICE PROFESSIONAL DEVELOPMENT
                            PROGRAM.

        Section 621 (20 U.S.C. 1131) is amended--
                (1) in subsection (a), by striking the second sentence and
            inserting the following: ``The Institute shall conduct a program
            to enhance the international competitiveness of the United

    [[Page 122 STAT. 3340]]

            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.'';
                (2) in subsection (b)(1)--
                        (A) by striking subparagraph (B);
                        (B) by redesignating subparagraph (C) as
                    subparagraph (D); and
                        (C) by inserting after subparagraph (A) the
                    following:
                        ``(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.''; and
                (3) in subsection (c)--
                        (A) by striking ``(c) Application.--Each'' and
                    inserting the following:

        ``(c) Application.--
                ``(1) In general.--Each''; and
                        (B) by adding at the end the following:
                ``(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.''.
    SEC. 613. INSTITUTIONAL DEVELOPMENT.

        Section 622 (20 U.S.C. 1131-1) is amended--
                (1) in subsection (a)--
                        (A) by striking ``Tribally Controlled Colleges or
                    Universities'' and inserting ``tribally controlled
                    colleges or universities''; and
                        (B) by striking ``international affairs programs.''
                    and inserting ``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''; and
                (2) in subsection (c)--
                        (A) by striking paragraphs (1) and (3);
                        (B) by redesignating paragraphs (2) and (4) as
                    paragraphs (1) and (2), respectively; and
                        (C) in paragraph (1) (as redesignated by
                    subparagraph (B)), by inserting ``and'' after the
                    semicolon.
    SEC. 614. STUDY ABROAD PROGRAM.

        Section 623(a) (20 U.S.C. 1131a(a)) is amended--
                (1) by striking ``as defined in section 322 of this Act'';
            and
                (2) by striking ``tribally controlled Indian community
            colleges as defined in the Tribally Controlled Community College
            Assistance Act of 1978'' and inserting ``tribally controlled
            colleges or universities, Alaska Native-serving, Native
            Hawaiian-serving, and Hispanic-serving institutions''.

    [[Page 122 STAT. 3341]]

    SEC. 615. ADVANCED DEGREE IN INTERNATIONAL RELATIONS.

        Section 624 (20 U.S.C. 1131b) is amended--
                (1) by striking ``masters'' in the heading of such section
            and inserting ``advanced'';
                (2) by striking ``a masters degree in international
            relations'' and inserting ``an advanced degree in international
            relations, international affairs, international economics, or
            other academic areas related to the Institute fellow's career
            objectives''; and
                (3) by striking ``The masters degree program designed by the
            consortia'' and inserting ``The advanced degree study program
            shall be designed by the consortia, consistent with the fellow's
            career objectives, and''.
    SEC. 616. INTERNSHIPS.

        Section 625 (20 U.S.C. 1131c) is amended--
                (1) in subsection (a)--
                        (A) by striking ``as defined in section 322 of this
                    Act'';
                        (B) by striking ``tribally controlled Indian
                    community colleges as defined in the Tribally Controlled
                    Community College Assistance Act of 1978'' and inserting
                    ``tribally controlled colleges or universities, Alaska
                    Native-serving, Native Hawaiian-serving, and Hispanic-
                    serving institutions'';
                        (C) by striking ``an international'' and inserting
                    ``international,''; and
                        (D) by striking ``the United States Information
                    Agency'' and inserting ``the Department of State'';
                (2) in subsection (b)--
                        (A) by inserting ``and'' after the semicolon at the
                    end of paragraph (2);
                        (B) by striking ``; and'' at the end of paragraph
                    (3) and inserting a period; and
                        (C) by striking paragraph (4); and
                (3) in subsection (c)(1)--
                        (A) in subparagraph (E), by inserting ``and'' after
                    the semicolon;
                        (B) in subparagraph (F), by striking ``; and'' and
                    inserting a period; and
                        (C) by striking subparagraph (G).
    SEC. 617. FINANCIAL ASSISTANCE.

        Part C of title VI (20 U.S.C. 1131 et seq.) is further amended--
                (1) by <<NOTE: 20 USC 1131d-1131f.>> redesignating sections
            626, 627, and 628 as sections 627, 628, and 629, respectively;
            and
                (2) by inserting after section 625 the following:
    ``SEC. 626. <<NOTE: 20 USC 1131c-1.>> 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,

    [[Page 122 STAT. 3342]]

            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. 618. REPORT.

        Section 627 (as redesignated by section 617(1)) (20 U.S.C. 1131d) is
    amended by striking ``annually prepare a report'' and inserting
    ``prepare a report once every two years''.
    SEC. 619. GIFTS AND DONATIONS.

        Section 628 (as redesignated by section 617(1)) (20 U.S.C. 1131e) is
    amended by striking ``annual report described in section 626'' and
    inserting ``report described in section 627''.
    SEC. 620. AUTHORIZATION OF APPROPRIATIONS FOR THE INSTITUTE FOR
                            INTERNATIONAL PUBLIC POLICY.

        Section 629 (as redesignated by section 617(1)) (20 U.S.C. 1131f) is
    amended--
                (1) by striking ``$10,000,000'' and inserting ``such sums as
            may be necessary'';
                (2) by striking ``1999'' and inserting ``2009''; and
                (3) by striking ``4 succeeding'' and inserting ``five
            succeeding''.
    SEC. 621. DEFINITIONS.

        Section 631 (20 U.S.C. 1132) is amended--
                (1) by striking paragraph (7);
                (2) by redesignating paragraphs (2), (3), (4), (5), (6),
            (8), and (9), as paragraphs (7), (4), (8), (2), (10), (6), and
            (3), respectively;
                (3) in paragraph (2), as redesignated by paragraph (2), by
            striking ``comprehensive language and area center'' and
            inserting ``comprehensive foreign language and area or
            international studies center'';
                (4) in paragraph (3), as redesignated by paragraph (2), by
            striking the period at the end and inserting a semicolon;
                (5) by inserting after paragraph (4), as redesignated by
            paragraph (2), the following:
                ``(5) the term `historically Black college and university'
            has the meaning given the term `part B institution' in section
            322;'';
                (6) in paragraph (6), as redesignated by paragraph (2), by
            striking ``and'' after the semicolon;

    [[Page 122 STAT. 3343]]

                (7) by inserting after paragraph (8), as redesignated by
            paragraph (2), the following:
                ``(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''; and
                (8) in paragraph (10), as redesignated by paragraph (2)--
                        (A) by striking ``undergraduate language and area
                    center'' and inserting ``undergraduate foreign language
                    and area or international studies center''; and
                        (B) by striking the semicolon and inserting a
                    period.
    SEC. 622. NEW PROVISIONS.

        Part D of title VI (20 U.S.C. 1132) is amended by adding at the end
    the following:
    ``SEC. 632. <<NOTE: 20 USC 1132-1.>> SPECIAL RULE.

        ``The <<NOTE: Waiver authority.>> Secretary may waive or reduce the
    non-Federal share required under this title for institutions that--
                ``(1) are eligible to receive assistance under part A or B
            of title III or under title V; and
                ``(2) have submitted a grant application under this section
            that demonstrates a need for a waiver or reduction, as
            determined by the Secretary.''.
    ``SEC. 633. <<NOTE: 20 USC 1132-2.>> RULE OF CONSTRUCTION.

        ``Nothing in this title shall be construed to authorize the
    Secretary to mandate, direct, or control an institution of higher
    education's specific instructional content, curriculum, or program of
    instruction.
    ``SEC. 634. <<NOTE: 20 USC 1132-3.>> ASSESSMENT.

        ``The Secretary is authorized to assess and ensure compliance with
    all the conditions and terms of grants provided under this title.
    ``SEC. 635. <<NOTE: 20 USC 1132-4.>> EVALUATION, OUTREACH, AND
                            INFORMATION.

        ``The Secretary may use not more than one percent of the funds made
    available under this title to carry out program evaluation, national
    outreach, and information dissemination activities relating to the
    programs authorized under this title.
    ``SEC. 636. <<NOTE: 20 USC 1132-5.>> REPORT.

        ``The Secretary shall, in consultation and collaboration with the
    Secretary of State, the Secretary of Defense, and the heads of other
    relevant Federal agencies, submit a report once every two years that
    identifies areas of national need in foreign language, area, and
    international studies as such studies relate to government, education,
    business, and nonprofit needs, and a plan to address those needs.
    The <<NOTE: Public information.>> report shall be provided to the
    authorizing committees and made available to the public.
    ``SEC. 637. SCIENCE <<NOTE: 20 USC 1132-6.>> 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;

    [[Page 122 STAT. 3344]]

                ``(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 <<NOTE: Study.>> 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.

    [[Page 122 STAT. 3345]]

    ``SEC. 638. <<NOTE: 20 USC 1132-7.>> 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.''.

           TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

    SEC. 701. PURPOSE.

        Section 700(1)(B)(i) (20 U.S.C. 1133(1)(B)(i)) is amended by
    inserting ``, including those areas critical to United States national
    and homeland security needs, such as science, technology, engineering,
    and mathematics'' before the semicolon.
    SEC. 702. JACOB K. JAVITS FELLOWSHIP PROGRAM.

        (a) Interruptions of Study.--Section 701(c) (20 U.S.C. 1134(c)) is
    amended by adding at the end the following new sentence: ``In the case
    of other exceptional circumstances, such as active duty military service
    or personal or family member illness, the institution of higher
    education may also permit the fellowship recipient to interrupt periods
    of study for the duration of the tour of duty (in the case of military
    service) or for not more than 12 months (in any other case), but without
    payment of the stipend.''.
        (b) Allocation of Fellowships.--Section 702(a)(1) (20 U.S.C.
    1134a(a)(1)) is amended to read as follows:
                ``(1) Appointment.--
                        ``(A) In general.--The Secretary shall appoint a
                    Jacob K. Javits Fellows Program Fellowship Board
                    (referred to in this subpart as the `Board') consisting
                    of 9 individuals representative of both public and
                    private institutions of higher education who are
                    especially qualified to serve on the Board.
                        ``(B) Qualifications.--In making appointments under
                    subparagraph (A), the Secretary shall--
                              ``(i) give due consideration to the
                          appointment of individuals who are highly
                          respected in the academic community;
                              ``(ii) appoint members who represent the
                          various geographic regions of the United States;
                              ``(iii) ensure that individuals appointed to
                          the Board are broadly representative of a range of
                          disciplines in graduate education in arts,
                          humanities, and social sciences; and

    [[Page 122 STAT. 3346]]

                              ``(iv) ensure that such individuals include
                          representatives from institutions that are
                          eligible for one or more of the grants under title
                          III or V.''.

        (c) Stipends.--
                (1) Section 703 (20 U.S.C. 1134b) is amended--
                        (A) in subsection (a)--
                              (i) by striking ``1999-2000'' and inserting
                          ``2009-2010''; and
                              (ii) by striking ``Foundation graduate
                          fellowships'' and inserting ``Foundation Graduate
                          Research Fellowship Program for such academic
                          year''; and
                        (B) in subsection (b), by striking paragraph (1)(A)
                    and inserting the following:
                ``(1) In general.--(A) <<NOTE: Payments.>> The Secretary
            shall (in addition to stipends paid to individuals under this
            subpart) pay to the institution of higher education, for each
            individual awarded a fellowship under this subpart at such
            institution, an institutional allowance. Except as provided in
            subparagraph (B), such allowance shall be, for academic year
            2009-2010 and succeeding academic years, the same amount as the
            institutional payment made for academic year 2008-2009, adjusted
            for academic year 2009-2010 and annually thereafter in
            accordance with inflation as determined by the Department of
            Labor's Consumer Price Index for the previous calendar year.''.

        (d) Authorization of Appropriations.--Section 705 (20 U.S.C. 1134d)
    is amended by striking ``fiscal year 1999'' and all that follows through
    the period at the end and inserting ``fiscal year 2009 and each of the
    five succeeding fiscal years to carry out this subpart.''.
    SEC. 703. GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED.

        (a) Institutional Eligibility.--Section 712 (20 U.S.C. 1135a) is
    amended by striking subsection (b) and inserting the following:
        ``(b) Designation of Areas of National Need.--After consultation
    with appropriate Federal and nonprofit agencies and organizations,
    including the National Science Foundation, the Department of Defense,
    the Department of Homeland Security, the National Academy of Sciences,
    and the Bureau of Labor Statistics, the Secretary shall designate areas
    of national need. In making such designations, the Secretary shall take
    into consideration--
                ``(1) the extent to which the interest in the area is
            compelling;
                ``(2) the extent to which other Federal programs support
            postbaccalaureate study in the area concerned;
                ``(3) an assessment of how the program may achieve the most
            significant impact with available resources; and
                ``(4) an assessment of current (as of the time of the
            designation) and future professional workforce needs of the
            United States.''.

        (b) Awards to Graduate Students.--Section 714(b) (20 U.S.C.
    1135c(b)) is amended--
                (1) by striking ``1999-2000'' and inserting ``2009-2010'';
            and
                (2) by striking ``Foundation graduate fellowships'' and
            inserting ``Foundation Graduate Research Fellowship Program for
            such academic year''.

        (c) Additional Assistance.--Section 715(a)(1) (20 U.S.C.
    1135d(a)(1)) is amended--

    [[Page 122 STAT. 3347]]

                (1) by striking ``1999-2000'' and inserting ``2009-2010'';
            and
                (2) by striking ``1998-1999'' and inserting ``2008-2009''.

        (d) Authorization of Appropriations.--Section 716 (20 U.S.C. 1135e)
    is amended by striking ``fiscal year 1999'' and all that follows through
    the period at the end and inserting ``fiscal year 2009 and each of the
    five succeeding fiscal years to carry out this subpart.''.
        (e) Technical Amendments.--Subpart 2 of part A of title VII (as
    amended by this section) (20 U.S.C. 113 et seq.) is further amended--
                (1) in section 711(a)(1) (20 U.S.C. 1135(a)(1)), by
            inserting ``, including a master's or doctoral degree,'' after
            ``leading to a graduate degree'';
                (2) in section 712(a) (20 U.S.C. 1135a(a)), by inserting ``,
            including a master's or doctoral degree,'' after ``leading to a
            graduate degree'';
                (3) in section 713(b)(5)(C) (20 U.S.C. 1135b(b)(5)(C)), by
            inserting ``at the institution'' before the semicolon; and
                (4) in section 714(c) (20 U.S.C. 1135c(c))--
                        (A) by striking ``716(a)'' and inserting ``715(a)'';
                    and
                        (B) by striking ``714(b)(2)'' and inserting
                    ``713(b)(2)''.
    SEC. 704. THURGOOD MARSHALL LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.

        (a) Program Authority.--
                (1) Section 721(a) (20 U.S.C. 1136(a)) is amended--
                        (A) by inserting ``secondary school and'' after
                    ``disadvantaged''; and
                        (B) by inserting ``and admission to law practice''
                    before the period at the end.

        (b) Eligibility.--Section 721(b) (20 U.S.C. 1136(b)) is amended in
    the matter preceding paragraph (1), by inserting ``secondary school
    student or'' before ``college student''.
        (c)  Contract and Grant Purposes.--Section 721(c) (20 U.S.C.
    1136(c)) is amended--
                (1) in paragraph (1), by inserting ``secondary school and''
            before ``college students'';
                (2) by striking paragraph (2) and inserting the following:
                ``(2) to prepare such students for successful completion of
            a baccalaureate degree and for study at accredited law schools,
            and to assist them with the development of analytical skills,
            writing skills, and study methods to enhance the students'
            success in, and promote the students' admission to and
            completion of, law school;'';
                (3) in paragraph (4), by striking ``and'' after the
            semicolon; and
                (4) by striking paragraph (5) and inserting the following:
                ``(5) to motivate and prepare such students--
                        ``(A) with respect to law school studies and
                    practice in low-income communities; and
                        ``(B) to provide legal services to low-income
                    individuals and families; and
                ``(6) to award Thurgood Marshall Fellowships to eligible law
            school students--
                        ``(A) who participated in summer institutes under
                    subsection (d)(6) and who are enrolled in an accredited
                    law school; or

    [[Page 122 STAT. 3348]]

                        ``(B) who have successfully completed a comparable
                    summer institute program that is certified by the
                    Council on Legal Education Opportunity.''.

        (d) Services Provided.--Section 721(d) (20 U.S.C. 1136(d)) is
    amended--
                (1) in the matter preceding paragraph (1), by inserting
            ``pre-college programs, undergraduate'' before ``pre-law'';
                (2) in paragraph (1)--
                        (A) in subparagraph (B), by inserting ``law school''
                    before ``graduation''; and
                        (B) by striking subparagraph (D) and inserting the
                    following:
                        ``(D) pre-college and undergraduate preparatory
                    courses in analytical and writing skills, study methods,
                    and course selection;'';
                (3) by redesignating paragraphs (2) through (6) as
            paragraphs (3) through (7), respectively;
                (4) by inserting after paragraph (1) the following:
                ``(2) summer academic programs for secondary school students
            who have expressed interest in a career in the law;''; and
                (5) in paragraph (7) (as redesignated by paragraph (3)), by
            inserting ``and Associates'' after ``Thurgood Marshall
            Fellows''.

        (e) Duration.--Section 721(e)(1) (20 U.S.C. 1136(e)(1)) is amended
    by inserting ``, including before and during undergraduate study''
    before the semicolon.
        (f) Subcontracts and Subgrants.--Section 721(f) (20 U.S.C. 1136(f))
    is amended--
                (1) by inserting ``national and State bar associations,''
            after ``agencies and organizations,''; and
                (2) by striking ``and organizations.'' and inserting
            ``organizations, and associations.''.

        (g) Stipends.--Section 721(g) (20 U.S.C. 1136(g)) is amended to read
    as follows:
        ``(g) Fellowships and Stipends.-- <<NOTE: Deadline.>> The Secretary
    shall annually establish the maximum fellowship to be awarded, and the
    maximum stipend to be paid (including allowances for participant travel
    and for the travel of the dependents of the participant), to Thurgood
    Marshall Fellows or Associates for the period of participation in summer
    institutes, midyear seminars, and bar preparation seminars. A Thurgood
    Marshall Fellow or Associate may be eligible for such a fellowship or
    stipend only if the Fellow or Associate maintains satisfactory academic
    progress toward the Juris Doctor or Bachelor of Laws degree, as
    determined by the respective institutions (except with respect to a law
    school graduate enrolled in a bar preparation course).''.

        (h) Authorization of Appropriations.--Section 721(h) (20 U.S.C.
    1136(h)) is amended by striking ``fiscal year 1999'' and all that
    follows through the period at the end and inserting ``fiscal year 2009
    and each of the five succeeding fiscal years.''.
        (i) Repeal of Continuation Awards.--Subsection (e) of section 731
    (20 U.S.C. 1137(e)) is repealed.
    SEC. 705. SENSE OF CONGRESS.

        It is the sense of Congress that--

    [[Page 122 STAT. 3349]]

                (1) addressing the under-representation of women and
            minorities in the higher education professoriate will require
            consistent inter-institutional cooperation, data gathering,
            analysis, and self-evaluation; and
                (2) institutions eligible for funds under part A of title
            VII of the Higher Education Act of 1965 (20 U.S.C. 1134 et seq.)
            should be encouraged to consider the feasibility and potential
            design of an inter-institution monitoring organization
            addressing under-representation by race, ethnicity, and gender
            in postsecondary faculty and administrators.
    SEC. 706. MASTERS DEGREE PROGRAMS AT HISTORICALLY BLACK COLLEGES
                            AND UNIVERSITIES AND PREDOMINANTLY BLACK
                            INSTITUTIONS.

        (a) Technical Amendments.--Part A of title VII (as amended by this
    title) (20 U.S.C. 1134 et seq.) is further amended--
                (1) by redesignating subpart 4 as subpart 5;
                (2) in the heading of section 731, <<NOTE: 20 USC 1137.>> by
            striking ``subparts 1, 2, and 3'' and inserting ``subparts 1
            through 4''; and
                (3) in section 731--
                        (A) in subsections (a) and (b), by striking
                    ``subparts 1, 2, and 3'' each place the term appears and
                    inserting ``subparts 1 through 4''; and
                        (B) in subsection (d), by striking ``subpart 1, 2,
                    or 3'' and inserting ``subpart 1, 2, 3, or 4''.

        (b) Master's Degree Programs.--Part A of title VII (as amended by
    this title) (20 U.S.C. 1134 et seq.) is further amended by inserting
    after subpart 3 the following:

    ``Subpart 4--Masters Degree Programs at Historically Black Colleges and
                Universities and Predominantly Black Institutions

    ``SEC. 723. <<NOTE: 20 USC 1136a.>> 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

    [[Page 122 STAT. 3350]]

            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 Sate University.
                        ``(Q) Wilberforce University.
                        ``(R) Winston-Salem State University.
                ``(2) Qualified masters degree program.--
                        ``(A) In general.--For the purposes of this section,
                    the term `qualified masters degree program' means a
                    masters degree program that provides a program of
                    instruction in mathematics, engineering, the physical or
                    natural sciences, computer science, information
                    technology, nursing, allied health, or other scientific
                    disciplines in which African Americans are
                    underrepresented and has students enrolled in such
                    program of instruction at the time of application for a
                    grant under this section.
                        ``(B) Enrollment exception.--Notwithstanding the
                    enrollment requirement contained in subparagraph (A), an
                    institution may use an amount equal to not more than 10
                    percent of the institution's grant under this section
                    for the development of a new qualified masters degree
                    program.
                ``(3) Institutional choice.--The president or chancellor of
            the institution may decide which graduate school or qualified
            masters degree program will receive funds under the grant in any
            one fiscal year, if the allocation of funds among the schools or
            programs is delineated in the application for funds submitted to
            the Secretary under this section.
                ``(4) One grant per institution.--The Secretary shall not
            award more than one grant under this section in any fiscal year
            to any institution of higher education.

    [[Page 122 STAT. 3351]]

        ``(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--

    [[Page 122 STAT. 3352]]

                        ``(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 for a
    fiscal year shall be eligible to apply for a grant, or receive grant
    funds, under this section for the same fiscal year.
        ``(f) Funding Rule.--Subject to subsection (g), of the amount
    appropriated to carry out this section for any fiscal year--
                ``(1) the first $9,000,000 (or any lesser amount
            appropriated) shall be available only for the purposes of making
            minimum grants under subsection (a)(3) to eligible institutions
            listed in subparagraphs (A) through (R) of subsection (b)(1),
            except that if the amount appropriated is not sufficient to pay
            the minimum grant awards to all such eligible institutions, the
            amount of the minimum award to each such eligible institution
            shall be ratably reduced;
                ``(2) after the application of paragraph (1), an amount
            shall be available for the purpose of making minimum grants
            under subsection (a)(3) to eligible institutions listed in
            subsection (b)(1) that do not receive a grant under paragraph
            (1), if any, except that if the amount appropriated is not
            sufficient to pay the minimum grant awards to all such eligible
            institutions, the amount of the minimum award to each such
            eligible institution shall be ratably reduced; and
                ``(3) any amount in excess of $9,000,000 shall be made
            available to each of the eligible institutions identified in
            subparagraphs (A) through (R) of subsection (b)(1), pursuant to
            a formula developed by the Secretary that uses the following
            elements:
                        ``(A) The ability of the institution to match
                    Federal funds with non-Federal funds.
                        ``(B) The number of students enrolled in the
                    qualified masters degree program at the eligible
                    institution in the previous academic year.
                        ``(C) The average cost of attendance per student,
                    for all full-time students enrolled in the qualified
                    masters degree program at such institution.
                        ``(D) The number of students in the previous year
                    who received a degree in the qualified masters degree
                    program at such institution.
                        ``(E) The contribution, on a percent basis, of the
                    programs for which the institution is eligible to
                    receive funds under this section to the total number of
                    African Americans receiving masters degrees in the
                    disciplines related to the programs for the previous
                    year.

        ``(g) Hold Harmless Rule.--Notwithstanding paragraphs (2) and (3) of
    subsection (f), no eligible institution identified in subsection (b)(1)
    that receives a grant under this section for fiscal year 2009 and that
    is eligible to receive a grant for a subsequent fiscal year shall
    receive a grant amount for any such subsequent fiscal year that is less
    than the grant amount received for fiscal year 2009, unless--
                ``(1) the amount appropriated is not sufficient to provide
            such grant amounts to all such institutions and programs that
            received grants under this section for such fiscal year and

    [[Page 122 STAT. 3353]]

            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. <<NOTE: 20 USC 1136b.>> MASTERS DEGREE PROGRAMS AT
                            PREDOMINANTLY BLACK INSTITUTIONS.

        ``(a) Grant Program Authorized.--
                ``(1) In general.--Subject to the availability of funds
            appropriated to carry out this section, the Secretary shall
            award program grants to each of the institutions listed in
            subsection (b)(1) that is determined by the Secretary to be
            making a substantial contribution to graduate education
            opportunities at the masters level in mathematics, engineering,
            the physical or natural sciences, computer science, information
            technology, nursing, allied health, or other scientific
            disciplines for Black Americans.
                ``(2) Assurance of non-federal matching funds.--No grant in
            excess of $1,000,000 may be made under this section unless the
            institution provides assurances that 50 percent of the cost of
            the purposes for which the grant is made will be paid from non-
            Federal sources, except that no institution shall be required to
            match any portion of the first $1,000,000 of the institution's
            award from the Secretary. After funds are made available to each
            eligible institution under the funding rules described in
            subsection (f), the Secretary shall distribute, on a pro rata
            basis, any amounts which were not so made available (by reason
            of the failure of an institution to comply with the matching
            requirements of this paragraph) among the institutions that have
            complied with such matching requirement.
                ``(3) Minimum award.--Subject to subsections (f) and (g),
            the amount awarded to each eligible institution listed in
            subsection (b)(1) for a fiscal year shall be not less than
            $500,000.
                ``(4) Duration of grants.--A grant awarded under this
            section shall be for a period of not more than six years, but
            may be periodically renewed for a period to be determined by the
            Secretary.

        ``(b) Institutional Eligibility.--
                ``(1) In general.--Institutions eligible for grants under
            subsection (a) are the following:
                        ``(A) Chicago State University.
                        ``(B) Columbia Union College.
                        ``(C) Long Island University, Brooklyn campus.
                        ``(D) Robert Morris College.
                        ``(E) York College, The City University of New York.
                ``(2) Qualified masters degree program.--
                        ``(A) In general.--For the purposes of this section,
                    the term `qualified masters degree program' means a
                    masters degree program that provides a program of
                    instruction in mathematics, engineering, the physical or
                    natural sciences, computer science, information
                    technology, nursing, allied health, or other scientific
                    disciplines in which African Americans are
                    underrepresented and has students enrolled in such
                    program of instruction at the time of application for a
                    grant under this section.

    [[Page 122 STAT. 3354]]

                        ``(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;

    [[Page 122 STAT. 3355]]

                ``(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 for a
    fiscal year shall be eligible to apply for a grant, or receive grant
    funds, under this section for the same fiscal year.
        ``(f) Funding Rule.--Subject to subsection (g), of the amount
    appropriated to carry out this section for any fiscal year--
                ``(1) the first $2,500,000 (or any lesser amount
            appropriated) shall be available only for the purposes of making
            minimum grants under subsection (a)(3) to eligible institutions
            listed in subparagraphs (A) through (E) of subsection (b)(1),
            except that if the amount appropriated is not sufficient to pay
            the minimum grant awards to all such eligible institutions, the
            amount of the minimum award to each such eligible institution
            shall be ratably reduced;
                ``(2) after the application of paragraph (1), an amount
            shall be available for the purpose of making minimum grants
            under subsection (a)(3) to eligible institutions described in
            subsection (b)(1) that do not receive a grant under paragraph
            (1), if any, except that if the amount appropriated is not
            sufficient to pay the minimum grant awards to all such eligible
            institutions, the amount of the minimum award to each such
            eligible institution shall be ratably reduced; and
                ``(3) any amount in excess of $2,500,000 shall be made
            available to each of the eligible institutions identified in
            subparagraphs (A) through (E) of subsection (b)(1), pursuant to
            a formula developed by the Secretary that uses the following
            elements:
                        ``(A) The ability of the institution to match
                    Federal funds with non-Federal funds.
                        ``(B) The number of students enrolled in the
                    qualified masters degree program at the eligible
                    institution in the previous academic year.
                        ``(C) The average cost of attendance per student,
                    for all full-time students enrolled in the qualified
                    masters degree program at such institution.
                        ``(D) The number of students in the previous year
                    who received a degree in the qualified masters degree
                    program at such institution.

    [[Page 122 STAT. 3356]]

                        ``(E) The contribution, on a percent basis, of the
                    programs for which the institution is eligible to
                    receive funds under this section to the total number of
                    African Americans receiving masters degrees in the
                    disciplines related to the programs for the previous
                    year.

        ``(g) Hold Harmless Rule.--Notwithstanding paragraphs (2) and (3) of
    subsection (f), no eligible institution identified in subsection (b)(1)
    that receives a grant under this section for fiscal year 2009 and that
    is eligible to receive a grant in a subsequent fiscal year shall receive
    a grant amount in any such subsequent fiscal year that is less than the
    grant amount received for fiscal year 2009, unless--
                ``(1) the amount appropriated is not sufficient to provide
            such grant amounts to all such institutions and programs that
            received grants under this section for such fiscal year and that
            are eligible to receive a grant in such subsequent fiscal year;
            or
                ``(2) the institution cannot provide sufficient matching
            funds to meet the requirements of this section.
    ``SEC. 725. <<NOTE: 20 USC 1136c.>> AUTHORIZATION OF
                            APPROPRIATIONS.

        ``(a) Masters Degree Programs at Historically Black Colleges and
    Universities.--There are authorized to be appropriated to carry out
    section 723 such sums as may be necessary for fiscal year 2009 and each
    of the five succeeding fiscal years.
        ``(b) Masters Degree Programs at Predominantly Black Institutions.--
    There are authorized to be appropriated to carry out section 724 such
    sums as may be necessary for fiscal year 2009 and each of the five
    succeeding fiscal years.''.
    SEC. 707. FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION.

        (a) Contract and Grant Purposes.--Section 741(a) (20 U.S.C. 1138(a))
    is amended--
                (1) by striking paragraphs (1) through (3) and inserting the
            following:
                ``(1) the encouragement of reform and improvement of, and
            innovation in, postsecondary education and the provision of
            educational opportunity for all students, including
            nontraditional students;
                ``(2) the creation of institutions, programs, and joint
            efforts involving paths to career and professional training,
            including--
                        ``(A) efforts that provide academic credit for
                    programs; and
                        ``(B) combinations of academic and experiential
                    learning;
                ``(3) the establishment and continuation of institutions,
            programs, consortia, collaborations, and other joint efforts
            based on communications technology, including those efforts that
            utilize distance education and technological advancements to
            educate and train postsecondary students (including health
            professionals serving medically underserved populations);'';
                (2) by striking paragraph (6) and inserting the following:
                ``(6) the introduction of institutional reforms designed to
            expand individual opportunities for entering and reentering
            postsecondary institutions and pursuing programs of
            postsecondary study tailored to individual needs;'';
                (3) in paragraph (7), by striking ``and'' after the
            semicolon;

    [[Page 122 STAT. 3357]]

                (4) in paragraph (8), by striking the period at the end and
            inserting a semicolon; and
                (5) by adding at the end the following:
                ``(9) the introduction of reforms in remedial education,
            including English language instruction, to customize remedial
            courses to student goals and help students progress rapidly from
            remedial courses into core courses and through postsecondary
            program completion;
                ``(10) the provision of support and assistance to
            partnerships between institutions of higher education and
            secondary schools with a significant population of students
            identified as late-entering limited English proficient students,
            to establish programs that--
                        ``(A) result in increased secondary school
                    graduation rates of limited English proficient students;
                    and
                        ``(B) increase the number of participating late-
                    entering limited English proficient students who pursue
                    postsecondary education;
                ``(11) the creation of consortia that join diverse
            institutions of higher education to design and offer curricular
            and cocurricular interdisciplinary programs at the undergraduate
            and graduate levels, sustained for not less than a 5 year
            period, that--
                        ``(A) focus on poverty and human capability; and
                        ``(B) include--
                              ``(i) a service-learning component; and
                              ``(ii) the delivery of educational services
                          through informational resource centers, summer
                          institutes, midyear seminars, and other
                          educational activities that stress the effects of
                          poverty and how poverty can be alleviated through
                          different career paths;
                ``(12) the provision of support and assistance for
            demonstration projects to provide comprehensive support services
            to ensure that homeless students, or students who were in foster
            care or were a ward of the court at any time before the age of
            13, enroll and succeed in postsecondary education, including
            providing housing to such students during periods when housing
            at the institution of higher education is closed or generally
            unavailable to other students; and
                ``(13) the support of efforts to work with institutions of
            higher education, and nonprofit organizations, that seek to
            promote cultural diversity in the entertainment media industry,
            including through the training of students in production,
            marketing, and distribution of culturally relevant content.''.

        (b) Center for Best Practices To Support Single Parent Students.--
    Section 741 (20 U.S.C. 1138) is further amended by adding at the end the
    following:
        ``(c) Center <<NOTE: Grants. Contracts.>> for Best Practices To
    Support Single Parent Students.--
                ``(1) Program authorized.--The Secretary is authorized to
            award one grant or contract to an institution of higher
            education to enable such institution to establish and maintain a
            center to study and develop best practices for institutions of
            higher education to support single parents who are also students
            attending such institutions.
                ``(2) Institution requirements.--The Secretary shall award
            the grant or contract under this subsection to a four-

    [[Page 122 STAT. 3358]]

            year institution of higher education that has demonstrated
            expertise in the development of programs to assist single
            parents who are students at institutions of higher education, as
            shown by the institution's development of a variety of targeted
            services to such students, including on-campus housing, child
            care, counseling, advising, internship opportunities, financial
            aid, and financial aid counseling and assistance.
                ``(3) Center activities.--The center funded under this
            section shall--
                        ``(A) assist institutions implementing innovative
                    programs that support single parents pursuing higher
                    education;
                        ``(B) study and develop an evaluation protocol for
                    such programs that includes quantitative and qualitative
                    methodologies;
                        ``(C) provide appropriate technical assistance
                    regarding the replication, evaluation, and continuous
                    improvement of such programs; and
                        ``(D) develop and disseminate best practices for
                    such programs.''.

        (c) Prohibition.--Section 741 (20 U.S.C. 1138) is further amended by
    adding after subsection (c) (as added by subsection (b) of this section)
    the following:
        ``(d) Prohibition.--
                ``(1) In general.--No funds made available under this part
            shall be used to provide direct financial assistance in the form
            of grants or scholarships to students who do not meet the
            requirements of section 484(a).
                ``(2) Rule of construction.--Nothing in this subsection
            shall be construed to prevent a student who does not meet the
            requirements of section 484(a) from participating in programs
            funded under this part.''.

        (d) Priority.--Section 741 (20 U.S.C. 1138) is further amended by
    adding after subsection (d) (as added by subsection (c) of this section)
    the following:
        ``(e) Priority.--In making grants under this part to any institution
    of higher education after the date of enactment of the Higher Education
    Opportunity Act, the Secretary may give priority to institutions that
    meet or exceed the most current version of ASHRAE/IES Standard 90.1 (as
    such term is used in section 342(a)(6) of the Energy Policy and
    Conservation Act (42 U.S.C. 6313(a)(6)) for any new facilities
    construction or major renovation of the institution after such date,
    except that this subsection shall not apply with respect to barns or
    greenhouses or similar structures owned by the institution.''.
        (e) Scholarship Program for Family Members of Veterans or Members of
    the Military.--Section 741 (20 U.S.C. 1138) is further amended by adding
    after subsection (e) (as added by subsection (d) of this section) the
    following:
        ``(f) Scholarship Program for Family Members of Veterans or Members
    of the Military.--
                ``(1) Authorization.--
            <<NOTE: Contracts. Nonprofit organizations.>> The Secretary
            shall enter into a contract with a nonprofit organization with
            demonstrated success in carrying out the activities described in
            this subsection to carry out a program to provide postsecondary
            education scholarships for eligible students.

    [[Page 122 STAT. 3359]]

                ``(2) Definition of eligible student.--In this subsection,
            the term `eligible student' means an individual who is enrolled
            as a full-time or part-time student at an institution of higher
            education (as defined in section 102) and is--
                        ``(A) a dependent student who is a child of--
                              ``(i) an individual who is--
                                        ``(I) serving on active duty during
                                    a war or other military operation or
                                    national emergency (as defined in
                                    section 481); or
                                        ``(II) performing qualifying
                                    National Guard duty during a war or
                                    other military operation or national
                                    emergency (as defined in section 481);
                                    or
                              ``(ii) a veteran who--
                                        ``(I) served or performed, as
                                    described in clause (i), since September
                                    11, 2001; and
                                        ``(II) died, or has been disabled,
                                    as a result of such service or
                                    performance; or
                        ``(B) an independent student who--
                              ``(i) is a spouse of an individual who is--
                                        ``(I) serving on active duty during
                                    a war or other military operation or
                                    national emergency (as defined in
                                    section 481); or
                                        ``(II) performing qualifying
                                    National Guard duty during a war or
                                    other military operation or national
                                    emergency (as defined in section 481);
                              ``(ii) was (at the time of death of the
                          veteran) a spouse of a veteran who--
                                        ``(I) served or performed, as
                                    described in clause (i), since September
                                    11, 2001; and
                                        ``(II) died as a result of such
                                    service or performance; or
                              ``(iii) is a spouse of a veteran who--
                                        ``(I) served or performed, as
                                    described in clause (i), since September
                                    11, 2001; and
                                        ``(II) has been disabled as a result
                                    of such service or performance.
                ``(3) Awarding of scholarships.--Scholarships awarded under
            this subsection shall be awarded based on need with priority
            given to eligible students who are eligible to receive Federal
            Pell Grants under subpart 1 of part A of title IV.
                ``(4) Maximum scholarship amount.--The maximum scholarship
            amount awarded to an eligible student under this subsection for
            an award year shall be the lesser of $5,000, or the student's
            cost of attendance (as defined in section 472).
                ``(5) Amounts for scholarships.--All of the amounts
            appropriated to carry out this subsection for a fiscal year
            shall be used for scholarships awarded under this subsection,
            except that the nonprofit organization receiving a contract
            under this subsection may use not more than one percent of such
            amounts for the administrative costs of the contract.''.

        (f) Areas of National Need.--Section 744(c) (20 U.S.C. 1138c(c)) is
    amended to read as follows:
        ``(c) Areas of National Need.--Areas of national need shall include,
    at a minimum, the following:

    [[Page 122 STAT. 3360]]

                ``(1) Institutional restructuring to improve learning and
            promote productivity, efficiency, quality improvement, and cost
            reduction.
                ``(2) Improvements in academic instruction and student
            learning, including efforts designed to assess the learning
            gains made by postsecondary students.
                ``(3) Articulation between two- and four-year institutions
            of higher education, including developing innovative methods for
            ensuring the successful transfer of students from two- to four-
            year institutions of higher education.
                ``(4) Development, evaluation, and dissemination of model
            courses, including model courses that--
                        ``(A) provide students with a broad and integrated
                    knowledge base;
                        ``(B) include, at a minimum, broad survey courses in
                    English literature, American and world history, American
                    political institutions, economics, philosophy, college-
                    level mathematics, and the natural sciences; and
                        ``(C) include study of a foreign language that leads
                    to reading and writing competency in the foreign
                    language.
                ``(5) International cooperation and student exchanges among
            postsecondary educational institutions.
                ``(6) Support of centers to incorporate education in quality
            and safety into the preparation of medical and nursing students,
            through grants to medical schools, nursing schools, and
            osteopathic schools. Such grants shall be used to assist in
            providing courses of instruction that specifically equip
            students to--
                        ``(A) understand the causes of, and remedies for,
                    medical error, medically induced patient injuries and
                    complications, and other defects in medical care;
                        ``(B) engage effectively in personal and systemic
                    efforts to continually reduce medical harm; and
                        ``(C) improve patient care and outcomes, as
                    recommended by the Institute of Medicine.''.

        (g) Authorization of Appropriations for the Fund for the Improvement
    of Postsecondary Education.--Section 745 (20 U.S.C. 1138d) is amended by
    striking ``$30,000,000 for fiscal year 1999'' and all that follows
    through the period at the end and inserting ``such sums as may be
    necessary for fiscal year 2009 and each of the five succeeding fiscal
    years.''.
        (h) Technical FIPSE Amendments.--Part B of title VII (20 U.S.C. 1138
    et seq.) is further amended--
                (1) in section 742 (20 U.S.C. 1138a)--
                        (A) in subsection (b)--
                              (i) by striking ``(b) Membership.--'' and all
                          that follows through ``The Secretary'' and
                          inserting ``(b) Membership.--The Secretary''; and
                              (ii) by striking paragraph (2);
                        (B) in subsection (c), by striking ``and the
                    Director'' each place the term appears; and
                        (C) in subsection (d), by striking ``Director'' and
                    inserting ``Secretary'';
                (2) in section 743 (20 U.S.C. 1138b)--
                        (A) by striking ``(a) Technical Employees.--''; and
                        (B) by striking subsection (b); and

    [[Page 122 STAT. 3361]]

                (3) in section 744(a) (20 U.S.C. 1138c(a)), by striking
            ``Director'' each place the term appears and inserting
            ``Secretary''.
    SEC. 708. REPEAL OF THE URBAN COMMUNITY SERVICE PROGRAM.

        Part C of title VII (20 U.S.C. 1139 et seq.) is repealed.
    SEC. 709. PROGRAMS TO PROVIDE STUDENTS WITH DISABILITIES WITH A
                            QUALITY HIGHER EDUCATION.

        Title VII (20 U.S.C. 1133 et seq.) is further amended--
                (1) by redesignating section 771 (20 U.S.C. 1141) as section
            781; and
                (2) by striking part D of title VII (20 U.S.C. 1140 et seq.)
            and inserting the following:

    ``PART D--PROGRAMS TO PROVIDE STUDENTS WITH DISABILITIES WITH A QUALITY
                                HIGHER EDUCATION

    ``SEC. 760. <<NOTE: 20 USC 1140.>> 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 is--
                        ``(A) offered by an institution of higher education;
                        ``(B) 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;
                    and
                        ``(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 one 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.
                ``(2) Student with an intellectual disability.--The term
            `student with an intellectual disability' means a student--
                        ``(A) with mental retardation or 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

    [[Page 122 STAT. 3362]]

                        ``(B) who is currently, or was formerly, eligible
                    for a free appropriate public education under the
                    Individuals with Disabilities Education Act.

     ``Subpart 1--Demonstration Projects to Support Postsecondary Faculty,
        Staff, and Administrators in Educating Students With Disabilities

    ``SEC. 761. <<NOTE: 20 USC 1140a.>> PURPOSE.

        ``It is the purpose of this subpart to support model demonstration
    projects to provide technical assistance or professional development for
    postsecondary faculty, staff, and administrators in institutions of
    higher education to enable such faculty, staff, and administrators to
    provide students with disabilities with a quality postsecondary
    education.
    ``SEC. 762. <<NOTE: 20 USC 1140b.>> 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

    [[Page 122 STAT. 3363]]

                    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 <<NOTE: Public information.>> 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.

    [[Page 122 STAT. 3364]]

                ``(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)  <<NOTE: Public information.>> 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. <<NOTE: 20 USC 1140c.>> 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;

    [[Page 122 STAT. 3365]]

                ``(3) a description of how the institution will coordinate
            and collaborate with the office that provides services to
            students with disabilities within the institution; and
                ``(4) a description of the extent to which the institution
            will work to replicate the research-based and best practices of
            institutions of higher education with demonstrated effectiveness
            in serving students with disabilities.
    ``SEC. 764. <<NOTE: 20 USC 1140d.>> RULE OF CONSTRUCTION.

        ``Nothing in this subpart shall be construed to impose any
    additional duty, obligation, or responsibility on an institution of
    higher education or on the institution's faculty, administrators, or
    staff than is required under section 504 of the Rehabilitation Act of
    1973 (29 U.S.C. 794) and the Americans with Disabilities Act of 1990 (42
    U.S.C. 12101 et seq.).
    ``SEC. 765. <<NOTE: 20 USC 1140e.>> AUTHORIZATION OF
                            APPROPRIATIONS.

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

        ``Subpart 2--Transition Programs for Students With Intellectual
                       Disabilities Into Higher Education

    ``SEC. 766. <<NOTE: 20 USC 1140f.>> 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 <<NOTE: 20 USC 1140g.>> 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

    [[Page 122 STAT. 3366]]

            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

    [[Page 122 STAT. 3367]]

    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. 768. <<NOTE: 20 USC 1140h.>> RULE OF CONSTRUCTION.

        ``Nothing in this subpart shall be construed to reduce or expand--
                ``(1) the obligation of a State or local educational agency
            to provide a free appropriate public education, as defined in
            section 602 of the Individuals with Disabilities Education Act;
            or
                ``(2) eligibility requirements under any Federal, State, or
            local disability law, including the Americans with Disabilities
            Act of 1990 (42 U.S.C. 12101 et seq.), the Rehabilitation Act of
            1973 (29 U.S.C. 701 et seq.), or the Developmental Disabilities
            Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15001 et
            seq.).
    ``SEC. 769. <<NOTE: 20 USC 1140i.>> 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 and each of the five succeeding fiscal years.
        ``(b) Reservation of Funds.-- <<NOTE: Contracts.>> 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 3--Commission on Accessible Materials; Programs to Support
                          Improved Access to Materials

    ``SEC. 771. <<NOTE: 20 USC 1140k.>> DEFINITION OF STUDENT WITH A
                            PRINT DISABILITY.

        ``In this subpart, the term `student with a print disability' means
    a student with a disability who experiences barriers to accessing
    instructional material in nonspecialized formats, including an
    individual described in section 121(d)(2) of title 17, United States
    Code.

    [[Page 122 STAT. 3368]]

    ``SEC. 772. <<NOTE: 20 USC 1140l.>> ESTABLISHMENT OF ADVISORY
                            COMMISSION ON ACCESSIBLE INSTRUCTIONAL
                            MATERIALS IN POSTSECONDARY EDUCATION FOR
                            STUDENTS WITH DISABILITIES.

        ``(a) Establishment.--
                ``(1) In general.--The Secretary shall establish a
            commission to be known as the Advisory Commission on Accessible
            Instructional Materials in Postsecondary Education for Students
            with Disabilities (in this section referred to as the
            `Commission').
                ``(2) Membership.--
                        ``(A) Total number of members.--The Commission shall
                    include not more than 19 members, who shall be appointed
                    by the Secretary in accordance with in subparagraphs (B)
                    and (C).
                        ``(B) Members of the commission.--The Commission
                    members shall include one representative from each of
                    the following categories:
                              ``(i) The Office of Postsecondary Education of
                          the Department.
                              ``(ii) The Office of Special Education and
                          Rehabilitative Services of the Department.
                              ``(iii) The Office for Civil Rights of the
                          Department.
                              ``(iv) The Library of Congress National
                          Digital Information and Infrastructure
                          Preservation Program Copyright Working Group.
                              ``(v) The Association on Higher Education and
                          Disability.
                              ``(vi) The Association of American Publishers.
                              ``(vii) The Association of American University
                          Presses.
                              ``(viii) The National Council on Disability.
                              ``(ix) Recording for the Blind and Dyslexic.
                              ``(x) National organizations representing
                          individuals with visual impairments.
                              ``(xi) National organizations representing
                          individuals with learning disabilities.
                        ``(C) Additional members of the commission.--The
                    Commission members shall include two representatives
                    from each of the following categories:
                              ``(i) Staff from institutions of higher
                          education with demonstrated experience teaching or
                          supporting students with print disabilities,
                          including representatives from both two-year and
                          four-year institutions of higher education of
                          different sizes.
                              ``(ii) Producers of accessible materials,
                          publishing software, and supporting technologies
                          in specialized formats, such as Braille, audio or
                          synthesized speech, and digital media.
                              ``(iii) Individuals with visual impairments,
                          including not less than one currently enrolled
                          postsecondary student.
                              ``(iv) Individuals with dyslexia or other
                          learning disabilities related to reading,
                          including not less than one currently enrolled
                          postsecondary student.
                        ``(D) Timing.-- <<NOTE: Deadline.>> The Secretary
                    shall appoint the members of the Commission not later
                    than 60 days after the Commission is established under
                    paragraph (1).

    [[Page 122 STAT. 3369]]

                ``(3) Chairperson and vice chairperson.--The Commission
            shall select a chairperson and vice chairperson from among the
            members of the Commission.
                ``(4) Meetings.--
                        ``(A) In general.--The Commission shall meet at the
                    call of the Chairperson.
                        ``(B) First <<NOTE: Deadline.>> meeting.--Not later
                    than 60 days after the appointment of the members of the
                    Commission under paragraph (2)(D), the Commission shall
                    hold the Commission's first meeting.
                ``(5) Quorum.--A majority of the members of the Commission
            shall constitute a quorum, but a lesser number of members may
            hold hearings.

        ``(b) Duties of the Commission.--
                ``(1) Study.--
                        ``(A) In general.--The Commission shall conduct a
                    comprehensive study to--
                              ``(i) assess the barriers and systemic issues
                          that may affect, and technical solutions available
                          that may improve, the timely delivery and quality
                          of accessible instructional materials for
                          postsecondary students with print disabilities, as
                          well as the effective use of such materials by
                          faculty and staff; and
                              ``(ii) make recommendations related to the
                          development of a comprehensive approach to improve
                          the opportunities for postsecondary students with
                          print disabilities to access instructional
                          materials in specialized formats in a timeframe
                          comparable to the availability of instructional
                          materials for postsecondary nondisabled students.
                        ``(B) Existing information.--To the extent
                    practicable, in carrying out the study under this
                    paragraph, the Commission shall identify and use
                    existing research, recommendations, and information.
                        ``(C) Recommendations.--
                              ``(i) In general.--The Commission shall
                          develop recommendations--
                                        ``(I) to inform Federal regulations
                                    and legislation;
                                        ``(II) to support the model
                                    demonstration programs authorized under
                                    section 773;
                                        ``(III) to identify best practices
                                    in systems for collecting, maintaining,
                                    processing, and disseminating materials
                                    in specialized formats to students with
                                    print disabilities at costs comparable
                                    to instructional materials for
                                    postsecondary nondisabled students;
                                        ``(IV) to improve the effective use
                                    of such materials by faculty and staff,
                                    while complying with applicable
                                    copyright law; and
                                        ``(V) to modify the definitions of
                                    instructional materials, authorized
                                    entities, and eligible students, as such
                                    terms are used in applicable Federal
                                    law, for the purpose of improving
                                    services to students with disabilities.

    [[Page 122 STAT. 3370]]

                              ``(ii) Considerations.--In developing the
                          recommendations under subparagraph (C), the
                          Commission shall consider--
                                        ``(I) how students with print
                                    disabilities may obtain instructional
                                    materials in accessible formats--
                                                ``(aa) within a timeframe
                                            comparable to the availability
                                            of instructional materials for
                                            nondisabled students; and
                                                ``(bb) to the maximum extent
                                            practicable, at costs comparable
                                            to the costs of such materials
                                            for nondisabled students;
                                        ``(II) the feasibility and technical
                                    parameters of establishing standardized
                                    electronic file formats, such as the
                                    National Instructional Materials
                                    Accessibility Standard as defined in
                                    section 674(e)(3) of the Individuals
                                    with Disabilities Education Act, to be
                                    provided by publishers of instructional
                                    materials to producers of materials in
                                    specialized formats, institutions of
                                    higher education, and eligible students;
                                        ``(III) the feasibility of
                                    establishing a national clearinghouse,
                                    repository, or file-sharing network for
                                    electronic files in specialized formats
                                    and files used in producing
                                    instructional materials in specialized
                                    formats, and a list of possible entities
                                    qualified to administer such
                                    clearinghouse, repository, or network;
                                        ``(IV) the feasibility of
                                    establishing market-based solutions
                                    involving collaborations among
                                    publishers of instructional materials,
                                    producers of materials in specialized
                                    formats, and institutions of higher
                                    education;
                                        ``(V) solutions utilizing universal
                                    design; and
                                        ``(VI) solutions for low-incidence,
                                    high-cost requests for instructional
                                    materials in specialized formats.
                ``(2) Report.--Not later than one year after the
            Commission's first meeting, the Commission shall submit a report
            to the Secretary and the authorizing committees detailing the
            findings and recommendations of the study conducted under
            paragraph (1).
                ``(3) Dissemination of information.--In carrying out the
            study under paragraph (1), the Commission shall disseminate
            information concerning the issues that are the subject of the
            study through--
                        ``(A) the National Technical Assistance Center
                    established under subpart 4; and
                        ``(B) other means, as determined by the Commission.

        ``(c) Termination of the Commission.--The Commission shall terminate
    on the date that is 90 days after the date on which the Commission
    submits the report under subsection (b)(2) to the Secretary and the
    authorizing committees.

    [[Page 122 STAT. 3371]]

    ``SEC. 773. MODEL <<NOTE: Grants. Contracts. 20 USC
                            1140m.>> DEMONSTRATION PROGRAMS TO SUPPORT
                            IMPROVED ACCESS TO POSTSECONDARY
                            INSTRUCTIONAL MATERIALS FOR STUDENTS WITH
                            PRINT DISABILITIES.

        ``(a) Purpose.--It is the purpose of this section to support model
    demonstration programs for the purpose of encouraging the development of
    systems to improve the quality of postsecondary instructional materials
    in specialized formats and such materials' timely delivery to
    postsecondary students with print disabilities, including systems to
    improve efficiency and reduce duplicative efforts across multiple
    institutions of higher education.
        ``(b) Definition of Eligible Partnership.--In this section, the term
    `eligible partnership' means a partnership that--
                ``(1) shall include--
                        ``(A) an institution of higher education with
                    demonstrated expertise in meeting the needs of students
                    with print disabilities, including the retention of such
                    students in, and such students' completion of,
                    postsecondary education; and
                        ``(B) a public or private entity, other than an
                    institution of higher education, with--
                              ``(i) demonstrated expertise in developing
                          accessible instructional materials in specialized
                          formats for postsecondary students with print
                          disabilities; and
                              ``(ii) the technical development expertise
                          necessary for the efficient dissemination of such
                          materials, including procedures to protect against
                          copyright infringement with respect to the
                          creation, use, and distribution of instructional
                          materials in specialized formats; and
                ``(2) may include representatives of the publishing
            industry.

        ``(c) Program Authorized.--From amounts appropriated under section
    775, the Secretary shall award grants or contracts, on a competitive
    basis, to not less than one eligible partnership to enable the eligible
    partnership to support the activities described in subsection (f) and,
    as applicable, subsection (g).
        ``(d) Application.--An eligible partnership that desires a grant or
    contract under this section shall submit an application at such time, in
    such manner, and in such format as the Secretary may prescribe. The
    application shall include information on how the eligible partnership
    will implement activities under subsection (f) and, as applicable,
    subsection (g).
        ``(e) Priority.--In awarding grants or contracts under this section,
    the Secretary shall give priority to any applications that include the
    development and implementation of the procedures and approaches
    described in paragraphs (2) and (3) of subsection (g).
        ``(f) Required Activities.--An eligible partnership that receives a
    grant or contract under this section shall use the grant or contract
    funds to carry out the following:
                ``(1) Supporting the development and implementation of the
            following:
                        ``(A) Processes and systems to help identify, and
                    verify eligibility of, postsecondary students with print
                    disabilities in need of instructional materials in
                    specialized formats.
                        ``(B) Procedures and systems to facilitate and
                    simplify request methods for accessible instructional
                    materials in specialized formats from eligible students
                    described in

    [[Page 122 STAT. 3372]]

                    subparagraph (A), which may include a single point-of-
                    entry system.
                        ``(C) Procedures and systems to coordinate among
                    institutions of higher education, publishers of
                    instructional materials, and entities that produce
                    materials in specialized formats, to efficiently
                    facilitate--
                              ``(i) requests for such materials;
                              ``(ii) the responses to such requests; and
                              ``(iii) the delivery of such materials.
                        ``(D) Delivery systems that will ensure the timely
                    provision of instructional materials in specialized
                    formats to eligible students, which may include
                    electronic file distribution.
                        ``(E) Systems to reduce duplicative conversions and
                    improve sharing of the same instructional materials in
                    specialized formats for multiple eligible students at
                    multiple institutions of higher education.
                        ``(F) Procedures to protect against copyright
                    infringement with respect to the development, use, and
                    distribution of instructional materials in specialized
                    formats while maintaining accessibility for eligible
                    students, which may include digital technologies such as
                    watermarking, fingerprinting, and other emerging
                    approaches.
                        ``(G) Awareness, outreach, and training activities
                    for faculty, staff, and students related to the
                    acquisition and dissemination of instructional materials
                    in specialized formats and instructional materials
                    utilizing universal design.
                ``(2) Providing recommendations on how effective procedures
            and systems described in paragraph (1) may be disseminated and
            implemented on a national basis.

        ``(g) Authorized Approaches.--An eligible partnership that receives
    a grant or contract under this section may use the grant or contract
    funds to support the development and implementation of the following:
                ``(1) Approaches for the provision of instructional
            materials in specialized formats limited to instructional
            materials used in smaller categories of postsecondary courses,
            such as introductory, first-, and second-year courses.
                ``(2) Approaches supporting a unified search for
            instructional materials in specialized formats across multiple
            databases or lists of available materials.
                ``(3) Market-based approaches for making instructional
            materials in specialized formats directly available to eligible
            students at prices comparable to standard instructional
            materials.

        ``(h) Report.--Not later than three years after the date of the
    first grant or contract awarded under this section, the Secretary shall
    submit to the authorizing committees a report that includes--
                ``(1) the number of grants and contracts and the amount of
            funds distributed under this section;
                ``(2) a summary of the purposes for which the grants and
            contracts were provided and an evaluation of the progress made
            under such grants and contracts;
                ``(3) a summary of the activities implemented under
            subsection (f) and, as applicable, subsection (g), including
            data on the number of postsecondary students with print
            disabilities

    [[Page 122 STAT. 3373]]

            served and the number of instructional material requests
            executed and delivered in specialized formats; and
                ``(4) an evaluation of the effectiveness of programs funded
            under this section.

        ``(i) Model Expansion.--The Secretary may, on the basis of the
    reports under subsection (h) and section 772(b)(2) and any evaluations
    of the projects funded under this section, expand the program under this
    section to additional grant or contract recipients that use other
    programmatic approaches and serve different geographic regions, if the
    Secretary finds that the models used under this section--
                ``(1) are effective in improving the timely delivery and
            quality of materials in specialized formats; and
                ``(2) provide adequate protections against copyright
            infringement.
    ``SEC. 774. <<NOTE: 20 USC 1140n.>> RULE OF CONSTRUCTION.

        ``Nothing in this subpart shall be construed to limit or preempt any
    State law requiring the production or distribution of postsecondary
    instructional materials in accessible formats to students with
    disabilities.
    ``SEC. 775. <<NOTE: 20 USC 1140o.>> AUTHORIZATION OF
                            APPROPRIATIONS.

        ``(a) In General.--There are authorized to be appropriated to carry
    out this subpart such sums as may be necessary for fiscal year 2009 and
    each of the five succeeding fiscal years.
        ``(b) Priority.--For the first fiscal year for which funds are made
    available under this section, the Secretary shall give priority to
    allocating funding for the purposes of section 772.

     ``Subpart 4--National Technical Assistance Center; Coordinating Center

    ``SEC. 776. <<NOTE: 20 USC 1140p.>> PURPOSE.

        ``It is the purpose of this subpart to provide technical assistance
    and information on best and promising practices to students with
    disabilities, the families of students with disabilities, and entities
    awarded grants, contracts, or cooperative agreements under subpart 1, 2,
    or 3 to improve the postsecondary recruitment, transition, retention,
    and completion rates of students with disabilities.
    ``SEC. 777. NATIONAL <<NOTE: 20 USC 1140q.>> TECHNICAL ASSISTANCE
                            CENTER; COORDINATING CENTER.

        ``(a) National Center.--
                ``(1) In general.-- <<NOTE: Grants. Contracts.>> 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

    [[Page 122 STAT. 3374]]

            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

    [[Page 122 STAT. 3375]]

                          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 <<NOTE: Records.>> 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 <<NOTE: Public information. Web
                    site.>> 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

    [[Page 122 STAT. 3376]]

                              ``(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.-- <<NOTE: Contracts.>> 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 <<NOTE: Contracts.>> 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--

    [[Page 122 STAT. 3377]]

                              ``(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. <<NOTE: 20 USC 1140r.>> 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. 710. SUBGRANTS TO NONPROFIT ORGANIZATIONS.

        Section 781 (as redesignated by section 709(1)) (20 U.S.C. 1141) is
    amended--
                (1) in subsection (a), by striking the second sentence and
            inserting the following: ``In addition to the amount authorized
            and appropriated under the preceding sentence, there are
            authorized to be appropriated to carry out this section such
            sums as may be necessary for fiscal year 2009 and each of the
            five succeeding fiscal years.'';

    [[Page 122 STAT. 3378]]

                (2) in subsection (b)(1), by inserting ``, subject to the
            availability of appropriations,'' after ``the Secretary shall'';
            and
                (3) in subsection (e), by inserting after ``of this Act)''
            the following: ``, or those nonprofit organizations that have
            agreements with the Secretary under section 435(j)''.

                         TITLE VIII--ADDITIONAL PROGRAMS

    SEC. 801. ADDITIONAL PROGRAMS.

        The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is further
    amended by adding at the end the following new title:

                        ``TITLE VIII--ADDITIONAL PROGRAMS

                             ``PART A--PROJECT GRAD

    ``SEC. 801. <<NOTE: 20 USC 1161a.>> 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--

    [[Page 122 STAT. 3379]]

                        ``(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.

    [[Page 122 STAT. 3380]]

        ``(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.-- <<NOTE: Deadline.>> 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 <<NOTE: Reports.>> 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--

    [[Page 122 STAT. 3381]]

                        ``(A) the Secretary; and
                        ``(B) the authorizing committees.

        ``(i) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may be necessary for
    fiscal year 2009 and each of the five succeeding fiscal years.

               ``PART B--MATHEMATICS AND SCIENCE SCHOLARS PROGRAM

    ``SEC. 802. <<NOTE: Grants. 20 USC 1161b.>> 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.

    [[Page 122 STAT. 3382]]

                ``(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
                    regulation prescribed by the Secretary) at the end of
                    the most recently completed term.
                ``(3) Priority for scholarships.--The Governor of a State
            may set a priority for awarding scholarships under this
            subsection for students agreeing to work in areas of science,
            technology, engineering, mathematics, or health-related fields.
                ``(4) Amount and duration of scholarship.--The Secretary
            shall award a grant under this subsection to provide
            scholarships--
                        ``(A) in an amount that does not exceed $5,000 per
                    student for an academic year; and
                        ``(B) in an aggregate amount that does not exceed
                    $20,000 per student.

        ``(e) Matching Requirement.--In order to receive a grant under this
    section, a State shall provide matching funds for the scholarships
    awarded under this section in an amount equal to 50 percent of the
    Federal funds received.
        ``(f) Authorization.--There are authorized to be appropriated to
    carry out this section such sums as may be necessary for fiscal year
    2009 and each of the five succeeding fiscal years.
        ``(g) Definition.--The term `Governor' means the chief executive
    officer of a State.

      ``PART C--BUSINESS WORKFORCE PARTNERSHIPS FOR JOB SKILL TRAINING IN
                      HIGH-GROWTH OCCUPATIONS OR INDUSTRIES

    ``SEC. 803. <<NOTE: Grants. 20 USC 1161c.>> BUSINESS WORKFORCE
                            PARTNERSHIPS FOR JOB SKILL TRAINING IN
                            HIGH-GROWTH OCCUPATIONS OR INDUSTRIES.

        ``(a) Purpose.--The purpose of this section is to provide grants to
    institutions of higher education partnering with employers to--
                ``(1) provide relevant job skill training in high-growth and
            high-wage industries or occupations to nontraditional students;
            and

    [[Page 122 STAT. 3383]]

                ``(2) strengthen ties between degree credit offerings at
            institutions of higher education and business and industry
            workforce needs.

        ``(b) Authorization.--
                ``(1) In general.--From the amounts appropriated under
            subsection (k), the Secretary shall award grants, on a
            competitive basis, to eligible partnerships for the purpose
            provided in subsection (a).
                ``(2) Duration.--The Secretary shall award grants under this
            section for a period of not less than 36 months and not more
            than 60 months.
                ``(3) Supplement, not supplant.--Funds made available under
            this section shall be used to supplement, and not supplant,
            other Federal, State, and local funds available to the eligible
            partnership for carrying out the activities described in
            subsection (c).

        ``(c) Use of Funds.--In consultation with all of the members of an
    eligible partnership, grant funds provided under this section may be
    used to--
                ``(1) expand or create for-credit academic programs or
            programs of training that provide relevant job skill training
            for high-growth and high-wage occupations or industries,
            including offerings connected to registered apprenticeship
            programs and entrepreneurial training opportunities;
                ``(2) in consultation with faculty in the appropriate
            departments of an institution of higher education, adapt college
            offerings to the schedules and needs of working students, such
            as the creation of evening, weekend, modular, compressed, or
            distance learning formats;
                ``(3) purchase equipment that will facilitate the
            development of academic programs or programs of training that
            provide training for high-growth and high-wage occupations or
            industries;
                ``(4) strengthen outreach efforts that enable students,
            including students with limited English proficiency, to attend
            institutions of higher education with academic programs or
            programs of training focused on high-growth and high-wage
            occupations or industries;
                ``(5) expand worksite learning and training opportunities,
            including registered apprenticeships as appropriate; and
                ``(6) support other activities the Secretary determines to
            be consistent with the purpose of this section.

        ``(d) Application.--
                ``(1) In general.--Each eligible partnership that desires a
            grant under this section shall submit an application to the
            Secretary at such time, in such manner, and accompanied by such
            additional information as the Secretary may require.
                ``(2) Contents.--Each application submitted under paragraph
            (1) shall include a description of--
                        ``(A) how the eligible partnership, through the
                    institution of higher education, will provide relevant
                    job skill training for students to enter high-growth and
                    high-wage occupations or industries; and
                        ``(B) how the eligible partnership has consulted
                    with employers and, where applicable, labor
                    organizations to identify local high-growth and high-
                    wage occupations or industries.

    [[Page 122 STAT. 3384]]

        ``(e) Award Basis.--In awarding grants under this section, the
    Secretary shall--
                ``(1) give priority to applications focused on serving
            nontraditional students;
                ``(2) ensure an equitable distribution of grant funds under
            this section among urban and rural areas of the United States;
            and
                ``(3) take into consideration the capability of an
            institution of higher education that is participating in an
            eligible partnership to--
                        ``(A) offer one- or two-year high-quality programs
                    of instruction and job skill training for students
                    entering a high-growth and high-wage occupation or
                    industry;
                        ``(B) involve the local business community, and to
                    place graduates in employment in high-growth and high-
                    wage occupations or industries in the community; and
                        ``(C) serve adult workers or displaced workers.

        ``(f) Administrative Costs.--A grantee under this section may use
    not more than five percent of the grant amount to pay administrative
    costs associated with activities funded by the grant.
        ``(g) Technical Assistance.--The Secretary shall provide technical
    assistance to grantees under this section throughout the grant period.
        ``(h) Evaluation.-- <<NOTE: Public information.>> The Secretary
    shall conduct an evaluation of the effectiveness of the program under
    this section based on performance standards developed in consultation
    with the Department of Labor, and shall disseminate to the public the
    findings of such evaluation and information related to promising
    practices developed under this section.

        ``(i) Report to Congress.--Not later than 36 months after the first
    grant is awarded under this section, the Comptroller General shall
    report to the authorizing committees recommendations--
                ``(1) for changes to this Act and related Acts, such as the
            Carl D. Perkins Career and Technical Education Act of 2006 and
            the Workforce Investment Act of 1998 (including titles I and
            II), to help create and sustain business and industry workforce
            partnerships at institutions of higher education; and
                ``(2) for other changes to this Act and related Acts to
            otherwise strengthen the links between business and industry
            workforce needs, workforce development programs, and other
            degree credit offerings at institutions of higher education.

        ``(j) Definitions.--In this section:
                ``(1) Eligible partnership.--
                        ``(A) In general.--The term `eligible partnership'
                    means a partnership that includes--
                              ``(i) one or more institutions of higher
                          education, one of which serves as the fiscal agent
                          and grant recipient for the eligible partnership;
                              ``(ii) except as provided in subparagraph (B),
                          an employer, group of employers, local board (as
                          such term is defined in section 101 of the
                          Workforce Investment Act of 1998 (29 U.S.C.
                          2801)), or workforce intermediary, or any
                          combination thereof; and
                              ``(iii) where applicable, one or more labor
                          organizations that represent workers locally in
                          the businesses or industries that are the focus of
                          the partnership,

    [[Page 122 STAT. 3385]]

                          including as a result of such an organization's
                          representation of employees at a worksite at which
                          the partnership proposes to conduct activities
                          under this section.
                        ``(B) State and local boards.--Notwithstanding
                    subparagraph (A), if an institution of higher education
                    that is participating in an eligible partnership under
                    this section is located in a State that does not operate
                    local boards, an eligible partnership may include a
                    State board (as such term is defined in section 101 of
                    the Workforce Investment Act of 1998 (29 U.S.C. 2801)).
                        ``(C) Rule of construction.--Nothing in this
                    subsection shall be construed to prohibit an eligible
                    partnership that is in existence on the date of
                    enactment of the Higher Education Opportunity Act from
                    applying for a grant under this section.
                ``(2) Nontraditional student.--The term `nontraditional
            student' means a student--
                        ``(A) who is an independent student, as defined in
                    section 480(d);
                        ``(B) who attends an institution of higher
                    education--
                              ``(i) on less than a full-time basis;
                              ``(ii) via evening, weekend, modular, or
                          compressed courses; or
                              ``(iii) via distance education methods; and
                        ``(C) who--
                              ``(i) enrolled for the first time in an
                          institution of higher education three or more
                          years after completing high school; or
                              ``(ii) works full-time.

        ``(k) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may be necessary for
    fiscal year 2009 and each of the five succeeding fiscal years.

               ``PART D--CAPACITY FOR NURSING STUDENTS AND FACULTY

    ``SEC. 804. <<NOTE: Grants. 20 USC 1161d.>> CAPACITY FOR NURSING
                            STUDENTS AND FACULTY.

        ``(a) Authorization.--From the amounts appropriated under subsection
    (f), the Secretary shall award grants to institutions of higher
    education that offer--
                ``(1) an accredited registered nursing program at the
            baccalaureate or associate degree level to enable such program
            to expand the faculty and facilities of such program to
            accommodate additional students in such program; or
                ``(2) an accredited graduate-level nursing program to
            accommodate advanced practice degrees for registered nurses or
            to accommodate students enrolled in such program to become
            teachers of nursing students.

        ``(b) Determination of Number of Students and Application.--Each
    institution of higher education that offers a program described in
    subsection (a) that desires to receive a grant under this section
    shall--
                ``(1) determine, for the four academic years preceding the
            academic year for which the determination is made, the average
            number of matriculated nursing program students, in each of the
            institution's accredited associate, baccalaureate, or

    [[Page 122 STAT. 3386]]

            advanced nursing degree programs at such institution for such
            academic years;
                ``(2) submit an application to the Secretary at such time,
            in such manner, and accompanied by such information as the
            Secretary may require, including the average number in each of
            the institution's accredited nursing programs determined under
            paragraph (1); and
                ``(3) with respect to the partnerships described in
            subsection (c)(2)(B), provide assurances that--
                        ``(A) the individuals enrolled in the program will--
                              ``(i) be registered nurses in pursuit of a
                          master's or doctoral degree in nursing; and
                              ``(ii) have a contractual obligation with the
                          hospital or health facility that is in partnership
                          with the institution of higher education;
                        ``(B) the hospital or health facility of employment
                    will be the clinical site for the accredited school of
                    nursing program, if the program requires a clinical
                    site;
                        ``(C) individuals enrolled in the program will--
                              ``(i) maintain their employment on at least a
                          part-time basis with the hospital or health
                          facility that allowed them to participate in the
                          program; and
                              ``(ii) receive an income from the hospital or
                          health facility, as at least a part-time employee,
                          and release times or flexible schedules, to
                          accommodate their program requirements, as
                          necessary; and
                        ``(D) upon completion of the program, recipients of
                    scholarships described in subsection (c)(2)(B)(ii)(III)
                    will be required to teach for two years in an accredited
                    school of nursing for each year of support the
                    individual received under this section.

        ``(c) Grant Amount; Award Basis.--
                ``(1) Grant amount.--For each academic year after academic
            year 2009-2010, the Secretary is authorized to provide to each
            institution of higher education awarded a grant under this
            section an amount that is equal to $3,000 multiplied by the
            number by which--
                        ``(A) the number of matriculated nursing program
                    students at such institution for such academic year,
                    exceeds
                        ``(B) the average number determined with respect to
                    such institution under subsection (b)(1).
                ``(2) Distribution of grants among different degree
            programs.--
                        ``(A) In general.--Subject to subparagraph (D), from
                    the funds available to award grants under this section
                    for each fiscal year, the Secretary shall--
                              ``(i) use 20 percent of such funds to award
                          grants under this section to institutions of
                          higher education for the purpose of accommodating
                          advanced practice degrees or students in
                          accredited graduate-level nursing programs;
                              ``(ii) use 40 percent of such funds to award
                          grants under this section to institutions of
                          higher education for the purpose of expanding
                          accredited registered nurse programs at the
                          baccalaureate degree level; and
                              ``(iii) use 40 percent of such funds to award
                          grants under this section to institutions of
                          higher education

    [[Page 122 STAT. 3387]]

                          for the purpose of expanding accredited registered
                          nurse programs at the associate degree level.
                        ``(B) Optional uses of funds.--Grants awarded under
                    this section may be used to support partnerships with
                    hospitals or health facilities to--
                              ``(i) improve the alignment between nursing
                          education and the emerging challenges of health
                          care delivery by--
                                        ``(I) the purchase of distance
                                    learning technologies and expanding
                                    methods of delivery of instruction to
                                    include alternatives to onsite learning;
                                    and
                                        ``(II) the collection, analysis, and
                                    dissemination of data on educational
                                    outcomes and best practices identified
                                    through the activities described in this
                                    section; and
                              ``(ii) ensure that students can earn a salary
                          while obtaining an advanced degree in nursing with
                          the goal of becoming nurse faculty by--
                                        ``(I) funding release time for
                                    qualified nurses enrolled in the
                                    graduate nursing program;
                                        ``(II) providing for faculty
                                    salaries; or
                                        ``(III) providing scholarships to
                                    qualified nurses in pursuit of an
                                    advanced degree with the goal of
                                    becoming faculty members in an
                                    accredited nursing program.
                        ``(C) Considerations in making awards.--In awarding
                    grants under this section, the Secretary shall consider
                    the following:
                              ``(i) Geographic distribution.--Providing an
                          equitable geographic distribution of such grants.
                              ``(ii) Urban and rural areas.--Distributing
                          such grants to urban and rural areas.
                              ``(iii) Range and type of institution.--
                          Ensuring that the activities to be assisted are
                          developed for a range of types and sizes of
                          institutions of higher education, including
                          institutions providing alternative methods of
                          delivery of instruction in addition to on-site
                          learning.
                        ``(D) Distribution of excess funds.--If, for a
                    fiscal year, funds described in clause (i), (ii), or
                    (iii) of subparagraph (A) remain available after the
                    Secretary awards grants under this section to all
                    applicants for the particular category of accredited
                    nursing programs described in such clause, the Secretary
                    shall use equal amounts of the remaining funds to award
                    grants under this section to applicants that applied
                    under the other categories of nursing programs.
                        ``(E) Limitation.--Of the amount appropriated to
                    carry out this section, the Secretary may award not more
                    than ten percent of such amount for the optional
                    purposes under subparagraph (B).

        ``(d) Definition.--For purposes of this section:
                ``(1) Health facility.--The term `health facility' means an
            Indian health service center, a Native Hawaiian health center, a
            hospital, a federally qualified health center, a rural health
            clinic, a nursing home, a home health agency, a hospice

    [[Page 122 STAT. 3388]]

            program, a public health clinic, a State or local department of
            public health, a skilled nursing facility, or an ambulatory
            surgical center.
                ``(2) Accredited.--The terms `accredited school of nursing'
            and `accredited nursing program' have the meaning given those
            terms in section 801 of the Public Health Service Act (42 U.S.C.
            296).

        ``(e) Prohibition.--
                ``(1) In general.--Funds provided under this section may not
            be used for the construction of new facilities.
                ``(2) Rule of construction.--Nothing in paragraph (1) shall
            be construed to prohibit funds provided under this section from
            being used for the repair or renovation of facilities.

        ``(f) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may be necessary for
    fiscal year 2009 and each of the five succeeding fiscal years.

                     ``PART E--AMERICAN HISTORY FOR FREEDOM

    ``SEC. 805. <<NOTE: Grants. 20 USC 1161e.>> AMERICAN HISTORY FOR
                            FREEDOM.

        ``(a) Grants Authorized.--From the amounts appropriated under
    subsection (f), the Secretary is authorized to award three-year grants,
    on a competitive basis, to eligible institutions to establish or
    strengthen postsecondary academic programs or centers that promote and
    impart knowledge of--
                ``(1) traditional American history;
                ``(2) the history and nature of, and threats to, free
            institutions; or
                ``(3) the history and achievements of Western civilization.

        ``(b) Definitions.--In this section:
                ``(1) Eligible institution.--The term `eligible institution'
            means an institution of higher education as defined in section
            101.
                ``(2) Free institution.--The term `free institution' means
            an institution that emerged out of Western civilization, such as
            democracy, constitutional government, individual rights, market
            economics, religious freedom and religious tolerance, and
            freedom of thought and inquiry.
                ``(3) Traditional american history.--The term `traditional
            American history' means--
                        ``(A) the significant constitutional, political,
                    intellectual, economic, and foreign policy trends and
                    issues that have shaped the course of American history;
                    and
                        ``(B) the key episodes, turning points, and leading
                    figures involved in the constitutional, political,
                    intellectual, diplomatic, and economic history of the
                    United States.

        ``(c) Application.--
                ``(1) In general.--Each eligible institution that desires a
            grant under this section shall submit an application to the
            Secretary at such time, in such manner, and containing such
            information as the Secretary may reasonably require.
                ``(2) Contents.--Each application submitted under paragraph
            (1) shall include a description of--
                        ``(A) how funds made available under this section
                    will be used for the activities set forth under
                    subsection (e), including how such activities will
                    increase knowledge with

    [[Page 122 STAT. 3389]]

                    respect to traditional American history, free
                    institutions, or Western civilization;
                        ``(B) how the eligible institution will ensure that
                    information about the activities funded under this
                    section is widely disseminated pursuant to subsection
                    (e)(1)(B);
                        ``(C) any activities to be undertaken pursuant to
                    subsection (e)(2)(A), including identification of
                    entities intended to participate;
                        ``(D) how funds made available under this section
                    shall be used to supplement and not supplant non-Federal
                    funds available for the activities described in
                    subsection (e); and
                        ``(E) such fiscal controls and accounting procedures
                    as may be necessary to ensure proper disbursement of and
                    accounting for funding made available to the eligible
                    institution under this section.

        ``(d) Award Basis.--In awarding grants under this section, the
    Secretary shall take into consideration the capability of the eligible
    institution to--
                ``(1) increase access to quality programming that expands
            knowledge of traditional American history, free institutions, or
            Western civilization;
                ``(2) involve personnel with strong expertise in traditional
            American history, free institutions, or Western civilization;
            and
                ``(3) sustain the activities funded under this section after
            the grant has expired.

        ``(e) Use of Funds.--
                ``(1) Required use of funds.--Funds provided under this
            section shall be used to--
                        ``(A) establish or strengthen academic programs or
                    centers focused on traditional American history, free
                    institutions, or Western civilization, which may
                    include--
                              ``(i) design and implementation of programs of
                          study, courses, lecture series, seminars, and
                          symposia;
                              ``(ii) development, publication, and
                          dissemination of instructional materials;
                              ``(iii) research;
                              ``(iv) support for faculty teaching in
                          undergraduate and, if applicable, graduate
                          programs;
                              ``(v) support for graduate and postgraduate
                          fellowships, if applicable; or
                              ``(vi) teacher preparation initiatives that
                          stress content mastery regarding traditional
                          American history, free institutions, or Western
                          civilization; and
                        ``(B) conduct outreach activities to ensure that
                    information about the activities funded under this
                    section is widely disseminated--
                              ``(i) to undergraduate students (including
                          students enrolled in teacher education programs,
                          if applicable);
                              ``(ii) to graduate students (including
                          students enrolled in teacher education programs,
                          if applicable);
                              ``(iii) to faculty;
                              ``(iv) to local educational agencies; and
                              ``(v) within the local community.
                ``(2) Allowable uses of funds.--Funds provided under this
            section may be used to support--
                        ``(A) collaboration with entities such as--

    [[Page 122 STAT. 3390]]

                              ``(i) local educational agencies, for the
                          purpose of providing elementary and secondary
                          school teachers an opportunity to enhance their
                          knowledge of traditional American history, free
                          institutions, or Western civilization; and
                              ``(ii) nonprofit organizations whose mission
                          is consistent with the purpose of this section,
                          such as academic organizations, museums, and
                          libraries, for assistance in carrying out
                          activities described under subsection (a); and
                        ``(B) other activities that meet the purposes of
                    this section.

        ``(f) Authorization of Appropriations.--For the purpose of carrying
    out this section, there are authorized to be appropriated such sums as
    may be necessary for fiscal year 2009 and each of the five succeeding
    fiscal years.

                           ``PART F--TEACH FOR AMERICA

    ``SEC. 806. <<NOTE: Grants. 20 USC 1161f.>> TEACH FOR AMERICA.

        ``(a) Definitions.--For purposes of this section:
                ``(1) Grantee.--The term `grantee' means Teach For America,
            Inc.
                ``(2) Highly qualified.--The term `highly qualified' has the
            meaning given the term in section 9101 of the Elementary and
            Secondary Education Act of 1965 or section 602 of the
            Individuals with Disabilities Education Act.
                ``(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.-- <<NOTE: Contracts.>> 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 highly qualified teachers 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.

    [[Page 122 STAT. 3391]]

                        ``(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.-- <<NOTE: Contracts.>> 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;

    [[Page 122 STAT. 3392]]

                              ``(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.-- <<NOTE: Deadline.>> 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 the Higher 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
                    the Higher Education Opportunity Act, the independent
                    auditor shall submit a report to the authorizing
                    committees and the Secretary of the findings of the
                    review required under this paragraph, including any
                    recommendations of the independent auditor, as
                    appropriate, with respect to the grantee's accounting,
                    financial reporting, and internal control systems.

        ``(f) Authorization of Appropriations.--
                ``(1) In general.--The amount authorized to be appropriated
            to carry out this section shall not exceed--
                        ``(A) $20,000,000 for fiscal year 2009;
                        ``(B) $25,000,000 for fiscal year 2010; and
                        ``(C) such sums as may be necessary for each of the
                    four succeeding fiscal years.
                ``(2) Limitation.--The grantee shall not use more than 5
            percent of Federal funds made available under this section for
            non-programmatic costs to carry out this section.

                   ``PART G--PATSY T. MINK FELLOWSHIP PROGRAM

    ``SEC. 807. <<NOTE: 20 USC 1161g.>> 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.--

    [[Page 122 STAT. 3393]]

                        ``(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

    [[Page 122 STAT. 3394]]

                    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.--
                          <<NOTE: Payments.>> 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

    [[Page 122 STAT. 3395]]

                    operational overhead of the academic department or
                    institution receiving funds under this section.

        ``(d) Fellowship Recipients.--
                ``(1) <<NOTE: Minorities. Women.>> 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.--
            <<NOTE: Regulations.>> 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.-- <<NOTE: Criteria.>> 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

    [[Page 122 STAT. 3396]]

            education where the graduate student is enrolled), whichever is
            greater.
                ``(5) Academic progress required.--An individual student
            shall not be eligible to receive a fellowship award--
                        ``(A) except during periods in which such student is
                    enrolled, and such student is maintaining satisfactory
                    academic progress in, and devoting essentially full time
                    to, study or research in the pursuit of the degree for
                    which the fellowship support was awarded; and
                        ``(B) if the student is engaged in gainful
                    employment, other than part-time employment in teaching,
                    research, or similar activity determined by the eligible
                    institution to be consistent with and supportive of the
                    student's progress toward the appropriate degree.

        ``(e) Rule of Construction.--Nothing in this section shall be
    construed to require an eligible institution that receives a grant under
    this section--
                ``(1) to grant a preference to or to differentially treat
            any applicant for a faculty position as a result of the
            institution's participation in the program under this section;
            or
                ``(2) to hire a Patsy T. Mink Fellow who completes this
            program and seeks employment at such institution.

        ``(f) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may be necessary for
    fiscal year 2009 and each of the five succeeding fiscal years.

           ``PART H--IMPROVING COLLEGE ENROLLMENT BY SECONDARY SCHOOLS

    ``SEC. 808. IMPROVING COLLEGE ENROLLMENT BY SECONDARY SCHOOLS.

        ``(a) In General.-- <<NOTE: Grants. Nonprofit organization. 20 USC
    1161h.>> From the amounts appropriated under subsection (c), the
    Secretary shall award a grant to one nonprofit organization described in
    subsection (b) to enable the nonprofit organization--
                ``(1) to make publicly available the year-to-year
            postsecondary education enrollment rate trends of secondary
            school students, disaggregated by secondary school, in
            compliance with the Family Education Rights and Privacy Act of
            1974;
                ``(2) to identify not less than 50 urban local educational
            agencies and five States with significant rural populations,
            each serving a significant population of low-income students,
            and to carry out a comprehensive assessment in the agencies and
            States of the factors known to contribute to improved
            postsecondary education enrollment rates, which factors shall
            include--
                        ``(A) the local educational agency's and State's
                    leadership strategies and capacities;
                        ``(B) the secondary school curriculum and class
                    offerings of the local educational agency and State;
                        ``(C) the professional development used by the local
                    educational agency and the State to assist teachers,
                    guidance counselors, and administrators in supporting
                    the transition of secondary students to postsecondary
                    education;

    [[Page 122 STAT. 3397]]

                        ``(D) secondary school student attendance and other
                    factors demonstrated to be associated with enrollment
                    into postsecondary education;
                        ``(E) the use of data systems by the local
                    educational agency and the State to measure
                    postsecondary education enrollment rates and the
                    incentives in place to motivate the efforts of faculty
                    and students to improve student and schoolwide outcomes;
                    and
                        ``(F) strategies to mobilize student leaders to
                    build a college-bound culture; and
                ``(3) to provide comprehensive services to improve the
            schoolwide postsecondary education enrollment rates of each of
            not less than ten local educational agencies and States, with
            the federally funded portion of each project declining by not
            less than 20 percent each year beginning in the second year of
            the comprehensive services, that--
                        ``(A) participated in the needs assessment described
                    in paragraph (2); and
                        ``(B) demonstrated a willingness and commitment to
                    improving the postsecondary education enrollment rates
                    of the local educational agency or State, respectively.

        ``(b) Grant Recipient Criteria.--The recipient of the grant awarded
    under subsection (a) shall be a nonprofit organization with demonstrated
    expertise--
                ``(1) in increasing schoolwide postsecondary enrollment
            rates in low-income communities nationwide by providing
            curriculum, training, and technical assistance to secondary
            school staff and student peer influencers; and
                ``(2) in a postsecondary education transition data
            management system.

        ``(c) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may be necessary for
    fiscal year 2009 and each of the five succeeding fiscal years.

    ``PART I--EARLY CHILDHOOD EDUCATION PROFESSIONAL DEVELOPMENT AND CAREER
                                   TASK FORCE

    ``SEC. <<NOTE: 20 USC 1161i.>> 811. PURPOSE.

        ``The purposes of this part are--
                ``(1) to improve the quality of the early childhood
            education workforce by creating a statewide early childhood
            education professional development and career task force for
            early childhood education program staff, directors,
            administrators, and faculty; and
                ``(2) to create--
                        ``(A) a coherent system of core competencies,
                    pathways to qualifications, credentials, degrees,
                    quality assurances, access, and outreach, for early
                    childhood education program staff, directors,
                    administrators, and faculty that is linked to
                    compensation commensurate with experience and
                    qualifications;
                        ``(B) articulation agreements that enable early
                    childhood education professionals to transition easily
                    among degrees; and

    [[Page 122 STAT. 3398]]

                        ``(C) compensation initiatives for individuals
                    working in an early childhood education program that
                    reflect the individuals' credentials, degrees, and
                    experience.
    ``SEC. 812. <<NOTE: 20 USC 1161i-1.>> DEFINITION OF EARLY
                            CHILDHOOD EDUCATION PROGRAM.

        ``In this part, the term `early childhood education program' means--
                ``(1) a Head Start program or an Early Head Start program
            carried out under the Head Start Act (42 U.S.C. 9831 et seq.),
            including a migrant or seasonal Head Start program or an Indian
            Head Start program;
                ``(2) a State licensed or regulated child care program; or
                ``(3) a State prekindergarten program or a program
            authorized under section 619 or part C of the Individuals with
            Disabilities Education Act, that serves children from birth
            through age six and that addresses the children's cognitive
            (including language, early literacy, and pre-numeracy), social,
            emotional, and physical development.
    ``SEC. 813. <<NOTE: 20 USC 1161i-2.>> GRANTS AUTHORIZED.

        ``(a) In General.--From the amounts appropriated under section 818,
    the Secretary is authorized to award grants to States in accordance with
    the provisions of this part to enable such States--
                ``(1) to establish a State Task Force described in section
            814; and
                ``(2) to support activities of the State Task Force
            described in section 815.

        ``(b) Competitive Basis.--Grants under this part shall be awarded on
    a competitive basis.
        ``(c) Equitable Geographic Distribution.--In awarding grants under
    this part, the Secretary shall take into consideration providing an
    equitable geographic distribution of such grants.
        ``(d) Duration.--Grants under this part shall be awarded for a
    period of five years.
    ``SEC. 814. <<NOTE: 20 USC 1161i-3.>> STATE TASK FORCE
                            ESTABLISHMENT.

        ``(a) State Task Force Established.--The Governor of a State
    receiving a grant under this part shall establish, or designate an
    existing entity to serve as, the State Early Childhood Education
    Professional Development and Career Task Force (hereafter in this part
    referred to as the `State Task Force').
        ``(b) Membership.--The State Task Force shall include a
    representative of a State agency, an institution of higher education
    (including an associate or a baccalaureate degree granting institution
    of higher education), an early childhood education program, a nonprofit
    early childhood organization, a statewide early childhood workforce
    scholarship or supplemental initiative, the State Head Start
    collaboration director, and any other entity or individual the Governor
    determines appropriate.
    ``SEC. 815. <<NOTE: 20 USC 1161i-4.>> STATE TASK FORCE ACTIVITIES.

        ``(a) Activities.--The State Task Force shall--
                ``(1) coordinate and communicate regularly with the State
            Advisory Council on Early Care and Education (hereafter in this
            part referred to as `State Advisory Council') or a similar State
            entity charged with creating a comprehensive system

    [[Page 122 STAT. 3399]]

            of early care and education in the State, for the purposes of--
                        ``(A) integrating recommendations for early
                    childhood professional development and career activities
                    into the plans of the State Advisory Council; and
                        ``(B) assisting in the implementation of
                    professional development and career activities that are
                    consistent with the plans described in subparagraph (A);
                ``(2) conduct a review of opportunities for and barriers to
            high-quality professional development, training, and higher
            education degree programs, in early childhood development and
            learning, including a periodic statewide survey concerning the
            demographics of individuals working in early childhood education
            programs in the State, which survey shall include information
            disaggregated by--
                        ``(A) race, gender, and ethnicity;
                        ``(B) compensation levels;
                        ``(C) type of early childhood education program
                    setting;
                        ``(D) specialized knowledge of child development;
                        ``(E) years of experience in an early childhood
                    education program;
                        ``(F) attainment of--
                              ``(i) academic credit for coursework;
                              ``(ii) an academic degree;
                              ``(iii) a credential;
                              ``(iv) licensure; or
                              ``(v) certification in early childhood
                          education; and
                        ``(G) specialized knowledge in the education of
                    children with limited English proficiency and students
                    with disabilities; and
                ``(3) develop <<NOTE: Plans.>> a plan for a comprehensive
            statewide professional development and career system for
            individuals working in early childhood education programs or for
            early childhood education providers, which plan may include--
                        ``(A) methods of providing outreach to early
                    childhood education program staff, directors, and
                    administrators, including methods for how outreach is
                    provided to non-English speaking providers, in order to
                    enable the providers to be aware of opportunities and
                    resources under the statewide plan;
                        ``(B) developing a unified data collection and
                    dissemination system for early childhood education
                    training, professional development, and higher education
                    programs;
                        ``(C) increasing the participation of early
                    childhood educators in high-quality training and
                    professional development by assisting in paying the
                    costs of enrollment in and completion of such training
                    and professional development courses;
                        ``(D) increasing the participation of early
                    childhood educators in undergraduate and graduate
                    education programs leading to degrees in early childhood
                    education by providing assistance to pay the costs of
                    enrollment in and completion of such programs, which
                    assistance--
                              ``(i) shall only be provided to an individual
                          who--
                                        ``(I) in the case of an individual
                                    pursuing an undergraduate or graduate
                                    degree, enters into an agreement under
                                    which the individual agrees to

    [[Page 122 STAT. 3400]]

                                    work, for a reasonable number of years
                                    after receiving such a degree, in an
                                    early childhood education program that
                                    is located in a low-income area; and
                                        ``(II) has a family income equal to
                                    or less than the annually adjusted
                                    national median family income as
                                    determined by the Bureau of the Census;
                                    and
                              ``(ii) shall be provided in an amount that
                          does not exceed $17,500;
                        ``(E) supporting professional development activities
                    and a career lattice for a variety of early childhood
                    professional roles with varying professional
                    qualifications and responsibilities for early childhood
                    education personnel, including strategies to enhance the
                    compensation of such personnel;
                        ``(F) supporting articulation agreements between
                    two- and four-year public and private institutions of
                    higher education and mechanisms to transform other
                    training, professional development, and experience into
                    academic credit;
                        ``(G) developing mentoring and coaching programs to
                    support new educators in and directors of early
                    childhood education programs;
                        ``(H) providing career development advising with
                    respect to the field of early childhood education,
                    including informing an individual regarding--
                              ``(i) entry into and continuing education
                          requirements for professional roles in the field;
                              ``(ii) available financial assistance for
                          postsecondary education; and
                              ``(iii) professional development and career
                          advancement in the field;
                        ``(I) enhancing the capacity and quality of faculty
                    and coursework in postsecondary programs that lead to an
                    associate, baccalaureate, or graduate degree in early
                    childhood education;
                        ``(J) consideration of the availability of on-line
                    graduate level professional development offered by
                    institutions of higher education with experience and
                    demonstrated expertise in establishing programs in child
                    development, in order to improve the skills and
                    expertise of individuals working in early childhood
                    education programs; and
                        ``(K) developing or enhancing a system of quality
                    assurance with respect to the early childhood education
                    professional development and career system, including
                    standards or qualifications for individuals and entities
                    who offer training and professional development in early
                    childhood education.

        ``(b) Public Hearings.--The State Task Force shall hold public
    hearings and provide an opportunity for public comment on the activities
    described in the statewide plan described in subsection (a)(3).
        ``(c) Periodic Review.--The State Task Force shall meet periodically
    to review implementation of the statewide plan and to recommend any
    changes to the statewide plan the State Task Force determines necessary.

    [[Page 122 STAT. 3401]]

    ``SEC. 816. <<NOTE: 20 USC 1161i-5.>> STATE APPLICATION AND
                            REPORT.

        ``(a) In General.--Each State desiring a grant under this part shall
    submit an application to the Secretary at such time, in such manner, and
    accompanied by such information as the Secretary may reasonably require.
    Each such application shall include a description of--
                ``(1) the membership of the State Task Force;
                ``(2) the activities for which the grant assistance will be
            used;
                ``(3) other Federal, State, local, and private resources
            that will be available to support the activities of the State
            Task Force described in section 815;
                ``(4) the availability within the State of training, early
            childhood educator preparation, professional development,
            compensation initiatives, and career systems, related to early
            childhood education; and
                ``(5) the resources available within the State for such
            training, educator preparation, professional development,
            compensation initiatives, and career systems.

        ``(b) Report to the Secretary.--Not later than two years after
    receiving a grant under this part, a State shall submit a report to the
    Secretary that shall describe--
                ``(1) other Federal, State, local, and private resources
            that will be used in combination with a grant under this section
            to develop or expand the State's early childhood education
            professional development and career activities;
                ``(2) the ways in which the State Advisory Council (or
            similar State entity) will coordinate the various State and
            local activities that support the early childhood education
            professional development and career system; and
                ``(3) the ways in which the State Task Force will use funds
            provided under this part and carry out the activities described
            in section 815.
    ``SEC. 817. <<NOTE: 20 USC 1161i-6.>> EVALUATIONS.

        ``(a) State Evaluation.--Each State receiving a grant under this
    part shall--
                ``(1) evaluate the activities that are assisted under this
            part in order to determine--
                        ``(A) the effectiveness of the activities in
                    achieving State goals;
                        ``(B) the impact of a career lattice for individuals
                    working in early childhood education programs;
                        ``(C) the impact of the activities on licensing or
                    regulating requirements for individuals in the field of
                    early childhood development;
                        ``(D) the impact of the activities, and the impact
                    of the statewide plan described in section 815(a)(3), on
                    the quality of education, professional development, and
                    training related to early childhood education programs
                    that are offered in the State;
                        ``(E) the change in compensation and retention of
                    individuals working in early childhood education
                    programs within the State resulting from the activities;
                    and
                        ``(F) the impact of the activities on the
                    demographic characteristics of individuals working in
                    early childhood education programs; and

    [[Page 122 STAT. 3402]]

                ``(2) submit <<NOTE: Reports.>> a report at the end of the
            grant period to the Secretary regarding the evaluation described
            in paragraph (1).

        ``(b) Secretary's Evaluation.-- <<NOTE: Deadline.>> Not later than
    September 30, 2013, the Secretary, in consultation with the Secretary of
    Health and Human Services, shall prepare and submit to the authorizing
    committees an evaluation of the State reports submitted under subsection
    (a)(2).
    ``SEC. 818. <<NOTE: 20 USC 1161i-7.>> AUTHORIZATION OF
                            APPROPRIATIONS.

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

     ``PART J--IMPROVING SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS
      EDUCATION WITH A FOCUS ON ALASKA NATIVE AND NATIVE HAWAIIAN STUDENTS

    ``SEC. 819. <<NOTE: 20 USC 1161j.>> IMPROVING SCIENCE, TECHNOLOGY,
                            ENGINEERING, AND MATHEMATICS EDUCATION
                            WITH A FOCUS ON ALASKA NATIVE AND NATIVE
                            HAWAIIAN STUDENTS.

        ``(a) Purpose.--The purposes of this section are--
                ``(1) to develop or expand programs for the development of
            professionals in the fields of science, technology, engineering,
            and mathematics; and
                ``(2) to focus resources on meeting the educational and
            cultural needs of Alaska Natives and Native Hawaiians.

        ``(b) Definitions.--In this section:
                ``(1) Alaska native.--The term `Alaska Native' has the
            meaning given such term in section 7306 of the Elementary and
            Secondary Education Act of 1965.
                ``(2) Eligible partnership.--The term `eligible partnership'
            means a partnership that includes--
                        ``(A) one or more colleges, schools, or departments
                    of engineering;
                        ``(B) one or more colleges of science or
                    mathematics;
                        ``(C) one or more institutions of higher education
                    that offer two-year degrees; and
                        ``(D) one or more private entities that--
                              ``(i) conduct career awareness activities
                          showcasing local technology professionals;
                              ``(ii) encourage students to pursue education
                          in science, technology, engineering, and
                          mathematics from elementary school through
                          postsecondary education, and careers in those
                          fields, with the assistance of local technology
                          professionals;
                              ``(iii) develop internships, apprenticeships,
                          and mentoring programs in partnership with
                          relevant industries; and
                              ``(iv) assist with placement of interns and
                          apprentices.
                ``(3) Institution of higher education.--The term
            `institution of higher education' has the meaning given such
            term in section 101(a)

    [[Page 122 STAT. 3403]]

                ``(4) Native hawaiian.--The term `Native Hawaiian' has the
            meaning given the term in section 7207 of the Elementary and
            Secondary Education Act of 1965.

        ``(c) Grant Authorized.--From the amounts appropriated to carry out
    this section under subsection (i), the Secretary is authorized to award
    a grant to an eligible partnership to enable the eligible partnership to
    expand programs for the development of science, technology, engineering,
    or mathematics professionals, from elementary school through
    postsecondary education, including existing programs for Alaska Native
    and Native Hawaiian students.
        ``(d) Uses of Funds.--Grant funds under this section shall be used
    for one or more of the following:
                ``(1) Development or implementation of cultural, social, or
            educational transition programs to assist students to transition
            into college life and academics in order to increase such
            students' retention rates in the fields of science, technology,
            engineering, or mathematics, with a focus on Alaska Native or
            Native Hawaiian students.
                ``(2) Development or implementation of academic support or
            supplemental educational programs to increase the graduation
            rates of students in the fields of science, technology,
            engineering, or mathematics, with a focus on Alaska Native and
            Native Hawaiian students.
                ``(3) Development or implementation of internship programs,
            carried out in coordination with educational institutions and
            private entities, to prepare students for careers in the fields
            of science, technology, engineering, or mathematics, with a
            focus on programs that serve Alaska Native or Native Hawaiian
            students.
                ``(4) Such other activities as are consistent with the
            purpose of this section.

        ``(e) Application.--Each eligible partnership that desires a grant
    under this section shall submit an application to the Secretary at such
    time, in such manner, and containing such information as the Secretary
    may require.
        ``(f) Priority.--In awarding grants under this section, the
    Secretary shall give priority to an eligible partnership that, on the
    day before the date of enactment of the Higher Education Opportunity
    Act, provides one or more programs in which 30 percent or more of the
    program participants are Alaska Native or Native Hawaiian.
        ``(g) Period of Grant.--A grant under this section shall be awarded
    for a period of five years.
        ``(h) Evaluation and Report.--Each eligible partnership that
    receives a grant under this section shall conduct an evaluation to
    determine the effectiveness of the programs funded under the grant and
    shall provide a report regarding the evaluation to the Secretary not
    later than six months after the end of the grant period.
        ``(i) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may be necessary for
    fiscal year 2009 and each of the five succeeding fiscal years.

    [[Page 122 STAT. 3404]]

      ``PART K--PILOT PROGRAMS TO INCREASE COLLEGE PERSISTENCE AND SUCCESS

    ``SEC. 820. <<NOTE: 20 USC 1161k.>> PILOT PROGRAMS TO INCREASE
                            COLLEGE PERSISTENCE AND SUCCESS.

        ``(a) Grants <<NOTE: Disadvantaged persons.>> Authorized.--From the
    amounts appropriated under subsection (i), the Secretary is authorized
    to award grants in accordance with this section, on a competitive basis,
    to eligible institutions to enable the institutions to develop programs
    to increase the persistence and success of low-income college students.

        ``(b) Applications.--
                ``(1) In general.--An eligible institution seeking a grant
            under this section shall submit an application to the Secretary
            at such time, in such manner, and containing such information as
            the Secretary may require. An eligible institution may submit an
            application to receive a grant under subsection (c) or (d) or
            both.
                ``(2) Evaluation condition.--Each eligible institution
            seeking a grant under this section shall agree to participate in
            the evaluation described in subsection (f).
                ``(3) Priority <<NOTE: Disadvantaged persons.>> for
            replication of evidence-based policies and practices.--In
            awarding grants for the program under subsection (d), the
            Secretary shall give priority to applications submitted by
            eligible institutions that propose to replicate policies and
            practices that have proven effective in increasing persistence
            and degree completion by low-income students or students in need
            of developmental education.

        ``(c) Pilot Program To Increase Persistence and Success in Community
    Colleges.--
                ``(1) Definitions.--In this subsection:
                        ``(A) Eligible institution.--The term `eligible
                    institution' means an institution of higher education,
                    as defined in section 101, that provides a one- or two-
                    year program of study leading to a degree or
                    certificate.
                        ``(B) Eligible student.--The term `eligible student'
                    means a student who--
                              ``(i) is eligible to receive assistance under
                          section 401;
                              ``(ii) is enrolled at least half-time;
                              ``(iii) is not younger than age 19;
                              ``(iv) is the parent of at least one dependent
                          child, which dependent child is age 18 or younger;
                              ``(v) has a secondary school diploma or its
                          recognized equivalent; and
                              ``(vi) does not have a degree or certificate
                          from an institution of higher education.
                ``(2) Uses of funds.--
                        ``(A) Support.-- <<NOTE: Grants.>> The Secretary
                    shall award grants under this subsection to eligible
                    institutions to enable such institutions to provide
                    additional monetary and nonmonetary support to eligible
                    students to enable the eligible students to maintain
                    enrollment and complete degree or certificate programs.
                        ``(B) Required uses.--Each eligible institution
                    receiving a grant under this subsection shall use the
                    grant funds--

    [[Page 122 STAT. 3405]]

                              ``(i) to provide scholarships in accordance
                          with paragraph (3); and
                              ``(ii) to provide counseling services in
                          accordance with paragraph (4) .
                        ``(C) Allowable uses of funds.--Grant funds provided
                    under this subsection may be used--
                              ``(i) to conduct outreach to make students
                          aware of the scholarships and counseling services
                          available under this subsection and to encourage
                          the students to participate in the program
                          assisted under this subsection; and
                              ``(ii) to provide incentives of $20 or less to
                          applicants who complete the process of applying
                          for assistance under this subsection, as
                          compensation for the student's time.
                ``(3) Scholarship requirements.--
                        ``(A) In general.--Each scholarship awarded under
                    this subsection shall--
                              ``(i) be awarded for one academic year
                          consisting of two semesters or the equivalent;
                              ``(ii) require the student to maintain, during
                          the scholarship period, at least half-time
                          enrollment and at least a 2.0 grade point average
                          or the equivalent;
                              ``(iii) be awarded in the amount of $1,000 for
                          each of two semesters (prorated for quarters or
                          other equivalents), or $2,000 for an academic
                          year;
                              ``(iv) not exceed the student's cost of
                          attendance, as defined in section 472; and
                              ``(v) be paid, for each of the two semesters,
                          in increments of--
                                        ``(I) $250 upon enrollment (prorated
                                    for quarters or other equivalents);
                                        ``(II) $250 upon passing midterm
                                    examinations or comparable assessments
                                    (prorated for quarters or other
                                    equivalents); and
                                        ``(III) $500 upon passing courses
                                    (prorated for quarters or other
                                    equivalents).
                        ``(B) Number.--An eligible institution may award an
                    eligible student not more than two scholarships under
                    this subsection.
                ``(4) Counseling services.--
                        ``(A) In general.--Each eligible institution
                    receiving a grant under this subsection shall use the
                    grant funds to provide students at the institution with
                    a counseling staff dedicated to students participating
                    in the program under this subsection. Each such
                    counselor shall--
                              ``(i) have a caseload of less than 125
                          students;
                              ``(ii) use a proactive, team-oriented approach
                          to counseling;
                              ``(iii) hold a minimum of two meetings with
                          each student each semester; and
                              ``(iv) provide referrals to and follow-up with
                          other student services staff, including financial
                          aid and career services.
                        ``(B) Counseling services availability.--The
                    counseling services provided under this subsection shall
                    be

    [[Page 122 STAT. 3406]]

                    available to participating students during the daytime
                    and evening hours.

        ``(d) Student Success Grant Pilot Program.--
                ``(1) Definitions.--
                        ``(A) Eligible institution.--In this subsection, the
                    term `eligible institution' means an institution of
                    higher education in which, during the three-year period
                    preceding the year in which the institution is applying
                    for a grant under this subsection, an average of not
                    less than 50 percent of the institution's entering
                    first-year students are assessed as needing
                    developmental courses to bring reading, writing, or
                    mathematics skills up to college level.
                        ``(B) Eligible student.--In this subsection, the
                    term `eligible student' means a student who--
                              ``(i) is eligible to receive assistance under
                          section 401;
                              ``(ii) is a first-year student at the time of
                          entering the program;
                              ``(iii) is assessed as needing developmental
                          education to bring reading, writing, or
                          mathematics skills up to college level; and
                              ``(iv) is selected by an eligible institution
                          to participate in the program.
                ``(2) Student success grant amount.--The Secretary shall
            award grants under this subsection to eligible institutions in
            an amount equal to $1,500 multiplied by the number of students
            the institution selects to participate in the program in such
            year. An institution shall not select more than 200 students to
            participate in the program under this subsection during such
            year.
                ``(3) Required uses.--An eligible institution that receives
            a grant under this subsection shall use the grant funds to
            assign a student success coach to each first-year student
            participating in the program to provide intensive career and
            academic advising, ongoing personal help in navigating college
            services (such as financial aid and registration), and
            assistance in connecting to community resources that can help
            students overcome family and personal challenges to success.
            Student success coaches--
                        ``(A) shall work with not more than 50 new students
                    during any academic period;
                        ``(B) may be employees of academic departments,
                    student services offices, community-based organizations,
                    or other entities as determined appropriate by the
                    institution; and
                        ``(C) shall meet with each eligible student selected
                    for the program before registration for courses.
                ``(4) Allowable uses.--An eligible institution that receives
            a grant under this subsection may use the grant funds to provide
            services and program innovations for students participating in
            the program, including the following:
                        ``(A) College and career success courses provided at
                    no charge to participating students. These courses may
                    cover college success topics, including how to take
                    notes, how to study, how to take tests, and how to
                    budget time, and may also include a substantial career
                    exploration

    [[Page 122 STAT. 3407]]

                    component. Institutions may use such courses to help
                    students develop a college and career success plan, so
                    that by the end of the first semester the students have
                    a clear sense of their career goals and what classes to
                    take to achieve such goals.
                        ``(B) Work-study jobs with private employers in the
                    students' fields of study.
                        ``(C) Learning communities that ensure that students
                    participating in the program are clustered together for
                    at least two courses beginning in the first semester
                    after enrolling and have other opportunities to create
                    and maintain bonds that allow them to provide academic
                    and social support to each other.
                        ``(D) Curricular redesign, which may include such
                    innovations as blended or accelerated remediation
                    classes that help student success grant recipients to
                    attain college-level reading, writing, or math skills
                    (or a combination thereof) more rapidly than traditional
                    remediation formats allow, and intensive skills
                    refresher classes, offered prior to each semester, to
                    help students who have tested into remedial coursework
                    to reach entry level assessment scores for the
                    postsecondary programs they wish to enter.
                        ``(E) Instructional support, such as learning labs,
                    supplemental instruction, and tutoring.
                        ``(F) Assistance with support services, such as
                    child care and transportation.
                ``(5) Required non-federal share.--Each institution
            participating in the program under this subsection shall provide
            a non-Federal share of 25 percent of the amount of grant to
            carry out the activities of the program. The non-Federal share
            under this subsection may be provided in cash or in kind.

        ``(e) Period of Grant.--The Secretary may award a grant under
    subsection (c) or (d) of this section for a period of five years.
        ``(f) Technical Assistance and Evaluation.--
                ``(1) Contractor.-- <<NOTE: Contracts.>> From the funds
            appropriated under this section, the Secretary shall enter into
            a contract with one or more private, nonprofit entities to
            provide technical assistance to grantees and to conduct the
            evaluations required under paragraph (3).
                ``(2) Evaluations.--The evaluations required under paragraph
            (3) shall be conducted by entities that are capable of designing
            and carrying out independent evaluations that identify the
            impact of the activities carried out by eligible institutions
            under this subpart on improving persistence and success of
            student participants under this subpart.
                ``(3) Conduct of evaluations.--The Secretary shall conduct
            an evaluation of the impact of the persistence and success grant
            programs as follows:
                        ``(A) Program to increase persistence in community
                    colleges.--The evaluation of the program under
                    subsection (c) shall be conducted using a random
                    assignment research design with the following
                    requirements:
                              ``(i) When students are recruited for the
                          program, all students will be told about the
                          program and the evaluation.

    [[Page 122 STAT. 3408]]

                              ``(ii) Baseline data will be collected from
                          all applicants for assistance under subsection
                          (c).
                              ``(iii) Students will be assigned randomly to
                          two groups, which will consist of--
                                        ``(I) a program group that will
                                    receive the scholarship and the
                                    additional counseling services; and
                                        ``(II) a control group that will
                                    receive whatever regular financial aid
                                    and counseling services are available to
                                    all students at the institution of
                                    higher education.
                        ``(B)
                    Student <<NOTE: Demographics. Statistics.>> success
                    grant program.--Eligible institutions receiving a grant
                    to carry out the program under subsection (d) shall work
                    with the evaluator to track persistence and completion
                    outcomes for students in such program, specifically the
                    proportion of these students who take and complete
                    developmental education courses, the proportion who take
                    and complete college-level coursework, and the
                    proportion who complete certificates and degrees. The
                    data shall be broken down by gender, race, ethnicity,
                    and age and the evaluator shall assist institutions in
                    analyzing these data to compare program participants to
                    comparable nonparticipants, using statistical techniques
                    to control for differences in the groups.

        ``(g) Report.--The Secretary shall--
                ``(1) provide a report to the authorizing committees that
            includes the evaluation and information on best practices and
            lessons learned during the pilot programs described in this
            section; and
                ``(2) <<NOTE: Web site.>> disseminate the report to the
            public by making the report available on the Department's
            website.

        ``(h) Supplement Not Supplant.--Funds made available under this
    section shall be use to supplement and not supplant other Federal,
    State, and local funds available to the institution to carrying out the
    activities described in subsections (c) and (d).
        ``(i) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may be necessary for
    fiscal year 2009 and each of the five succeeding fiscal years. The
    Secretary may use not more than two percent of the amounts appropriated
    to provide the technical assistance and conduct the evaluations required
    under subsection (f).

        ``PART L-- <<NOTE: Grants.>> STUDENT SAFETY AND CAMPUS EMERGENCY
    MANAGEMENT
    ``SEC. 821. <<NOTE: 20 USC 1161l.>> STUDENT SAFETY AND CAMPUS
                            EMERGENCY MANAGEMENT.

        ``(a) Grants Authorized.--
                ``(1) In general.--From the amounts appropriated under
            subsection (g), 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

    [[Page 122 STAT. 3409]]

            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 <<NOTE: Procedures.>> 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, within 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.

    [[Page 122 STAT. 3410]]

                ``(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 <<NOTE: 20 USC 1161l-1.>> 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 <<NOTE: Public information.>> information
            concerning those policies, procedures, and practices.
    ``SEC. 823. <<NOTE: 20 USC 1161l-2.>> 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. <<NOTE: 20 USC 1161l-3.>> 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

    [[Page 122 STAT. 3411]]

            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.-- <<NOTE: Regulations.>> 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 request
                    for a loan;
                        ``(B) information to be included in such forms; and
                        ``(C) procedures to assist in filing and pursing 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

    [[Page 122 STAT. 3412]]

            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 the Higher 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. <<NOTE: Records. 20 USC 1161l-4.>> 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 (the Family Educational Rights and Privacy Act of 1974)
    shall not be liable to any person for that disclosure.
        ``(b) Information to Congress.-- <<NOTE: Deadline.>> 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 the Higher Education Opportunity Act.
    ``SEC. 826. <<NOTE: 20 USC 1161l-5.>> 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 (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).

    [[Page 122 STAT. 3413]]

                              ``PART M--LOW TUITION

    ``SEC. 830. <<NOTE: 20 USC 1161m.>> INCENTIVES AND REWARDS FOR LOW
                            TUITION.

        ``(a) Rewards for Low Tuition.--
                ``(1) Grants.--From funds made available under subsection
            (e), the Secretary shall award grants to institutions of higher
            education that, for academic year 2009-2010 or any succeeding
            academic year--
                        ``(A) have an annual tuition and fee increase,
                    expressed as a percentage change, for the most recent
                    academic year for which satisfactory data is available,
                    that is in the lowest 20 percent of such increases for
                    each category described in subsection (b);
                        ``(B) are public institutions of higher education
                    that have tuition and fees that are in the lowest
                    quartile of for institutions in each category described
                    in subsection (b)(1), (b)(4), or (b)(7); or
                        ``(C) are public institutions of higher education
                    that have a tuition and fee increase of less than $600
                    for a first-time, full-time undergraduate student.
                ``(2) Use of funds.--Funds awarded to an institution of
            higher education under paragraph (1) shall be distributed by the
            institution in the form of need-based grant aid to students who
            are eligible for Federal Pell Grants, except that no student
            shall receive an amount under this section that would cause the
            amount of total financial aid received by such student to exceed
            the cost of attendance of the institution.

        ``(b) Categories of Institutions.--The categories of institutions
    described in subsection (a) shall be the following:
                ``(1) four-year public institutions of higher education;
                ``(2) four-year private, nonprofit institutions of higher
            education;
                ``(3) four-year private, for-profit institutions of higher
            education;
                ``(4) two-year public institutions of higher education;
                ``(5) two-year private, nonprofit institutions of higher
            education;
                ``(6) two-year private, for-profit institutions of higher
            education;
                ``(7) less than two-year public institutions of higher
            education;
                ``(8) less than two-year private, nonprofit institutions of
            higher education; and
                ``(9) less than two-year private, for-profit institutions of
            higher education.

        ``(c) Rewards for Guaranteed Tuition.--
                ``(1) Bonus.-- <<NOTE: Disadvantaged persons.>> For each
            institution of higher education that the Secretary determines
            complies with the requirements of paragraph (2) or (3) of this
            subsection, the Secretary shall provide to such institution a
            bonus amount. Such institution shall award the bonus amount in
            the form of need-based aid first to students who are eligible
            for Federal Pell Grants who were in attendance at the
            institution during the award year that such institution
            satisfied the eligibility criteria for maintaining low tuition
            and fees, then to students who are eligible for Federal Pell
            Grants who were not in attendance at the institution during such
            award year.

    [[Page 122 STAT. 3414]]

                ``(2) Four-year institutions.--An institution of higher
            education that provides a program of instruction for which it
            awards a bachelor's degree complies with the requirements of
            this paragraph if--
                        ``(A) for a public institution of higher education,
                    such institution's tuition and fees are in the lowest
                    quartile of institutions in the same category as
                    described under subsection (b); or
                        ``(B) for any institution of higher education, such
                    institution guarantees that for any academic year (or
                    the equivalent) beginning on or after July 1, 2009, and
                    for each of the four succeeding continuous academic
                    years, the tuition and fees charged to an undergraduate
                    student will not exceed--
                              ``(i) for a public institution of higher
                          education, $600 per year for a full-time
                          undergraduate student; or
                              ``(ii) for any other institution of higher
                          education--
                                        ``(I) the amount that the student
                                    was charged for an academic year at the
                                    time the student first enrolled in the
                                    institution of higher education, plus
                                        ``(II) the percentage change in
                                    tuition and fees at the institution for
                                    the three most recent academic years for
                                    which data is available, multiplied by
                                    the amount determined under subclause
                                    (I).
                ``(3) Less-than four-year institutions.--An institution of
            higher education that does not provide a program of instruction
            for which it awards a bachelor's degree complies with the
            requirements of this paragraph if--
                        ``(A) for a public institution of higher education,
                    such institution's tuition is in the lowest quartile of
                    institutions in the same category as described under
                    subsection (b); or
                        ``(B) for any institution of higher education, such
                    institution guarantees that for any academic year (or
                    the equivalent) beginning on or after July 1, 2009, and
                    for each of the 1.5 succeeding continuous academic
                    years, the tuition and fees charged to an undergraduate
                    student will not exceed--
                              ``(i) for a public institution of higher
                          education, $600 per year for a full-time
                          undergraduate student; or
                              ``(ii) for any other institution of higher
                          education--
                                        ``(I) the amount that the student
                                    was charged for an academic year at the
                                    time the student first enrolled in the
                                    institution of higher education, plus
                                        ``(II) the percentage change in
                                    tuition and fees at the institution for
                                    the three most recent academic years for
                                    which data is available, multiplied by
                                    the amount determined under subclause
                                    (I).

        ``(d) Definitions.--In this section, the terms `tuition and fees'
    and `net price' have the meaning given to such terms in section 132 of
    this Act.
        ``(e) Authorization.--There are authorized to be appropriated to
    carry out this section such sums as may be necessary for fiscal year
    2009 and each of the five succeeding fiscal years.

    [[Page 122 STAT. 3415]]

                         ``PART N--COOPERATIVE EDUCATION

    ``SEC. 831. <<NOTE: 20 USC 1161n.>> STATEMENT OF PURPOSE;
                            DEFINITION.

        ``(a) Purpose.--It is the purpose of this part to award grants to
    institutions of higher education or consortia of such institutions to
    encourage such institutions to develop and make available to their
    students work experience that will aid such students in future careers
    and will enable such students to support themselves financially while in
    school.
        ``(b) Definition.--In this part the term `cooperative education'
    means the provision of alternating or parallel periods of academic study
    and public or private employment to give students work experiences
    related to their academic or occupational objectives and an opportunity
    to earn the funds necessary for continuing and completing their
    education.
    ``SEC. 832. <<NOTE: 20 USC 1161n-1.>> RESERVATIONS.

        ``(a) Reservations.--Of the amount appropriated to carry out this
    part in each fiscal year--
                ``(1) not less than 50 percent shall be available for
            awarding grants to institutions of higher education and
            consortia of such institutions described in section 833(a)(1)(A)
            for cooperative education under section 833;
                ``(2) not less than 25 percent shall be available for
            awarding grants to institutions of higher education described in
            section 833(a)(1)(B) for cooperative education under section
            833;
                ``(3) not to exceed 11 percent shall be available for
            demonstration projects under paragraph (1) of section 834(a);
                ``(4) not to exceed 11 percent shall be available for
            training and resource centers under paragraph (2) of section
            834(a); and
                ``(5) not to exceed 3 percent shall be available for
            research under paragraph (3) of section 834(a).

        ``(b) Availability of Appropriations.--Amounts appropriated under
    this part shall not be used for the payment of compensation of students
    for employment by employers participating in a program under this part.
    ``SEC. 833. <<NOTE: 20 USC 1161n-2.>> GRANTS FOR COOPERATIVE
                            EDUCATION.

        ``(a) Grants Authorized.--
                ``(1) In general.--The Secretary is authorized, from the
            amount available to carry out this section under section 835 in
            each fiscal year and in accordance with the provisions of this
            part--
                        ``(A) to award grants to institutions of higher
                    education or consortia of such institutions that have
                    not received a grant under this paragraph in the ten-
                    year period preceding the date for which a grant under
                    this section is requested to pay the Federal share of
                    the cost of planning, establishing, expanding, or
                    carrying out programs of cooperative education by such
                    institutions or consortia of institutions; and
                        ``(B) to award grants to institutions of higher
                    education that are operating an existing cooperative
                    education program as determined by the Secretary to pay
                    the Federal share of the cost of planning, establishing,
                    expanding, or

    [[Page 122 STAT. 3416]]

                    carrying out programs of cooperative education by such
                    institutions.
                ``(2) Program requirement.--Cooperative education programs
            assisted under this section shall provide alternating or
            parallel periods of academic study and of public or private
            employment, giving students work experience related to their
            academic or occupational objectives and the opportunity to earn
            the funds necessary for continuing and completing their
            education.
                ``(3) Amount of grants.--
                        ``(A) The amount of each grant awarded pursuant to
                    paragraph (1)(A) to any institution of higher education
                    or consortia of such institutions in any fiscal year
                    shall not exceed $500,000.
                        ``(B)(i) Except as provided in clauses (ii) and
                    (iii), the Secretary shall award grants in each fiscal
                    year to each institution of higher education described
                    in paragraph (1)(B) that has an application approved
                    under subsection (b) in an amount that bears the same
                    ratio to the amount reserved pursuant to section
                    832(a)(2) for such fiscal year as the number of
                    unduplicated students placed in cooperative education
                    jobs during the preceding fiscal year by such
                    institution of higher education (other than cooperative
                    education jobs under section 834 and as determined by
                    the Secretary) bears to the total number of all such
                    students placed in such jobs during the preceding fiscal
                    year by all such institutions.
                        ``(ii) No institution of higher education shall
                    receive a grant pursuant to paragraph (1)(B) in any
                    fiscal year in an amount that exceeds 25 percent of such
                    institution's cooperative education program's personnel
                    and operating budget for the preceding fiscal year.
                        ``(iii) The minimum annual grant amount that an
                    institution of higher education is eligible to receive
                    under paragraph (1)(B) is $1,000 and the maximum annual
                    grant amount is $75,000.
                ``(4) Limitation.--The Secretary shall not award grants
            pursuant to subparagraphs (A) and (B) of paragraph (1) to the
            same institution of higher education or consortia of such
            institution in any one fiscal year.
                ``(5) Uses.--Grants awarded under paragraph (1)(B) shall be
            used exclusively--
                        ``(A) to expand the quality of and participation in
                    a cooperative education program;
                        ``(B) for outreach to potential participants in new
                    curricular areas; and
                        ``(C) for outreach to potential participants
                    including underrepresented and nontraditional
                    populations.

        ``(b) Applications.--Each institution of higher education or
    consortium of such institutions desiring to receive a grant under this
    section shall submit an application to the Secretary at such time and in
    such manner as the Secretary shall prescribe. Each such application
    shall--
                ``(1) set forth the program or activities for which a grant
            is authorized under this section;
                ``(2) specify each portion of such program or activities
            which will be performed by a nonprofit organization or
            institution

    [[Page 122 STAT. 3417]]

            other than the applicant, and the amount of grant funds to be
            used for such program or activities;
                ``(3) provide that the applicant will expend, during the
            fiscal year for which the grant is awarded for the purpose of
            such program or activities, not less than the amount expended
            for such purpose during the previous fiscal year;
                ``(4) describe the plans which the applicant will carry out
            to assure, and contain a formal statement of the institution's
            commitment that assures, that the applicant will continue the
            cooperative education program beyond the five-year period of
            Federal assistance described in subsection (c)(1) at a level
            that is not less than the total amount expended for such program
            during the first year such program was assisted under this
            section;
                ``(5) provide that, in the case of an institution of higher
            education that provides a two-year program that is acceptable
            for full credit toward a bachelor's degree, the cooperative
            education program will be available to students who are
            certificate or associate degree candidates and who carry at
            least one-half of the normal full-time academic workload;
                ``(6) provide that the applicant will--
                        ``(A) make <<NOTE: Reports.>> such reports as may be
                    necessary to ensure that the applicant is complying with
                    the provisions of this section, including reports for
                    the second and each succeeding fiscal year for which the
                    applicant receives a grant with respect to the impact of
                    the cooperative education program in the previous fiscal
                    year, including--
                              ``(i) the number of unduplicated student
                          applicants in the cooperative education program;
                              ``(ii) the number of unduplicated students
                          placed in cooperative education jobs;
                              ``(iii) the number of employers who have hired
                          cooperative education students;
                              ``(iv) the income for students derived from
                          working in cooperative education jobs; and
                              ``(v) the increase or decrease in the number
                          of unduplicated students placed in cooperative
                          education jobs in each fiscal year compared to the
                          previous fiscal year; and
                        ``(B) keep <<NOTE: Records.>> such records as may be
                    necessary to ensure that the applicant is complying with
                    the provisions of this part, including the notation of
                    cooperative education employment on the student's
                    transcript;
                ``(7) describe the extent to which programs in the academic
            disciplines for which the application is made have
            satisfactorily met the needs of public and private sector
            employers;
                ``(8) describe the extent to which the institution is
            committed to extending cooperative education on an institution-
            wide basis for all students who can benefit;
                ``(9) describe the plans that the applicant will carry out
            to evaluate the applicant's cooperative education program at the
            end of the grant period;
                ``(10) provide for such fiscal control and fund accounting
            procedures as may be necessary to ensure proper disbursement of,
            and accounting for, Federal funds paid to the applicant under
            this part;

    [[Page 122 STAT. 3418]]

                ``(11) demonstrate a commitment to serving underserved
            populations at the institution; and
                ``(12) include such other information as may be necessary to
            carry out the provisions of this part.

        ``(c) Duration of Grants; Federal Share.--
                ``(1) Duration of grants.--No individual institution of
            higher education may receive, individually or as a participant
            in a consortium of such institutions--
                        ``(A) a grant pursuant to subsection (a)(1)(A) for
                    more than five fiscal years; or
                        ``(B) a grant pursuant to subsection (a)(1)(B) for
                    more than five fiscal years.
                ``(2) Federal share.--The Federal share of a grant under
            subsection (a)(1)(A) may not exceed--
                        ``(A) 85 percent of the cost of carrying out the
                    program or activities described in the application in
                    the first year the applicant receives a grant under this
                    section;
                        ``(B) 70 percent of such cost in the second such
                    year;
                        ``(C) 55 percent of such cost in the third such
                    year;
                        ``(D) 40 percent of such cost in the fourth such
                    year; and
                        ``(E) 25 percent of such cost in the fifth such
                    year.
                ``(3) Special rule.--Notwithstanding any other provision of
            law, the Secretary may not waive the provisions of paragraphs
            (1) and (2).

        ``(d) Maintenance of Effort.--If the Secretary determines that a
    recipient of funds under this section has failed to maintain the fiscal
    effort described in subsection (b)(3), then the Secretary may elect not
    to make grant payments under this section to such recipient.
        ``(e) Factors for Special Consideration of Applications.--
                ``(1) In general.--In approving applications under this
            section, the Secretary shall give special consideration to
            applications from institutions of higher education or consortia
            of such institutions for programs that show the greatest promise
            of success because of--
                        ``(A) the extent to which programs in the academic
                    discipline with respect to which the application is made
                    have satisfactorily met the needs of public and private
                    sector employers;
                        ``(B) the strength of the commitment of the
                    institution of higher education or consortium of such
                    institutions to cooperative education as demonstrated by
                    the plans and formalized institutional commitment
                    statement which such institution or consortium has made
                    to continue the program after the termination of Federal
                    financial assistance;
                        ``(C) the extent to which the institution or
                    consortium of institutions is committed to extending
                    cooperative education for students who can benefit; and
                        ``(D) such other factors as are consistent with the
                    purposes of this section.
                ``(2) Additional special consideration.--The Secretary shall
            also give special consideration to applications from
            institutions of higher education or consortia of such
            institutions that demonstrate a commitment to serving
            underserved populations attending such institutions.

    [[Page 122 STAT. 3419]]

    ``SEC. 834. <<NOTE: 20 USC 1161n-3.>> DEMONSTRATION AND INNOVATION
                            PROJECTS; TRAINING AND RESOURCE CENTERS;
                            AND RESEARCH.

        ``(a) Authorization.--From the amounts appropriated under section
    835, the Secretary is authorized, in accordance with the provisions of
    this section, to make grants and enter into contracts--
                ``(1) from the amounts available in each fiscal year under
            section 832(a)(3), for the conduct of demonstration projects
            designed to demonstrate or determine the effectiveness of
            innovative methods of cooperative education;
                ``(2) from the amounts available in each fiscal year under
            section 832(a)(4), for the conduct of training and resource
            centers designed to--
                        ``(A) train personnel in the field of cooperative
                    education;
                        ``(B) improve materials used in cooperative
                    education programs if such improvement is conducted in
                    conjunction with other activities described in this
                    paragraph;
                        ``(C) provide technical assistance to institutions
                    of higher education to increase the potential of the
                    institution to continue to conduct a cooperative
                    education program without Federal assistance;
                        ``(D) encourage model cooperative education programs
                    that furnish education and training in occupations in
                    which there is a national need;
                        ``(E) support partnerships under which an
                    institution carrying out a comprehensive cooperative
                    education program joins with one or more institutions of
                    higher education in order to--
                              ``(i) assist the institution that is not the
                          institution carrying out the cooperative education
                          program to develop and expand an existing program
                          of cooperative education; or
                              ``(ii) establish and improve or expand
                          comprehensive cooperative education programs; and
                        ``(F) encourage model cooperative education programs
                    in the fields of science and mathematics for women and
                    minorities who are underrepresented in such fields; and
                ``(3) from the amounts available in each fiscal year under
            section 832(a)(5), for the conduct of research relating to
            cooperative education.

        ``(b) Administrative Provision.--
                ``(1) In general.--To carry out this section, the Secretary
            may--
                        ``(A) make grants to or contracts with institutions
                    of higher education or consortia of such institutions;
                    and
                        ``(B) make grants to or contracts with other public
                    or private nonprofit agencies or organizations, whenever
                    such grants or contracts will contribute to the
                    objectives of this section.
                ``(2) Limitation.--
                        ``(A) Contracts with institutions of higher
                    education.--The Secretary may use not more than three
                    percent of the amount appropriated to carry out this
                    section in each fiscal year to enter into contracts
                    described in paragraph (1)(A).
                        ``(B) Contracts with other agencies or
                    organizations.--The Secretary may use not more than
                    three percent

    [[Page 122 STAT. 3420]]

                    of the amount appropriated to carry out this section in
                    each fiscal year to enter into contracts described in
                    paragraph (1)(B).

        ``(c) Supplement Not Supplant.--A recipient of a grant or contract
    under this section may use the funds provided only to supplement funds
    made available from non-Federal sources to carry out the activities
    supported by such grant or contract, and in no case to supplant such
    funds from non-Federal sources.
    ``SEC. 835. <<NOTE: 20 USC 1161n-4.>> AUTHORIZATION OF
                            APPROPRIATIONS.

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

                      ``PART O--COLLEGE PARTNERSHIP GRANTS

    ``SEC. 841. <<NOTE: 20 USC 1161o.>> COLLEGE PARTNERSHIP GRANTS
                            AUTHORIZED.

        ``(a) Grants Authorized.--From the amount appropriated to carry out
    this section, the Secretary shall award grants to eligible partnerships
    for the purposes of developing and implementing articulation agreements.
        ``(b) Eligible Partnerships.--For purposes of this part, an eligible
    partnership shall include at least two institutions of higher education,
    or a system of institutions of higher education, and may include either
    or both of the following:
                ``(1) A consortia of institutions of higher education.
                ``(2) A State higher education agency.

        ``(c) Priority.--The Secretary shall give priority to eligible
    partnerships that--
                ``(1) are located in a State that has employed strategies
            described in section 486A(d); or
                ``(2) include--
                        ``(A) one or more junior or community colleges (as
                    defined by section 312(f)) that award associate's
                    degrees; and
                        ``(B) one or more institutions of higher education
                    that offer a baccalaureate or post-baccalaureate degree
                    not awarded by the institutions described in
                    subparagraph (A) with which it is partnered.

        ``(d) Mandatory Use of Funds.--Grants awarded under this part shall
    be used for--
                ``(1) the development of policies and programs to expand
            opportunities for students to earn bachelor's degrees, by
            facilitating the transfer of academic credits between
            institutions and expanding articulation and guaranteed transfer
            agreements between institutions of higher education, including
            through common course numbering and general education core
            curriculum;
                ``(2) academic program enhancements; and
                ``(3) programs to identify and remove barriers that inhibit
            student transfers, including technological and informational
            programs.

        ``(e) Optional Use of Funds.--Grants awarded under this part may be
    used for--
                ``(1) support services to students participating in the
            program, such as tutoring, mentoring, and academic and personal
            counseling; and

    [[Page 122 STAT. 3421]]

                ``(2) any service that facilitates the transition of
            students between the partner institutions.

        ``(f) Prohibition.--No funds provided under this section shall be
    used to financially compensate an institution for the purposes of
    entering into an articulation agreement or for accepting students
    transferring into such institution.
        ``(g) Applications.--Any eligible partnership that desires to obtain
    a grant under this section shall submit to the Secretary an application
    at such time, in such manner, and containing such information or
    assurances as the Secretary may require.
        ``(h) Definition.--For purposes of this section, the term
    `articulation agreement' means an agreement between institutions of
    higher education that specifies the acceptability of courses in transfer
    toward meeting specific degree requirements.
        ``(i) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may be necessary for
    fiscal year 2009 and each of the five succeeding fiscal years.

                            ``PART P--JOBS TO CAREERS

    ``SEC. 851. <<NOTE: 20 USC 1161p.>> GRANTS TO CREATE BRIDGES FROM
                            JOBS TO CAREERS.

        ``(a) Purpose.--The purpose of this section is to provide grants on
    a competitive basis to institutions of higher education for the purpose
    of improving developmental education to help students move more rapidly
    into for-credit occupational courses and into better jobs that may
    require a certificate or degree.
        ``(b) Authorization of Program.-- <<NOTE: Grants.>> From amounts
    appropriated to carry out this section, the Secretary shall award
    grants, on a competitive basis, to institutions of higher education, as
    defined in section 101(a), to create workforce bridge programs between
    developmental courses and for-credit courses in occupational certificate
    programs that are articulated to degree programs. Such workforce bridge
    programs shall focus on--
                ``(1) improving developmental education, including English
            language instruction, by customizing developmental education to
            student career goals; and
                ``(2) helping students move rapidly from developmental
            coursework into for-credit occupational courses and through
            program completion.

        ``(c) Application.--An institution of higher education desiring a
    grant under this section shall submit an application to the Secretary at
    such time, in such manner, and containing such information as the
    Secretary may reasonably require.
        ``(d) Priorities.--The Secretary shall give priority to applications
    that--
                ``(1) are from institutions of higher education in which not
            less than 50 percent of the institution's entering first-year
            students who are subject to mandatory assessment are assessed as
            needing developmental courses to bring reading, writing, or
            mathematics skills up to college level; and
                ``(2) propose to replicate practices that have proven
            effective with adults, or propose to collaborate with adult
            education providers.

        ``(e) Required Activity.--An institution of higher education that
    receives a grant under this section shall use the grant funds to create
    workforce bridge programs to customize developmental

    [[Page 122 STAT. 3422]]

    education curricula, including English language instruction, to reflect
    the content of for-credit occupational certificate or degree programs,
    or clusters of such programs, in which developmental education students
    are enrolled or plan to enroll. Such workforce bridge programs shall
    integrate the curricula and the instruction of the developmental and
    college-level coursework.
        ``(f) Permissible Activities.--An institution of higher education
    that receives a grant under this section may use the grant funds to
    carry out one or more of the following activities:
                ``(1) Designing and implementing innovative ways to improve
            retention in and completion of developmental education courses,
            including enrolling students in cohorts, accelerating course
            content, dually enrolling students in developmental and college-
            level courses, tutoring, providing counseling and other
            supportive services, and giving small, material incentives for
            attendance and performance.
                ``(2) In consultation with faculty in the appropriate
            departments, reconfiguring courses offered on-site during
            standard academic terms for modular, compressed, or other
            alternative schedules, or for distance-learning formats, to meet
            the needs of working adults.
                ``(3) Developing counseling strategies that address the
            needs of students in remedial education courses, and including
            counseling students on career options and the range of programs
            available, such as certificate programs that are articulated to
            degree programs and programs designed to facilitate transfer to
            four-year institutions of higher education.
                ``(4) Improving the quality of teaching in remedial courses
            through professional development, reclassification of such
            teaching positions, or other means the institution of higher
            education determines appropriate.
                ``(5) Any other activities the institution of higher
            education and the Secretary determine will promote retention of,
            and completion by, students attending institutions of higher
            education.

        ``(g) Grant Period.--Grants made under this section shall be for a
    period of not less than three years and not more than five years.
        ``(h) Technical Assistance.--The Secretary shall provide technical
    assistance to recipients of, and applicants for, grants under this
    section.
        ``(i) Report and Summary.--Each institution of higher education that
    receives a grant under this section shall report to the Secretary on the
    effectiveness of the program in enabling students to move rapidly from
    developmental coursework into for-credit occupational courses and
    through program completion. The Secretary shall summarize the reports,
    identify best practices, and disseminate the information from such
    summary and identification to the public.
        ``(j) Authorization of Appropriations.--There are authorized to
    carry out this section such sums as may be necessary for fiscal year
    2009 and each of the five succeeding fiscal years.

    [[Page 122 STAT. 3423]]

       ``PART Q--RURAL DEVELOPMENT GRANTS FOR RURAL-SERVING COLLEGES AND
                                  UNIVERSITIES

    ``SEC. 861. <<NOTE: 20 USC 1161q.>> 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 101 of the Workforce
                    Investment Act of 1998 (29 U.S.C. 2801)) serving a rural
                    area.
                ``(2) Optional partners.--A rural-serving institution of
            higher education, or a consortium of rural-serving institutions

    [[Page 122 STAT. 3424]]

            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 9101 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 <<NOTE: Rural areas.>> 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.

    [[Page 122 STAT. 3425]]

                ``(2) To increase enrollment rates of nontraditional
            students in degree programs at rural-serving institutions of
            higher education, which may include--
                        ``(A) programs to provide nontraditional students
                    with counseling related to applying for postsecondary
                    education, and Federal and State financial assistance
                    for postsecondary education;
                        ``(B) community outreach initiatives to encourage
                    nontraditional students to enroll in a rural-serving
                    institution of higher education; and
                        ``(C) programs to improve the enrollment of
                    nontraditional students in two-year degree programs and
                    the transition of nontraditional students articulating
                    from two-year degree programs to four-year degree
                    programs.
                ``(3) To create or strengthen academic programs at rural-
            serving institutions of higher education to prepare graduates to
            enter into high-need occupations in the regional and local
            economies.
                ``(4) To provide additional career training to students of
            rural-serving institutions of higher education in fields
            relevant to the regional economy.

        ``(g) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as many be necessary
    for fiscal year 2009 and each of the five succeeding fiscal years.

                 ``PART R--CAMPUS-BASED DIGITAL THEFT PREVENTION

    ``SEC. 871. <<NOTE: 20 USC 1161r.>> 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.-- <<NOTE: Grants. Contracts.>> Grants and contracts
    shall be awarded under this section on a competitive basis.

        ``(c) Applications.-- <<NOTE: Regulations.>> 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.

    [[Page 122 STAT. 3426]]

                     ``PART S--TRAINING FOR REALTIME WRITERS

    ``SEC. 872. <<NOTE: 20 USC 1161s.>> PROGRAM TO PROMOTE TRAINING
                            AND JOB PLACEMENT OF REALTIME WRITERS.

        ``(a) Authorization of Grant Program.--
                ``(1) In general.-- <<NOTE: Grants.>> 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.

    [[Page 122 STAT. 3427]]

                        ``(C) A description of the manner in which the
                    eligible entity will ensure that recipients of
                    scholarships, if any, funded by the grant will be
                    employed and retained as realtime writers.
                        ``(D) A description of the manner in which the
                    eligible entity intends to continue providing the
                    training and assistance to be funded by the grant after
                    the end of the grant period, including any partnerships
                    or arrangements established for that purpose.
                        ``(E) A description of how the eligible entity will
                    work with local boards (as defined in section 101 of the
                    Workforce Investment Act of 1998 (29 U.S.C. 2801)) to
                    ensure that training and assistance to be funded with
                    the grant will further local workforce goals, including
                    the creation of educational opportunities for
                    individuals who are from economically disadvantaged
                    backgrounds or are displaced workers.
                        ``(F) Additional information, if any, on the
                    eligibility of the eligible entity for priority in the
                    making of grants under subsection (a)(3).
                        ``(G) Such other information as the Secretary may
                    require.

        ``(c) Use of Funds.--
                ``(1) In general.--An eligible entity receiving a grant
            under subsection (a) shall use the grant amount for purposes
            relating to the recruitment, training and assistance, and job
            placement of individuals, including individuals who have
            completed a court reporting training program, as realtime
            writers, including--
                        ``(A) recruitment;
                        ``(B) subject to paragraph (2), the provision of
                    scholarships;
                        ``(C) distance learning;
                        ``(D) further developing and implementing both
                    English and Spanish curricula to more effectively train
                    individuals in realtime writing skills, and education in
                    the knowledge necessary for the delivery of high quality
                    closed captioning services;
                        ``(E) mentoring students to ensure successful
                    completion of the realtime training and providing
                    assistance in job placement;
                        ``(F) encouraging individuals with disabilities to
                    pursue a career in realtime writing; and
                        ``(G) the employment and payment of personnel for
                    the purposes described in this paragraph.
                ``(2) Scholarships.--
                        ``(A) Amount.--The amount of a scholarship under
                    paragraph (1)(B) shall be based on the amount of need of
                    the scholarship recipient for financial assistance, as
                    determined in accordance with part F of title IV.
                        ``(B) Agreement.--Each recipient of a scholarship
                    under paragraph (1)(B) shall enter into an agreement
                    with the school in which the recipient is enrolled to
                    provide realtime writing services for the purposes
                    described in subsection (a)(1) for a period of time
                    appropriate (as determined by the Secretary) for the
                    amount of the scholarship received.

    [[Page 122 STAT. 3428]]

                        ``(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 <<NOTE: Waiver authority.>> Secretary may waive, in
                    whole or in part, the requirements for repayment of
                    scholarship amounts on the basis of economic conditions
                    which may affect the ability of scholarship recipients
                    to find work as realtime writers.
                ``(3) Administrative costs.--The recipient of a grant under
            this section may not use more than five percent of the grant
            amount to pay administrative costs associated with activities
            funded by the grant. The Secretary shall use not more than five
            percent of the amount available for grants under this section in
            any fiscal year for administrative costs of the program.
                ``(4) Supplement not supplant.--Grant amounts under this
            section shall supplement and not supplant other Federal or non-
            Federal funds of the grant recipient for purposes of promoting
            the training and placement of individuals as realtime writers.

        ``(d) Report.--
                ``(1) In general.--Each eligible entity receiving a grant
            under subsection (a) shall submit to the Secretary, at the end
            of the grant period, a report on the activities of such entity
            with respect to the use of grant amounts during the grant
            period.
                ``(2) Report information.--Each report of an eligible entity
            under paragraph (1) shall include--
                        ``(A) an assessment by the entity of the
                    effectiveness of activities carried out using such funds
                    in increasing the number of realtime writers, using the
                    performance measures submitted by the eligible entity in
                    the application for the grant under subsection (b)(2);
                    and
                        ``(B) a description of the best practices identified
                    by the eligible entity for increasing the number of
                    individuals who are trained, employed, and retained in
                    employment as realtime writers.
                ``(3) Summaries.--The Secretary shall summarize the reports
            submitted under paragraph (2) and make such summary available on
            the Department's website.

        ``(e) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may be necessary for
    fiscal year 2009 and each of the five succeeding fiscal years.

           ``PART T--CENTERS OF EXCELLENCE FOR VETERAN STUDENT SUCCESS

    ``SEC. 873. <<NOTE: 20 USC 1161t.>> 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.--

    [[Page 122 STAT. 3429]]

                ``(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 <<NOTE: Establishment.>> 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.--

    [[Page 122 STAT. 3430]]

                ``(1) Application.--To be considered for a grant under this
            section, an institution of higher education shall submit to the
            Secretary an application at such time, in such manner, and
            accompanied by such information as the Secretary may require.
                ``(2) Selection considerations.--In awarding grants under
            this section, the Secretary shall consider--
                        ``(A) the number of veteran students enrolled at an
                    institution of higher education; and
                        ``(B) the need for model programs to address the
                    needs of veteran students at a wide range of
                    institutions of higher education, including the need to
                    provide--
                              ``(i) an equitable distribution of such grants
                          to institutions of higher education of various
                          types and sizes;
                              ``(ii) an equitable geographic distribution of
                          such grants; and
                              ``(iii) an equitable distribution of such
                          grants among rural and urban areas.

        ``(e) Evaluation and Accountability Plan.--The Secretary shall
    develop an evaluation and accountability plan for model programs funded
    under this section to objectively measure the impact of such programs,
    including a measure of whether postsecondary education enrollment,
    persistence, and completion for veterans increases as a result of such
    programs.
        ``(f) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may be necessary for
    fiscal year 2009 and each of the five succeeding fiscal years.

                  ``PART U--UNIVERSITY SUSTAINABILITY PROGRAMS

    ``SEC. 881. <<NOTE: 20 USC 1161u.>> SUSTAINABILITY PLANNING GRANTS
                            AUTHORIZED.

        ``(a) Program <<NOTE: Grants.>> Authorized.--
                ``(1) In general.--From the amounts appropriated to carry
            out this section, the Secretary, in consultation with the
            Administrator of the Environmental Protection Agency, shall make
            grants to eligible entities to establish sustainability programs
            to design and implement sustainability practices, including in
            the areas of energy management, greenhouse gas emissions
            reductions, green building, waste management, purchasing,
            transportation, and toxics management, and other aspects of
            sustainability that integrate campus operations with
            multidisciplinary academic programs and are applicable to the
            private and government sectors.
                ``(2) Period of grant.--The provision of payments under a
            grant under paragraph (1) shall extend over a period of not more
            than four fiscal years.
                ``(3) Definition of eligible entity.--For purposes of this
            part, the term `eligible entity' means--
                        ``(A) an institution of higher education; or
                        ``(B) a nonprofit consortium, association, alliance,
                    or collaboration operating in partnership with one or
                    more institutions of higher education that received
                    funds for the implementation of work associated with
                    sustainability programs under this part.

        ``(b) Applications.--

    [[Page 122 STAT. 3431]]

                ``(1) In general.--To receive a grant under subsection
            (a)(1), an eligible entity shall submit an application to the
            Secretary at such time, in such form, and containing such
            information as the Secretary may reasonably require.
                ``(2) Assurances.--Such application shall include assurances
            that the eligible entity--
                        ``(A) has developed a plan, including an evaluation
                    component, for the program component established
                    pursuant to subsection (c);
                        ``(B) shall use Federal funds received from a grant
                    under subsection (a) to supplement, not supplant, non-
                    Federal funds that would otherwise be available for
                    projects funded under this section;
                        ``(C) shall provide, with respect to any fiscal year
                    in which such entity receives funds from a grant under
                    subsection (a)(1), non-Federal funds or an in-kind
                    contribution in an amount equal to 20 percent of funds
                    from such grant, for the purpose of carrying out the
                    program component established pursuant to subsection
                    (c); and
                        ``(D) shall collaborate with business, government,
                    and the nonprofit sectors in the development and
                    implementation of its sustainability plan.

        ``(c) Use of Funds.--
                ``(1) Individual institutions.--Grants made under subsection
            (a) may be used by an eligible entity that is an individual
            institution of higher education for the following purposes:
                        ``(A) To develop and implement administrative and
                    operations practices at an institution of higher
                    education that test, model, and analyze principles of
                    sustainability.
                        ``(B) To establish multidisciplinary education,
                    research, and outreach programs at an institution of
                    higher education that address the environmental, social,
                    and economic dimensions of sustainability.
                        ``(C) To support research and teaching initiatives
                    that focus on multidisciplinary and integrated
                    environmental, economic, and social elements.
                        ``(D) To establish initiatives in the areas of
                    energy management, greenhouse gas emissions reductions,
                    green building, waste management, purchasing, toxics
                    management, transportation, and other aspects of
                    sustainability.
                        ``(E) To support student, faculty, and staff work at
                    an institution of higher education to implement,
                    research, and evaluate sustainable practices.
                        ``(F) To expand sustainability literacy on campus.
                        ``(G) To integrate sustainability curricula in all
                    programs of instruction, particularly in business,
                    architecture, technology, manufacturing, engineering,
                    and science programs.
                ``(2) Partnerships.--Grants made under subsection (a) may be
            used by an eligible entity that is a nonprofit consortium,
            association, alliance, or collaboration operating in partnership
            with one or more institutions of higher education for the
            following purposes:
                        ``(A) To conduct faculty, staff and administrator
                    training on the subjects of sustainability and
                    institutional change.

    [[Page 122 STAT. 3432]]

                        ``(B) To compile, evaluate, and disseminate best
                    practices, case studies, guidelines and standards
                    regarding sustainability.
                        ``(C) To conduct efforts to engage external
                    stakeholders such as business, alumni, and accrediting
                    agencies in the process of building support for
                    research, education, and technology development for
                    sustainability.
                        ``(D) To conduct professional development programs
                    for faculty in all disciplines to enable faculty to
                    incorporate sustainability content in their courses.
                        ``(E) To create the analytical tools necessary for
                    institutions of higher education to assess and measure
                    their individual progress toward fully sustainable
                    campus operations and fully integrating sustainability
                    into the curriculum.
                        ``(F) To develop educational benchmarks for
                    institutions of higher education to determine the
                    necessary rigor and effectiveness of academic
                    sustainability programs.

        ``(d) Reports.--An eligible entity that receives a grant under
    subsection (a) shall submit to the Secretary, for each fiscal year in
    which the entity receives amounts from such grant, a report that
    describes the work conducted pursuant to subsection (c), research
    findings and publications, administrative savings experienced, and an
    evaluation of the program.
        ``(e) Allocation Requirement.--The Secretary may not make grants
    under subsection (a) to any eligible entity in a total amount that is
    less than $250,000 or more than $2,000,000.
        ``(f) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may be necessary for
    fiscal year 2009 and each of the five succeeding fiscal years.

                   ``PART V--MODELING AND SIMULATION PROGRAMS

    ``SEC. 891. <<NOTE: 20 USC 1161v.>> 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.--

    [[Page 122 STAT. 3433]]

                ``(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

    [[Page 122 STAT. 3434]]

                    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,

    [[Page 122 STAT. 3435]]

                    and such grant period may be extended for not more than
                    two years if the Secretary determines that an eligible
                    institution has demonstrated success in establishing a
                    modeling and simulation degree program at such eligible
                    institution.
                        ``(C) Minimum grant amount.--Subject to the
                    availability of appropriations, a grant awarded to an
                    eligible institution under this subsection shall not be
                    less than $750,000.
                        ``(D) Non-federal share.--Each eligible institution
                    receiving a grant under this subsection shall provide,
                    from non-Federal sources, in cash or in-kind, an amount
                    equal to 25 percent of the amount of the grant to carry
                    out the activities supported by the grant. The Secretary
                    may waive the non-Federal share requirement under this
                    subparagraph for an eligible institution if the
                    Secretary determines a waiver to be appropriate based on
                    the financial ability of the institution.
                ``(2) Application.--To apply for a grant under this
            subsection, an eligible institution shall submit to the
            Secretary an application at such time, in such manner, and
            containing such information as the Secretary may require. Such
            application shall include--
                        ``(A) a letter from the president or provost of the
                    eligible institution that demonstrates the institution's
                    commitment to the establishment of a modeling and
                    simulation program at the institution of higher
                    education;
                        ``(B) a detailed plan for how the grant funds will
                    be used to establish a modeling and simulation program
                    at the institution; and
                        ``(C) a description of how the modeling and
                    simulation program established under this subsection
                    will complement existing programs and fit into the
                    institution's current program and course offerings.
                ``(3) Uses of funds.--A grant awarded under this subsection
            may be used by an eligible institution to--
                        ``(A) establish, or work toward the establishment
                    of, a modeling and simulation program, including a
                    major, minor, career-track, certificate, or
                    concentration program at the eligible institution;
                        ``(B) provide adequate staffing to ensure the
                    successful establishment of the modeling and simulation
                    program, which may include the assignment of full-time
                    dedicated or supportive faculty; and
                        ``(C) purchase equipment necessary for a modeling
                    and simulation program.

        ``(e) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may be necessary for
    fiscal year 2009 and each of the five succeeding fiscal years. Of the
    amounts authorized to be appropriated for each fiscal year--
                ``(1) $1,000,000 is authorized to carry out the activities
            of the task force established pursuant to subsection (b); and
                ``(2) of the amount remaining after the allocation for
            paragraph (1)--
                        ``(A) 50 percent is authorized to carry out the
                    grant program under subsection (c); and

    [[Page 122 STAT. 3436]]

                        ``(B) 50 percent is authorized to carry out the
                    grant program under subsection (d).

                            ``PART W--PATH TO SUCCESS

    ``SEC. 892. <<NOTE: 20 USC 1161w.>> 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;

    [[Page 122 STAT. 3437]]

                        ``(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;

    [[Page 122 STAT. 3438]]

                ``(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) <<NOTE: Records.>> 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 in section 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.

    [[Page 122 STAT. 3439]]

                ``(4) Priority individual.--The term `priority individual'
            means an individual who--
                        ``(A) is an eligible individual;
                        ``(B) has been convicted of a gang-related offense;
                    and
                        ``(C) has served or is serving a period of detention
                    in a juvenile detention center or secure juvenile
                    justice residential facility for such offense.
                ``(5) Guidance counselor.--The term `guidance counselor'
            means an individual who works with at-risk youth on a one-on-one
            basis, to establish a supportive relationship with such at-risk
            youth and to provide such at-risk youth with academic assistance
            and exposure to new experiences that enhance their ability to
            become responsible citizens.

        ``(g) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may be necessary for
    fiscal year 2009 and each of the five succeeding fiscal years.

        ``PART X--SCHOOL OF VETERINARY MEDICINE COMPETITIVE GRANT PROGRAM

    ``SEC. 893. <<NOTE: Public welfare. 20 USC 1161x.>> SCHOOL OF
                            VETERINARY MEDICINE COMPETITIVE GRANT
                            PROGRAM.

        ``(a) In General.--From the amounts appropriated under subsection
    (g), the Secretary of Health and Human Services shall award competitive
    grants to eligible entities for the purpose of improving public health
    preparedness through increasing the number of veterinarians in the
    workforce.
        ``(b) Eligible Entities.--To be eligible to receive a grant under
    subsection (a), an entity shall--
                ``(1) be--
                        ``(A) a public or other nonprofit school of
                    veterinary medicine that is accredited by a nationally
                    recognized accrediting agency or association recognized
                    by the Secretary of Education pursuant to part H of
                    title IV;
                        ``(B) a public or nonprofit, department of
                    comparative medicine, department of veterinary science,
                    school of public health, or school of medicine that is
                    accredited by a nationally recognized accrediting agency
                    or association recognized by the Secretary of Education
                    pursuant to part H of title IV and that offers graduate
                    training for veterinarians in a public health practice
                    area as determined by the Secretary of Health and Human
                    Services; or
                        ``(C) a public or nonprofit entity that--
                              ``(i) conducts recognized residency training
                          programs for veterinarians that are approved by a
                          veterinary specialty organization that is
                          recognized by the American Veterinary Medical
                          Association; and
                              ``(ii) offers postgraduate training for
                          veterinarians in a public health practice area as
                          determined by the Secretary of Health and Human
                          Services; and
                ``(2) <<NOTE: Applications.>> prepare and submit to the
            Secretary of Health and Human Services an application, at such
            time, in such manner, and containing such information as the
            Secretary of Health and Human Services may require.

        ``(c) Consideration of Applications.-- <<NOTE: Procedures.>> The
    Secretary of Health and Human Services shall establish procedures to
    ensure that

    [[Page 122 STAT. 3440]]

    applications under subsection (b)(2) are rigorously reviewed and that
    grants are competitively awarded based on--
                ``(1) the ability of the applicant to increase the number of
            veterinarians who are trained in specified public health
            practice areas as determined by the Secretary of Health and
            Human Services;
                ``(2) the ability of the applicant to increase capacity in
            research on high priority disease agents; or
                ``(3) any other consideration the Secretary of Health and
            Human Services determines necessary.

        ``(d) Preference.--In awarding grants under subsection (a), the
    Secretary of Health and Human Services shall give preference to
    applicants that demonstrate a comprehensive approach by involving more
    than one school of veterinary medicine, department of comparative
    medicine, department of veterinary science, school of public health,
    school of medicine, or residency training program that offers
    postgraduate training for veterinarians in a public health practice area
    as determined by the Secretary of Health and Human Services.
        ``(e) Use of Funds.--Amounts received under a grant under this
    section shall be used by a grantee to increase the number of
    veterinarians in the workforce through paying costs associated with the
    expansion of academic programs at schools of veterinary medicine,
    departments of comparative medicine, departments of veterinary science,
    or entities offering residency training programs, or academic programs
    that offer postgraduate training for veterinarians or concurrent
    training for veterinary students in specific areas of specialization,
    which costs may include minor renovation and improvement in classrooms,
    libraries, and laboratories.
        ``(f) Definition of Public Health Practice Area.--In this section,
    the term `public health practice area' includes the areas of
    bioterrorism and emergency preparedness, environmental health, food
    safety and food security, regulatory medicine, diagnostic laboratory
    medicine, and biomedical research.
        ``(g) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may be necessary for
    fiscal year 2009 and each of the five succeeding fiscal years. Amounts
    appropriated under this subsection shall remain available until
    expended.

      ``PART Y--EARLY <<NOTE: Disadvantaged persons.>> FEDERAL PELL GRANT
    COMMITMENT DEMONSTRATION PROGRAM
    ``SEC. 894. <<NOTE: 20 USC 1161y.>> EARLY FEDERAL PELL GRANT
                            COMMITMENT DEMONSTRATION PROGRAM.

        ``(a) Demonstration Program Authority.--
                ``(1) In general.--The Secretary is authorized to carry out
            an Early Federal Pell Grant Commitment Demonstration Program
            under which--
                        ``(A) the Secretary awards grants to four State
                    educational agencies, in accordance with paragraph (2),
                    to pay the administrative expenses incurred in
                    participating in the demonstration program under this
                    section; and
                        ``(B) the Secretary awards Federal Pell Grants to
                    participating students in accordance with this section
                    and consistent with section 401.
                ``(2) Grants.--

    [[Page 122 STAT. 3441]]

                        ``(A) In general.--From amounts appropriated under
                    subsection (h) for a fiscal year, the Secretary is
                    authorized to award grants to four State educational
                    agencies to enable the State educational agencies to pay
                    the administrative expenses incurred in participating in
                    the demonstration program under this section by carrying
                    out a demonstration project under which eighth grade
                    students described in subsection (b)(1)(B) receive a
                    commitment early in the students' academic careers to
                    receive a Federal Pell Grant.
                        ``(B) Equal amounts.--The Secretary shall award
                    grants under this section in equal amounts to each of
                    the four participating State educational agencies.

        ``(b) Demonstration Project Requirements.--Each of the four
    demonstration projects assisted under this section shall meet the
    following requirements:
                ``(1) Participants.--
                        ``(A) In general.--The State educational agency
                    shall make participation in the demonstration project
                    available to two cohorts of students, which shall
                    consist of--
                              ``(i) one cohort of eighth grade students who
                          begin participating in the first academic year for
                          which funds have been appropriated to carry out
                          this section; and
                              ``(ii) one cohort of eighth grade students who
                          begin participating in the academic year
                          succeeding the academic year described in clause
                          (i).
                        ``(B) Students in each cohort.--Each cohort of
                    students shall consist of not more than 10,000 eighth
                    grade students who qualify for a free or reduced price
                    school lunch under the Richard B. Russell National
                    School Lunch Act (42 U.S.C. 1751 et seq.) or the Child
                    Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
                ``(2) Student data.--The State educational agency shall
            ensure that student data from local educational agencies serving
            students who participate in the demonstration project, as well
            as student data from local educational agencies serving a
            comparable group of students who do not participate in the
            demonstration project, are available for evaluation of the
            demonstration project, and are made available in accordance with
            the requirements of section 444 of the General Education
            Provisions Act (the Family Educational Rights and Privacy Act of
            1974).
                ``(3) Federal pell grant commitment.--Each student who
            participates in the demonstration project receives a commitment
            from the Secretary to receive a Federal Pell Grant during the
            first academic year that the student is in attendance at an
            institution of higher education as an undergraduate, provided
            that the student applies for Federal financial aid (via the
            FAFSA or EZ FAFSA) for such academic year.
                ``(4) Application <<NOTE: State and
            local governments.>> process.--Each State educational agency
            shall establish an application process to select local
            educational agencies within the State to participate in the
            demonstration project in accordance with subsection (d)(2).
                ``(5) Local educational agency participation.--Subject to
            the 10,000 statewide student limitation described in paragraph
            (1), a local educational agency serving students, not less than
            50 percent of whom are eligible for a free or reduced price
            school lunch under the Richard B. Russell National School

    [[Page 122 STAT. 3442]]

            Lunch Act (42 U.S.C. 1751 et seq.) or the Child Nutrition Act of
            1966 (42 U.S.C. 1771 et seq.), shall be eligible to participate
            in the demonstration project.

        ``(c) State Educational Agency Applications.--
                ``(1) In general.--Each State educational agency desiring to
            participate in the demonstration program under this section
            shall submit an application to the Secretary at such time and in
            such manner as the Secretary may require.
                ``(2) Contents.--Each application shall include--
                        ``(A) a description of the proposed targeted
                    information campaign for the demonstration project and a
                    copy of the plan described in subsection (f)(2);
                        ``(B) a description of the student population that
                    will receive an early commitment to receive a Federal
                    Pell Grant under this section;
                        ``(C) an assurance that the State educational agency
                    will fully cooperate with the ongoing evaluation of the
                    demonstration project; and
                        ``(D) such other information as the Secretary may
                    require.

        ``(d) Selection Considerations.--
                ``(1) Selection of state educational agencies.--In selecting
            State educational agencies to participate in the demonstration
            program under this section, the Secretary shall consider--
                        ``(A) the number and quality of State educational
                    agency applications received;
                        ``(B) a State educational agency's--
                              ``(i) financial responsibility;
                              ``(ii) administrative capability;
                              ``(iii) commitment to focusing resources, in
                          addition to any resources provided on students who
                          receive assistance under part A of title I of the
                          Elementary and Secondary Education Act of 1965;
                              ``(iv) ability and plans to run an effective
                          and thorough targeted information campaign for
                          students served by local educational agencies
                          eligible to participate in the demonstration
                          project; and
                              ``(v) ability to ensure the participation in
                          the demonstration project of a diverse group of
                          students, including with respect to ethnicity and
                          gender.
                ``(2) Local educational agency.--In selecting local
            educational agencies to participate in a demonstration project
            under this section, the State educational agency shall
            consider--
                        ``(A) the number and quality of local educational
                    agency applications received;
                        ``(B) a local educational agency's--
                              ``(i) financial responsibility;
                              ``(ii) administrative capability;
                              ``(iii) commitment to focusing resources on
                          students who receive assistance under part A of
                          title I of the Elementary and Secondary Education
                          Act of 1965;
                              ``(iv) ability and plans to run an effective
                          and thorough targeted information campaign for
                          students served by the local educational agency;
                          and

    [[Page 122 STAT. 3443]]

                              ``(v) ability to ensure the participation in
                          the demonstration project of a diverse group of
                          students.

        ``(e) Evaluation.--
                ``(1) In general.--From amounts appropriated under
            subsection (h) for a fiscal year, the Secretary shall reserve
            not more than $1,000,000 to award a grant or contract to an
            organization outside the Department for an independent
            evaluation of the impact of the demonstration program assisted
            under this section.
                ``(2) Competitive <<NOTE: Contracts.>> basis.--The grant or
            contract shall be awarded on a competitive basis.
                ``(3) Matters evaluated.--The evaluation described in this
            subsection shall--
                        ``(A) determine the number of students who were
                    encouraged by the demonstration program to pursue higher
                    education;
                        ``(B) identify the barriers to the effectiveness of
                    the demonstration program;
                        ``(C) assess the cost-effectiveness of the
                    demonstration program in improving access to higher
                    education;
                        ``(D) identify the reasons why participants in the
                    demonstration program either received or did not receive
                    a Federal Pell Grant;
                        ``(E) identify intermediate outcomes related to
                    postsecondary education attendance, such as whether
                    participants--
                              ``(i) were more likely to take a college-
                          preparatory curriculum while in secondary school;
                              ``(ii) submitted any applications to
                          institutions of higher education; and
                              ``(iii) took the PSAT, SAT, or ACT;
                        ``(F) identify the number of students participating
                    in the demonstration program who pursued an associate's
                    degree or a bachelor's degree, or other postsecondary
                    education;
                        ``(G) compare the findings of the demonstration
                    program with respect to participants to comparison
                    groups (of similar size and demographics) that did not
                    participate in the demonstration program; and
                        ``(H) identify the impact of the demonstration
                    program on the parents of students eligible to
                    participate in the program.
                ``(4) Dissemination.-- <<NOTE: Reports.>> The findings of
            the evaluation shall be reported to the Secretary, who shall
            widely disseminate the findings to the public.

        ``(f) Targeted Information Campaign.--
                ``(1) In general.--Each State educational agency receiving a
            grant under this section shall, in cooperation with the
            participating local educational agencies within the State and
            the Secretary, develop a targeted information campaign for the
            demonstration project assisted under this section.
                ``(2) Plan.--Each State educational agency receiving a grant
            under this section shall include in the application submitted
            under subsection (c) a written plan for the State educational
            agency proposed targeted information campaign. The plan shall
            include the following:

    [[Page 122 STAT. 3444]]

                        ``(A) Outreach.--A description of the outreach to
                    students and the students' families at the beginning and
                    end of each academic year of the demonstration project,
                    at a minimum.
                        ``(B) Distribution.--A description of how the State
                    educational agency plans to provide the outreach
                    described in subparagraph (A) and to provide the
                    information described in subparagraph (C).
                        ``(C) Information.--The annual provision by the
                    State educational agency to all students and families
                    participating in the demonstration project of
                    information regarding--
                              ``(i) the estimated statewide average cost of
                          attendance for an institution of higher education
                          for each academic year, which cost data shall be
                          disaggregated by--
                                        ``(I) type of institution,
                                    including--
                                                ``(aa) two-year public
                                            degree-granting institutions of
                                            higher education;
                                                ``(bb) four-year public
                                            degree-granting institutions of
                                            higher education; and
                                                ``(cc) four-year private
                                            degree-granting institutions of
                                            higher education;
                                        ``(II) component, including--
                                                ``(aa) tuition and fees; and
                                                ``(bb) room and board;
                              ``(ii) Federal Pell Grants, including--
                                        ``(I) the maximum Federal Pell Grant
                                    for each award year;
                                        ``(II) when and how to apply for a
                                    Federal Pell Grant; and
                                        ``(III) what the application process
                                    for a Federal Pell Grant requires;
                              ``(iii) State-specific postsecondary education
                          savings programs;
                              ``(iv) State merit-based financial aid;
                              ``(v) State need-based financial aid; and
                              ``(vi) Federal financial aid available to
                          students, including eligibility criteria for such
                          aid and an explanation of the Federal financial
                          aid programs under title IV, such as the Student
                          Guide published by the Department (or any
                          successor to such document).
                ``(3) Cohorts.-- <<NOTE: Deadline.>> The information
            described in paragraph (2)(C) shall be provided annually to the
            two successive cohorts of students described in subsection
            (b)(1)(A) for the duration of the students' participation in the
            demonstration project.
                ``(4) Reservation.--Each State educational agency receiving
            a grant under this section shall reserve not more than 15
            percent of the grant funds received each fiscal year to carry
            out the targeted information campaign described in this
            subsection.

        ``(g) Supplement, Not Supplant.--A State educational agency shall
    use grant funds received under this section only to supplement the funds
    that would, in the absence of such grant funds, be made available from
    non-Federal sources for students participating in the demonstration
    project under this section, and not to supplant such funds.

    [[Page 122 STAT. 3445]]

        ``(h) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may be necessary for
    fiscal year 2009 and each of the five succeeding fiscal years.

       ``PART Z-- <<NOTE: Hawaii.>> HENRY KUUALOHA GIUGNI KUPUNA MEMORIAL
    ARCHIVES
    ``SEC. 895. <<NOTE: 20 USC 1161z.>> HENRY KUUALOHA GIUGNI KUPUNA
                            MEMORIAL ARCHIVES.

        ``(a) Grants Authorized.--From the amounts appropriated under
    subsection (c), the Secretary is authorized to award a grant to the
    University of Hawaii Academy for Creative Media for the establishment,
    maintenance, and periodic modernization of the Henry Kuualoha Giugni
    Kupuna Memorial Archives at the University of Hawaii.
        ``(b) Use of Funds.--The Henry Kuualoha Giugni Kupuna Memorial
    Archives shall use the grant funds received under this section--
                ``(1) to facilitate the acquisition of a secure web-
            accessible repository of Native Hawaiian historical data rich in
            ethnic and cultural significance to the United States for
            preservation and access by future generations;
                ``(2) to award scholarships to facilitate access to
            postsecondary education for students who cannot afford such
            education;
                ``(3) to support programmatic efforts associated with the
            web-based media projects of the archives;
                ``(4) to create educational materials, from the contents of
            the archives, that are applicable to a broad range of indigenous
            students, such as Native Hawaiians, Alaskan Natives, and Native
            American Indians;
                ``(5) to develop outreach initiatives that introduce the
            archival collections to elementary schools and secondary
            schools;
                ``(6) to develop supplemental web-based resources that
            define terms and cultural practices innate to Native Hawaiians;
                ``(7) to rent, lease, purchase, maintain, or repair
            educational facilities to house the archival collections;
                ``(8) to rent, lease, purchase, maintain, or repair computer
            equipment for use by elementary schools and secondary schools in
            accessing the archival collections;
                ``(9)
            to <<NOTE: Native Hawaiians. Alaska Natives. Native Americans.>>
            provide preservice and in-service teacher training to develop a
            core group of kindergarten through grade 12 teachers who are
            able to provide instruction in a way that is relevant to the
            unique background of indigenous students, such as Native
            Hawaiians, Alaskan Natives, and Native American Indians, in
            order to--
                        ``(A) facilitate greater understanding by teachers
                    of the unique background of indigenous students; and
                        ``(B) improve student achievement; and
                ``(10) to increase the economic and financial literacy of
            postsecondary education students through the dissemination of
            best practices used at other institutions of higher education
            regarding debt and credit management and economic
            decisionmaking.

        ``(c) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may

    [[Page 122 STAT. 3446]]

    be necessary for fiscal year 2009 and each of the five succeeding fiscal
    years.

                ``PART AA--MASTERS AND POSTBACCALAUREATE PROGRAMS

    ``SEC. 897. <<NOTE: Appropriations authorization. 20 USC
                            1161aa.>> MASTERS DEGREE PROGRAMS.

        ``In addition to any amounts appropriated under section 725, there
    are authorized to be appropriated, and there are appropriated, out of
    any funds in the Treasury not otherwise appropriated, $11,500,000 for
    fiscal year 2009 and for each of the five succeeding fiscal years to
    carry out subpart 4 of part A of title VII in order to provide grants
    under sections 723 and 724, in the minimum amount authorized under such
    sections, to all institutions eligible for grants under such sections.
    ``SEC. 898. <<NOTE: Appropriations authorization. 20 USC 1161aa-
                            1.>> POSTBACCALAUREATE PROGRAMS.

        ``In addition to any amounts appropriated under part B of title V,
    there are authorized to be appropriated, and there are appropriated, out
    of any funds in the Treasury not otherwise appropriated, $11,500,000 for
    fiscal year 2009 and for each of the five succeeding fiscal years to
    carry out part B of title V.''.
    SEC. 802. <<NOTE: 20 USC 9631.>> NATIONAL CENTER FOR RESEARCH IN
                            ADVANCED INFORMATION AND DIGITAL
                            TECHNOLOGIES.

        (a) Establishment.--There shall be established, during the first
    fiscal year for which appropriations are made available under subsection
    (c), a nonprofit corporation to be known as the National Center for
    Research in Advanced Information and Digital Technologies, which shall
    not be an agency or establishment of the Federal Government. The Center
    shall be subject to the provisions of this section, and, to the extent
    consistent with this section, to the District of Columbia Nonprofit
    Corporation Act (sec. 29-501 et seq., D.C. Official Code).
        (b) Purpose.--The purpose of the Center shall be to support a
    comprehensive research and development program to harness the increasing
    capacity of advanced information and digital technologies to improve all
    levels of learning and education, formal and informal, in order to
    provide Americans with the knowledge and skills needed to compete in the
    global economy.
        (c) Funding.--
                (1) Authorization of appropriations.--There are authorized
            to be appropriated to the Center such sums as may be necessary
            for fiscal year 2009 and each of the five succeeding fiscal
            years.
                (2) Additional funds.--The Center is authorized--
                        (A) to accept funds from any Federal agency or
                    entity;
                        (B) to accept, hold, administer, and spend any gift,
                    devise, or bequest of real or personal property made to
                    the Center; and
                        (C) to enter into competitive contracts with
                    individuals, public or private organizations,
                    professional societies, and government agencies for the
                    purpose of carrying out the functions of the Center.
                (3) Prohibition.--The Center shall not accept gifts,
            devises, or bequests from a foreign government or foreign
            source.

    [[Page 122 STAT. 3447]]

        (d) Board of Directors; Vacancies; Compensation.--
                (1) In general.--A Board of the Center shall be established
            to oversee the administration of the Center.
                (2) Initial composition.--The initial Board shall consist of
            nine members to be appointed by the Secretary of Education from
            recommendations received from the Speaker of the House of
            Representatives, the Minority Leader of the House of
            Representatives, the majority leader of the Senate, and the
            minority leader of the Senate, who--
                        (A) reflect representation from the public and
                    private sectors;
                        (B) shall provide, as nearly as practicable, a broad
                    representation of various regions of the United States,
                    various professions and occupations, and various kinds
                    of talent and experience appropriate to the functions
                    and responsibilities of the Center;
                        (C) shall not be in a position to benefit
                    financially directly from the contracts and grants to
                    eligible institutions under subsection (f)(2); and
                        (D) may not be officers or employees of the Federal
                    Government or a Members of Congress serving at the time
                    of such appointment.
                (3) Vacancies and subsequent appointments.--To the extent
            not inconsistent with paragraph (2), in the case of a vacancy on
            the Board due to death, resignation, or removal, the vacancy
            shall be filled through nomination and selection by the sitting
            members of the Board after--
                        (A) taking into consideration the composition of the
                    Board; and
                        (B) soliciting recommendations from the public.
                (4) Compensation.--Members of the Board shall serve without
            compensation but may be reimbursed for reasonable expenses for
            transportation, lodging, and other expenses directly related to
            their duties as members of the Board.
                (5) Organization <<NOTE: District of Columbia. Taxes.>> and
            operation.--The Board shall incorporate and operate the Center
            in accordance with the laws governing tax exempt organizations
            in the District of Columbia.

        (e) Director and Staff.--
                (1) Director.-- <<NOTE: Appointments.>> The Board shall
            appoint a Director of the Center after conducting a national,
            competitive search to find an individual with the appropriate
            expertise, experience, and knowledge to oversee the operations
            of the Center.
                (2) Staff.--In accordance with procedures established by the
            Board, the Director shall employ individuals to carry out the
            functions of the Center.
                (3) Compensation.--In no case shall the Director or any
            employee of the Center receive annual compensation that exceeds
            an amount equal to the annual rate payable for level II of the
            Executive Schedule under section 5313 of title 5, United States
            Code.

        (f) Center Activities.--
                (1) Uses of funds.--The Director, after consultation with
            the Board, shall use the funds made available to the Center--
                        (A) to support research to improve education,
                    teaching, and learning that is in the public interest,
                    but that is determined unlikely to be undertaken
                    entirely with private funds;

    [[Page 122 STAT. 3448]]

                        (B) to support--
                              (i) precompetitive research, development, and
                          demonstrations;
                              (ii) assessments of prototypes of innovative
                          digital learning and information technologies, as
                          well as the components and tools needed to create
                          such technologies; and
                              (iii) pilot testing and evaluation of
                          prototype systems described in clause (ii); and
                        (C) to encourage the widespread adoption and use of
                    effective, innovative digital approaches to improving
                    education, teaching, and learning.
                (2) Contracts and grants.--
                        (A) In general.--To carry out the activities
                    described in paragraph (1), the Director, with the
                    agreement of two-thirds of the members of the Board, may
                    award, on a competitive basis, contracts and grants to
                    four-year institutions of higher education, museums,
                    libraries, nonprofit organizations, public institutions
                    with or without for-profit partners, for-profit
                    organizations, and consortia of any such entities.
                        (B) Public domain.--
                              (i) In general.--The research and development
                          properties and materials associated with any
                          project funded by a grant or contract under this
                          section shall be freely and nonexclusively
                          available to the general public in a timely
                          manner, consistent with regulations prescribed by
                          the Secretary of Education.
                              (ii) Exemption.--The Director may waive the
                          requirements of clause (i) with respect to a
                          project funded by a grant or contract under this
                          section if--
                                        (I) the Director and the Board (by a
                                    unanimous vote of the Board members)
                                    determine that the general public will
                                    benefit significantly due to the project
                                    not being freely and nonexclusively
                                    available to the general public in a
                                    timely manner; and
                                        (II) the Board issues a public
                                    statement as to the specific reasons of
                                    the determination under subclause (I).
                        (C) Peer review.--
                    <<NOTE: Grants. Contracts.>> Proposals for grants or
                    contracts shall be evaluated on the basis of comparative
                    merit by panels of experts who represent diverse
                    interests and perspectives, and who are appointed by the
                    Director based on recommendations from the fields served
                    and from the Board.

        (g) Accountability and Reporting.--
                (1) Report.--
                        (A) In general.--Not later than December 30 of each
                    year beginning in fiscal year 2009, the Director shall
                    prepare and submit to the Secretary of Education and the
                    authorizing committees a report that contains the
                    information described in subparagraph (B) with respect
                    to the preceding fiscal year.
                        (B) Contents.--A report under subparagraph (A) shall
                    include--

    [[Page 122 STAT. 3449]]

                              (i) a comprehensive and detailed report of the
                          Center's operations, activities, financial
                          condition, and accomplishments, and such
                          recommendations as the Director determines
                          appropriate;
                              (ii) evidence of coordination with the
                          Department of Education, the National Science
                          Foundation, Office of the Director of Defense
                          Research and Engineering in the Department of
                          Defense, and other related Federal agencies to
                          carry out the operations and activities of the
                          Center;
                              (iii) a comprehensive and detailed inventory
                          of funds distributed from the Center during the
                          fiscal year for which the report is being
                          prepared; and
                              (iv) an independent audit of the Center's
                          finances and operations, and of the implementation
                          of the goals established by the Board.
                        (C) Statement of the board.--Each report under
                    subparagraph (A) shall include a statement from the
                    Board containing--
                              (i) a clear description of the plans and
                          priorities of the Board for the subsequent year
                          for activities of the Center; and
                              (ii) an estimate of the funds that will be
                          expended by the Center for such year.
                (2) Testimony.--The Director and principal officers of the
            Center shall testify before the authorizing committees and the
            Committees on Appropriations of the House of Representatives and
            the Senate, upon request of such committees, with respect to--
                        (A) any report required under paragraph (1)(A); and
                        (B) any other matter that such committees may
                    determine appropriate.

        (h) Use of Funds Subject to Appropriations.--The authority to award
    grants, enter into contracts, or otherwise expend funds under this
    section is subject to the availability of amounts deposited into the
    Center under subsection (c), or amounts otherwise appropriated for such
    purposes by an Act of Congress.
        (i) Definitions.--For purposes of this section:
                (1) Authorizing committees.--The term ``authorizing
            committees'' has the meaning given the term in section 103 of
            the Higher Education Act of 1965 (20 U.S.C. 1003).
                (2) Board.--The term ``Board'' means the Board of the Center
            appointed under subsection (d)(1).
                (3) Center.--The term ``Center'' means the National Center
            for Research in Advanced Information and Digital Technologies
            established under subsection (a).
                (4) Director.--The term ``Director'' means the Director of
            the Center appointed under subsection (e)(1).
    SEC. 803. <<NOTE: 20 USC 1015b note.>> ESTABLISHMENT OF PILOT
                            PROGRAM FOR COURSE MATERIAL RENTAL.

        (a) Pilot Grant Program.--From the amounts appropriated pursuant to
    subsection (e), the Secretary of Education (referred to in this section
    as the ``Secretary'') shall make grants on a competitive basis to not
    more than ten institutions of higher education to support pilot programs
    that expand the services of bookstores

    [[Page 122 STAT. 3450]]

    to provide the option for students to rent course materials in order to
    achieve savings for students.
        (b) Application.--An institution of higher education that desires to
    obtain a grant under this section shall submit an application to the
    Secretary at such time, in such form, and containing or accompanied by
    such information, agreements, and assurances as the Secretary may
    reasonably require.
        (c) Use of Funds.--The funds made available by a grant under this
    section may be used for--
                (1) purchase of course materials that the entity will make
            available by rent to students;
                (2) any equipment or software necessary for the conduct of a
            rental program;
                (3) hiring staff needed for the conduct of a rental program,
            with priority given to hiring enrolled undergraduate students;
            and
                (4) building or acquiring extra storage space dedicated to
            course materials for rent.

        (d) Evaluation and Report.--
                (1) Evaluations by recipients.--After a period of time to be
            determined by the Secretary, each institution of higher
            education that receives a grant under this section shall submit
            a report to the Secretary on the effectiveness of their rental
            programs in reducing textbook costs for students.
                (2) Report to congress.--Not later than September 30, 2010,
            the Secretary shall submit a report to Congress on the
            effectiveness of the textbook rental pilot programs under this
            section, and identify the best practices developed in such pilot
            programs. Such report shall contain an estimate by the Secretary
            of the savings achieved by students who participate in such
            pilot programs.

        (e) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may be necessary for
    fiscal years 2009 and 2010.

                       TITLE IX--AMENDMENTS TO OTHER LAWS

                    PART A--EDUCATION OF THE DEAF ACT OF 1986

    SEC. 901. LAURENT CLERC NATIONAL DEAF EDUCATION CENTER.

        Section 104 of the Education of the Deaf Act of 1986 (20 U.S.C.
    4304) is amended--
                (1) by striking the section heading and inserting ``laurent
            clerc national deaf education center'';
                (2) in subsection (a)(1)(A), by inserting ``the Laurent
            Clerc National Deaf Education Center (referred to in this
            section as the `Clerc Center') to carry out'' after ``maintain
            and operate''; and
                (3) in subsection (b)--
                        (A) in the matter preceding subparagraph (A) of
                    paragraph (1), by striking ``elementary and secondary
                    education programs'' and inserting ``Clerc Center'';
                        (B) in paragraph (2)--

    [[Page 122 STAT. 3451]]

                              (i) by striking ``elementary and secondary
                          education programs'' and inserting ``Clerc
                          Center''; and
                              (ii) by striking ``section 618(a)(1)(A)'' and
                          inserting ``section 618(a)(1)'';
                        (C) in paragraph (4), in subparagraph (C)--
                              (i) by moving the margins 2 ems to the left;
                              (ii) in clause (i), by striking ``(6)'' and
                          inserting ``(8)''; and
                              (iii) in clause (vi), by striking ``(m)'' and
                          inserting ``(o)''; and
                        (D) by adding at the end the following:

        ``(5) The University, for purposes of the elementary and secondary
    education programs carried out at the Clerc Center, shall--
                ``(A)(i) select <<NOTE: Standards.>> 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 <<NOTE: Deadline.>> standards and
            assessments for such programs by not later than the beginning of
            the 2009-2010 academic year;
                ``(B) annually <<NOTE: Deadline.>> 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 <<NOTE: Reports.>> 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).''.
    SEC. 902. AGREEMENT WITH GALLAUDET UNIVERSITY.

        Section 105(b)(4) of the Education of the Deaf Act of 1986 (20
    U.S.C. 4305(b)(4)) is amended--
                (1) by striking ``the Act of March 3, 1931 (40 U.S.C. 276a-
            276a-5) commonly referred to as the Davis-Bacon Act'' and
            inserting ``subchapter IV of chapter 31 of title 40, United
            States Code, commonly referred to as the Davis-Bacon Act''; and
                (2) by striking ``section 2 of the Act of June 13, 1934 (40
            U.S.C. 276c)'' and inserting ``section 3145 of title 40, United
            States Code''.
    SEC. 903. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR THE
                            DEAF.

        Section 112 of the Education of the Deaf Act of 1986 (20 U.S.C.
    4332) is amended--
                (1) in subsection (a)(1), by striking the second sentence;
            and
                (2) in subsection (b)--

    [[Page 122 STAT. 3452]]

                        (A) in paragraph (3), by striking ``Committee on
                    Labor and Human Resources of the Senate'' and inserting
                    ``Committee on Health, Education, Labor, and Pensions of
                    the Senate''; and
                        (B) in paragraph (5)--
                              (i) by striking ``the Act of March 3, 1931 (40
                          U.S.C. 276a--276a-5) commonly referred to as the
                          Davis-Bacon Act'' and inserting ``subchapter IV of
                          chapter 31 of title 40, United States Code,
                          commonly referred to as the Davis-Bacon Act''; and
                              (ii) by striking ``section 2 of the Act of
                          June 13, 1934 (40 U.S.C. 276c)'' and inserting
                          ``section 3145 of title 40, United States Code''.
    SEC. 904. CULTURAL EXPERIENCES GRANTS.

        (a) Cultural Experiences Grants.--Title I of the Education of the
    Deaf Act of 1986 (20 U.S.C. 4301 et seq.) is amended by adding at the
    end the following:

                            ``PART C--OTHER PROGRAMS

    ``SEC. 121. <<NOTE: 20 USC 4341.>> CULTURAL EXPERIENCES GRANTS.

        ``(a) In <<NOTE: Contracts.>> General.--The Secretary is authorized
    to, on a competitive basis, make grants to, and enter into contracts and
    cooperative agreements with, eligible entities to support the activities
    described in subsection (b).

        ``(b) Activities.--In carrying out this section, the Secretary shall
    support activities providing cultural experiences, through appropriate
    nonprofit organizations with a demonstrated proficiency in providing
    such activities, that--
                ``(1) enrich the lives of deaf and hard-of-hearing children
            and adults;
                ``(2) increase public awareness and understanding of
            deafness and of the artistic and intellectual achievements of
            deaf and hard-of-hearing persons; or
                ``(3) promote the integration of hearing, deaf, and hard-of-
            hearing persons through shared cultural, educational, and social
            experiences.

        ``(c) Applications.--An eligible entity that desires to receive a
    grant, or enter into a contract or cooperative agreement, under this
    section shall submit an application to the Secretary at such time, in
    such manner, and containing such information as the Secretary may
    require.
        ``(d) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may be necessary for
    fiscal year 2009 and each of the five succeeding fiscal years.''.
        (b) Conforming Amendment.--The title heading of title I of the
    Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.) is amended by
    adding at the end the following: ``; OTHER PROGRAMS''.
    SEC. 905. AUDIT.

        Section 203 of the Education of the Deaf Act of 1986 (20 U.S.C.
    4353) is amended--
                (1) in subsection (b)--
                        (A) in paragraph (2), by striking ``sections'' and
                    all that follows through the period and inserting
                    ``sections

    [[Page 122 STAT. 3453]]

                    102(b), 105(b)(4), 112(b)(5), 203(c), 207(b)(2),
                    subsections (c) through (f) of section 207, and
                    subsections (b) and (c) of section 209.''; and
                        (B) in paragraph (3), by inserting ``and the
                    Committee on Education and Labor of the House of
                    Representatives and the Committee on Health, Education,
                    Labor, and Pensions of the Senate'' after ``Secretary'';
                    and
                (2) in subsection (c)(2)(A), by striking ``Committee on
            Labor and Human Resources of the Senate'' and inserting
            ``Committee on Health, Education, Labor, and Pensions of the
            Senate''.
    SEC. 906. REPORTS.

        Section 204 of the Education of the Deaf Act of 1986 (20 U.S.C.
    4354) is amended--
                (1) in the matter preceding paragraph (1), by striking
            ``Committee on Labor and Human Resources of the Senate'' and
            inserting ``Committee on Health, Education, Labor, and Pensions
            of the Senate'';
                (2) in paragraph (1), by striking ``preparatory,'';
                (3) in paragraph (2)(C), by striking ``upon graduation/
            completion'' and inserting ``on the date that is one year after
            the date of graduation or completion''; and
                (4) in paragraph (3)(B), by striking ``of the institution of
            higher education'' and all that follows through ``section 203''
            and inserting ``of NTID programs and activities''.
    SEC. 907. MONITORING, EVALUATION, AND REPORTING.

        Section 205 of the Education of the Deaf Act of 1986 (20 U.S.C.
    4355) is amended--
                (1) in the first sentence of subsection (a), by striking
            ``preparatory,'';
                (2) in subsection (b), by striking ``The Secretary, as part
            of the annual report required under section 426 of the
            Department of Education Organization Act, shall include a
            description of'' and inserting ``The Secretary shall annually
            transmit information to Congress on''; and
                (3) in <<NOTE: Appropriations authorization.>> subsection
            (c), by striking ``fiscal years 1998 through 2003'' and
            inserting ``fiscal years 2009 through 2014''.
    SEC. 908. <<NOTE: Designation. Deadline.>> LIAISON FOR EDUCATIONAL
                            PROGRAMS.

        Section 206(a) of the Education of the Deaf Act of 1986 (20 U.S.C.
    4356(a)) is amended by striking ``Not later than 30 days after the date
    of enactment of this Act, the'' and inserting ``The''.
    SEC. 909. <<NOTE: Appropriations authorization.>> FEDERAL
                            ENDOWMENT PROGRAMS FOR GALLAUDET
                            UNIVERSITY AND THE NATIONAL TECHNICAL
                            INSTITUTE FOR THE DEAF.

        Section 207(h) of the Education of the Deaf Act of 1986 (20 U.S.C.
    4357(h)) is amended by striking ``fiscal years 1998 through 2003'' both
    places it appears and inserting ``fiscal years 2009 through 2014''.
    SEC. 910. OVERSIGHT AND EFFECT OF AGREEMENTS.

        Section 208(a) of the Education of the Deaf Act of 1986 (20 U.S.C.
    4359(a)) is amended by striking ``Committee on Labor and Human Resources
    of the Senate and the Committee on Education and the Workforce of the
    House of Representatives'' and inserting ``Committee on Education and
    Labor of the House of Representatives

    [[Page 122 STAT. 3454]]

    and the Committee on Health, Education, Labor, and Pensions of the
    Senate''.
    SEC. 911. INTERNATIONAL STUDENTS.

        Section 209 of the Education of the Deaf Act of 1986 (20 U.S.C.
    4359a) is amended--
                (1) in subsection (a)--
                        (A) by striking ``preparatory, undergraduate,'' and
                    inserting ``undergraduate'';
                        (B) by striking ``Effective with'' and inserting the
                    following:
                ``(1) In general.--Except as provided in paragraph (2),
            effective with''; and
                        (C) by adding at the end the following:
                ``(2) Distance learning.--International students who
            participate in distance learning courses that are at the
            University or the NTID, who are residing outside of the United
            States, and are not enrolled in a degree program at the
            University or the NTID shall--
                        ``(A) not be counted as international students for
                    purposes of the cap on international students under
                    paragraph (1), except that in any school year no United
                    States citizen who applies to participate in distance
                    learning courses that are at the University or NTID
                    shall be denied participation in such courses because of
                    the participation of an international student in such
                    courses; and
                        ``(B) not be charged a tuition surcharge, as
                    described in subsection (b).''; and
                (2) by striking subsections (b), (c), and (d), and inserting
            the following:

        ``(b) Tuition Surcharge.--Except as provided in subsections
    (a)(2)(B) and (c), the tuition for postsecondary international students
    enrolled in the University (including undergraduate and graduate
    students) or NTID shall include, for academic year 2009-2010 and any
    succeeding academic year, a surcharge of--
                ``(1) 100 percent for a postsecondary international student
            from a non-developing country; and
                ``(2) 50 percent for a postsecondary international student
            from a developing country, or a country that was a developing
            country for any academic year during the student's period of
            uninterrupted enrollment in a degree program at the University
            or NTID, except that such a surcharge shall not be adjusted
            retroactively.

        ``(c) Reduction of Surcharge.--
                ``(1) In general.--Beginning with the academic year 2009-
            2010, the University or NTID may reduce the surcharge--
                        ``(A) under subsection (b)(1) from 100 percent to
                    not less than 50 percent if--
                              ``(i) a student described under subsection
                          (b)(1) demonstrates need; and
                              ``(ii) such student has made a good-faith
                          effort to secure aid through such student's
                          government or other sources; and
                        ``(B) under subsection (b)(2) from 50 percent to not
                    less than 25 percent if--
                              ``(i) a student described under subsection
                          (b)(2) demonstrates need; and

    [[Page 122 STAT. 3455]]

                              ``(ii) such student has made a good faith
                          effort to secure aid through such student's
                          government or other sources.
                ``(2) Development of sliding scale.--The University and NTID
            shall develop a sliding scale model that--
                        ``(A) will be used to determine the amount of a
                    tuition surcharge reduction pursuant to paragraph (1);
                    and
                        ``(B) shall be approved by the Secretary.

        ``(d) Definition.--In this section, the term `developing country'
    means a country with a per-capita income of not more than $5,345,
    measured in 2005 United States dollars, as adjusted by the Secretary to
    reflect inflation since 2005.''.
    SEC. 912. RESEARCH PRIORITIES.

        Section 210(b) of the Education of the Deaf Act of 1986 (20 U.S.C.
    4359b(b)) is amended by striking ``Committee on Education and the
    Workforce of the House of Representatives, and the Committee on Labor
    and Human Resources of the Senate'' and inserting ``Committee on
    Education and Labor of the House of Representatives, and the Committee
    on Health, Education, Labor, and Pensions of the Senate''.
    SEC. 913. NATIONAL STUDY ON THE EDUCATION OF THE DEAF.

        (a) Conduct <<NOTE: Establishment.>> of Study.--Subsection (a)(1) of
    section 211 of the Education of the Deaf Act of 1986 (20 U.S.C. 4360) is
    amended by inserting after ``The Secretary shall'' the following:
    ``establish a commission on the education of the deaf (in this section
    referred to as the `commission') to''.

        (b) Public Input and Consultation.--Subsection (b) of such section
    is amended by striking ``Secretary'' each place the term appears and
    inserting ``commission''.
        (c) Report.--Subsection (c) of such section is amended--
                (1) in the matter preceding paragraph (1), by striking
            ``Secretary'' and all that follows through ``1998'' and
            inserting ``commission shall report to the Secretary and
            Congress not later than 18 months after the date of the
            enactment of the Higher Education Opportunity Act''; and
                (2) in paragraph (1)--
                        (A) by striking ``recommendations,'' and inserting
                    ``recommendations relating to educated-related factors
                    that contribute to successful postsecondary education
                    experiences and employment for individuals who are
                    deaf,''; and
                        (B) by striking ``Secretary'' and inserting
                    ``commission''.

        (d) Authorization of Appropriations.--Subsection (d) of such section
    is amended by striking ``$1,000,000 for each of the fiscal years 1999
    and 2000'' and inserting ``such sums as may be necessary for each of the
    fiscal years 2009 and 2010''.
    SEC. 914. AUTHORIZATION OF APPROPRIATIONS.

        Section 212 of the Education of the Deaf Act of 1986 (20 U.S.C.
    4360a) is amended--
                (1) in subsection (a), in the matter preceding paragraph
            (1), by striking ``fiscal years 1998 through 2003'' and
            inserting ``fiscal years 2009 through 2014''; and
                (2) in subsection (b), by striking ``fiscal years 1998
            through 2003'' and inserting ``fiscal years 2009 through 2014''.

    [[Page 122 STAT. 3456]]

                  PART B--UNITED STATES INSTITUTE OF PEACE ACT

    SEC. 921. UNITED STATES INSTITUTE OF PEACE ACT.

        (a) Powers and Duties.--Section 1705(b)(3) of the United States
    Institute of Peace Act (22 U.S.C. 4604(b)(3)) is amended by striking
    ``the Arms Control and Disarmament Agency,''.
        (b) Board of Directors.--
                (1) Amendments.--Section 1706 of the United States Institute
            of Peace Act (22 U.S.C. 4605) is amended--
                        (A) by striking ``(b)(5)'' each place the term
                    appears and inserting ``(b)(4)''; and
                        (B) in subsection (e), by adding at the end the
                    following:
                ``(5) The <<NOTE: Effective date.>> term of a member of the
            Board shall not commence until the member is confirmed by the
            Senate and sworn in as a member of the Board.''.
                (2) Effective date.--The amendments made by paragraph (1)
            shall take effect as if enacted on June 1, 2007, and shall apply
            to any member of the Board of Directors of the Institute of
            Peace confirmed by the Senate and sworn in as a member of the
            Board of Directors on or after such date.

        (c) Funding.--Section 1710 of the United States Institute of Peace
    Act (22 U.S.C. 4609) is amended--
                (1) in subsection (a)(1), by striking ``to be appropriated''
            and all that follows through the period at the end and inserting
            ``to be appropriated such sums as may be necessary for fiscal
            years 2009 through 2014.''; and
                (2) by adding at the end the following:

        ``(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.''.

     PART C--THE HIGHER EDUCATION AMENDMENTS OF 1998; THE HIGHER EDUCATION
                               AMENDMENTS OF 1992

    SEC. 931. REPEALS.

        The following provisions of title VIII of the Higher Education
    Amendments of 1998 (Public Law 105-244) are repealed:
                (1) <<NOTE: 20 USC 1001 note, 1015 note, 1018 note,
            1099b note.>> Part A.
                (2) Part C (20 U.S.C. 1070 note).
                (3) Part F (20 U.S.C. <<NOTE: 42 USC 1862 note.>> 1862
            note).
                (4) Part J.
                (5) <<NOTE: 112 Stat. 1825.>> Section 861.
                (6) <<NOTE: 112 Stat. 1826.>> Section 863.
    SEC. 932. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION
                            TRAINING FOR INCARCERATED INDIVIDUALS.

        Section 821 of the Higher Education Amendments of 1998 (20 U.S.C.
    1151) is amended to read as follows:
    ``SEC. 821. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY
                            TRANSITION TRAINING FOR INCARCERATED
                            INDIVIDUALS.

        ``(a) Definition.--In this section, the term `incarcerated
    individual' means a male or female offender who is--

    [[Page 122 STAT. 3457]]

                ``(1) 35 years of age or younger; and
                ``(2) incarcerated in a State prison, including a prerelease
            facility.

        ``(b) Grant Program.--The Secretary of Education (in this section
    referred to as the `Secretary')--
                ``(1) shall establish a program in accordance with this
            section to provide grants to the State correctional education
            agencies in the States to assist and encourage incarcerated
            individuals who have obtained a secondary school diploma or its
            recognized equivalent to acquire educational and job skills
            through--
                        ``(A) coursework to prepare such individuals to
                    pursue a postsecondary education certificate, an
                    associate's degree, or bachelor's degree while in
                    prison;
                        ``(B) the pursuit of a postsecondary education
                    certificate, an associate's degree, or bachelor's degree
                    while in prison; and
                        ``(C) employment counseling and other related
                    services, which start during incarceration and end not
                    later than two years after release from incarceration;
                    and
                ``(2) may establish such performance objectives and
            reporting requirements for State correctional education agencies
            receiving grants under this section as the Secretary determines
            are necessary to assess the effectiveness of the program under
            this section.

        ``(c) Application.--To be eligible for a grant under this section, a
    State correctional education agency shall submit to the Secretary a
    proposal for an incarcerated individual program that--
                ``(1) identifies the scope of the problem, including the
            number of incarcerated individuals in need of postsecondary
            education and career and technical training;
                ``(2) lists the accredited public or private educational
            institution or institutions that will provide postsecondary
            educational services;
                ``(3) lists the cooperating agencies, public and private, or
            businesses that will provide related services, such as
            counseling in the areas of career development, substance abuse,
            health, and parenting skills;
                ``(4) describes specific performance objectives and
            evaluation methods (in addition to, and consistent with, any
            objectives established by the Secretary under subsection (b)(2))
            that the State correctional education agency will use in
            carrying out its proposal, including--
                        ``(A) specific and quantified student outcome
                    measures that are referenced to outcomes for non-program
                    participants with similar demographic characteristics;
                    and
                        ``(B) measures, consistent with the data elements
                    and definitions described in subsection (d)(1)(A), of--
                              ``(i) program completion, including an
                          explicit definition of what constitutes a program
                          completion within the proposal;
                              ``(ii) knowledge and skill attainment,
                          including specification of instruments that will
                          measure knowledge and skill attainment;
                              ``(iii) attainment of employment both prior to
                          and subsequent to release;

    [[Page 122 STAT. 3458]]

                              ``(iv) success in employment indicated by job
                          retention and advancement; and
                              ``(v) recidivism, including such subindicators
                          as time before subsequent offense and severity of
                          offense;
                ``(5) describes how the proposed program is to be integrated
            with existing State correctional education programs (such as
            adult education, graduate education degree programs, and career
            and technical training) and State industry programs;
                ``(6) describes how the proposed program will--
                        ``(A) deliver services under this section; and
                        ``(B) utilize technology to deliver such services;
                    and
                ``(7) describes how incarcerated individuals will be
            selected so that only those eligible under subsection (e) will
            be enrolled in postsecondary programs.

        ``(d) Program Requirements.-- <<NOTE: Deadline. Reports.>> Each
    State correctional education agency receiving a grant under this section
    shall--
                ``(1) annually report to the Secretary regarding--
                        ``(A) the results of the evaluations conducted using
                    data elements and definitions provided by the Secretary
                    for the use of State correctional education programs;
                        ``(B) any objectives or requirements established by
                    the Secretary pursuant to subsection (b)(2);
                        ``(C) the additional performance objectives and
                    evaluation methods contained in the proposal described
                    in subsection (c)(4) as necessary to document the
                    attainment of project performance objectives;
                        ``(D) how the funds provided under this section are
                    being allocated among postsecondary preparatory
                    education, postsecondary academic programs, and career
                    and technical education programs; and
                        ``(E) the service delivery methods being used for
                    each course offering; and
                ``(2) provide for each student eligible under subsection (e)
            not more than--
                        ``(A) $3,000 annually for tuition, books, and
                    essential materials; and
                        ``(B) $300 annually for related services such as
                    career development, substance abuse counseling,
                    parenting skills training, and health education.

        ``(e) Student Eligibility.--An incarcerated individual who has
    obtained a secondary school diploma or its recognized equivalent shall
    be eligible for participation in a program receiving a grant under this
    section if such individual--
                ``(1) is eligible to be released within seven years
            (including an incarcerated individual who is eligible for parole
            within such time);
                ``(2) is 35 years of age or younger; and
                ``(3) has not been convicted of--
                        ``(A) a `criminal offense against a victim who is a
                    minor' or a `sexually violent offense', as such terms
                    are defined in the Jacob Wetterling Crimes Against
                    Children and Sexually Violent Offender Registration Act
                    (42 U.S.C. 14071 et seq.); or
                        ``(B) murder, as described in section 1111 of title
                    18, United States Code.

        ``(f) Length of Participation.--A State correctional education
    agency receiving a grant under this section shall provide educational

    [[Page 122 STAT. 3459]]

    and related services to each participating incarcerated individual for a
    period not to exceed seven years, not more than two years of which may
    be devoted to study in a graduate education degree program or to
    coursework to prepare such individuals to take college level courses.
    Educational and related services shall start during the period of
    incarceration in prison or prerelease, and the related services may
    continue for not more than two years after release from confinement.
        ``(g) Education Delivery Systems.--State correctional education
    agencies and cooperating institutions shall, to the extent practicable,
    use high-tech applications in developing programs to meet the
    requirements and goals of this section.
        ``(h) Allocation of Funds.--From the funds appropriated pursuant to
    subsection (i) for each fiscal year, the Secretary shall allot to each
    State an amount that bears the same relationship to such funds as the
    total number of students eligible under subsection (e) in such State
    bears to the total number of such students in all States.
        ``(i) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as may be necessary for
    fiscal years 2009 through 2014.''.
    SEC. 933. UNDERGROUND RAILROAD EDUCATIONAL AND CULTURAL PROGRAM.

        Section 841 of the Higher Education Amendments of 1998 (20 U.S.C.
    1153) is amended--
                (1) in subsection (a), by inserting ``, including the
            lessons to be drawn from such history'' after ``Railroad'';
                (2) in subsection (b)--
                        (A) by striking paragraphs (1) and (2) and inserting
                    the following:
                ``(1) to establish a facility to--
                        ``(A) house, display, interpret, and communicate
                    information regarding the artifacts and other materials
                    related to the history of the Underground Railroad,
                    including the lessons to be drawn from such history;
                        ``(B) maintain such artifacts and materials; and
                        ``(C) make the efforts described in subparagraph (A)
                    available, including through electronic means, to
                    elementary and secondary schools, institutions of higher
                    education, and the general public;
                ``(2) to demonstrate substantial public and private support
            for the operation of the facility through the implementation of
            a public-private partnership between one or more State or local
            public entities and one or more private entities, which public-
            private partnership shall provide matching funds from non-
            federal sources for the support of the facility in an amount
            equal to or greater than four times the amount of the grant
            awarded under this section;'';
                        (B) in paragraph (4)--
                              (i) by inserting ``and maintain'' after
                          ``establish''; and
                              (ii) by inserting ``including the lessons to
                          be drawn from the history of the Underground
                          Railroad,'' after ``States,''; and
                        (C) in paragraph (5)--

    [[Page 122 STAT. 3460]]

                              (i) by inserting ``and maintain'' after
                          ``establish''; and
                              (ii) by inserting ``, including the lessons to
                          be drawn from such history'' after ``Railroad'';
                          and
                (3) in <<NOTE: Appropriations authorization.>> subsection
            (c), by striking ``this section'' and all that follows through
            the period at the end and inserting ``$3,000,000 for fiscal year
            2009 and each of the five succeeding fiscal years.''.
    SEC. 934. OLYMPIC SCHOLARSHIPS.

        Section 1543(d) of the Higher Education Amendments of 1992 (20
    U.S.C. 1070 note) is amended--
                (1) by <<NOTE: Appropriations authorization.>> striking
            ``1999'' and inserting ``2009''; and
                (2) by striking ``4'' and inserting ``five''.
    SEC. 935. ESTABLISHMENT OF A DEPUTY ASSISTANT SECRETARY FOR
                            INTERNATIONAL AND FOREIGN LANGUAGE
                            EDUCATION.

        Section 205 of the Department of Education Organization Act (20
    U.S.C. 3415) is amended to read as follows:

                       ``office of postsecondary education

        ``Sec. 205.  (a) There shall be in the Department an Office of
    Postsecondary Education, to be administered by the Assistant Secretary
    for Postsecondary Education appointed under section 202(b). The
    Assistant Secretary shall administer such functions affecting
    postsecondary education, both public and private, as the Secretary shall
    delegate, and shall serve as the principal adviser to the Secretary on
    matters affecting postsecondary education.
        ``(b) The <<NOTE: Appointments.>> Assistant Secretary for
    Postsecondary Education shall appoint a Deputy Assistant Secretary for
    International and Foreign Language Education to perform such functions
    affecting postsecondary, international, and foreign language education
    as the Secretary may prescribe. The Deputy Assistant Secretary for
    International and Foreign Language Education shall--
                ``(1) be an individual with extensive background and
            experience in international and foreign language education;
                ``(2) have responsibility for encouraging and promoting the
            study of foreign languages and the study of the cultures of
            other countries at the elementary, secondary, and postsecondary
            levels in the United States; and
                ``(3) coordinate with related international and foreign
            language education programs of other Federal agencies.''.

        PART D--TRIBAL COLLEGE AND UNIVERSITIES; NAVAJO HIGHER EDUCATION

                   Subpart 1--Tribal Colleges and Universities

    SEC. 941. REAUTHORIZATION OF THE TRIBALLY CONTROLLED COLLEGE OR
                            UNIVERSITY ASSISTANCE ACT OF 1978.

        (a) Clarification of the Definition of National Indian
    Organization.--Section 2(a)(6) of the Tribally Controlled College or
    University Assistance Act of 1978 (25 U.S.C. 1801(a)(6)) is amended by
    striking ``in the field of Indian education'' and inserting ``in the
    fields of tribally controlled colleges and universities and Indian
    higher education''.

    [[Page 122 STAT. 3461]]

        (b) Indian Student Count.--Section 2(a) of the Tribally Controlled
    College or University Assistance Act of 1978 (25 U.S.C. 1801(a)) is
    amended--
                (1) by redesignating paragraphs (7) and (8) as paragraphs
            (8) and (9), respectively; and
                (2) by inserting after paragraph (6) the following:
                ``(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;''.

        (c) Continuing Education.--Section 2(b) of the Tribally Controlled
    College or University Assistance Act of 1978 (25 U.S.C. 1801(b)) is
    amended--
                (1) in the matter preceding paragraph (1), by striking
            ``paragraph (7) of subsection (a)'' and inserting ``subsection
            (a)(8)'';
                (2) by striking paragraph (5) and inserting the following:
                ``(5) Eligible credits earned in a continuing education
            program--
                        ``(A) shall be determined as one credit for every
                    ten contact hours in the case of an institution on a
                    quarter system, or 15 contact hours in the case of an
                    institution on a semester system, of participation in an
                    organized continuing education experience under
                    responsible sponsorship, capable direction, and
                    qualified instruction, as described in the criteria
                    established by the International Association for
                    Continuing Education and Training; and
                        ``(B) shall be limited to ten percent of the Indian
                    student count of a tribally controlled college or
                    university.''; and
                (3) by striking paragraph (6).

        (d) Accreditation Requirement.--Section 103 of the Tribally
    Controlled College or University Assistance Act of 1978 (25 U.S.C. 1804)
    is amended--
                (1) in paragraph (2), by striking ``and'' at the end;
                (2) in paragraph (3), by striking the period at the end and
            inserting ``; and''; and
                (3) by inserting after paragraph (3), the following:
                ``(4)(A) is accredited by a nationally recognized
            accrediting agency or association determined by the Secretary of
            Education to be a reliable authority with regard to the quality
            of training offered; or
                ``(B) according to such an agency or association, is making
            reasonable progress toward accreditation.''.

        (e) Technical Assistance Contracts.--Section 105 of the Tribally
    Controlled College or University Assistance Act of 1978 (25 U.S.C. 1805)
    is amended--
                (1) by striking the section designation and heading and all
            that follows through ``The Secretary shall'' and inserting the
            following:
    ``SEC. 105. TECHNICAL ASSISTANCE CONTRACTS.

        ``(a) Technical Assistance.--
                ``(1) In general.--The Secretary shall'';
                (2) in the second sentence, by striking ``In the awarding of
            contracts for technical assistance, preference shall be given''
            and inserting the following:

    [[Page 122 STAT. 3462]]

                ``(2) Designated <<NOTE: Contracts.>> organization.--The
            Secretary shall require that a contract for technical assistance
            under paragraph (1) shall be awarded''; and
                (3) in the third sentence, by striking ``No authority'' and
            inserting the following:

        ``(b) Effect of Section.--No authority''.
        (f) Amount of Grants.--Section 108(a) of the Tribally Controlled
    College or University Assistance Act of 1978 (25 U.S.C. 1808(a)) is
    amended--
                (1) by redesignating paragraphs (1) and (2) as subparagraphs
            (A) and (B), respectively, and indenting the subparagraphs
            appropriately;
                (2) by striking ``(a) Except as provided in section 111,''
            and inserting the following:

        ``(a) Requirement.--
                ``(1) In general.--Except as provided in paragraph (2) and
            section 111,'';
                (3) in paragraph (1) (as redesignated by paragraphs (1) and
            (2))--
                        (A) in the matter preceding subparagraph (A) (as
                    redesignated by paragraph (1))--
                              (i) by striking ``him'' and inserting ``the
                          Secretary''; and
                              (ii) by striking ``product of'' and inserting
                          ``product obtained by multiplying'';
                        (B) in subparagraph (A) (as redesignated by
                    paragraph (1)), by striking ``section 2(a)(7)'' and
                    inserting ``section 2(a)(8)''; and
                        (C) in subparagraph (B) (as redesignated by
                    paragraph (1)), by striking ``$6,000,'' and inserting
                    ``$8,000, as adjusted annually for inflation.''; and
                (4) by striking ``except that no grant shall exceed the
            total cost of the education program provided by such college or
            university.'' and inserting the following:
                ``(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.''.

        (g) General Provisions Reauthorization.--Section 110(a) of the
    Tribally Controlled College or University Assistance Act of 1978 (25
    U.S.C. 1810(a)) is amended--
                (1) in paragraphs (1), (2), (3), and (4), by striking
            ``1999'' and inserting ``2009'';
                (2) in paragraphs (1), (2), and (3), by striking ``4
            succeeding'' and inserting ``five succeeding'';
                (3) in paragraph (2), by striking ``$40,000,000'' and
            inserting ``such sums as may be necessary'';
                (4) in paragraph (3), by striking ``$10,000,000'' and
            inserting ``such sums as may be necessary''; and
                (5) in paragraph (4), by striking ``succeeding 4'' and
            inserting ``five succeeding''.

        (h) Endowment Program Reauthorization.--Section 306(a) of the
    Tribally Controlled College or University Assistance Act of 1978 (25
    U.S.C. 1836(a)) is amended--
                (1) by striking ``1999'' and inserting ``2009''; and
                (2) by striking ``4 succeeding'' and inserting ``five
            succeeding''.

    [[Page 122 STAT. 3463]]

        (i) Tribal Economic Development Reauthorization.--Section 403 of the
    Tribal Economic Development and Technology Related Education Assistance
    Act of 1990 (25 U.S.C. 1852) is amended--
                (1) by striking ``$2,000,000 for fiscal year 1999'' and
            inserting ``such sums as may be necessary for fiscal year
            2009''; and
                (2) by striking ``4 succeeding'' and inserting ``five
            succeeding''.

        (j) Tribally Controlled Postsecondary Career and Technical
    Institutions.--
                (1) In general.--The Tribally Controlled College or
            University Assistance Act of 1978 (25 U.S.C. 1801 et seq.) is
            amended by adding at the end the following:

       ``TITLE V--TRIBALLY CONTROLLED POSTSECONDARY CAREER AND TECHNICAL
                                  INSTITUTIONS

    ``SEC. 501. <<NOTE: 25 USC 1861.>> DEFINITION OF TRIBALLY
                            CONTROLLED POSTSECONDARY CAREER AND
                            TECHNICAL INSTITUTION.

        ``In this title, the term `tribally controlled postsecondary career
    and technical institution' has the meaning given the term in section 3
    of the Carl D. Perkins Career and Technical Education Act of 2006 (20
    U.S.C. 2302).
    ``SEC. 502. <<NOTE: 25 USC 1862.>> TRIBALLY CONTROLLED
                            POSTSECONDARY CAREER AND TECHNICAL
                            INSTITUTIONS PROGRAM.

        ``(a) In General.--Subject to the availability of appropriations,
    for fiscal year 2009 and each fiscal year thereafter, the Secretary
    shall--
                ``(1) subject to subsection (b), select two tribally
            controlled postsecondary career and technical institutions to
            receive assistance under this title; and
                ``(2) provide funding to the selected tribally controlled
            postsecondary career and technical institutions to pay the costs
            (including institutional support costs) of operating
            postsecondary career and technical education programs for Indian
            students at the tribally controlled postsecondary career and
            technical institutions.

        ``(b) Selection of Certain Institutions.--
                ``(1) Requirement.--For each fiscal year during which the
            Secretary determines that a tribally controlled postsecondary
            career and technical institution described in paragraph (2)
            meets the definition referred to in section 501, the Secretary
            shall select that tribally controlled postsecondary career and
            technical institution under subsection (a)(1) to receive funding
            under this section.
                ``(2) Institutions.--The two tribally controlled
            postsecondary career and technical institutions referred to in
            paragraph (1) are--
                        ``(A) the United Tribes Technical College; and
                        ``(B) the Navajo Technical College.

        ``(c) Method of Payment.--For each applicable fiscal year, the
    Secretary shall provide funding under this section to each

    [[Page 122 STAT. 3464]]

    tribally controlled postsecondary career and technical institution
    selected for the fiscal year under subsection (a)(1) in a lump sum
    payment for the fiscal year.
        ``(d) Distribution.--
                ``(1) In general.--For fiscal year 2009 and each fiscal year
            thereafter, of amounts made available pursuant to section 504,
            the Secretary shall distribute to each tribally controlled
            postsecondary career and technical institution selected for the
            fiscal year under subsection (a)(1) an amount equal to the
            greater of--
                        ``(A) the total amount appropriated for the tribally
                    controlled postsecondary career and technical
                    institution for fiscal year 2006; or
                        ``(B) the total amount appropriated for the tribally
                    controlled postsecondary career and technical
                    institution for fiscal year 2008.
                ``(2) Excess amounts.--If, for any fiscal year, the amount
            made available pursuant to section 504 exceeds the sum of the
            amounts required to be distributed under paragraph (1) to the
            tribally controlled postsecondary career and technical
            institutions selected for the fiscal year under subsection
            (a)(1), the Secretary shall distribute to each tribally
            controlled postsecondary career and technical institution
            selected for that fiscal year a portion of the excess amount, to
            be determined by--
                        ``(A) dividing the excess amount by the aggregate
                    Indian student count (as defined in section 117(h) of
                    the Carl D. Perkins Career and Technical Education Act
                    of 2006 (20 U.S.C. 2327(h)) of such institutions for the
                    prior academic year; and
                        ``(B) multiplying the quotient described in
                    subparagraph (A) by the Indian student count of each
                    such institution for the prior academic year.
    ``SEC. 503. <<NOTE: 25 USC 1863.>> APPLICABILITY OF OTHER LAWS.

        ``(a) In General.--Paragraphs (4) and (8) of subsection (a), and
    subsection (b), of section 2, sections 105, 108, 111, 112 and 113, and
    titles II, III, and IV shall not apply to this title.
        ``(b) Indian Self-Determination and Education Assistance.--Funds
    made available pursuant to this title shall be subject to the Indian
    Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.).
        ``(c) Election to Receive.--A tribally controlled postsecondary
    career and technical institution selected for a fiscal year under
    section 502(b) may elect to receive funds pursuant to section 502 in
    accordance with an agreement between the tribally controlled
    postsecondary career and technical institution and the Secretary under
    the Indian Self-Determination and Education Assistance Act (25 U.S.C.
    450 et seq.) if the agreement is in existence on the date of enactment
    of the Higher Education Opportunity Act.
        ``(d) Other Assistance.--Eligibility for, or receipt of, assistance
    under this title shall not preclude the eligibility of a tribally
    controlled postsecondary career and technical institution to receive
    Federal financial assistance under--
                ``(1) any program under the Higher Education Act of 1965 (20
            U.S.C. 1001 et seq.);
                ``(2) any program under the Carl D. Perkins Career and
            Technical Education Act of 2006; or

    [[Page 122 STAT. 3465]]

                ``(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. <<NOTE: 25 USC 1864.>> 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.''.
                (2) Conforming amendments.--Section 117 of the Carl D.
            Perkins Career and Technical Education Act of 2006 (20 U.S.C.
            2327) is amended--
                        (A) by striking subsection (a) and inserting the
                    following:

        ``(a) Grant Program.--Subject to the availability of appropriations,
    the Secretary shall make grants under this section, to provide basic
    support for the education and training of Indian students, to tribally
    controlled postsecondary career and technical institutions that are not
    receiving Federal assistance as of the date on which the grant is
    provided under--
                ``(1) title I of the Tribally Controlled Colleges and
            Universities Assistance Act of 1978 (25 U.S.C. 1802 et seq.); or
                ``(2) the Navajo Community College Act (25 U.S.C. 640a et
            seq.).''; and
                        (B) by striking subsection (d) and inserting the
                    following:

        ``(d) Applications.--To be eligible to receive a grant under this
    section, a tribally controlled postsecondary career and technical
    institution that is not receiving Federal assistance under title I of
    the Tribally Controlled Colleges and Universities Assistance Act of 1978
    (25 U.S.C. 1802 et seq.) or the Navajo Community College Act (25 U.S.C.
    640a et seq.) shall submit to the Secretary an application at such time,
    in such manner, and containing such information as the Secretary may
    require.''.
        (k) Short Title.--
                (1) In general.--The first section of the Tribally
            Controlled College or University Assistance Act of 1978 (25
            U.S.C. 1801 note; Public Law 95-471) is amended to read as
            follows:
    ``SECTION 1. SHORT TITLE.

        ``This Act may be cited as the `Tribally Controlled Colleges and
    Universities Assistance Act of 1978'.''.
                (2) Technical amendments.--
                        (A) Equity in educational land-grant status act of
                    1994.--Section 533(c)(4)(A) of the Equity in Educational
                    Land-Grant Status Act of 1994 (7 U.S.C. 301 note) is
                    amended by striking ``Tribally Controlled College or
                    University Assistance Act of 1978'' and inserting
                    ``Tribally Controlled Colleges and Universities
                    Assistance Act of 1978''.
                        (B) National museum of the american indian act.--
                    Section 10(b)(2) of the National Museum of the American
                    Indian Act (20 U.S.C. 80q-8(b)(2)) is amended by
                    striking ``tribally controlled community colleges (as
                    defined in section 2 of the Tribally Controlled
                    Community College Assistance Act of 1978)'' and
                    inserting ``tribally controlled colleges or universities
                    (as defined in section 2(a) of the Tribally

    [[Page 122 STAT. 3466]]

                    Controlled Colleges and Universities Assistance Act of
                    1978)''.
                        (C) Individuals with disabilities education act.--
                    Section 602(17)(B) of the Individuals with Disabilities
                    Education Act (20 U.S.C. 1401(17)(B)) is amended--
                              (i) by striking ``community college'' and
                          inserting ``college or university''; and
                              (ii) by striking ``the Tribally Controlled
                          College or University Assistance Act of 1978'' and
                          inserting ``the Tribally Controlled Colleges and
                          Universities Assistance Act of 1978''.
                        (D) Carl d. perkins career and technical education
                    act of 2006.--The Carl D. Perkins Career and Technical
                    Education Act of 2006 (20 U.S.C. 2301 et seq.) is
                    amended--
                              (i) in section 3(33) (20 U.S.C. 2302(33)), by
                          striking ``the Tribally Controlled College or
                          University Assistance Act of 1978'' and inserting
                          ``the Tribally Controlled Colleges and
                          Universities Assistance Act of 1978'';
                              (ii) in section 117 (20 U.S.C. 2327), by
                          striking ``the Tribally Controlled College or
                          University Assistance Act of 1978'' each place the
                          term appears and inserting ``the Tribally
                          Controlled Colleges and Universities Assistance
                          Act of 1978''; and
                              (iii) in section 203(a)(1)(B)(i)(I)(bb)(AA)
                          (20 U.S.C. 2373(a)(1)(B)(i)(I)(bb)(AA)), by
                          striking ``the Tribally Controlled College or
                          University Assistance Act of 1978'' and inserting
                          ``the Tribally Controlled Colleges and
                          Universities Assistance Act of 1978''.
                        (E) Omnibus education reconciliation act of 1981.--
                    Section 528 of the Omnibus Education Reconciliation Act
                    of 1981 (20 U.S.C. 3489) is amended by striking ``the
                    Tribally Controlled'' and all that follows through
                    ``1978'' and inserting ``the Tribally Controlled
                    Colleges and Universities Assistance Act of 1978''.
                        (F) Elementary and secondary education act of
                    1965.--The Elementary and Secondary Education Act of
                    1965 (20 U.S.C. 6301 et seq.) is amended--
                              (i) in section 3301(3) (20 U.S.C. 7011(3)), by
                          striking ``the Tribally Controlled College or
                          University Assistance Act of 1978'' and inserting
                          ``the Tribally Controlled Colleges and
                          Universities Assistance Act of 1978''; and
                              (ii) in section 7134(b)(1)(A) (20 U.S.C.
                          7454(b)(1)(A)), by striking ``the Tribally
                          Controlled College or University Assistance Act of
                          1978'' and inserting ``the Tribally Controlled
                          Colleges and Universities Assistance Act of
                          1978''.
                        (G) Augustus f. hawkins-robert t. stafford
                    elementary and secondary school improvement amendments
                    of 1988.--Section 5404(a)(1) of the Augustus F. Hawkins-
                    Robert T. Stafford Elementary and Secondary School
                    Improvement Amendments of 1988 (25 U.S.C. 13d-2(a)(1))
                    is amended by striking ``the Tribally Controlled'' and
                    all that follows through ``1978'' and inserting ``the
                    Tribally Controlled Colleges and Universities Assistance
                    Act of 1978''.

    [[Page 122 STAT. 3467]]

                        (H) Indian self-determination and education
                    assistance act.--Section 403(b)(4)(A) of the Indian
                    Self-Determination and Education Assistance Act (25
                    U.S.C. 458cc(b)(4)(A)) is amended by striking ``the
                    Tribally Controlled'' and all that follows through
                    ``1978'' and inserting ``the Tribally Controlled
                    Colleges and Universities Assistance Act of 1978''.
                        (I) Indian health care improvement act.--The Indian
                    Health Care Improvement Act (25 U.S.C. 1601 et seq.) is
                    amended--
                              (i) in section 113(b)(1) (25 U.S.C.
                          1616f(b)(1)), by striking ``tribally-controlled''
                          and all that follows through ``1978)'' and
                          inserting ``tribally controlled colleges or
                          universities (within the meaning of section
                          2(a)(4) of the Tribally Controlled Colleges and
                          Universities Act of 1978)'';
                              (ii) in section 115(e) (25 U.S.C.
                          1616h(e)(2))--
                                        (I) in paragraph (1)(A), by striking
                                    ``a tribally controlled community
                                    college'' and inserting ``a junior or
                                    community college that is a tribally
                                    controlled college or university''; and
                                        (II) by striking paragraph (2) and
                                    inserting the following:
                ``(2) The <<NOTE: Definition.>> term `tribally controlled
            college or university' has the meaning given to such term by
            section 2(a)(4) of the Tribally Controlled Colleges and
            Universities Assistance Act of 1978.''; and
                              (iii) by striking paragraph (3) of section
                          711(g) (25 U.S.C. 1665j(g)) and inserting the
                          following:
                ``(3) The term `tribally controlled community college' means
            a community college that is a tribally controlled college or
            university, as such term is defined in section 2(a)(4) of the
            Tribally Controlled Colleges and Universities Assistance Act of
            1978.''.
                        (J) Indian child protection and family violence
                    prevention act.--Section 411(d)(5)(C) of the Indian
                    Child Protection and Family Violence Prevention Act (25
                    U.S.C. 3210(d)(5)(C)) is amended by striking ``tribally
                    controlled'' and all that follows through the semicolon
                    at the end and inserting ``tribally controlled college
                    or university (within the meaning of section 2 of the
                    Tribally Controlled Colleges and Universities Assistance
                    Act of 1978);''.
                        (K) Assistive technology act of 1998.--Section 3(11)
                    of the Assistive Technology Act of 1998 (29 U.S.C.
                    3002(11)) is amended by striking ``the Tribally
                    Controlled College or University Assistance Act of
                    1978'' and inserting ``the Tribally Controlled Colleges
                    and Universities Assistance Act of 1978''.
                        (L) Atomic energy act of 1954.--Section 244(a)(3) of
                    the Atomic Energy Act of 1954 (42 U.S.C. 2015c(a)(3)) is
                    amended by striking ``the Tribally Controlled College or
                    University Assistance Act of 1978'' and inserting ``the
                    Tribally Controlled Colleges and Universities Assistance
                    Act of 1978''.
                        (M) Department of energy science education
                    enhancement act.--Section 3167(a)(5) of the Department
                    of Energy Science Education Enhancement Act (42 U.S.C.

    [[Page 122 STAT. 3468]]

                    7381c-1(a)(5)) is amended by striking ``the Tribally
                    Controlled College Assistance Act of 1978'' and
                    inserting ``the Tribally Controlled Colleges and
                    Universities Assistance Act of 1978''.
                        (N) ED 1.0 act.--The ED 1.0 Act (47 U.S.C. 902 note)
                    is amended in subsection (a)(2)(C) by striking ``the
                    Tribally Controlled College or University Assistance Act
                    of 1978'' and inserting ``the Tribally Controlled
                    Colleges and Universities Assistance Act of 1978''.

    Subpart 2-- <<NOTE: Navajo Nation Higher Education Act of 2008.>> Navajo
    Higher Education
    SEC. 945. <<NOTE: 25 USC 640a note.>> SHORT TITLE.

        This subpart may be cited as the ``Navajo Nation Higher Education
    Act of 2008''.
    SEC. 946. REAUTHORIZATION OF NAVAJO COMMUNITY COLLEGE ACT.

        (a) Purpose.--Section 2 of the Navajo Community College Act (25
    U.S.C. 640a) is amended--
                (1) by striking ``Navajo Tribe of Indians'' and inserting
            ``Navajo Nation''; and
                (2) by striking ``the Navajo Community College'' and
            inserting ``Dine College''.

        (b) Grants.--Section 3 of the Navajo Community College Act (25
    U.S.C. 640b) is amended--
                (1) in the first sentence--
                        (A) by inserting ``the'' before ``Interior'';
                        (B) by striking ``Navajo Tribe of Indians'' and
                    inserting ``Navajo Nation''; and
                        (C) by striking ``the Navajo Community College'' and
                    inserting ``Dine College''; and
                (2) in the second sentence--
                        (A) by striking ``Navajo Tribe'' and inserting
                    ``Navajo Nation''; and
                        (B) by striking ``Navajo Indians'' and inserting
                    ``Navajo people''.

        (c) Study of Facilities Needs.--Section 4 of the Navajo Community
    College Act (25 U.S.C. 640c) is amended--
                (1) in subsection (a)--
                        (A) in the first sentence--
                              (i) by striking ``the Navajo Community
                          College'' and inserting ``Dine College''; and
                              (ii) by striking ``August 1, 1979'' and
                          inserting ``October 31, 2010''; and
                        (B) in the second sentence, by striking ``Navajo
                    Tribe'' and inserting ``Navajo Nation'';
                (2) in subsection (b), by striking ``the date of enactment
            of the Tribally Controlled Community College Assistance Act of
            1978'' and inserting ``October 1, 2007''; and
                (3) in subsection (c), in the first sentence, by striking
            ``the Navajo Community College'' and inserting ``Dine College''.

        (d) Authorization of Appropriations.--Section 5 of the Navajo
    Community College Act (25 U.S.C. 640c-1) is amended--
                (1) in subsection (a)--
                        (A) in paragraph (1), by striking ``$2,000,000'' and
                    all that follows through the end of the paragraph and
                    inserting

    [[Page 122 STAT. 3469]]

                    ``such sums as are necessary for fiscal years 2009
                    through 2014.''; and
                        (B) by adding at the end the following:

        ``(3) Sums <<NOTE: Grants.>> described in paragraph (2) shall be
    used to provide grants for construction activities, including the
    construction of buildings, water and sewer facilities, roads,
    information technology and telecommunications infrastructure,
    classrooms, and external structures (such as walkways).'';
                (2) in subsection (b)(1)--
                        (A) in the matter preceding subparagraph (A)--
                              (i) by striking ``the Navajo Community
                          College'' and inserting ``Dine College''; and
                              (ii) by striking ``, for each fiscal year''
                          and all that follows through ``for--'' and
                          inserting ``such sums as are necessary for fiscal
                          years 2009 through 2014 to pay the cost of--'';
                        (B) in subparagraph (A)--
                              (i) by striking ``college'' and inserting
                          ``College'';
                              (ii) in clauses (i) and (iii), by striking the
                          commas at the ends of the clauses and inserting
                          semicolons; and
                              (iii) in clause (ii), by striking ``, and'' at
                          the end and inserting ``; and'';
                        (C) in subparagraph (B), by striking the comma at
                    the end and inserting a semicolon;
                        (D) in subparagraph (C), by striking ``, and'' at
                    the end and inserting a semicolon;
                        (E) in subparagraph (D), by striking the period at
                    the end and inserting ``; and''; and
                        (F) by adding at the end the following:
                        ``(E) improving and expanding the College, including
                    by providing, for the Navajo people and others in the
                    community of the College--
                              ``(i) higher education programs;
                              ``(ii) career and technical education;
                              ``(iii) activities relating to the
                          preservation and protection of the Navajo
                          language, philosophy, and culture;
                              ``(iv) employment and training opportunities;
                              ``(v) economic development and community
                          outreach; and
                              ``(vi) a safe learning, working, and living
                          environment.''; and
                (3) in subsection (c), by striking ``the Navajo Community
            College'' and inserting ``Dine College''.

        (e) Effect on Other Laws.--Section 6 of the Navajo Community College
    Act (25 U.S.C. 640c-2) is amended--
                (1) by striking ``the Navajo Community College'' each place
            it appears and inserting ``Dine College''; and
                (2) in subsection (b), by striking ``college'' and inserting
            ``College''.

        (f) Payments; Interest.--Section 7 of the Navajo Community College
    Act (25 U.S.C. 640c-3) is amended by striking ``the Navajo Community
    College'' each place it appears and inserting ``Dine College''.

    [[Page 122 STAT. 3470]]

       PART E--OMNIBUS <<NOTE: John R. Justice Prosecutors and Defenders
    Incentive Act of 2008.>> CRIME CONTROL AND SAFE STREETS ACT OF 1968
    SEC. 951. <<NOTE: 42 USC 3711 note.>> SHORT TITLE.

        This part may be cited as the ``John R. Justice Prosecutors and
    Defenders Incentive Act of 2008''.
    SEC. 952. LOAN REPAYMENT FOR PROSECUTORS AND DEFENDERS.

        Title I of the Omnibus Crime Control and Safe Streets Act of 1968
    (42 U.S.C. 3711 et seq.) is amended by inserting after part II (42
    U.S.C. 3797cc et seq.) the following:

         ``PART JJ--LOAN REPAYMENT FOR PROSECUTORS AND PUBLIC DEFENDERS

    ``SEC. 3001. <<NOTE: 42 USC 3797cc-21.>> GRANT AUTHORIZATION.

        ``(a) Purpose.--The purpose of this section is to encourage
    qualified individuals to enter and continue employment as prosecutors
    and public defenders.
        ``(b) Definitions.--In this section:
                ``(1) Prosecutor.--The term `prosecutor' means a full-time
            employee of a State or unit of local government who--
                        ``(A) is continually licensed to practice law; and
                        ``(B) prosecutes criminal or juvenile delinquency
                    cases at the State or unit of local government level
                    (including supervision, education, or training of other
                    persons prosecuting such cases).
                ``(2) Public defender.--The term `public defender' means an
            attorney who--
                        ``(A) is continually licensed to practice law; and
                        ``(B) is--
                              ``(i) a full-time employee of a State or unit
                          of local government who provides legal
                          representation to indigent persons in criminal or
                          juvenile delinquency cases (including supervision,
                          education, or training of other persons providing
                          such representation);
                              ``(ii) a full-time employee of a nonprofit
                          organization operating under a contract with a
                          State or unit of local government, who devotes
                          substantially all of the employee's full-time
                          employment to providing legal representation to
                          indigent persons in criminal or juvenile
                          delinquency cases (including supervision,
                          education, or training of other persons providing
                          such representation); or
                              ``(iii) employed as a full-time Federal
                          defender attorney in a defender organization
                          established pursuant to subsection (g) of section
                          3006A of title 18, United States Code, that
                          provides legal representation to indigent persons
                          in criminal or juvenile delinquency cases.
                ``(3) Student loan.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), the term `student loan' means--
                              ``(i) a loan made, insured, or guaranteed
                          under part B of title IV of the Higher Education
                          Act of 1965 (20 U.S.C. 1071 et seq.);

    [[Page 122 STAT. 3471]]

                              ``(ii) a loan made under part D or E of title
                          IV of the Higher Education Act of 1965 (20 U.S.C.
                          1087a et seq. and 1087aa et seq.); and
                              ``(iii) a loan made under section 428C or
                          455(g) of the Higher Education Act of 1965 (20
                          U.S.C. 1078-3 and 1087e(g)).
                        ``(B) Exclusion of parent plus loans.--The term
                    `student loan' does not include any of the following
                    loans:
                              ``(i) A loan made to the parents of a
                          dependent student under section 428B of the Higher
                          Education Act of 1965 (20 U.S.C. 1078-2).
                              ``(ii) A Federal Direct PLUS Loan made to the
                          parents of a dependent student.
                              ``(iii) A loan made under section 428C or
                          455(g) of the Higher Education Act of 1965 (20
                          U.S.C. 1078-3 and 1087e(g)) to the extent that
                          such loan was used to repay a loan described in
                          clause (i) or (ii).

        ``(c) Program Authorized.--The Attorney General shall establish a
    program by which the Department of Justice shall assume the obligation
    to repay a student loan, by direct payments on behalf of a borrower to
    the holder of such loan, in accordance with subsection (d), for any
    borrower who--
                ``(1) is employed as a prosecutor or public defender; and
                ``(2) is not in default on a loan for which the borrower
            seeks forgiveness.

        ``(d) Terms of Agreement.--
                ``(1) In general.--To be eligible to receive repayment
            benefits under subsection (c), a borrower shall enter into a
            written agreement that specifies that--
                        ``(A) the borrower will remain employed as a
                    prosecutor or public defender for a required period of
                    service of not less than three years, unless
                    involuntarily separated from that employment;
                        ``(B) if the borrower is involuntarily separated
                    from employment on account of misconduct, or voluntarily
                    separates from employment, before the end of the period
                    specified in the agreement, the borrower will repay the
                    Attorney General the amount of any benefits received by
                    such employee under this section;
                        ``(C) if the borrower is required to repay an amount
                    to the Attorney General under subparagraph (B) and fails
                    to repay such amount, a sum equal to that amount shall
                    be recoverable by the Federal Government from the
                    employee (or such employee's estate, if applicable) by
                    such methods as are provided by law for the recovery of
                    amounts owed to the Federal Government;
                        ``(D) the Attorney General may waive, in whole or in
                    part, a right of recovery under this subsection if it is
                    shown that recovery would be against equity and good
                    conscience or against the public interest; and
                        ``(E) the Attorney General shall make student loan
                    payments under this section for the period of the
                    agreement, subject to the availability of
                    appropriations.
                ``(2) Repayments.--
                        ``(A) In general.--Any amount repaid by, or
                    recovered from, an individual or the estate of an
                    individual under this subsection shall be credited to
                    the appropriation

    [[Page 122 STAT. 3472]]

                    account from which the amount involved was originally
                    paid.
                        ``(B) Merger.--Any amount credited under
                    subparagraph (A) shall be merged with other sums in such
                    account and shall be available for the same purposes and
                    period, and subject to the same limitations, if any, as
                    the sums with which the amount was merged.
                ``(3) Limitations.--
                        ``(A) Student loan payment amount.--Student loan
                    repayments made by the Attorney General under this
                    section shall be made subject to such terms,
                    limitations, or conditions as may be mutually agreed
                    upon by the borrower and the Attorney General in an
                    agreement under paragraph (1), except that the amount
                    paid by the Attorney General under this section shall
                    not exceed--
                              ``(i) $10,000 for any borrower in any calendar
                          year; or
                              ``(ii) an aggregate total of $60,000 in the
                          case of any borrower.
                        ``(B) Beginning of payments.--Nothing in this
                    section shall authorize the Attorney General to pay any
                    amount to reimburse a borrower for any repayments made
                    by such borrower prior to the date on which the Attorney
                    General entered into an agreement with the borrower
                    under this subsection.

        ``(e) Additional Agreements.--
                ``(1) In general.--On completion of the required period of
            service under an agreement under subsection (d), the borrower
            and the Attorney General may, subject to paragraph (2), enter
            into an additional agreement in accordance with subsection (d).
                ``(2) Term.--An agreement entered into under paragraph (1)
            may require the borrower to remain employed as a prosecutor or
            public defender for less than three years.

        ``(f) Award Basis; Priority.--
                ``(1) Award basis.--Subject to paragraph (2), the Attorney
            General shall provide repayment benefits under this section--
                        ``(A) giving priority to borrowers who have the
                    least ability to repay their loans, except that the
                    Attorney General shall determine a fair allocation of
                    repayment benefits among prosecutors and public
                    defenders, and among employing entities nationwide; and
                        ``(B) subject to the availability of appropriations.
                ``(2) Priority.--The Attorney General shall give priority in
            providing repayment benefits under this section in any fiscal
            year to a borrower who--
                        ``(A) received repayment benefits under this section
                    during the preceding fiscal year; and
                        ``(B) has completed less than three years of the
                    first required period of service specified for the
                    borrower in an agreement entered into under subsection
                    (d).

        ``(g) Regulations.--The Attorney General is authorized to issue such
    regulations as may be necessary to carry out the provisions of this
    section.
        ``(h) Report by Inspector General.--Not later than three years after
    the date of the enactment of this section, the Inspector

    [[Page 122 STAT. 3473]]

    General of the Department of Justice shall submit to Congress a report
    on--
                ``(1) the cost of the program authorized under this section;
            and
                ``(2) the impact of such program on the hiring and retention
            of prosecutors and public defenders.

        ``(i) GAO <<NOTE: Deadline. Reports.>> Study.--Not later than one
    year after the date of the enactment of this section, the Comptroller
    General shall conduct a study of, and report to Congress on, the impact
    that law school accreditation requirements and other factors have on the
    costs of law school and student access to law school, including the
    impact of such requirements on racial and ethnic minorities.

        ``(j) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section $25,000,000 for fiscal year 2009
    and such sums as may be necessary for each of the five succeeding fiscal
    years.''.

            PART F--INSTITUTIONAL LOAN REPAYMENT ASSISTANCE PROGRAMS

    SEC. 961. INSTITUTIONAL <<NOTE: 5 USC 5379 note.>> LOAN
                            FORGIVENESS PROGRAMS.

        Notwithstanding any other provision of law--
                (1) a public or private institution of higher education may
            provide an officer or employee of any branch of the United
            States Government, of any independent agency of the United
            States, or of the District of Columbia, who is a current or
            former student of such institution, financial assistance for the
            purpose of repaying a student loan or providing forbearance of
            student loan repayment if--
                        (A) such repayment or forbearance is provided to
                    such officer or employee in accordance with a written,
                    published policy of the institution relating to repaying
                    or providing forbearance, respectively, for students or
                    former students who perform public service; and
                        (B) in the case of a former student of the
                    institution of higher education, the policy described in
                    subparagraph (A) was in effect at the institution of
                    higher education on the day before the date such officer
                    or employee graduated from or otherwise ceased being a
                    student at such institution; and
                (2) an officer or employee of any branch of the United
            States Government, of any independent agency of the United
            States, or of the District of Columbia may receive repayment or
            forbearance permitted under paragraph (1).

      PART G--MINORITY SERVING INSTITUTION DIGITAL AND WIRELESS TECHNOLOGY
                               OPPORTUNITY PROGRAM

    SEC. 971. MINORITY SERVING INSTITUTION DIGITAL AND WIRELESS
                            TECHNOLOGY OPPORTUNITY PROGRAM.

        Section 5 of the Stevenson-Wydler Technology Innovation Act of 1980
    (15 U.S.C. 3704) is amended by inserting after subsection (b) the
    following:
        ``(c) Minority Serving Institution Digital and Wireless Technology
    Opportunity Program.--

    [[Page 122 STAT. 3474]]

                ``(1) In <<NOTE: Grants. Contracts.>> general.--The
            Secretary shall establish a Minority Serving Institution Digital
            and Wireless Technology Opportunity Program that awards grants,
            cooperative agreements, and contracts to eligible institutions
            to enable the eligible institutions in acquiring, and augmenting
            the institutions' use of, digital and wireless networking
            technologies to improve the quality and delivery of educational
            services at eligible institutions.
                ``(2) Application and review procedures.--
                        ``(A) In general.--To be eligible to receive a
                    grant, cooperative agreement, or contract under this
                    subsection, an eligible institution shall submit an
                    application to the Secretary at such time, in such
                    manner, and containing such information as the Secretary
                    may require. Such application, at a minimum, shall
                    include a description of how the funds will be used,
                    including a description of any digital and wireless
                    networking technology to be acquired, and a description
                    of how the institution will ensure that digital and
                    wireless networking technology will be made accessible
                    to, and employed by, students, faculty, and
                    administrators. The <<NOTE: Procedures.>> Secretary,
                    consistent with subparagraph (C) and in consultation
                    with the advisory council established under subparagraph
                    (B), shall establish procedures to review such
                    applications. The <<NOTE: Federal
                    Register, publication. Requirements. Criteria.>> Secretar
                    y shall publish the application requirements and review
                    criteria in the Federal Register, along with a statement
                    describing the availability of funds.
                        ``(B) Advisory council.--The Secretary shall
                    establish an advisory council to advise the Secretary on
                    the best approaches to encourage maximum participation
                    by eligible institutions in the program established
                    under paragraph (1), and on the procedures to review
                    applications submitted to the program. In selecting the
                    members of the advisory council, the Secretary shall
                    consult with representatives of appropriate
                    organizations, including representatives of eligible
                    institutions, to ensure that the membership of the
                    advisory council includes representatives of minority
                    businesses and eligible institution communities. The
                    Secretary shall also consult with experts in digital and
                    wireless networking technology to ensure that such
                    expertise is represented on the advisory council.
                        ``(C) Review panels.--Each application submitted
                    under this subsection by an eligible institution shall
                    be reviewed by a panel of individuals selected by the
                    Secretary to judge the quality and merit of the
                    proposal, including the extent to which the eligible
                    institution can effectively and successfully utilize the
                    proposed grant, cooperative agreement, or contract to
                    carry out the program described in paragraph (1). The
                    Secretary shall ensure that the review panels include
                    representatives of minority serving institutions and
                    others who are knowledgeable about eligible institutions
                    and technology issues. The Secretary shall ensure that
                    no individual assigned under this subsection to review
                    any application has a conflict of interest with regard
                    to that application. The Secretary shall take into
                    consideration the recommendations of the review panel

    [[Page 122 STAT. 3475]]

                    in determining whether to award a grant, cooperative
                    agreement, or contract to an eligible institution.
                ``(3) Awards.--
                        ``(A) Limitation.--An eligible institution that
                    receives a grant, cooperative agreement, or contract
                    under this subsection that exceeds $2,500,000 shall not
                    be eligible to receive another grant, cooperative
                    agreement, or contract under this subsection.
                        ``(B) Consortia.--Grants, cooperative agreements,
                    and contracts may only be awarded to eligible
                    institutions. Eligible institutions may seek funding
                    under this subsection for consortia, which may include
                    other eligible institutions, a State or a State
                    educational agency, local educational agencies,
                    institutions of higher education, community-based
                    organizations, national nonprofit organizations, or
                    businesses, including minority businesses.
                        ``(C) Planning grants.--The Secretary may provide
                    funds to develop strategic plans to implement grants,
                    cooperative agreements, or contracts awarded under this
                    subsection.
                        ``(D) Institutional diversity.--In awarding grants,
                    cooperative agreements, and contracts to eligible
                    institutions, the Secretary shall ensure, to the extent
                    practicable, that awards are made to all types of
                    institutions eligible for assistance under this
                    subsection.
                        ``(E) Need.--In awarding funds under this
                    subsection, the Secretary shall give priority to the
                    eligible institution with the greatest demonstrated need
                    for assistance.
                ``(4) Authorized activities.--An eligible institution may
            use a grant, cooperative agreement, or contract awarded under
            this subsection--
                        ``(A) to acquire equipment, instrumentation,
                    networking capability, hardware and software, digital
                    network technology, wireless technology, and
                    infrastructure to further the objective of the program
                    described in paragraph (1);
                        ``(B) to develop and provide training, education,
                    and professional development programs, including faculty
                    development, to increase the use of, and usefulness of,
                    digital and wireless networking technology;
                        ``(C) to provide teacher education, including the
                    provision of preservice teacher training and in-service
                    professional development at eligible institutions,
                    library and media specialist training, and preschool and
                    teacher aid certification to individuals who seek to
                    acquire or enhance technology skills in order to use
                    digital and wireless networking technology in the
                    classroom or instructional process, including
                    instruction in science, mathematics, engineering, and
                    technology subjects;
                        ``(D) to obtain capacity-building technical
                    assistance, including through remote technical support,
                    technical assistance workshops, and distance learning
                    services; or
                        ``(E) to foster the use of digital and wireless
                    networking technology to improve research and education,
                    including scientific, mathematics, engineering, and
                    technology instruction.

    [[Page 122 STAT. 3476]]

                ``(5) Information dissemination.--The Secretary shall
            convene an annual meeting of eligible institutions receiving
            grants, cooperative agreements, or contracts under this
            subsection to foster collaboration and capacity-building
            activities among eligible institutions.
                ``(6) Matching requirement.--The Secretary may not award a
            grant, cooperative agreement, or contract to an eligible
            institution under this subsection unless such institution agrees
            that, with respect to the costs incurred by the institution in
            carrying out the program for which the grant, cooperative
            agreement, or contract was awarded, such institution shall make
            available, directly, or through donations from public or private
            entities, non-Federal contributions in an amount equal to 25
            percent of the grant, cooperative agreement, or contract awarded
            by the Secretary, or $500,000, whichever is the lesser amount.
            The <<NOTE: Waiver authority.>> Secretary shall waive the
            matching requirement for any institution or consortium with no
            endowment, or an endowment that has a current dollar value lower
            than $50,000,000.
                ``(7) Annual report and assessments.--
                        ``(A) Annual report required from recipients.--Each
                    eligible institution that receives a grant, cooperative
                    agreement, or contract awarded under this subsection
                    shall provide an annual report to the Secretary on its
                    use of the grant, cooperative agreement, or contract.
                        ``(B) Independent assessments.--
                              ``(i) Contract to conduct assessments.--
                          <<NOTE: Deadlines.>> Not later than 6 months after
                          the date of enactment of this subsection, the
                          Secretary shall enter into a contract with the
                          National Academy of Public Administration to
                          conduct periodic assessments of the program
                          established under paragraph (1). The assessments
                          shall be conducted once every 3 years during the
                          10-year period following the date of enactment of
                          this subsection.
                              ``(ii) Evaluations and recommendations.--The
                          assessments described in clause (i) shall
                          include--
                                        ``(I) an evaluation of the
                                    effectiveness of the program established
                                    under paragraph (1) in improving the
                                    education and training of students,
                                    faculty, and staff at eligible
                                    institutions that have been awarded
                                    grants, cooperative agreements, or
                                    contracts under the program;
                                        ``(II) an evaluation of the
                                    effectiveness of the program in
                                    improving access to, and familiarity
                                    with, digital and wireless networking
                                    technology for students, faculty, and
                                    staff at all eligible institutions;
                                        ``(III) an evaluation of the
                                    procedures established under paragraph
                                    (2)(A); and
                                        ``(IV) recommendations for improving
                                    the program, including recommendations
                                    concerning the continuing need for
                                    Federal support.
                              ``(iii) Review of reports.--In carrying out
                          the assessments under this subparagraph, the
                          National Academy of Public Administration shall
                          review the

    [[Page 122 STAT. 3477]]

                          reports submitted to the Secretary under
                          subparagraph (A).
                              ``(iv) Report to congress.--Upon completion of
                          each assessment under this subparagraph, the
                          Secretary shall transmit the assessment to
                          Congress along with a summary of the Secretary's
                          plans, if any, to implement the recommendations of
                          the National Academy of Public Administration.
                ``(8) Definitions.--In this subsection:
                        ``(A) Digital and wireless networking technology.--
                    The term `digital and wireless networking technology'
                    means computer and communications equipment and software
                    that facilitates the transmission of information in a
                    digital format.
                        ``(B) Eligible institution.--The term `eligible
                    institution' means an institution that is--
                              ``(i) a part B institution, as defined in
                          section 322(2) of the Higher Education Act of 1965
                          (20 U.S.C. 1061(2)), an institution identified in
                          subparagraph (A), (B), or (C) of section 326(e)(1)
                          of such Act (20 U.S.C. 1063b(e)(1)(A), (B), or
                          (C)), or a consortium of institutions described in
                          this clause;
                              ``(ii) a Hispanic-serving institution, as
                          defined in section 502(a)(5) of the Higher
                          Education Act of 1965 (20 U.S.C. 1101a(a)(5));
                              ``(iii) a Tribal College or University, as
                          defined in section 316(b)(3) of the Higher
                          Education Act of 1965 (20 U.S.C. 1059c(b)(3));
                              ``(iv) an Alaska Native-serving institution,
                          as defined in section 317(b) of the Higher
                          Education Act of 1965 (20 U.S.C. 1059d(b));
                              ``(v) a Native Hawaiian-serving institution,
                          as defined in section 317(b) of the Higher
                          Education Act of 1965 (20 U.S.C. 1059d(b));
                              ``(vi) a Predominately Black Institution, as
                          defined in section 318 of the Higher Education Act
                          of 1965 (20 U.S.C. 1059e);
                              ``(vii) a Native American-serving, nontribal
                          institution, as defined in section 319 of the
                          Higher Education Act of 1965 (20 U.S.C. 1059f);
                              ``(viii) an Asian American and Native American
                          Pacific Islander-serving institution, as defined
                          in section 320 of the Higher Education Act of 1965
                          (20 U.S.C. 1059g); or
                              ``(ix) a minority institution, as defined in
                          section 365 of the Higher Education Act of 1965
                          (20 U.S.C. 1067k), with an enrollment of needy
                          students, as defined in section 312(d) of the
                          Higher Education Act of 1965 (20 U.S.C. 1058(d)).
                        ``(C) 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).
                        ``(D) Local educational agency.--The term `local
                    educational agency' has the meaning given the term in
                    section 9101 of the Elementary and Secondary Education
                    Act of 1965 (20 U.S.C. 7801).

    [[Page 122 STAT. 3478]]

                        ``(E) Minority business.--The term `minority
                    business' includes HUBZone small business concerns (as
                    defined in section 3(p) of the Small Business Act (15
                    U.S.C. 632(p))).
                        ``(F) Minority individual.--The term `minority
                    individual' means an American Indian, Alaskan Native,
                    Black (not of Hispanic origin), Hispanic (including
                    persons of Mexican, Puerto Rican, Cuban, and Central or
                    South American origin), or Pacific Islander individual.
                        ``(G) State.--The term `State' has the meaning given
                    the term in section 9101 of the Elementary and Secondary
                    Education Act of 1965 (20 U.S.C. 7801).
                        ``(H) State educational agency.--The term `State
                    educational agency' has the meaning given the term in
                    section 9101 of the Elementary and Secondary Education
                    Act of 1965 (20 U.S.C. 7801).''.
    SEC. 972. AUTHORIZATION OF APPROPRIATIONS.

        There are authorized to be appropriated to the Secretary of Commerce
    to carry out section 5(c) of the Stevenson-Wydler Technology Innovation
    Act of 1980 such sums as may be necessary for each of the fiscal years
    2009 through 2012.

     TITLE X--PRIVATE STUDENT <<NOTE: Private Student Loan Transparency and
    Improvement Act of 2008.>> LOAN IMPROVEMENT
    SEC. 1001. <<NOTE: 15 USC 1601 note.>> SHORT TITLE.

        This title may be cited as the ``Private Student Loan Transparency
    and Improvement Act of 2008''.
    SEC. 1002. <<NOTE: 15 USC 1638 note.>> REGULATIONS.

        Not later <<NOTE: Deadlines. Effective date.>> than 365 days after
    the date of enactment of this Act, the Board of Governors of the Federal
    Reserve System shall issue regulations in final form to implement
    paragraphs (1), (2), (3), (4), (6), (7), and (8) of section 128(e) and
    section 140(c) of the Truth in Lending Act, as added by this title,
    which regulations shall become effective not later than 6 months after
    their date of issuance.
    SEC. 1003. <<NOTE: 15 USC 1638 note.>> EFFECTIVE DATES.

        (a) In General.--Except as provided in subsection (b) and as
    otherwise provided in this title, this title and the amendments made by
    this title shall become effective on the date of enactment of this Act.
        (b) Effect Notwithstanding Regulations.--Paragraphs (1), (2), (3),
    (4), (6), (7), and (8) of section 128(e) and section 140(c) of the Truth
    in Lending Act, as added by this title, shall become effective on the
    earlier of the date on which regulations issued under section 1002
    become effective or 18 months after the date of enactment of this Act.

    [[Page 122 STAT. 3479]]

    Subtitle A--Preventing Unfair and Deceptive Private Educational Lending
                 Practices and Eliminating Conflicts of Interest

    SEC. 1011. AMENDMENT TO THE TRUTH IN LENDING ACT.

        (a) Preventing Unfair and Deceptive Private Educational Lending
    Practices and Conflicts of Interest.--Chapter 2 of the Truth in Lending
    Act (15 U.S.C. 1631 et seq.) is amended by adding at the end the
    following new section:
    ``Sec. 140. Preventing <<NOTE: 15 USC 1650.>> unfair and deceptive
                    private educational lending practices and
                    eliminating conflicts of interest

        ``(a) Definitions.--As used in this section--
                ``(1) the term `covered educational institution'--
                        ``(A) means any educational institution that offers
                    a postsecondary educational degree, certificate, or
                    program of study (including any institution of higher
                    education); and
                        ``(B) includes an agent, officer, or employee of the
                    educational institution;
                ``(2) the term `gift'--
                        ``(A)(i) means any gratuity, favor, discount,
                    entertainment, hospitality, loan, or other item having
                    more than a de minimis monetary value, including
                    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; and
                        ``(ii) includes an item described in clause (i)
                    provided to a family member of an officer, employee, or
                    agent of a covered educational institution, or to any
                    other individual based on that individual's relationship
                    with the officer, employee, or agent, if--
                              ``(I) the item is provided with the knowledge
                          and acquiescence of the officer, employee, or
                          agent; and
                              ``(II) the officer, employee, or agent has
                          reason to believe the item was provided because of
                          the official position of the officer, employee, or
                          agent; and
                        ``(B) does not include--
                              ``(i) standard informational material related
                          to a loan, default aversion, default prevention,
                          or financial literacy;
                              ``(ii) food, refreshments, training, or
                          informational material furnished to an officer,
                          employee, or agent of a covered educational
                          institution, as an integral part of a training
                          session or through participation in an advisory
                          council that is designed to improve the service of
                          the private educational lender to the covered
                          educational institution, if such training or
                          participation contributes to the professional
                          development of the officer, employee, or agent of
                          the covered educational institution;

    [[Page 122 STAT. 3480]]

                              ``(iii) favorable terms, conditions, and
                          borrower benefits on a private education loan
                          provided to a student employed by the covered
                          educational institution, if such terms,
                          conditions, or benefits are not provided because
                          of the student's employment with the covered
                          educational institution;
                              ``(iv) the provision of financial literacy
                          counseling or services, including counseling or
                          services provided in coordination with a covered
                          educational institution, to the extent that such
                          counseling or services are not undertaken to
                          secure--
                                        ``(I) applications for private
                                    education loans or private education
                                    loan volume;
                                        ``(II) applications or loan volume
                                    for any loan made, insured, or
                                    guaranteed under title IV of the Higher
                                    Education Act of 1965 (20 U.S.C. 1070 et
                                    seq.); or
                                        ``(III) the purchase of a product or
                                    service of a specific private
                                    educational lender;
                              ``(v) philanthropic contributions to a covered
                          educational institution from a private educational
                          lender that are unrelated to private education
                          loans and are not made in exchange for any
                          advantage related to private education loans; or
                              ``(vi) State education grants, scholarships,
                          or financial aid funds administered by or on
                          behalf of a State;
                ``(3) the term `institution of higher education' has the
            same meaning as in section 102 of the Higher Education Act of
            1965 (20 U.S.C. 1002);
                ``(4) the term `postsecondary educational expenses' means
            any of the expenses that are included as part of the cost of
            attendance of a student, as defined under section 472 of the
            Higher Education Act of 1965 (20 U.S.C. 1087ll);
                ``(5) the term `preferred lender arrangement' has the same
            meaning as in section 151 of the Higher Education Act of 1965;
                ``(6) the term `private educational lender' means--
                        ``(A) a financial institution, as defined in section
                    3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)
                    that solicits, makes, or extends private education
                    loans;
                        ``(B) a Federal credit union, as defined in section
                    101 of the Federal Credit Union Act (12 U.S.C. 1752)
                    that solicits, makes, or extends private education
                    loans; and
                        ``(C) any other person engaged in the business of
                    soliciting, making, or extending private education
                    loans;
                ``(7) the term `private education loan'--
                        ``(A) means a loan provided by a private educational
                    lender that--
                              ``(i) is not made, insured, or guaranteed
                          under of title IV of the Higher Education Act of
                          1965 (20 U.S.C. 1070 et seq.); and
                              ``(ii) is issued expressly for postsecondary
                          educational expenses to a borrower, regardless of
                          whether the loan is provided through the
                          educational institution that the subject student
                          attends or directly to the borrower from the
                          private educational lender; and

    [[Page 122 STAT. 3481]]

                        ``(B) does not include an extension of credit under
                    an open end consumer credit plan, a reverse mortgage
                    transaction, a residential mortgage transaction, or any
                    other loan that is secured by real property or a
                    dwelling; and
                ``(8) the term `revenue sharing' means an arrangement
            between a covered educational institution and a private
            educational lender under which--
                        ``(A) a private educational lender provides or
                    issues private education loans with respect to students
                    attending the covered educational institution;
                        ``(B) the covered educational institution recommends
                    to students or others the private educational lender or
                    the private education loans of the private educational
                    lender; and
                        ``(C) the private educational lender pays a fee or
                    provides other material benefits, including profit
                    sharing, to the covered educational institution in
                    connection with the private education loans provided to
                    students attending the covered educational institution
                    or a borrower acting on behalf of a student.

        ``(b) Prohibition on Certain Gifts and Arrangements.--A private
    educational lender may not, directly or indirectly--
                ``(1) offer or provide any gift to a covered educational
            institution in exchange for any advantage or consideration
            provided to such private educational lender related to its
            private education loan activities; or
                ``(2) engage in revenue sharing with a covered educational
            institution.

        ``(c) Prohibition on Co-Branding.--A private educational lender may
    not use the name, emblem, mascot, or logo of the covered educational
    institution, or other words, pictures, or symbols readily identified
    with the covered educational institution, in the marketing of private
    education loans in any way that implies that the covered educational
    institution endorses the private education loans offered by the private
    educational lender.
        ``(d) Advisory Board Compensation.--Any person who is employed in
    the financial aid office of a covered educational institution, or who
    otherwise has responsibilities with respect to private education loans
    or other financial aid of the institution, and who serves on an advisory
    board, commission, or group established by a private educational lender
    or group of such lenders shall be prohibited from receiving anything of
    value from the private educational lender or group of lenders. Nothing
    in this subsection prohibits the reimbursement of reasonable expenses
    incurred by an employee of a covered educational institution as part of
    their service on an advisory board, commission, or group described in
    this subsection.
        ``(e) Prohibition on Prepayment or Repayment Fees or Penalty.--It
    shall be unlawful for any private educational lender to impose a fee or
    penalty on a borrower for early repayment or prepayment of any private
    education loan.''.
        (b) Conforming <<NOTE: Definition.>> Amendment to Truth in Lending
    Act.--Section 103(f) of the Truth in Lending Act (15 U.S.C. 1602(f)) is
    amended by adding at the end the following: ``The term `creditor'
    includes a private educational lender (as that term is defined in
    section 140) for purposes of this title.''.

    [[Page 122 STAT. 3482]]

        (c) Disclosures of Reimbursements for Service on Advisory Boards.--
                Section 485 of the Higher Education Act of 1965 (20 U.S.C.
            1092), as amended by this Act, is further amended by adding at
            the end the following:

        ``(m) Disclosures of Reimbursements for Service on Advisory
    Boards.--
                ``(1) Disclosure.-- <<NOTE: Reports. Deadline.>> 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.-- <<NOTE: Deadline.>> 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.''.
    SEC. 1012. CIVIL LIABILITY.

        (a) In General.--Section 130 of the Truth in Lending Act (15 U.S.C.
    1640) is amended--
                (1) in subsection (a)--
                        (A) in paragraph (3), by inserting ``or 128(e)(7)''
                    after ``section 125''; and
                        (B) in the fourth sentence of the undesignated
                    matter at the end--
                              (i) by striking ``125 or'' and inserting
                          ``125,''; and
                              (ii) by inserting ``of subparagraphs (A), (B),
                          (D), (F), or (J) of section 128(e)(2) (for
                          purposes of paragraph (2) or (4) of section
                          128(e)), or paragraph (4)(C), (6), (7), or (8) of
                          section 128(e),'' before ``or for failing'';
                (2) in subsection (e), by inserting before the first period
            the following: ``or, in the case of a violation involving a
            private education loan (as that term is defined in section
            140(a)), 1 year from the date on which the first regular payment
            of principal is due under the loan''; and
                (3) by adding at the end the following:

        ``(j) Private Educational Lender.--A private educational lender (as
    that term is defined in section 140(a)) has no liability under this
    section for failure to comply with section 128(e)(3)).''.
        (b) Effective <<NOTE: 15 USC 1640 note.>> Date.--The amendments made
    by this section shall have the same effective date as provisions
    referred to in section 1003(b).

    [[Page 122 STAT. 3483]]

    SEC. 1013. CLERICAL AMENDMENT.

        The table of sections for chapter 2 of title I of the Truth in
    Lending Act (15 U.S.C. 1631 et seq.) is amended by adding at the end the
    following:

    ``140. Preventing unfair and deceptive private educational lending
               practices and eliminating conflicts of interest.''.

          Subtitle B--Improved Disclosures for Private Education Loans

    SEC. 1021. PRIVATE EDUCATION LOAN DISCLOSURES AND LIMITATIONS.

        (a) Truth in Lending Act.--Section 128 of the Truth in Lending Act
    (15 U.S.C. 1638) is amended by adding at the end the following:
        ``(e) Terms and Disclosure With Respect to Private Education
    Loans.--
                ``(1) Disclosures required in private education loan
            applications and solicitations.--In any application for a
            private education loan, or a solicitation for a private
            education loan without requiring an application, the private
            educational lender shall disclose to the borrower, clearly and
            conspicuously--
                        ``(A) the potential range of rates of interest
                    applicable to the private education loan;
                        ``(B) whether the rate of interest applicable to the
                    private education loan is fixed or variable;
                        ``(C) limitations on interest rate adjustments, both
                    in terms of frequency and amount, or the lack thereof,
                    if applicable;
                        ``(D) requirements for a co-borrower, including any
                    changes in the applicable interest rates without a co-
                    borrower;
                        ``(E) potential finance charges, late fees,
                    penalties, and adjustments to principal, based on
                    defaults or late payments of the borrower;
                        ``(F) fees or range of fees applicable to the
                    private education loan;
                        ``(G) the term of the private education loan;
                        ``(H) whether interest will accrue while the student
                    to whom the private education loan relates is enrolled
                    at a covered educational institution;
                        ``(I) payment deferral options;
                        ``(J) general eligibility criteria for the private
                    education loan;
                        ``(K) an example of the total cost of the private
                    education loan over the life of the loan--
                              ``(i) which shall be calculated using the
                          principal amount and the maximum rate of interest
                          actually offered by the private educational
                          lender; and
                              ``(ii) calculated both with and without
                          capitalization of interest, if an option exists
                          for postponing interest payments;

    [[Page 122 STAT. 3484]]

                        ``(L) that a covered educational institution may
                    have school-specific education loan benefits and terms
                    not detailed on the disclosure form;
                        ``(M) that the borrower may qualify for Federal
                    student financial assistance through a program under
                    title IV of the Higher Education Act of 1965 (20 U.S.C.
                    1070 et seq.), in lieu of, or in addition to, a loan
                    from a non-Federal source;
                        ``(N) the interest rates available with respect to
                    such Federal student financial assistance through a
                    program under title IV of the Higher Education Act of
                    1965 (20 U.S.C. 1070 et seq.);
                        ``(O) that, as provided in paragraph (6)--
                              ``(i) the <<NOTE: Deadline.>> borrower shall
                          have the right to accept the terms of the loan and
                          consummate the transaction at any time within 30
                          calendar days (or such longer period as the
                          private educational lender may provide) following
                          the date on which the application for the private
                          education loan is approved and the borrower
                          receives the disclosure documents required under
                          this subsection for the loan; and
                              ``(ii) except for changes based on adjustments
                          to the index used for a loan, the rates and terms
                          of the loan may not be changed by the private
                          educational lender during the period described in
                          clause (i);
                        ``(P) that, before a private education loan may be
                    consummated, the borrower must obtain from the relevant
                    institution of higher education the form required under
                    paragraph (3), and complete, sign, and return such form
                    to the private educational lender;
                        ``(Q) that the consumer may obtain additional
                    information concerning such Federal student financial
                    assistance from their institution of higher education,
                    or at the website of the Department of Education; and
                        ``(R) such <<NOTE: Regulations.>> other information
                    as the Board shall prescribe, by rule, as necessary or
                    appropriate for consumers to make informed borrowing
                    decisions.
                ``(2) Disclosures at the time of private education loan
            approval.--Contemporaneously with the approval of a private
            education loan application, and before the loan transaction is
            consummated, the private educational lender shall disclose to
            the borrower, clearly and conspicuously--
                        ``(A) the applicable rate of interest in effect on
                    the date of approval;
                        ``(B) whether the rate of interest applicable to the
                    private education loan is fixed or variable;
                        ``(C) limitations on interest rate adjustments, both
                    in terms of frequency and amount, or the lack thereof,
                    if applicable;
                        ``(D) the initial approved principal amount;
                        ``(E) applicable finance charges, late fees,
                    penalties, and adjustments to principal, based on
                    borrower defaults or late payments, including
                    limitations on the discharge of a private education loan
                    in bankruptcy;
                        ``(F) fees or range of fees applicable to the
                    private education loan;

    [[Page 122 STAT. 3485]]

                        ``(G) the maximum term under the private education
                    loan program;
                        ``(H) an estimate of the total amount for repayment,
                    at both the interest rate in effect on the date of
                    approval and at the maximum possible rate of interest
                    offered by the private educational lender and applicable
                    to the borrower, to the extent that such maximum rate
                    may be determined, or if not, a good faith estimate
                    thereof;
                        ``(I) any principal and interest payments required
                    while the student for whom the private education loan is
                    intended is enrolled at a covered educational
                    institution and unpaid interest that will accrue during
                    such enrollment;
                        ``(J) payment deferral options applicable to the
                    borrower;
                        ``(K) whether monthly payments are graduated;
                        ``(L) that, as provided in paragraph (6)--
                              ``(i) <<NOTE: Deadline.>> the borrower shall
                          have the right to accept the terms of the loan and
                          consummate the transaction at any time within 30
                          calendar days (or such longer period as the
                          private educational lender may provide) following
                          the date on which the application for the private
                          education loan is approved and the borrower
                          receives the disclosure documents required under
                          this subsection for the loan; and
                              ``(ii) except for changes based on adjustments
                          to the index used for a loan, the rates and terms
                          of the loan may not be changed by the private
                          educational lender during the period described in
                          clause (i);
                        ``(M) that the borrower --
                              ``(i) may qualify for Federal financial
                          assistance through a program under title IV of the
                          Higher Education Act of 1965 (20 U.S.C. 1070 et
                          seq.), in lieu of, or in addition to, a loan from
                          a non-Federal source; and
                              ``(ii) may obtain additional information
                          concerning such assistance from their institution
                          of higher education or the website of the
                          Department of Education;
                        ``(N) the interest rates available with respect to
                    such Federal financial assistance through a program
                    under title IV of the Higher Education Act of 1965 (20
                    U.S.C. 1070 et seq.);
                        ``(O) the maximum monthly payment, calculated using
                    the maximum rate of interest actually offered by the
                    private educational lender and applicable to the
                    borrower, to the extent that such maximum rate may be
                    determined, or if not, a good faith estimate thereof;
                    and
                        ``(P) such <<NOTE: Regulations.>> other information
                    as the Board shall prescribe, by rule, as necessary or
                    appropriate for consumers to make informed borrowing
                    decisions.
                ``(3) Self-certification of information.--
                        ``(A) In general.--Before a private educational
                    lender may consummate a private education loan with
                    respect to a student attending an institution of higher
                    education, the lender shall obtain from the applicant
                    for the private education loan the form developed by the
                    Secretary of Education under section 155 of the Higher
                    Education Act

    [[Page 122 STAT. 3486]]

                    of 1965, signed by the applicant, in written or
                    electronic form.
                        ``(B) Rule of construction.--No other provision of
                    this subsection shall be construed to require a private
                    educational lender to perform any additional duty under
                    this paragraph, other than collecting the form required
                    under subparagraph (A).
                ``(4) Disclosures at the time of private education loan
            consummation.--Contemporaneously with the consummation of a
            private education loan, a private educational lender shall make
            to the borrower each of the disclosures described in--
                        ``(A) paragraph (2)(A) (adjusted, as necessary, for
                    the rate of interest in effect on the date of
                    consummation, based on the index used for the loan);
                        ``(B) subparagraphs (B) through (K) and (M) through
                    (P) of paragraph (2); and
                        ``(C) paragraph (7).
                ``(5) Format of disclosures.--
                        ``(A) Model form.-- <<NOTE: Deadline.>> Not later
                    than 2 years after the date of enactment of this
                    subsection, the Board shall, based on consumer testing,
                    and in consultation with the Secretary of Education,
                    develop and issue model forms that may be used, at the
                    option of the private educational lender, for the
                    provision of disclosures required under this subsection.
                        ``(B) Format.--Model forms developed under this
                    paragraph shall--
                              ``(i) be comprehensible to borrowers, with a
                          clear format and design;
                              ``(ii) provide for clear and conspicuous
                          disclosures;
                              ``(iii) enable borrowers easily to identify
                          material terms of the loan and to compare such
                          terms among private education loans; and
                              ``(iv) be succinct, and use an easily readable
                          type font.
                        ``(C) Safe harbor.--Any private educational lender
                    that elects to provide a model form developed under this
                    subsection that accurately reflects the practices of the
                    private educational lender shall be deemed to be in
                    compliance with the disclosures required under this
                    subsection.
                ``(6) Effective period of approved rate of interest and loan
            terms.--
                        ``(A) In general.--With respect to a private
                    education loan, the borrower shall have the right to
                    accept the terms of the loan and consummate the
                    transaction at any time within 30 calendar days (or such
                    longer period as the private educational lender may
                    provide) following the date on which the application for
                    the private education loan is approved and the borrower
                    receives the disclosure documents required under this
                    subsection for the loan, and the rates and terms of the
                    loan may not be changed by the private educational
                    lender during that period.
                        ``(B) Prohibition on changes.--Except for changes
                    based on adjustments to the index used for a loan, the
                    rates and terms of the loan may not be changed by the
                    private educational lender prior to the earlier of--

    [[Page 122 STAT. 3487]]

                              ``(i) the date of acceptance of the terms of
                          the loan and consummation of the transaction by
                          the borrower, as described in subparagraph (A); or
                              ``(ii) the expiration of the period described
                          in subparagraph (A).
                ``(7) Right to cancel.-- <<NOTE: Deadline.>> With respect to
            a private education loan, the borrower may cancel the loan,
            without penalty to the borrower, at any time within 3 business
            days of the date on which the loan is consummated, and the
            private educational lender shall disclose such right to the
            borrower in accordance with paragraph (4).
                ``(8) Prohibition on disbursement.--No funds may be
            disbursed with respect to a private education loan until the
            expiration of the 3-day period described in paragraph (7).
                ``(9) Board regulations.--In issuing regulations under this
            subsection, the Board shall prevent, to the extent possible,
            duplicative disclosure requirements for private educational
            lenders that are otherwise required to make disclosures under
            this title, except that in any case in which the disclosure
            requirements of this subsection differ or conflict with the
            disclosure requirements of any other provision of this title,
            the requirements of this subsection shall be controlling.
                ``(10) Definitions.--For purposes of this subsection, the
            terms `covered educational institution', `private educational
            lender', and `private education loan' have the same meanings as
            in section 140.
                ``(11) Duties of lenders participating in preferred lender
            arrangements.-- <<NOTE: Deadline.>> Each private educational
            lender that has a preferred lender arrangement with a covered
            educational institution shall annually, by a date determined by
            the Board, in consultation with the Secretary of Education,
            provide to the covered educational institution such information
            as the Board determines to include in the model form developed
            under paragraph (5) for each type of private education loan that
            the lender plans to offer to students attending the covered
            educational institution, or to the families of such students,
            for the next award year (as that term is defined in section 481
            of the Higher Education Act of 1965).''.

        (b) Self-Certification Form.--Part E of title I of the Higher
    Education Act of 1965, as added by this Act, is further amended by
    inserting after section 154 the following:
    ``SEC. 155. <<NOTE: 20 USC 1019d.>> SELF-CERTIFICATION FORM FOR
                            PRIVATE EDUCATION LOANS.

        ``(a) In General.--The Secretary, in consultation with the Board of
    Governors of the Federal Reserve System, shall develop the self-
    certification form for private education loans that shall be used to
    satisfy the requirements of section 128(e)(3) of the Truth in Lending
    Act. Such form shall--
                ``(1) be developed in a standardized format;
                ``(2) be made available to the applicant by the relevant
            institution of higher education, in written or electronic form,
            upon request of the applicant;
                ``(3) contain only disclosures that--
                        ``(A) the applicant may qualify for Federal student
                    financial assistance through a program under title IV of

    [[Page 122 STAT. 3488]]

                    this Act, or State or institutional student financial
                    assistance, in place of, or in addition to, a private
                    education loan;
                        ``(B) the applicant is encouraged to discuss the
                    availability of Federal, State, and institutional
                    student financial assistance with financial aid
                    officials at the applicant's institution of higher
                    education;
                        ``(C) a private education loan may affect the
                    applicant's eligibility for free or low-cost Federal,
                    State or institutional student financial assistance; and
                        ``(D) the information that the applicant is required
                    to provide on the form is available from officials at
                    the financial aid office of the institution of higher
                    education;
                ``(4) include a place to provide information on--
                        ``(A) the applicant's cost of attendance at the
                    institution of higher education, as determined by the
                    institution under Part F of title IV;
                        ``(B) the applicant's expected family contribution,
                    as determined under Part F of title IV, as applicable,
                    for students who have completed the free application for
                    Federal student aid;
                        ``(C) the applicant's estimated financial
                    assistance, as determined by the institution, in
                    accordance with title IV, as applicable;
                        ``(D) the difference between the amounts under
                    subparagraphs (A) and (C), as applicable; and
                        ``(E) the sum of the amounts under subparagraphs (B)
                    and (D), as applicable; and
                ``(5) include a place for the applicant's signature, in
            written or electronic form.

        ``(b) Limit on Liability.--Nothing in this section shall be
    construed to create a private right of action against an institution of
    higher education with respect to the form developed under subsection
    (a).''.
    SEC. 1022. APPLICATION OF TRUTH IN LENDING ACT TO ALL PRIVATE
                              EDUCATION LOANS.

        Section 104(3) of the Truth in Lending Act (15 U.S.C. 1603(3)) is
    amended by inserting ``and other than private education loans (as that
    term is defined in section 140(a))'' after ``consumer''.

                        Subtitle C--College Affordability

    SEC. 1031. COMMUNITY REINVESTMENT ACT CREDIT FOR LOW-COST LOANS.

        (a) In General.--Section 804 of the Community Reinvestment Act of
    1977 (12 U.S.C. 2903) is amended by adding at the end the following new
    subsection:
        ``(d) Low-Cost Education Loans.--In assessing and taking into
    account, under subsection (a), the record of a financial institution,
    the appropriate Federal financial supervisory agency shall consider, as
    a factor, low-cost education loans provided by the financial institution
    to low-income borrowers.''.
        (b) Regulations <<NOTE: 12 USC 2903 note.>> Required.--Not later
    than 1 year after the date of enactment of this Act, each appropriate
    Federal financial supervisory agency shall issue rules in final form to
    implement

    [[Page 122 STAT. 3489]]

    section 804(d) of the Community Reinvestment Act of 1977, as added by
    this section.

               Subtitle D--Financial Literacy; Studies and Reports

    SEC. 1041. <<NOTE: 20 USC 9709 note.>> DEFINITIONS.

        As used in this subtitle--
                (1) the terms ``covered educational institution'', ``private
            educational lender'', and ``private education loan'' have the
            same meanings as in section 140 of the Truth in Lending Act, as
            added by this Act;
                (2) the term ``historically Black colleges and
            universities'' means a ``part B institution'', within the
            meaning of section 322 of the Higher Education Act of 1965 (20
            U.S.C. 1061)); and
                (3) the term ``land-grant colleges and universities'' has
            the same meaning as in section 1404 of the National Agricultural
            Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
            3103).
    SEC. 1042. <<NOTE: 20 USC 9709.>> COORDINATED EDUCATION EFFORTS.

        (a) In General.--The Secretary of the Treasury (in this section
    referred to as the ``Secretary''), in coordination with the Secretary of
    Education, the Secretary of Agriculture (with respect to land-grant
    colleges and universities), and any other appropriate agency that is a
    member of the Financial Literacy and Education Commission established
    under the Financial Literacy and Education Improvement Act (20 U.S.C.
    9701 et seq.), shall seek to enhance financial literacy among students
    at covered educational institutions through--
                (1) the development of initiatives, programs, and curricula
            that improve student awareness of the short- and long-term costs
            associated with education loans and other debt assumed while in
            college, their repayment obligations, and their rights as
            borrowers; and
                (2) assisting such students in navigating the financial aid
            process.

        (b) Duties.--For purposes of this section, the Secretary, working in
    conjunction with the Secretary of Education, the Secretary of
    Agriculture, and the Financial Literacy and Education Commission,
    shall--
                (1) identify programs that promote or enhance financial
            literacy for college students, with specific emphasis on
            programs that impart the knowledge and ability for students to
            best navigate the financial aid process, including those that
            involve partnerships between nonprofit organizations, colleges
            and universities, State and local governments, and student
            organizations;
                (2) evaluate the effectiveness of such programs in terms of
            measured results, including positive behavioral change among
            college students;
                (3) promote the programs identified as being the most
            effective; and

    [[Page 122 STAT. 3490]]

                (4) encourage covered educational institutions to implement
            financial education programs for their students, including those
            that have the highest evaluations.

        (c) Report.--
                (1) In general.--Not later than 2 years after the date of
            enactment of this Act, the Financial Literacy and Education
            Commission shall submit a report to the Committee on Banking,
            Housing, and Urban Affairs and the Committee on Health
            Education, Labor, and Pensions of the Senate and the Committee
            on Financial Services and the Committee on Education and Labor
            of the House of Representatives on the state of financial
            education among students at covered educational institutions.
                (2) Content.--The report required by this subsection shall
            include a description of progress made in enhancing financial
            education with respect to student understanding of financial
            aid, including the programs and evaluations required by this
            section.
                (3) Appearance before congress.--The Secretary shall, upon
            request, provide testimony before the Committee on Banking,
            Housing, and Urban Affairs of the Senate and the Committee on
            Financial Services of the House of Representatives concerning
            the report required by this subsection.

                          TITLE XI--STUDIES AND REPORTS

    SEC. 1101. STUDY ON FOREIGN GRADUATE MEDICAL SCHOOLS.

        (a) In General.-- <<NOTE: Deadline.>> Not later than 18 months after
    the date of enactment of this Act, the Comptroller General of the United
    States shall--
                (1) complete a study that examines the performance of
            students from the United States receiving Federal student
            financial aid to attend graduate medical schools located outside
            of the United States;
                (2) provide <<NOTE: Recommen- dations.>> data and make
            recommendations to the National Committee on Foreign Medical
            Education and Accreditation in a timely manner so as to assist
            the Secretary of Education in the Department of Education's
            review required under section 102 of the Higher Education Act of
            1965 (20 U.S.C. 1002); and
                (3) submit to the authorizing committees a report setting
            forth the conclusions of the study.

        (b) Contents.--The study conducted under this section shall include
    the following:
                (1) The amount of Federal student financial aid dollars that
            are spent on graduate medical schools located outside of the
            United States every year, and the percentage of overall student
            aid such amount represents.
                (2) The percentage of students of such medical schools who
            pass the examination sponsored by the Federation of State
            Medical Boards of the United States, Inc., and the National
            Board of Medical Examiners the first time.
                (3) The percentage of students of such medical schools who
            pass the United States medical licensing examination after
            taking such examinations multiple times, disaggregated by the

    [[Page 122 STAT. 3491]]

            number of times the students had to take the examinations to
            pass.
                (4) The percentage of recent graduates of such medical
            schools practicing medicine in the United States, and a
            description of where the students are practicing and what types
            of medicine the students are practicing.
                (5) The rate of graduates of such medical schools who lose
            malpractice lawsuits or have the graduates' medical licenses
            revoked, as compared to graduates of graduate medical schools
            located in the United States.
                (6) Recommendations regarding the percentage passing rate of
            the United States medical licensing examination that the United
            States should require of graduate medical schools located
            outside of the United States for Federal student financial aid
            purposes.
    SEC. 1102. EMPLOYMENT OF POSTSECONDARY EDUCATION GRADUATES.

        (a) Study, Assessments, and Recommendations.--The Comptroller
    General of the United States shall--
                (1) conduct a study of--
                        (A) the information that States have on the
                    employment of students who have completed postsecondary
                    education programs;
                        (B) the feasibility of collecting information on
                    students who complete all types of postsecondary
                    education programs (including two- and four-year degree,
                    certificate, professional, and graduate programs) at all
                    types of institutions of higher education (including
                    public, private nonprofit, and for-profit schools),
                    regarding--
                              (i) employment, including--
                                        (I) the type of job obtained not
                                    later than six months after the
                                    completion of the degree, certificate,
                                    or program;
                                        (II) whether such job was related to
                                    the course of study;
                                        (III) the starting salary for such
                                    job; and
                                        (IV) the student's satisfaction with
                                    the student's preparation for such job
                                    and guidance provided with respect to
                                    securing the job; and
                              (ii) for recipients of Federal student aid,
                          the type of assistance received, so that the
                          information can be used to evaluate various
                          education programs;
                        (C) the evaluation systems used by other industries
                    to identify successful programs and challenges, set
                    priorities, monitor performance, and make improvements;
                        (D) the best means of collecting information from or
                    regarding recent postsecondary graduates, including--
                              (i) whether a national website would be the
                          most effective way to collect information;
                              (ii) whether postsecondary education graduates
                          could be encouraged to voluntarily submit
                          information by allowing a graduate to access
                          aggregated information about other graduates (such
                          as graduates from the graduate's school, with the
                          graduate's degree, or in the graduate's area) if
                          the graduate completes an online questionnaire;

    [[Page 122 STAT. 3492]]

                              (iii) whether employers could be encouraged to
                          submit information by allowing an employer to
                          access aggregated information about graduates
                          (such as institutions of higher education
                          attended, degrees, or starting pay) if the
                          employer completes an online questionnaire to
                          evaluate the employer's satisfaction with the
                          graduates the employer hires; and
                              (iv) whether postsecondary institutions that
                          receive Federal funds or whose students have
                          received Federal student financial aid could be
                          required to submit aggregated information about
                          the graduates of the institutions; and
                        (E) the best means of displaying employment
                    information; and
                (2) provide assessments and recommendations regarding--
                        (A) whether successful State cooperative
                    relationships between higher education system offices
                    and State agencies responsible for employment statistics
                    can be encouraged and replicated in other States;
                        (B) whether there is value in collecting additional
                    information from, or about, the employment experience of
                    individuals who have recently completed a postsecondary
                    educational program;
                        (C) the most promising ways of obtaining and
                    displaying or disseminating such information;
                        (D) if a website is used for such information,
                    whether the website should be run by a governmental
                    agency or contracted out to an independent education or
                    employment organization;
                        (E) whether a voluntary information system would
                    work, both from the graduates' and employers'
                    perspectives;
                        (F) the value of such information to future
                    students, institutions, accrediting agencies or
                    associations, policymakers, and employers, including how
                    the information would be used and the practical
                    applications of the information;
                        (G) whether the request for such information is
                    duplicative of information that is already being
                    collected; and
                        (H) whether the National Postsecondary Student Aid
                    Survey conducted by the National Center for Education
                    Statistics could be amended to collect such information.

        (b) <<NOTE: Deadlines.>> Reports.--
                (1) Preliminary report.--Not later than one year after the
            date of enactment of this Act, the Comptroller General of the
            United States shall submit to the authorizing committees a
            preliminary report regarding the study, assessments, and
            recommendations described in subsection (a).
                (2) Final report.--Not later than two years after the date
            of enactment of this Act, the Comptroller General of the United
            States shall submit to the authorizing committees a final report
            regarding such study, assessments, and recommendations.
    SEC. 1103. STUDY ON IPEDS.

        The Comptroller General of the United States shall--
                (1) conduct a study on the time and cost burdens to
            institutions of higher education associated with completing the

    [[Page 122 STAT. 3493]]

            Integrated Postsecondary Education Data System (referred to in
            this section as the ``IPEDS'') survey, which shall--
                        (A) report on the time and cost burden of completing
                    the IPEDS survey for four-year, two-year, and less than
                    two-year institutions of higher education;
                        (B) present recommendations for reducing such
                    burden; and
                        (C) report on the feasibility of collecting
                    additional data from institutions for use in IPEDS,
                    including information on the percentage of enrolled
                    undergraduate students who graduate within two years (in
                    the case of two-year institutions), and four, five, and
                    six years (in the case of two- and four-year
                    institutions), disaggregated by race and ethnic
                    background and by income categories;
                (2) not <<NOTE: Deadline.>> later than one year after the
            date of enactment of this Act, submit to the authorizing
            committees a preliminary report regarding the findings of the
            study described in paragraph (1); and
                (3) not <<NOTE: Deadline.>> later than two years after the
            date of enactment of this Act, submit to the authorizing
            committees a final report regarding such findings.
    SEC. 1104. REPORT AND STUDY ON ARTICULATION AGREEMENTS.

        (a) Study Required.--The Secretary of Education shall conduct a
    study to review the articulation agreements at State-supported college
    and university systems, including junior or community colleges, as well
    as those at other institutions of higher education. Such study shall
    consider--
                (1) the extent to which States and institutions have
            developed and implemented articulation agreements;
                (2) with respect to the articulation agreements developed--
                        (A) the number and types of institutions
                    participating in articulation agreements;
                        (B) the cost-savings to the participating
                    institutions and to the students;
                        (C) what strategies are being employed, including
                    common course numbering, general education core
                    curriculum, and management systems;
                        (D) the effective use of technologies to contain
                    costs, maintain quality of instruction, and inform
                    students; and
                        (E) a description of the students to whom the
                    articulation agreements are offered and, to the extent
                    practicable, a description of the students who take
                    advantage of the articulation agreements;
                (3) best practices and innovative strategies employed to
            implement effective articulation agreements; and
                (4) barriers to the implementation of articulation
            agreements, including technological and informational barriers.

        (b) Report.-- <<NOTE: Deadline.>> The Secretary of Education shall
    submit to the authorizing committees an interim report on the study
    required by subsection (a) not later than two years after the date of
    enactment of this Act and a final report on such study not later than
    January 1, 2013.
    SEC. 1105. REPORT ON PROPRIETARY INSTITUTIONS OF HIGHER EDUCATION.

        (a) In <<NOTE: Deadline.>> General.--Not later than two years after
    the date of enactment of this Act, the Comptroller General of the United
    States

    [[Page 122 STAT. 3494]]

    shall conduct an analysis of proprietary institutions of higher
    education subject to section 487(a)(24) of the Higher Education Act of
    1965 (20 U.S.C. 1094(a)(24)) and shall submit to the authorizing
    committees a report that provides the results of the analysis.

        (b) Contents of Report.--The report shall provide--
                (1) the number of institutions subject to section 487(a)(24)
            of the Higher Education Act of 1965 (20 U.S.C. 1094(a)(24));
                (2) the number and percentage of such institutions each year
            that do not comply with such section;
                (3) the number of such institutions that are in compliance
            with such section at the time of submission of the report; and
                (4) in the case of institutions that are in compliance with
            such section at the time of submission of the report,
            information on the extent to which such institutions' revenue is
            derived from funds provided under title IV of the Higher
            Education Act of 1965 (20 U.S.C. 1070 et seq.), including
            information on the number of such institutions that derive not
            less than 85 percent of their revenues from funds provided under
            such title.
    SEC. 1106. ANALYSIS OF FEDERAL REGULATIONS ON INSTITUTIONS OF
                              HIGHER EDUCATION.

        The Secretary <<NOTE: Contracts. Study. Deadline.>> of Education
    shall enter into an agreement with the National Research Council of the
    National Academy of Sciences for the conduct of a study to ascertain the
    amount and scope of all Federal regulations and reporting requirements
    with which institutions of higher education must comply. The study shall
    be completed not later than two years after the date of enactment of
    this Act, and shall include information describing--
                (1) by agency, the number of Federal regulations and
            reporting requirements affecting institutions of higher
            education;
                (2) by agency, the estimated time required and costs to
            institutions of higher education (disaggregated by types of
            institutions) to comply with the regulations and reporting
            requirements described in paragraph (1); and
                (3) by agency, recommendations for consolidating,
            streamlining, and eliminating redundant and burdensome Federal
            regulations and reporting requirements affecting institutions of
            higher education.
    SEC. 1107. INDEPENDENT EVALUATION OF DISTANCE EDUCATION PROGRAMS.

        (a) Independent Evaluation.-- <<NOTE: Contracts.>> The Secretary of
    Education shall enter into an agreement with the National Research
    Council of the National Academy of Sciences to conduct a statistically
    valid evaluation of the quality of distance education programs, as
    compared to campus-based education programs, at institutions of higher
    education. Such evaluation shall include--
                (1) identification of the elements by which the quality of
            distance education can be assessed, which may include elements
            such as subject matter, interactivity, and student outcomes;
                (2) identification of distance education program success,
            with respect to student achievement, in relation to the mission
            of the institution of higher education;
                (3) identification of the benefits and limitations of
            distance education programs and campus-based programs for
            different

    [[Page 122 STAT. 3495]]

            students (including classification of types of students by age
            category) by assessing access, job placement rates, graduation
            rates, and other factors related to persistence, completion, and
            cost; and
                (4) identification and analysis of factors that may make
            direct comparisons of distance education programs and campus-
            based education programs difficult.

        (b) Scope.--The National Research Council shall select for
    participation in the evaluation under subsection (a) a diverse group of
    institutions of higher education with respect to size, mission, and
    geographic distribution.
        (c) Interim <<NOTE: Deadlines.>> and Final Reports.--The contract
    under subsection (a) shall require that the National Research Council
    submit to the authorizing committees--
                (1) an interim report regarding the evaluation under
            subsection (a) not later than June 30, 2009; and
                (2) a final report regarding such evaluation not later than
            June 30, 2010.
    SEC. 1108. REVIEW OF COSTS AND BENEFITS OF ENVIRONMENTAL, HEALTH,
                              AND SAFETY STANDARDS.

        (a) Review of Standards.-- <<NOTE: Contracts.>> The Secretary of
    Education shall enter into an agreement with the National Research
    Council of the National Academy of Sciences to conduct a national study
    that--
                (1) reviews, analyzes, and compares existing standards in
            environmental, health, and safety areas, for the regulation of--
                        (A) industrial research and development facilities;
                    and
                        (B) research and teaching laboratories and
                    facilities at institutions of higher education; and
                (2) based upon the review in paragraph (1), develops
            recommended frameworks for alternative regulatory standards, if
            any, for research and teaching laboratories and facilities at
            institutions of higher education that--
                        (A) maintain the overall level of protection of the
                    environment, and of the health and safety of those using
                    such laboratories and facilities;
                        (B) reflect the need to ensure consistent
                    application of Federal laws; and
                        (C) take into account the educational and research
                    activities of institutions of higher education.

        (b) Report.--The National Research Council shall report to Congress
    regarding the recommended frameworks for alternative regulatory
    standards developed under subsection (a). Such report shall contain
    recommendations for statutory or regulatory changes needed to implement
    the different standards described in subsection (a), and the projected
    costs and benefits resulting from the adoption of such standards.
    SEC. 1109. STUDY OF MINORITY MALE ACADEMIC ACHIEVEMENT.

        (a) Study Required.--The Secretary of Education shall carry out the
    following:
                (1) Commission and ensure the conduct of a national study of
            underrepresented minority males (particularly African American,
            Hispanic American, Native American, Native Hawaiian, and Alaska
            Native males) completing high school, and entering

    [[Page 122 STAT. 3496]]

            and graduating from colleges and universities in accordance with
            the following:
                        (A) The data comprising the study shall focus
                    primarily on African American, Hispanic American, Native
                    American, Native Hawaiian, and Alaska Native males and
                    shall utilize existing data sources.
                        (B) The study shall focus on high school completion
                    and preparation for college, success on the SAT and ACT,
                    and minority male access to college, including the
                    financing of college, and college persistence and
                    graduation.
                        (C) The implementation of the study shall be in four
                    stages based on the recommendations of the Commissioner
                    for Education Statistics.
                (2) Make <<NOTE: Recommen- dations.>> specific
            recommendations to the authorizing committees and States on new
            approaches to increase--
                        (A) the number of minority males successfully
                    preparing themselves for college study;
                        (B) the number of minority males graduating from
                    high school and entering college; and
                        (C) the number of minority males graduating from
                    college and entering careers in which they are
                    underrepresented.

        (b) Submission of the Report.--Not later than four years after the
    date of enactment of this Act, the Secretary of Education shall submit a
    report on the study required by subsection (a)(1), together with the
    recommendations required by subsection (a)(2), to the authorizing
    committees.
    SEC. 1110. STUDY ON BIAS IN STANDARDIZED TESTS.

        (a) Study.-- <<NOTE: Contracts.>> The Secretary of Education shall
    enter into an agreement with the Board on Testing and Assessment of the
    National Academy of Sciences for the conduct of a study to identify any
    race, ethnicity, or gender bias in the content and construction of
    standardized tests that are used for admission to institutions of higher
    education.

        (b) Report.-- <<NOTE: Deadline.>> Not later than two years after the
    date of enactment of this Act, the Secretary of Education shall issue an
    interim report to the authorizing committees related to the progress of
    the study under subsection (a).
    SEC. 1111. ENDOWMENT REPORT.

        (a) Analysis of Endowments.-- <<NOTE: Study.>> The Comptroller
    General of the United States shall conduct a study on the amounts, uses,
    and public purposes of the endowments of institutions of higher
    education. The study shall include information (disaggregated by types
    of institutions) describing--
                (1) the average and range of--
                        (A) the outstanding balance of such endowments; and
                        (B) the growth of such endowments over the last 20
                    years;
                (2) the amount and percentage of endowment assets
            distributed on an annual basis for spending on education;
                (3) the amount and percentage of endowment assets
            distributed on an annual basis for financial aid or for the
            purpose of reducing the costs of tuition, fees, textbooks, and
            room and board; and
                (4) the extent to which the funds in such endowments are
            restricted, and the restrictions placed upon such funds.

    [[Page 122 STAT. 3497]]

        (b) Submission of Report.--The Comptroller General of the United
    States shall submit a report on the study required by subsection (a) to
    the authorizing committees not later than 18 months after the date of
    enactment of this Act.
    SEC. 1112. STUDY OF CORRECTIONAL POSTSECONDARY EDUCATION.

        (a) Study Required.--The Secretary of Education, in consultation
    with the Secretary of Labor and the Attorney General, shall--
                (1) conduct a longitudinal study to assess the effects of
            correctional postsecondary education that--
                        (A) employs rigorous empirical methods that control
                    for self-selection bias;
                        (B) measures a range of outcomes, including those
                    related to employment and earnings, recidivism, engaged
                    citizenship, impact on families of the incarcerated, and
                    impact on the culture of the correctional institution;
                        (C) examines different delivery systems of
                    postsecondary education, such as on-site and distance
                    learning; and
                        (D) includes a projected cost-benefit analysis of
                    the Federal investment in terms of reduction of future
                    offending, reduction of future prison costs
                    (construction and operational), increased tax payments
                    by formerly incarcerated individuals, a reduction of
                    welfare and other social service costs for successful
                    formerly incarcerated individuals, and increased costs
                    from the employment of formerly incarcerated
                    individuals; and
                (2) make specific <<NOTE: Recommen-
            dations.>> recommendations to the authorizing committees and the
            relevant State agencies responsible for correctional education,
            such as the State superintendents of education and State
            secretaries of corrections, on best approaches to increase
            correctional education and its effectiveness.

        (b) Submission of Reports.--Not later than three years after the
    date of enactment of this Act, the Secretary of Education shall submit
    an interim report on the progress of the study required by subsection
    (a)(1) to the authorizing committees. Not later than seven years after
    the date of enactment of this Act, the Secretary of Education shall
    submit a final report, together with the recommendations required by
    subsection (a)(2), to the authorizing committees.
    SEC. 1113. STUDY OF AID TO LESS-THAN-HALF-TIME STUDENTS.

        (a) Study Required.--The Secretary shall conduct a study on making
    and expanding the student aid available under title IV of the Higher
    Education Act of 1965 (20 U.S.C. 1070 et seq.) to less-than-half-time
    students. The <<NOTE: Reports. Deadline.>> Secretary shall submit a
    report on the results of such study, including the Secretary's
    recommendations, to the authorizing committees not later than one year
    after the date of enactment of this Act.

        (b) Subjects for Study.--The study required by this section shall,
    at a minimum, examine the following:
                (1) The existing sources of Federal aid for less-than-half-
            time students seeking a college degree or certificate.
                (2) The demand for Federal aid for less-than-half-time
            students and whether the demand is satisfied by existing sources
            of Federal aid, taking into consideration not only the number of
            less-than-half-time students currently seeking a college

    [[Page 122 STAT. 3498]]

            degree or certificate, but also any increase in the number of
            less-than-half-time students that may result from an expansion
            of Federal aid for less-than-half-time students seeking a
            college degree or certificate.
                (3) The potential costs to the Federal Government and the
            potential benefits that could be received by students resulting
            from expanding Federal aid for less-than-half-time students
            seeking a college degree or certificate.
                (4) The barriers to expanding Federal aid for less-than-
            half-time students, including identifying--
                        (A) statutory and regulatory barriers, such as
                    student eligibility, institutional eligibility, needs
                    analysis, program integrity, and award amounts; and
                        (B) other factors that may limit participation in an
                    expanded Federal aid program for less-than-half-time
                    students.

        (c) Recommendations To Be Provided.--The Secretary's recommendations
    under this section shall include recommendations for designing a
    demonstration student loan program tailored to less-than-half-time
    students. The recommendations shall include any required statutory or
    regulatory modifications, as well as proposed accountability mechanisms
    to protect students, institutions, and the Federal investment in higher
    education.
        (d) Definitions.--In this section--
                (1) the term ``Secretary'' means the Secretary of Education;
            and
                (2) the term ``less-than-half-time student'' means a student
            who is carrying less than one-half the normal full-time work
            load for the course of study that the student is pursuing, as
            determined by the institution such student is attending.
    SEC. 1114. STUDY ON REGIONAL SENSITIVITY IN THE NEEDS ANALYSIS
                              FORMULA.

        (a) Study.--The Comptroller General of the United States shall
    conduct a study to review the methodology that is used to determine the
    expected family contribution under part F of title IV of the Higher
    Education Act of 1965 (20 U.S.C. 1087kk et seq.).
        (b) Study Components.--The study conducted under subsection (a)
    shall identify and evaluate the needs analysis formula under part F of
    title IV of the Higher Education Act of 1965 (20 U.S.C. 1087kk et seq.)
    and examine the need for regional sensitivity in need analysis. The
    study shall include--
                (1) the factors that are used to determine a student's
            expected family contribution under part F of title IV of the
            Higher Education Act of 1965;
                (2) the varying allowances that are made in calculating the
            expected family contribution;
                (3) the effects of the income protection allowance on all
            aid recipients; and
                (4) options for modifying the income protection allowance to
            reflect the significant differences in the cost of living in
            various parts of the United States.

        (c) Report.-- <<NOTE: Deadline.>> Not later than one year after the
    date of enactment of this Act, the Comptroller General of the United
    States shall report to the authorizing committees on the results of the
    study conducted under this section.

    [[Page 122 STAT. 3499]]

    SEC. 1115. STUDY OF THE IMPACT OF STUDENT LOAN DEBT ON PUBLIC
                              SERVICE.

        (a) Study.--The Secretary of Education, in consultation with the
    Office of Management and Budget, is authorized to coordinate with an
    organization with expertise in the field of public service, such as the
    National Academy of Public Administrators or the American Society for
    Public Administration, to coordinate with interested parties to conduct
    a study of how student loan debt levels impact the decisions of
    graduates of postsecondary and graduate education programs to enter into
    public service careers. Such study shall include--
                (1) an assessment of the challenges to recruiting and
            retaining well-qualified public servants, including the impact
            of student loan debt;
                (2) an evaluation of existing Federal programs to recruit
            and retain well-qualified public servants;
                (3) an evaluation of whether additional Federal programs
            could increase the number of graduates of postsecondary and
            graduate education programs who enter careers in public service;
            and
                (4) recommendations for programs that could encourage new
            graduates of postsecondary and graduate education programs to
            enter public service careers.

        (b) Report.-- <<NOTE: Deadline.>> Not later than one year after the
    date of enactment of this Act, the Secretary of Education, in
    consultation with the Office of Management and Budget, shall submit to
    the authorizing committees a report related to the findings of the study
    conducted under subsection (a).
    SEC. 1116. STUDY ON TEACHING STUDENTS WITH READING DISABILITIES.

        (a) Independent Evaluation.-- <<NOTE: Contracts.>> The Secretary of
    Education shall enter into an agreement with the Center for Education of
    the National Academies for a scientifically-based study of the quality
    of teacher education programs--
                (1) to determine if teachers are adequately prepared to meet
            the needs of students with reading and language processing
            disabilities, including dyslexia; and
                (2) to determine the extent to which teacher education
            programs are based on the essential components of reading
            instruction and scientifically valid research.

        (b) Components.--The study conducted under subsection (a) shall be
    designed to provide statistically reliable information on--
                (1) the number, type of courses, and credit hours required
            to meet the requirements of reading degree programs of teacher
            education programs; and
                (2) the extent to which the content of the reading degree
            programs are based on--
                        (A) the essential components of reading instruction
                    and scientifically valid research, including phonemic
                    awareness, phonics, fluency, vocabulary, and
                    comprehension; and
                        (B) early intervention strategies based on
                    scientific evidence concerning challenges to the
                    development of language processing capacity, including
                    dyslexia, and the extent to which such strategies are
                    effective in preventing reading failure before it
                    occurs.

    [[Page 122 STAT. 3500]]

        (c) Scope.--The Director of the Center for Education of the National
    Academy of Sciences shall select for participation in the study under
    subsection (a) a diverse group of institutions of higher education with
    respect to size, mission, and geographic distribution.
        (d) Interim and Final Reports.--The Director of the Center for
    Education of the National Academy of Sciences shall submit to the
    authorizing committees and the Secretary of Education--
                (1) an interim report regarding the study under subsection
            (a) not later than one year after the date the Center for
            Education of the National Academies enters into an agreement
            with the Secretary of Education under this section; and
                (2) a final report summarizing the findings, conclusions,
            and recommendations of such study not later than two years after
            the date the Center for Education of the National Academies
            enters into such agreement.

        (e) Task Force.--
                (1) Establishment.--Upon submission of the final report
            under subsection (d)(2), the Secretary of Education shall
            establish a task force to make policy recommendations to the
            Secretary regarding the findings of the report.
                (2) Membership.--The membership of the task force
            established under paragraph (1) shall include chief State school
            officers, State reading consultants, master teachers, national
            reading experts, and researchers with expertise in relevant
            fields.
                (3) Public hearings.--The task force established under
            paragraph (1) shall hold public hearings to provide an
            opportunity for public comment on the recommendations made under
            paragraph (1).
    SEC. 1117. REPORT ON INCOME CONTINGENT REPAYMENT THROUGH THE
                              INCOME TAX WITHHOLDING SYSTEM.

        (a) Report.-- <<NOTE: Study. Deadline.>> Not later than one year
    after the date of enactment of this Act, the Secretary of Education and
    the Secretary of the Treasury shall conduct a study to determine the
    feasibility and benefits of developing a system through which a borrower
    who is repaying a loan through the income contingent repayment plan or
    the income-based repayment program may make payments on the loan using
    the income tax withholding system (referred to in this section as
    ``direct IDEA loans''). The goal of this program would be to--
                (1) streamline the repayment process and provide greater
            flexibility for borrowers electing to use the direct IDEA loan;
                (2) reduce the number of loan defaults by borrowers; and
                (3) reduce the redundancy in reporting information
            pertaining to income contingent repayment and income-based
            repayment to the Department of Education, institutions, and
            applicants.

        (b) Evaluations.--In conducting the study under subsection (a), the
    Secretary of Education and the Secretary of the Treasury shall
    evaluate--
                (1) the feasibility of implementing direct IDEA loans by the
            Department of Education and the Department of the Treasury;
                (2) any advantages or disadvantages of direct IDEA loans on
            borrowers and taxpayers;

    [[Page 122 STAT. 3501]]

                (3) the program structure necessary to administer direct
            IDEA loans; and
                (4) whether the repayment programs that implement income
            contingent and income-based repayment collected through revenue
            services, such as programs in England, Australia, and New
            Zealand, could be effective in collecting loan payments under
            the income contingent and income-based repayment options in the
            United States.

        (c) Recommendations.-- <<NOTE: Deadline.>> Not later than one year
    after the date of enactment of this Act, the Secretary of Education and
    the Secretary of the Treasury shall provide a report on the study
    conducted under subsection (a) to Congress. The report shall include
    recommendations based on the factors examined in subsection (b) for
    implementing direct IDEA loans, including the necessary statutory
    changes needed to implement such repayment option.
    SEC. 1118. DEVELOPING ADDITIONAL MEASURES OF DEGREE COMPLETION.

        (a) In General.-- <<NOTE: Reports.>> The Secretary of Education, in
    coordination with the Commissioner for Education Statistics and after
    consultation with representatives from diverse institutions of higher
    education, students, experts in the field of higher education policy,
    State higher education officials, and other stakeholders in the higher
    education community, shall issue a report with recommendations to
    Congress about alternatives ways to measure and report degree or program
    completion rates for institutions of higher education receiving funds
    under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et
    seq.).

        (b) Measures to Take Into Consideration.--The alternative measures
    described in subsection (a) shall consider--
                (1) the number of degrees awarded and the increase in number
            of degrees awarded disaggregated by race, ethnicity, gender, and
            income for all students who have earned a degree; and
                (2) the increase in degrees awarded in high-need fields such
            as science, technology, engineering, mathematics, education, and
            nursing.
    SEC. 1119. STUDY ON THE FINANCIAL AND COMPLIANCE AUDITS OF THE
                              FEDERAL STUDENT LOAN PROGRAM.

        (a) In General.-- <<NOTE: Deadline.>> Not later than one year after
    the date of enactment of this Act, the Comptroller General of the United
    States shall complete a study to examine all the financial and
    compliance audits and reviews required or conducted as part of the
    proper management of the Federal student loan programs under parts B and
    D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et
    seq. and 1087a et seq.), whether each such audit or review is required
    under a law or is otherwise performed in order to evaluate a program.

        (b) Content of Study.--
                (1) Comparison of audits and reviews under parts b and d of
            title iv.--As part of the study under subsection (a), the
            Comptroller General of the United States shall compare the
            audits and reviews of programs under parts B and D of title IV
            of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq. and
            1087a et seq.) for purposes of--
                        (A) determining whether such audits and reviews are
                    comparable among programs;

    [[Page 122 STAT. 3502]]

                        (B) determining whether such audits and reviews
                    result in a level of protection of borrower interests
                    and of Federal fiscal interests that is comparable for
                    each program; and
                        (C) determining the extent to which the Department
                    of Education ensures timely submission of required
                    financial and compliance audits and reviews and
                    compliance with statutory and regulatory requirements.
                (2) Additional content of study.--The study under subsection
            (a) shall--
                        (A) provide a list of the financial and compliance
                    audits and reviews required or conducted as part of the
                    proper management of the Federal student loan programs
                    under parts B and D of title IV of the Higher Education
                    Act of 1965 (20 U.S.C. 1071 et seq. and 1087a et seq.);
                        (B) determine the frequency of each audit and
                    review;
                        (C) provide a list of the entities and activities
                    that are the subject of each audit and review, including
                    institutions of higher education, servicers, secondary
                    markets, guaranty agencies, the Department of Education
                    and the contractors of the Department of Education, and
                    any other entities that are required to participate in
                    the audit or review;
                        (D) determine the degree of individual borrower
                    level reconciliation required under Federal student loan
                    programs under such parts B and D of title IV;
                        (E) make recommendations with respect to such audits
                    and reviews to ensure--
                              (i) such audits and reviews are comparable
                          among Federal student loan programs under such
                          parts B and D of title IV; and
                              (ii) a level of protection of borrower
                          interests and of Federal fiscal interests that is
                          comparable for Federal student loan programs under
                          such parts B and D of title IV, to the extent such
                          comparability does not exist; and
                        (F) assess the extent to which the Department of
                    Education makes appropriate use of such financial and
                    compliance audits and reviews in the Department's
                    administration and oversight of the Federal student loan
                    programs under such parts B and D of title IV.
    SEC. 1120. SUMMIT ON SUSTAINABILITY.

        Not <<NOTE: Deadline.>> later than September 30, 2010, the Secretary
    of Education, in consultation with the Administrator of the
    Environmental Protection Agency, shall convene a summit of higher
    education experts working in the area of sustainable operations and
    programs, representatives from agencies of the Federal Government, and
    business and industry leaders to focus on efforts of national
    distinction that--
                (1) encourage faculty, staff, and students at institutions
            of higher education to establish administrative and academic
            sustainability programs on campus;
                (2) enhance research by faculty and students at institutions
            of higher education in sustainability practices and innovations
            that assist and improve sustainability;

    [[Page 122 STAT. 3503]]

                (3) encourage institutions of higher education to work with
            community partners from the business, government, and nonprofit
            sectors to design and implement sustainability programs for
            application in the community and workplace;
                (4) identify opportunities for partnerships involving
            institutions of higher education and the Federal Government to
            expand sustainable operations and academic programs focused on
            environmental and economic sustainability; and
                (5) charge the summit participants or steering committee to
            submit a set of recommendations for addressing sustainability
            through institutions of higher education.
    SEC. 1121. NURSING SCHOOL CAPACITY.

        (a) Findings.--Congress finds the following:
                (1) Researchers in the field of public health have
            identified the need for a national study to identify constraints
            encountered by schools of nursing in graduating the number of
            nurses sufficient to meet the health care needs of the United
            States.
                (2) The shortage of qualified registered nurses has
            adversely affected the health care system of the United States.
                (3) Individual States have had varying degrees of success
            with programs designed to increase the recruitment and retention
            of nurses.
                (4) Schools of nursing have been unable to provide a
            sufficient number of qualified graduates to meet the workforce
            needs.
                (5) Many nurses are approaching the age of retirement, and
            the problem worsens each year.
                (6) In 2004, an estimated 125,000 applications from
            qualified applicants were rejected by schools of nursing, due to
            a shortage of faculty and a lack of capacity for additional
            students.

        (b) Study With Respect to Constraints With Respect to Schools of
    Nursing.--
                (1) In <<NOTE: Contracts.>> general.--The Secretary shall
            enter into an agreement with the Institute of Medicine of the
            National Academy of Sciences to conduct a study for the purpose
            of--
                        (A) identifying constraints encountered by schools
                    of nursing in admitting and graduating the number of
                    registered nurses necessary to ensure patient safety and
                    meet the need for quality assurance in the provision of
                    health care; and
                        (B) developing recommendations to alleviate the
                    constraints on a short-term and long-term basis.
                (2) Certain components.--The Secretary shall ensure that the
            agreement under paragraph (1) provides that the study under such
            paragraph will include information on the following:
                        (A) The trends in applications for attendance at
                    schools of nursing that are relevant to the purpose of
                    the study, including trends regarding applicants who are
                    accepted for enrollment and applicants who are not
                    accepted, particularly qualified applicants who are not
                    accepted.
                        (B) The number and demographic characteristics of
                    entry-level and graduate students currently enrolled in
                    schools of nursing, the retention rates at the schools,
                    and

    [[Page 122 STAT. 3504]]

                    the number of recent graduates from the schools, as
                    compared to previous years and to the projected need for
                    registered nurses based on two-year, five-year, and ten-
                    year projections.
                        (C) The number and demographic characteristics of
                    nurses who pursue graduate education in nursing and non-
                    nursing programs but do not pursue faculty positions in
                    schools of nursing, the reasons for not pursuing faculty
                    positions, including any regulatory barriers to choosing
                    to pursue such positions, and the effect of such
                    decisions on the ability of the schools to obtain
                    adequate numbers of faculty members.
                        (D) The extent to which--
                              (i) entry-level graduates of the schools of
                          nursing are satisfied with their educational
                          preparation, including their participation in
                          nurse externships, internships, and residency
                          programs; and
                              (ii) such entry-level graduates are able to
                          effectively transition into the nursing workforce.
                        (E) The satisfaction of nurse managers and
                    administrators with respect to the preparation and
                    performance levels of entry-level graduates from the
                    schools after one year, three years, and five years of
                    practice, respectively.
                        (F) The extent to which the current salary, benefit
                    structures, and characteristics of the workplace,
                    including the number of nurses who are presently serving
                    in faculty positions, influence the career path of
                    nurses who have pursued graduate education.
                        (G) The extent to which the use of innovative
                    technologies for didactic and clinical nursing education
                    might provide for an increase in the ability of schools
                    of nursing to train qualified nurses.
                (3) Recommendations.--The Institute of Medicine may include
            in the recommendations developed under paragraph (1)(B)
            recommendations for legislative or administrative changes at the
            Federal or State level, and measures that can be taken in the
            private sector--
                        (A) to facilitate the recruitment of students into
                    the nursing profession;
                        (B) to facilitate the retention of nurses in the
                    workplace; and
                        (C) to improve the resources and ability of the
                    education and health care systems to prepare a
                    sufficient number of qualified registered nurses.
                (4) Methodology of study.--
                        (A) Scope.--The Secretary shall ensure that the
                    agreement under paragraph (1) provides that the study
                    under such paragraph will consider the perspectives of--
                              (i) nurses and physicians in each of the
                          various types of inpatient, outpatient, and
                          residential facilities in the health care delivery
                          system;
                              (ii) faculty and administrators of schools of
                          nursing;
                              (iii) providers of health plans or health
                          insurance; and
                              (iv) consumers.

    [[Page 122 STAT. 3505]]

                        (B) Consultation with relevant organization.--The
                    Secretary shall ensure that the agreement under
                    paragraph (1) provides that relevant agencies and
                    organizations with expertise on the nursing shortage
                    will be consulted with respect to the study under such
                    paragraph, including the following:
                              (i) The Agency for Healthcare Research and
                          Quality.
                              (ii) The American Academy of Nursing.
                              (iii) The American Association of Colleges of
                          Nursing.
                              (iv) The American Nurses Association.
                              (v) The American Organization of Nurse
                          Executives.
                              (vi) The National Institute of Nursing
                          Research.
                              (vii) The National League for Nursing.
                              (viii) The National Organization for Associate
                          Degree Nursing.
                              (ix) The National Student Nurses Association.
                (5) Report.-- <<NOTE: Deadline.>> The Secretary shall ensure
            that the agreement under paragraph (1) provides that, not later
            than 18 months after the date of enactment of this section, the
            Institute of Medicine shall submit a report providing the
            findings and recommendations made in the study under this
            section to the Secretary and the authorizing committees.
                (6) Other organization.--If the Institute of Medicine
            declines to conduct the study under paragraph (1), the Secretary
            may enter into an agreement with another appropriate private
            entity to conduct the study.

        (c) Definitions.--In this section:
                (1) Terms in public health service act.--The terms
            ``collegiate school of nursing'', ``associate degree school of
            nursing'', and ``diploma school of nursing'' have the meanings
            given to such terms in section 801 of the Public Health Service
            Act (42 U.S.C. 296).
                (2) School of nursing.--The term ``school of nursing'' means
            a collegiate school of nursing, an associate degree school of
            nursing, or a diploma school of nursing in a State.
                (3) Secretary.--The term ``Secretary'' means the Secretary
            of Education.
    SEC. 1122. STUDY AND REPORT ON NONINDIVIDUAL INFORMATION.

        (a) Definitions.--In this section:
                (1) Historically black college or university.--The term
            ``historically Black college or university'' has the meaning
            given the term ``part B institution'' in section 322 of the
            Higher Education Act of 1965 (20 U.S.C. 1061).
                (2) Truth in lending act.--The terms ``covered educational
            institution'' and ``private education loan'' have the meanings
            given the terms in section 140 of the Truth in Lending Act, as
            added by title X.

        (b) Study.--The Comptroller General of the United States shall
    conduct a study--
                (1) on the impact on and benefits to borrowers of the
            inclusion of nonindividual factors, including cohort default
            rate, accreditation, and graduation rate at institutions of
            higher

    [[Page 122 STAT. 3506]]

            education, used in the underwriting criteria to determine the
            pricing of private education loans;
                (2) to examine whether and to what extent the inclusion of
            such nonindividual factors--
                        (A) increases access to private education loans for
                    borrowers who lack credit history or results in less
                    favorable rates for such borrowers; and
                        (B) affects the types of private education loan
                    products and rates available at certain institutions of
                    higher education, including a comparison of such
                    impact--
                              (i) on private and public institutions; and
                              (ii) on historically Black colleges and
                          universities and institutions of higher education;
                          and
                (3) to assess the extent to which the use of such
            nonindividual factors in underwriting may have a disparate
            impact on the pricing of private education loans, based on
            gender, race, income level, and covered educational institution.

        (c) Report.-- <<NOTE: Deadline.>> Not later than one year after the
    date of enactment of this Act, the Comptroller General of the United
    States shall submit a report to the Committee on Banking, Housing, and
    Urban Affairs and the Committee on Health, Education, Labor, and
    Pensions of the Senate and the Committee on Financial Services of the
    House of Representatives on the results of the study required by this
    section.
    SEC. 1123. FEASIBILITY STUDY FOR STUDENT LOAN CLEARINGHOUSE.

        (a) In General.-- <<NOTE: Deadline.>> Not later than 18 months after
    the date of enactment of this Act, the Comptroller General of the United
    States shall conduct a study of the feasibility of developing a national
    student loan clearinghouse on the website of the Department of Education
    that would provide for one or more of the following:
                (1) A registry of real-time information on Federal student
            loans (including loans under parts B and D of title IV of the
            Higher Education Act of 1965 (20 U.S.C. 1071 et seq. and 1087a
            et seq.) and private education loans (as defined in section 140
            of the Truth in Lending Act)), for both undergraduate and
            graduate students, and parents of students, for use by
            prospective borrowers or any person desiring information
            regarding available interest rates, fees, and other terms from
            lenders.
                (2) A mechanism whereby prospective borrowers could be
            matched with lenders that offer highly competitive products and
            loan servicing quality, including any procedures and safeguards
            necessary to minimize potentially adverse effects of multiple
            inquiries into participating borrowers' credit histories
            recorded by consumer reporting agencies.
                (3) Options concerning the establishment and ongoing
            maintenance of such a system, including whether such a system
            should be operated by one or more entities, and methods to
            finance such a system at no or minimal cost to consumers and the
            Government.
                (4) Other features that could help prospective borrowers
            make informed decisions in selecting lenders from whom to obtain
            Federal and private education loans.

    [[Page 122 STAT. 3507]]

        (b) Consultation.--In conducting the study under subsection (a), the
    Comptroller General of the United States shall consult with--
                (1) the Secretary of Education;
                (2) the Federal Trade Commission;
                (3) representatives of student loan borrowers;
                (4) representatives from institutions of higher education,
            including financial aid administrators, registrars, business
            officers, and student affairs officials;
                (5) Federal and private educational lenders (as defined in
            section 140 of the Truth in Lending Act), loan servicers, and
            guaranty agencies; and
                (6) other appropriate entities with relevant experience.

        (c) Report.--Not later than two years after the date of enactment of
    this Act, the Comptroller General of the United States shall submit to
    the authorizing committees a report on the study conducted under
    subsection (a).
    SEC. 1124. STUDY ON DEPARTMENT OF EDUCATION OVERSIGHT OF INCENTIVE
                              COMPENSATION BAN.

        (a) In General.-- <<NOTE: Deadline.>> Not later than 18 months after
    the date of enactment of this Act, the Comptroller General of the United
    States shall--
                (1) conduct a study of efforts by the Secretary of Education
            to enforce the provisions of section 487(a)(20) of the Higher
            Education Act of 1965 (20 U.S.C. 1094(a)(20)); and
                (2) submit <<NOTE: Reports.>> to the authorizing committees
            a report that provides the results of such study.

        (b) Content of Report.--The report submitted under subsection (a)
    shall include--
                (1) an analysis of the nature, extent, and effectiveness of
            the Secretary of Education's activities to enforce the
            provisions of section 487(a)(20) of the Higher Education Act of
            1965 (20 U.S.C. 1094(a)(20));
                (2) the number of institutions of higher education for which
            investigations were initiated by the Secretary for potential
            violations of such section since 1998;
                (3) in cases where violations of such section by
            institutions of higher education were substantiated by the
            Secretary--
                        (A) the names of such institutions;
                        (B) the nature of the violations; and
                        (C) the penalty, if any, imposed by the Secretary
                    for such violations;
                (4) an analysis of the impact of the ``safe harbor''
            regulations under section 668.14(b)(22)(ii)(A) through (L) of
            title 34, Code of Federal Regulations, promulgated under such
            section 487(a)(20), on the number and nature of cases examined
            by the Secretary for potential violations of such section
            487(a)(20), including whether the number of cases examined by
            the Secretary has increased or decreased since such regulations
            went into effect;
                (5) information on the extent to which the Secretary has
            considered efforts by States to examine unethical or unlawful
            student recruitment or admissions practices by institutions of
            higher education, including practices that violate the
            provisions of such section 487(a)(20); and

    [[Page 122 STAT. 3508]]

                (6) information on the extent to which the Secretary reviews
            publicly-available documents, such as filings to the Securities
            and Exchange Commission, to monitor the compliance of
            institutions of higher education with the provisions of such
            section 487(a)(20).
    SEC. 1125. DEFINITION OF AUTHORIZING COMMITTEES.

        For purposes of this title, the term ``authorizing committees'' has
    the meaning given such term in section 103 of the Higher Education Act
    of 1965, as amended by this Act.

        Approved August 14, 2008.

    LEGISLATIVE HISTORY--H.R. 4137:
    ---------------------------------------------------------------------------

    HOUSE REPORTS: Nos. 110-500, Pt. 1 (Comm. on Education and Labor) and
    110-803 (Comm. of Conference).
    CONGRESSIONAL RECORD, Vol. 154 (2008):
                Feb. 7, considered and passed House.
                July 29, considered and passed Senate, amended.
                July 31, House and Senate agreed to conference report.

                                      <all>