[United States Statutes at Large, Volume 123, 111th Congress, 1st Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

123 STAT. 1934

Public Law 111-39
111th Congress

An Act


 
To make technical corrections to the Higher Education Act of 1965, and
for other purposes. <>

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

Sec. 1. Table of contents.
Sec. 2. References.
Sec. 3. Effective date.

TITLE I--GENERAL PROVISIONS

Sec. 101. General provisions.

TITLE II--TEACHER QUALITY ENHANCEMENT

Sec. 201. Teacher quality enhancement.

TITLE III--INSTITUTIONAL AID

Sec. 301. Institutional aid.
Sec. 302. Multiagency study of minority science programs.

TITLE IV--STUDENT ASSISTANCE

Sec. 401. Grants to students in attendance at institutions of higher
education.
Sec. 402. Federal Family Education Loan Program.
Sec. 403. Federal work-study programs.
Sec. 404. Federal Direct Loan Program.
Sec. 405. Federal Perkins Loans.
Sec. 406. Need analysis.
Sec. 407. General provisions of title IV.
Sec. 408. Program integrity.
Sec. 409. Waiver of master calendar and negotiated rulemaking
requirements.

TITLE V--DEVELOPING INSTITUTIONS

Sec. 501. Developing institutions.

TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

Sec. 601. International education programs.

TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT

Sec. 701. Graduate and postsecondary improvement programs.

TITLE VIII--ADDITIONAL PROGRAMS

Sec. 801. Additional programs.
Sec. 802. Amendments to other higher education Acts.

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 1935]]
123 STAT. 1935

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. <>  EFFECTIVE DATE.

Except as otherwise provided in this Act, the amendments made by
this Act shall take effect as if enacted on the date of enactment of the
Higher Education Opportunity Act (Public Law 110-315).

TITLE I--GENERAL PROVISIONS

SEC. 101. GENERAL PROVISIONS.

(a) Higher Education Opportunity Act.--
(1) General definition of institution of higher education.--
Section 101(b) of the Higher Education Opportunity Act (Public
Law 110-315) <>  is amended by striking
``July 1, 2010'' and inserting ``the date of enactment of this
Act''.
(2) Definition of institution of higher education for
purposes of title iv programs.--Section 102(e) <>  of the Higher Education Opportunity Act (Public Law
110-315) <>  is amended by striking the
period at the end and inserting ``, except that, with respect to
foreign nursing schools that were eligible to participate in
part B of title IV as of the day before the date of enactment of
this Act, the amendments made by subsection (a)(1)(D) shall take
effect on July 1, 2012.''.

(b) Higher Education Act of 1965.--Title I (20 U.S.C. 1001 et seq.)
is amended--
(1) in section 102(a)(2)(D) (20 U.S.C. 1002(a)(2)(D)), by
striking ``under part B'' and inserting ``under part B of title
IV'';
(2) in section 111(b) (20 U.S.C. 1011(b)), by striking
``With'' and inserting ``with'';
(3) in section 131(a)(3)(A)(iii)(I) (20 U.S.C.
1015(a)(3)(A)(iii)(I)), by striking ``section 428(a)(2)(C)(i)''
and inserting ``section 428(a)(2)(C)(ii)'';
(4) in section 136(d)(1) (20 U.S.C. 1015e(d)(1)), by
striking ``(Family Educational Rights and Privacy Act of 1974)''
and inserting ``(commonly known as the `Family Educational
Rights and Privacy Act of 1974')'';
(5) in section 141 (20 U.S.C. 1018)--
(A) in the matter preceding subparagraph (A) of
subsection (c)(3), by striking ``under this title'' and
inserting ``under title IV''; and
(B) in subsection (d)(3), by striking ``appropriate
committees of Congress'' and inserting ``authorizing
committees'';
(6) in section 153(a)(1)(B)(iii)(V) (20 U.S.C.
1019b(a)(1)(B)(iii)(V)), by striking ``borrowers who take out
loans under'' each place the term appears and inserting
``borrowers of loans made under''; and
(7) in section 155(a) (20 U.S.C. 1019d(a)), by striking
paragraph (4) and inserting the following:
``(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;

[[Page 1936]]
123 STAT. 1936

``(B) the applicant's estimated financial
assistance, including amounts of financial assistance
used to replace the expected family contribution, as
determined by the institution, in accordance with title
IV, for students who have completed the Free Application
for Federal Student Aid; and
``(C) the difference between the amounts under
subparagraphs (A) and (B), as applicable; and''.

TITLE II--TEACHER QUALITY ENHANCEMENT

SEC. 201. TEACHER QUALITY ENHANCEMENT.

Title II (20 U.S.C. 1021 et seq.) is amended--
(1) in section 200(22) (20 U.S.C. 1021(22)), by striking
subparagraph (D) and inserting the following:
``(D) prior to completion of the program--
``(i) attains full State certification or
licensure and becomes highly qualified; and
``(ii) acquires a master's degree not later
than 18 months after beginning the program.'';
(2) in section 202 (20 U.S.C. 1022a)--
(A) in subsection (b)(6)(E)(ii), by striking
``section 1111(b)(2)'' and inserting ``section
1111(b)(1)'';
(B) in subsection (c)(1), by striking ``pre-
baccalaureate'';
(C) in subsection (d)--
(i) in the heading, by striking ``Pre-
Baccalaureate'' and inserting ``the''; and
(ii) in the matter preceding paragraph (1), by
striking ``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:'' and inserting ``An eligible
partnership that receives a grant to carry out a
program for the preparation of teachers shall
carry out an effective pre-baccalaureate teacher
preparation program or a 5th year initial
licensing program that includes all of the
following:'';
(D) in subsection (e)(2)--
(i) in subparagraph (A)(ii), by striking ``to
earn'' and inserting ``leading to''; and
(ii) in subparagraph (C)--
(I) in clause (i), by striking
``one-year'' before ``teaching residency
program''; and
(II) in clause (iii)(I), by striking
``one-year''; and
(E) in subsection (i)(3), by striking ``consent of''
and inserting ``consent to''; and
(3) in section 231(a)(1) (20 U.S.C. 1032(a)(1)), by striking
``serve graduate'' and inserting ``assist in the graduation
of''.

TITLE III--INSTITUTIONAL AID

SEC. 301. INSTITUTIONAL AID.

Title III (20 U.S.C. 1051 et seq.) is amended--

[[Page 1937]]
123 STAT. 1937

(1) in section 316 (20 U.S.C. 1059c)--
(A) in subsection (a), by striking ``Indian Tribal''
and inserting ``Tribal''; and
(B) in subsection (b)--
(i) in paragraph (1), 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 paragraph (2), 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
(iii) in paragraph (3)(A), by striking ``the
Navajo Community College Assistance Act of 1978''
and inserting ``the Navajo Community College
Act'';
(2) in section 318(b)(1) (20 U.S.C. 1059e(b)(1)), by
striking subparagraph (F) and inserting the following:
``(F) is not receiving assistance under--
``(i) part B;
``(ii) part A of title V; or
``(iii) an annual authorization of
appropriations under the Act of March 2, 1867 (14
Stat. 438; 20 U.S.C. 123).'';
(3) in section 323(a) (20 U.S.C. 1062(a)), in the matter
preceding paragraph (1), by striking ``in any fiscal year'' and
inserting ``for any fiscal year,'';
(4) in section 324(d) (20 U.S.C. 1063(d))--
(A) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(B) by striking ``Notwithstanding subsections (a)''
and inserting ``(1) Notwithstanding subsections (a)'';
and
(C) by adding at the end the following:

``(2) If the amount appropriated pursuant to section 399(a)(2)(A)
for any fiscal year is not sufficient to pay the minimum allotment
required by paragraph (1) to all part B institutions, the amount of such
minimum allotments shall be ratably reduced. If additional sums become
available for such fiscal year, such reduced allocations shall be
increased on the same basis as the basis on which they were reduced
(until the amount allotted equals the minimum allotment required by
paragraph (1)).'';
(5) in section 351(a) (20 U.S.C. 1067a(a))--
(A) by striking ``section 304(a)(1)'' and inserting
``section 303(a)(1)''; and
(B) by striking ``of 1979'';
(6) in section 355(a) (20 U.S.C. 1067e(a)), by striking
``302'' and inserting ``312'';
(7) in section 371(c) (20 U.S.C. 1067q(c))--
(A) in paragraph (3)(D), by striking ``402A(g)'' and
inserting ``402A(h)'';
(B) in paragraph (4), by striking ``402A(g)'' and
inserting ``402A(h)''; and
(C) in paragraph (9)--
(i) in subparagraph (C)(iii), by striking
``402A(g)'' and inserting ``402A(h)''; and
(ii) by amending subparagraph (F) to read as
follows:
``(F) is not receiving assistance under--

[[Page 1938]]
123 STAT. 1938

``(i) part B;
``(ii) part A of title V; or
``(iii) an annual authorization of
appropriations under the Act of March 2, 1867 (14
Stat. 438; 20 U.S.C. 123).''; and
(8) in section 392(a)(6) (20 U.S.C. 1068a(a)(6)), by
striking ``College or University'' and inserting ``Colleges and
Universities''.
SEC. 302. MULTIAGENCY STUDY OF MINORITY SCIENCE PROGRAMS.

Section 1024 (20 U.S.C. 1067d) is repealed.

TITLE IV--STUDENT ASSISTANCE

SEC. 401. GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF
HIGHER EDUCATION.

(a) Amendments.--Part A of title IV (20 U.S.C. 1070 et seq.) is
amended--
(1) in section 400(b) (20 U.S.C. 1070(b)), by striking ``1
through 8'' and inserting ``1 through 9'';
(2) in section 401 (20 U.S.C. 1070a)--
(A) in the second sentence of subsection (a)(1), by
striking ``manner,,'' and inserting ``manner,'';
(B) in subsection (b)(1), by striking ``section
401'' and inserting ``this section''; and
(C) in subsection (b)(9)(A)--
(i) in clause (vi), by striking
``$105,000,000'' and inserting ``$258,000,000'';
and
(ii) in clause (viii), by striking
``$4,400,000,000'' and inserting
``$4,452,000,000'';
(3) by striking paragraph (4) of section 401(f) (20 U.S.C.
1070a(f)), as added by section 401(c) of the Higher Education
Opportunity Act (Public Law 110-315);
(4) in section 402A (20 U.S.C. 1070a-11)--
(A) in subsection (b)(1), by striking
``organizations including'' and inserting
``organizations, including''; and
(B) in subsection (c)(8)(C)(iv)(I), by inserting
``to be'' after ``determined'';
(5) in section 402E(d)(2)(C) (20 U.S.C. 1070a-15(d)(2)(C)),
by striking ``320.'' and inserting ``320'';
(6) in section 415E(b)(1)(B) (20 U.S.C. 1070c-3a(b)(1)(B))--
(A) in clause (i), by striking ``If a'' and
inserting ``Except as provided in clause (ii), if a'';
(B) by redesignating clause (ii) as clause (iii);
and
(C) by inserting after clause (i) (as amended by
subparagraph (A)) the following:
``(ii) Special continuation and transition
rule.--If a State that applied for and received an
allotment under this section for fiscal year 2010
pursuant to subsection (j) meets the
specifications established in the State's
application under subsection (c) for fiscal year
2011, then the Secretary shall make an allotment
to such State for fiscal year 2011 that is not
less than the allotment made pursuant to
subsection (j) to such State for fiscal year 2010
under this section (as this section was in effect
on the day

[[Page 1939]]
123 STAT. 1939

before the date of enactment of the Higher
Education Opportunity Act (Public Law 110-
315)).'';
(7) in section 419C(b)(1) (20 U.S.C. 1070d-33(b)(1)), by
inserting ``and'' after the semicolon at the end;
(8) in section 419D(d) (20 U.S.C. 1070d-34(d)), by striking
``1134'' and inserting ``134''; and
(9) by adding at the end the following:

``Subpart 10--Scholarships for Veteran's Dependents

``SEC. 420R. <>  SCHOLARSHIPS FOR
VETERAN'S DEPENDENTS.

``(a) Definition of Eligible Veteran's Dependent.--The term
`eligible veteran's dependent' means a dependent or an independent
student--
``(1) whose parent or guardian was a member of the Armed
Forces of the United States and died as a result of performing
military service in Iraq or Afghanistan after September 11,
2001; and
``(2) who, at the time of the parent or guardian's death,
was--
``(A) less than 24 years of age; or
``(B) enrolled at an institution of higher education
on a part-time or full-time basis.

``(b) Grants.--
``(1) In general.--The Secretary shall award a grant to each
eligible veteran's dependent to assist in paying the eligible
veteran's dependent's cost of attendance at an institution of
higher education.
``(2) Designation.--Grants made under this section shall be
known as `Iraq and Afghanistan Service Grants'.

``(c) Prevention of Double Benefits.--No eligible veteran's
dependent may receive a grant under both this section and section 401.
``(d) Terms and Conditions.--The Secretary shall award grants under
this section in the same manner, and with the same terms and conditions,
including the length of the period of eligibility, as the Secretary
awards Federal Pell Grants under section 401, except that--
``(1) the award rules and determination of need applicable
to the calculation of Federal Pell Grants, shall not apply to
grants made under this section;
``(2) the provisions of subsection (a)(3), subsection
(b)(1), the matter following subsection (b)(2)(A)(v), subsection
(b)(3), and subsection (f), of section 401 shall not apply; and
``(3) a grant made under this section to an eligible
veteran's dependent for any award year shall equal the maximum
Federal Pell Grant available for that award year, except that
such a grant under this section--
``(A) shall not exceed the cost of attendance of the
eligible veteran's dependent for that award year; and
``(B) shall be adjusted to reflect the attendance by
the eligible veteran's dependent on a less than full-
time basis in the same manner as such adjustments are
made under section 401.

``(e) Estimated Financial Assistance.--For purposes of
determinations of need under part F, a grant awarded under this section

[[Page 1940]]
123 STAT. 1940

shall not be treated as estimated financial assistance as described in
sections 471(3) and 480(j).
``(f) Authorization and Appropriations of Funds.--There are
authorized to be appropriated, and there are appropriated, out of any
money in the Treasury not otherwise appropriated, for the Secretary to
carry out this section, such sums as may be necessary for fiscal year
2010 and each succeeding fiscal year.''.
(b) <>  Effective Date.--The amendment
made by subsection (a)(9) shall take effect on July 1, 2010.

(c) Higher Education Opportunity Act.--Section 404 of the Higher
Education Opportunity Act (Public Law 110-315) <>  is amended by adding at the end the following new subsection:

``(i) Effective Date; Transition.--
``(1) <>  In general.--The amendments
made by subsection (e) shall apply to grants made under chapter
2 of subpart 2 of part A of title IV of the Higher Education Act
of 1965 (20 U.S.C. 1070a-21 et seq.) on or after the date of
enactment of this Act, except that a recipient of a grant under
such chapter that is made prior to such date may elect to apply
the requirements contained in the amendments made by subsection
(e) to that grant if the grant recipient informs the Secretary
of the election.
``(2) Special rule.--A grant recipient may make the election
described in paragraph (1) only if the election does not
decrease the amount of the scholarship promised to an individual
student under the grant.''.
SEC. 402. FEDERAL FAMILY EDUCATION LOAN PROGRAM.

(a) Amendment to Provision Amended by the College Cost Reduction and
Access Act.--
(1) In general.--Section 428(b)(1)(G)(i) (20 U.S.C.
1078(b)(1)(G)(i)), as amended by section 303 of the College Cost
Reduction and Access Act (Public Law 110-84), is amended by
striking ``or 439(q)''.
(2) Effective date.--The amendment <>  made by paragraph (1) shall be effective as if
enacted as part of the amendment in section 303(a) of the
College Cost Reduction and Access Act (Public Law 110-84), shall
take effect on October 1, 2012, and shall apply with respect to
loans made on or after such date.

(b) Entrance Counseling Functions.--
(1) Guaranty agencies.--Section 428(b)(3) (20 U.S.C.
1078(b)(3)) is amended--
(A) in subparagraph (C), by inserting ``or 485(l)''
after ``section 485(b)''; and
(B) in subparagraph (D), by inserting ``or 485(l)''
after ``section 485(b)''.
(2) Eligible lenders.--Section 435(d)(5) (20 U.S.C.
1085(d)(5)) is amended--
(A) in subparagraph (E), by inserting ``or 485(l)''
after ``section 485(b)''; and
(B) in subparagraph (F), by inserting ``or 485(l)''
after ``section 485(b)''.

(c) Amendment to Provision Amended by the Higher Education
Opportunity Act.--
(1) In general.--Section 428C(c)(3)(A) (20 U.S.C. 1078-
3(c)(3)(A)), as amended by section 425 of the Higher Education

[[Page 1941]]
123 STAT. 1941

Opportunity Act (Public Law 110-315), is amended by striking
``section 493C'' and inserting ``section 493C,''.
(2) <>  Effective date.--The
amendment made by paragraph (1) shall be effective as if enacted
as part of the amendments in section 425(d)(1) of the Higher
Education Opportunity Act (Public Law 110-315), and shall take
effect on July 1, 2009.

(d) Rehabilitation of Student Loans.--
(1) Section 428F (20 U.S.C. 1078-6) is amended--
(A) in subsection (a)--
(i) by amending paragraph (1) to read as
follows:
``(1) Sale or assignment of loan.--
``(A) In general.--Each guaranty agency, upon
securing 9 payments made within 20 days of the due date
during 10 consecutive months of amounts owed on a loan
for which the Secretary has made a payment under
paragraph (1) of section 428(c), shall--
``(i) if practicable, sell the loan to an
eligible lender; or
``(ii) <>  on or before
September 30, 2011, assign the loan to the
Secretary if--
``(I) the Secretary has determined
that market conditions unduly limit a
guaranty agency's ability to sell loans
under clause (i); and
``(II) the guaranty agency has been
unable to sell loans under clause (i).
``(B) Monthly payments.--Neither the guaranty agency
nor the Secretary shall demand from a borrower as
monthly payment amounts described in subparagraph (A)
more than is reasonable and affordable based on the
borrower's total financial circumstances.
``(C) Consumer reporting agencies.--Upon the sale or
assignment of the loan, the Secretary, guaranty agency
or other holder of the loan shall request any consumer
reporting agency to which the Secretary, guaranty agency
or holder, as applicable, reported the default of the
loan, to remove the record of the default from the
borrower's credit history.
``(D) Duties upon sale.--With respect to a loan sold
under subparagraph (A)(i)--
``(i) the guaranty agency--
``(I) shall repay the Secretary 81.5
percent of the amount of the principal
balance outstanding at the time of such
sale, multiplied by the reinsurance
percentage in effect when payment under
the guaranty agreement was made with
respect to the loan; and
``(II) may, in order to defray
collection costs--
``(aa) charge to the
borrower an amount not to exceed
18.5 percent of the outstanding
principal and interest at the
time of the loan sale; and
``(bb) retain such amount
from the proceeds of the loan
sale; and
``(ii) the Secretary shall reinstate the
Secretary's obligation to--
``(I) reimburse the guaranty agency
for the amount that the agency may, in
the future, expend

[[Page 1942]]
123 STAT. 1942

to discharge the guaranty agency's
insurance obligation; and
``(II) pay to the holder of such
loan a special allowance pursuant to
section 438.
``(E) Duties upon assignment.--With respect to a
loan assigned under subparagraph (A)(ii)--
``(i) the guaranty agency shall add to the
principal and interest outstanding at the time of
the assignment of such loan an amount equal to the
amount described in subparagraph (D)(i)(II)(aa);
and
``(ii) the Secretary shall pay the guaranty
agency, for deposit in the agency's Operating Fund
established pursuant to section 422B, an amount
equal to the amount added to the principal and
interest outstanding at the time of the assignment
in accordance with clause (i).
``(F) Eligible lender limitation.--A loan shall not
be sold to an eligible lender under subparagraph (A)(i)
if such lender has been found by the guaranty agency or
the Secretary to have substantially failed to exercise
the due diligence required of lenders under this part.
``(G) Default due to error.--A loan that does not
meet the requirements of subparagraph (A) may also be
eligible for sale or assignment under this paragraph
upon a determination that the loan was in default due to
clerical or data processing error and would not, in the
absence of such error, be in a delinquent status.'';
(ii) in paragraph (2)--
(I) by striking ``paragraph (1) of
this subsection'' and inserting
``paragraph (1)(A)(i)''; and
(II) by striking ``paragraph
(1)(B)(ii) of this subsection'' and
inserting ``paragraph (1)(D)(ii)(I)'';
(iii) in paragraph (3)--
(I) by striking ``sold under
paragraph (2)'' and inserting ``sold or
assigned under paragraph (1)(A)''; and
(II) by striking ``sale.'' and
inserting ``sale or assignment.'';
(iv) in paragraph (4), by striking ``which is
sold under paragraph (1) of this subsection'' and
inserting ``that is sold or assigned under
paragraph (1)''; and
(v) in paragraph (5), by inserting ``(whether
by loan sale or assignment)'' after
``rehabilitating a loan''; and
(B) in subsection (b), in the first sentence, by
inserting ``or assigned to the Secretary'' after ``sold
to an eligible lender''.
(2) <>  Effective
date.--The amendments made by paragraph (1) shall be effective
on the date of enactment of this Act, and shall apply to any
loan on which monthly payments described in section
428F(a)(1)(A) were paid before, on, or after such date of
enactment.

(e) Repayment in Full for Death and Disability.--
(1) In general.--Section 437(a)(1) (20 U.S.C. 1087(a)(1)),
as amended by section 437 of the Higher Education Opportunity
Act (Public Law 110-315), is amended--

[[Page 1943]]
123 STAT. 1943

(A) in the matter preceding subparagraph (A), by
striking ``Secretary),, or if'' and inserting
``Secretary), or if''; and
(B) in subparagraph (B), by inserting ``the
reinstatement and resumption to be'' after
``determines''.
(2) <>  Effective date.--The
amendments made by paragraph (1) shall be effective as if
enacted as part of the amendments in section 437(a) of the
Higher Education Opportunity Act (Public Law 110-315), and shall
take effect on July 1, 2010.

(f) Other Amendments.--Part B of title IV (20 U.S.C. 1071 et seq.)
is further amended--
(1) in section 428 (20 U.S.C. 1078)--
(A) in subsection (a)(2)(A)(i)(II), by striking
``and'' after the semicolon at the end;
(B) in subsection (b)--
(i) in the matter following subclause (II) of
paragraph (1)(M)(i), by inserting ``section''
before ``428B'';
(ii) in paragraph (3)(A)(i), by striking ``any
institution of higher education or the employees
of an institution of higher education'' and
inserting ``any institution of higher education,
any employee of an institution of higher
education, or any individual or entity'';
(iii) in paragraph (4), by striking ``For the
purpose of paragraph (1)(M)(i)(III) of this
subsection,'' and inserting ``With respect to the
graduate fellowship program referred to in
paragraph (1)(M)(i)(II),''; and
(iv) in paragraph (7)--
(I) in subparagraph (B), by striking
``clause (i) or (ii) of''; and
(II) in subparagraph (D), by
striking ``subparagraph (A)(i)'' and
inserting ``subparagraph (A)''; and
(C) in subsection (c)(9)(K), by striking ``3
months'' and inserting ``6 months'';
(2) in section 428B(e) (20 U.S.C. 1078-2(e))--
(A) in paragraph (3)(B), by striking ``subsection
(c)(5)(B)'' and inserting ``subsection (d)(5)(B)''; and
(B) by repealing paragraph (5);
(3) in section 428C (20 U.S.C. 1078-3)--
(A) in subsection (a)(4)(E), by striking ``subpart
II of part B'' and inserting ``part E'';
(B) in the matter preceding clause (i) of subsection
(c)(2)(A)--
(i) by striking ``subsection (b)(2)(F)'' and
inserting ``subsection (b)(2)''; and
(ii) by inserting a comma after ``graduated'';
(C) in subsection (d)(3)(D), by striking ``loan
insurance fund'' and inserting ``loan insurance
account''; and
(D) in subsection (f)(3), by striking ``subsection
(a)'' and inserting ``this subsection'';
(4) in section 428G(c) (20 U.S.C. 1078-7(c))--
(A) in paragraph (1), by striking ``section
428(a)(2)(A)(i)(III)'' and inserting ``section
428(a)(2)(A)(i)(II)''; and
(B) by striking paragraph (3) and inserting the
following:
``(3) notwithstanding subsection (a)(2), may, with the
permission of the borrower, be disbursed by the lender on

[[Page 1944]]
123 STAT. 1944

a weekly or monthly basis, provided that the proceeds of the
loan are disbursed by the lender in substantially equal weekly
or monthly installments, as the case may be, over the period of
enrollment for which the loan is made.'';
(5) in section 428H (20 U.S.C. 1078-8)--
(A) in subsection (d), by amending the text of the
header of paragraph (2) to read as follows: ``Limits for
graduate, professional, and independent
postbaccalaureate students''; and
(B) in subsection (e), by amending paragraph (6) to
read as follows:
``(6) Repayment period.--For purposes of calculating the
repayment period under section 428(b)(9), such period shall
commence at the time the first payment of principal is due from
the borrower.'';
(6) in section 428J (20 U.S.C. 1078-10)--
(A) in subsection (c)(1), by adding at the end the
following: ``No borrower may receive a reduction of loan
obligations under both this section and section 460.'';
and
(B) in subsection (g)(2)--
(i) in subparagraph (B), by inserting ``or''
after the semicolon at the end;
(ii) by striking subparagraph (C);
(iii) by redesignating subparagraph (D) as
subparagraph (C); and
(iv) in subparagraph (C), as redesignated by
clause (iii), by striking ``12571'' and inserting
``12601'';
(7) in section 428K(g)(9)(B) (20 U.S.C. 1078-11(g)(9)(B)),
by striking ``under subsection (ll)(3) of such section (42
U.S.C. 1395x(ll)(3))'' and inserting ``under subsection (ll)(4)
of such section (42 U.S.C. 1395x(ll)(4))'';
(8) in section 430A(f) (20 U.S.C. 1080a(f))--
(A) by striking ``and (6)'' and inserting ``and
(5)''; and
(B) by striking ``(a)(6)'' and inserting ``(a)(5)'';
(9) in section 432 (20 U.S.C. 1082)--
(A) in subsection (b), by striking ``section 1078 of
this title'' and inserting ``section 428''; and
(B) in subsection (m)(1)(B)--
(i) in clause (i), by inserting ``and'' after
the semicolon at the end; and
(ii) in clause (ii), by striking ``; and'' and
inserting a period;
(10) in section 435 (20 U.S.C. 1085)--
(A) in subsection (a)(2)(C)(ii), by striking ``a
tribally controlled community college within the meaning
of section 2(a)(4) of the Tribally Controlled Community
College Assistance Act of 1978'' and inserting ``a
tribally controlled college or university, as defined in
section 2(a)(4) of the Tribally Controlled Colleges and
Universities Assistance Act of 1978'';
(B) in subsection (d)--
(i) in paragraph (1)--
(I) in subparagraph (A)(ii)(III), by
striking ``section 501(1) of such Code''
and inserting ``section 501(a) of such
Code''; and

[[Page 1945]]
123 STAT. 1945

(II) in subparagraph (G), by
striking ``sections 428A(d), 428B(d),
and 428C,'' and inserting ``sections
428B(d) and 428C,'';
(ii) in paragraph (2)(A)(vi), by striking
``section 435(m)'' and inserting ``subsection
(m)'';
(iii) in paragraph (3), by striking ``section
435(m)'' and inserting ``subsection (m)''; and
(iv) in paragraph (5)(A), by striking ``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'' and
inserting ``to any institution of higher
education, any employee of an institution of
higher education, or any individual or entity in
order to secure applicants for loans under this
part'';
(C) in subsection (o)(1)(A)(ii), by striking
``Service'' and inserting ``Services''; and
(D) in subsection (p)(1), by striking ``section
771'' and inserting ``section 781''; and
(11) in section 438(b)(2) (20 U.S.C. 1087-1(b)(2))--
(A) in the second sentence of subparagraph (A), by
striking ``427A(f)'' and inserting ``427A(i)'';
(B) in the first sentence of subparagraph (B)(i), by
striking ``1954'' and inserting ``1986''; and
(C) in the second sentence of subparagraph (F), by
striking ``427A(f)'' and inserting ``427A(i)''.
SEC. 403. FEDERAL WORK-STUDY PROGRAMS.

Section 443 (42 U.S.C. 2753) is amended--
(1) in subsection (b)(2), by striking ``section 443'' and
inserting ``this section'';
(2) in subsection (d)(1), by striking ``subsection
(b)(2)(B)'' and inserting ``subsection (b)(2)(A)''; and
(3) in subsection (e)(1), in the matter preceding
subparagraph (A), by striking ``in accordance with such
subsection''.
SEC. 404. FEDERAL DIRECT LOAN PROGRAM.

(a) Temporary Authority to Purchase Loans.--Section 459A (20 U.S.C.
1087i-1) is amended--
(1) in subsection (a)--
(A) in paragraph (2), in the matter preceding
subparagraph (A), by striking ``purchase of loans under
this section'' and inserting ``purchase of loans under
paragraph (1)''; and
(B) by inserting after paragraph (2) the following
new paragraph:
``(3) Temporary authority to purchase rehabilitated loans.--
``(A) Authority.--In addition <>  to the authority described in paragraph (1),
the Secretary, in consultation with the Secretary of the
Treasury, is authorized to purchase, or enter into
forward commitments to purchase, from any eligible
lender (as defined in section 435(d)(1)), loans that
such lender purchased under section 428F on or after
October 1, 2003, and before July 1, 2010, and that are
not in default, on such terms as the Secretary, the
Secretary of the Treasury, and the Director of the
Office of Management and Budget jointly determine are in
the best interest of the United States, except that any

[[Page 1946]]
123 STAT. 1946

purchase under this paragraph shall not result in any
net cost to the Federal Government (including the cost
of servicing the loans purchased), as determined jointly
by the Secretary, the Secretary of the Treasury, and the
Director of the Office of Management and Budget.
``(B) Federal register notice.--The Secretary, the
Secretary of the Treasury, and the Director of the
Office of Management and Budget shall jointly publish a
notice in the Federal Register prior to any purchase of
loans under this paragraph that--
``(i) establishes the terms and conditions
governing the purchases authorized by this
paragraph;
``(ii) includes an outline of the methodology
and factors that the Secretary, the Secretary of
the Treasury, and the Director of the Office of
Management and Budget will jointly consider in
evaluating the price at which to purchase loans
rehabilitated pursuant to section 428F(a); and
``(iii) describes how the use of such
methodology and consideration of such factors used
to determine purchase price will ensure that loan
purchases do not result in any net cost to the
Federal Government (including the cost of
servicing the loans purchased).''; and
(2) by amending subsection (b) to read as follows:

``(b) Proceeds.--The Secretary shall require, as a condition of any
purchase under subsection (a), that the funds paid by the Secretary to
any eligible lender under this section be used--
``(1) to ensure continued participation of such lender in
the Federal student loan programs authorized under part B of
this title; and
``(2)(A) in the case of loans purchased pursuant to
subsection (a)(1), to originate new Federal loans to students,
as authorized under part B of this title; or
``(B) in the case of loans purchased pursuant to subsection
(a)(3), to originate such new Federal loans to students, or to
purchase loans in accordance with section 428F(a).''.

(b) Other Amendments.--Part D of title IV (20 U.S.C. 1087a et seq.)
is amended--
(1) by repealing paragraph (3) of section 453(c) (20 U.S.C.
1087c(c));
(2) in section 455 (20 U.S.C. 1087e)--
(A) in subsection (d)(1)(C), by striking
``428(b)(9)(A)(v)'' and inserting ``428(b)(9)(A)(iv)'';
(B) in subsection (h), by striking ``(except as
authorized under section 457(a)(1))''; and
(C) in subsection (k)(1)(B), by striking ``, or in a
notice under section 457(a)(1),'';
(3) by repealing section 457 (20 U.S.C. 1087g); and
(4) in section 460 (20 U.S.C. 1087j)--
(A) in subsection (c)(1), by adding at the end the
following: ``No borrower may receive a reduction of loan
obligations under both this section and section 428J.'';
and
(B) in subsection (g)(2)--
(i) by striking subparagraph (A);

[[Page 1947]]
123 STAT. 1947

(ii) by redesignating subparagraphs (B)
through (D) as subparagraphs (A) through (C),
respectively; and
(iii) in subparagraph (C), as redesignated by
clause (ii), by striking ``12571'' and inserting
``12601''.
SEC. 405. FEDERAL PERKINS LOANS.

Part E of title IV (20 U.S.C. 1087aa et seq.) is amended--
(1) in section 462(a)(1) (20 U.S.C. 1087bb(a)(1)), by
striking subparagraph (A) and inserting the following:
``(A) 100 percent of the amount received under subsections
(a) and (b) of this section for fiscal year 1999 (as such
subsections were in effect with respect to allocations for such
fiscal year), multiplied by'';
(2) in section 463(c) (20 U.S.C. 1087cc(c))--
(A) in paragraph (2)--
(i) by moving the margins of subparagraph (A)
2 ems to the left; and
(ii) by striking subparagraph (B) and
inserting the following:
``(B) information concerning the repayment and collection of
any such loan, including information concerning the status of
such loan; and''; and
(B) in paragraph (3)--
(i) by striking ``and (6)'' and inserting
``and (5)''; and
(ii) by striking ``(a)(6)'' and inserting
``(a)(5)'';
(3) in the first sentence of the matter preceding paragraph
(1) of section 463A(a) (20 U.S.C. 1087cc-1(a)), by striking ``,
in order to carry out the provisions of section 463(a)(8),'';
(4) in section 464 (20 U.S.C. 1087dd)--
(A) in subsection (c)--
(i) in paragraph (1)(D)--
(I) by striking ``(I)'' and
inserting ``(i)''; and
(II) by striking ``(II)'' and
inserting ``(ii)''; and
(ii) in paragraph (2)(A)(iii)--
(I) by aligning the margin of the
matter preceding subclause (I) with the
margins of clause (ii);
(II) by aligning the margins of
subclauses (I) and (II) with the margins
of clause (i)(I); and
(III) by aligning the margins of the
matter following subclause (II) with the
margins of the matter following
subclause (II) of clause (i); and
(B) in subsection (g)(5), by striking ``credit
bureaus'' and inserting ``consumer reporting agencies'';
(5) in section 465(a)(6) (20 U.S.C. 1087ee(a)(6)), by
striking ``12571'' and inserting ``12601'';
(6) in section 467(b) (20 U.S.C. 1087gg(b)), by striking
``paragraph (5)(A), (5)(B)(i), or (6)'' and inserting
``paragraph (4) or (5)''; and
(7) in section 469(c) (20 U.S.C. 1087ii(c)), by striking
``and the term'' and all that follows through the period at the
end and inserting ``and the term `early intervention services'
has the meaning given the term in section 632 of such Act.''.

[[Page 1948]]
123 STAT. 1948

SEC. 406. NEED ANALYSIS.

(a) Amendments.--Part F of title IV (20 U.S.C. 1087kk et seq.) is
amended--
(1) in section 473 (20 U.S.C. 1087mm)--
(A) by striking ``For the purpose of this title,
except subpart 2 of part A,'' and inserting ``(a) In
General.--For the purpose of this title, other than
subpart 2 of part A, and except as provided in
subsection (b),''; and
(B) by adding at the end the following:

``(b) Special Rule.--
``(1) In general.--Notwithstanding any other provision of
this title, the family contribution of each student described in
paragraph (2) shall be deemed to be zero for the academic year
for which the determination is made.
``(2) Applicability.--Paragraph (1) shall apply to any
dependent or independent student with respect to determinations
of need for academic year 2009-2010 and succeeding academic
years--
``(A) who is eligible to receive a Federal Pell
Grant for the academic year for which the determination
is made;
``(B) whose parent or guardian was a member of the
Armed Forces of the United States and died as a result
of performing military service in Iraq or Afghanistan
after September 11, 2001; and
``(C) who, at the time of the parent or guardian's
death, was--
``(i) less than 24 years of age; or
``(ii) enrolled at an institution of higher
education on a part-time or full-time basis.
``(3) Information.--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 paragraph (2).'';
(2) in section 475(c)(5)(B) (20 U.S.C. 1087oo(c)(5)(B)), by
inserting ``of 1986'' after ``Code'';
(3) in section 477(b)(5)(B) (20 U.S.C. 1087qq(b)(5)(B)), by
inserting ``of 1986'' after ``Code'';
(4) in section 479 (20 U.S.C. 1087ss)--
(A) in subsection (b) (as amended by section 602 of
the College Cost Reduction and Access Act (Public Law
110-84))--
(i) in paragraph (1)(A)(i), by amending
subclause (III) to read as follows:
``(III) include at least one parent
who is a dislocated worker; or''; and
(ii) in paragraph (1)(B)(i), by amending
subclause (III) to read as follows:
``(III) is a dislocated worker or
has a spouse who is a dislocated worker;
or''; and
(B) in subsection (c) (as amended by such section
602)--
(i) in paragraph (1)(A), by amending clause
(iii) to read as follows:
``(iii) include at least one parent who is a
dislocated worker; or''; and
(ii) in paragraph (2)(A), by amending clause
(iii) to read as follows:

[[Page 1949]]
123 STAT. 1949

``(iii) is a dislocated worker or has a spouse
who is a dislocated worker; or'';
(5) in section 479C (20 U.S.C. 1087uu-1)--
(A) in paragraph (1), by striking ``under'' and all
that follows through ``; and'' and inserting ``under
Public Law 98-64 (25 U.S.C. 117a et seq.; 97 Stat. 365)
(commonly known as the `Per Capita Act') or the Indian
Tribal Judgment Funds Use or Distribution Act (25 U.S.C.
1401 et seq.); and''; and
(B) in paragraph (2)--
(i) by striking ``Alaskan'' and inserting
``Alaska'';
(ii) by inserting ``(43 U.S.C. 1601 et seq.)''
before ``or the''; and
(iii) by inserting ``of 1980 (25 U.S.C. 1721
et seq.)'' after ``Maine Indian Claims Settlement
Act'';
(6) in section 480(a)(2) (20 U.S.C. 1087vv(a)(2)), by
striking ``12571'' and inserting ``12511'';
(7) in section 480(c)(2) (20 U.S.C. 1087vv(c)(2))--
(A) in the matter preceding subparagraph (A), by
striking ``the following'' and inserting ``benefits
under the following provisions of law''; and
(B) by striking subparagraphs (A) through (J) and
inserting the following:
``(A) Chapter 103 of title 10, United States Code (Senior
Reserve Officers' Training Corps).
``(B) Chapter 106A of title 10, United States Code
(Educational Assistance for Persons Enlisting for Active Duty).
``(C) Chapter 1606 of title 10, United States Code (Selected
Reserve Educational Assistance Program).
``(D) Chapter 1607 of title 10, United States Code
(Educational Assistance Program for Reserve Component Members
Supporting Contingency Operations and Certain Other Operations).
``(E) Chapter 30 of title 38, United States Code (All-
Volunteer Force Educational Assistance Program, also known as
the `Montgomery GI Bill--active duty').
``(F) Chapter 31 of title 38, United States Code (Training
and Rehabilitation for Veterans with Service-Connected
Disabilities).
``(G) Chapter 32 of title 38, United States Code (Post-
Vietnam Era Veterans' Educational Assistance Program).
``(H) Chapter 33 of title 38, United States Code (Post-9/11
Educational Assistance).
``(I) Chapter 35 of title 38, United States Code (Survivors'
and Dependents' Educational Assistance Program).
``(J) Section 903 of the Department of Defense Authorization
Act, 1981 (10 U.S.C. 2141 note) (Educational Assistance Pilot
Program).
``(K) Section 156(b) of the `Joint Resolution making further
continuing appropriations and providing for productive
employment for the fiscal year 1983, and for other purposes' (42
U.S.C. 402 note) (Restored Entitlement Program for Survivors,
also known as `Quayle benefits').
``(L) The provisions of chapter 3 of title 37, United States
Code, related to subsistence allowances for members of the
Reserve Officers Training Corps.''; and

[[Page 1950]]
123 STAT. 1950

(8) in section 480(j)(1) (20 U.S.C. 1087vv(j)(1)), by
striking ``12571'' and inserting ``12511''.

(b) Effective Date.--The amendments <>
made by--
(1) paragraph (1) of subsection (a) shall take effect on
July 1, 2009; and
(2) paragraph (4) of such subsection shall be effective as
if enacted as part of the amendments in section 602(a) of the
College Cost Reduction and Access Act (Public Law 110-84), and
shall take effect on July 1, 2009.

(c) Higher Education Opportunity Act.--Section 473(f) of the Higher
Education Opportunity Act (Public Law 110-315) <>  is amended by inserting ``, except that the amendments made in
subsection (e) shall take effect on July 1, 2009'' before the period at
the end.
SEC. 407. GENERAL PROVISIONS OF TITLE IV.

(a) <>  Delayed Implementation of EZ
FAFSA.--Notwithstanding any other provision of law, the Secretary of
Education shall be required to carry out the requirements under the
following provisions of section 483 of the Higher Education Act of 1965
(20 U.S.C. 1090) only for academic year 2010-2011 and subsequent
academic years:
(1) In subsection (a) of such section--
(A) subparagraphs (A)(i) and (B) of paragraph (2);
(B) in paragraph (3)--
(i) the second sentence of subparagraph (A);
(ii) clauses (i) and (ii) of subparagraph (B);
and
(iii) subparagraph (C);
(C) paragraph (4)(A)(iv); and
(D) paragraph (5)(E).
(2) Subsection (h) of such section.

(b) Other Amendments.--Part G of title IV (20 U.S.C. 1088 et seq.)
is amended--
(1) in the matter preceding paragraph (1) of section 481(c)
(20 U.S.C. 1088(c)), by striking ``or any State, or private,
profit or nonprofit organization'' and inserting ``any State, or
any private, for-profit or nonprofit organization,'';
(2) in section 482(b) (20 U.S.C. 1089(b)), by striking
``413D(e), 442(e), or 462(j)'' and inserting ``413D(d), 442(d),
or 462(i)'';
(3) in section 483 (20 U.S.C. 1090)--
(A) in subsection (a)(3)(C), by inserting ``that''
after ``except''; and
(B) in subsection (e)(8)(A), by striking
``identify'' and inserting ``determine'';
(4) in section 484 (20 U.S.C. 1091)--
(A) in the matter preceding subparagraph (A) of
subsection (a)(4), by striking ``certification,,'' and
inserting ``certification,'';
(B) in subsection (b)(1)(B)--
(i) by striking ``have (A)'' and inserting
``have (i)''; and
(ii) by striking ``and (B)'' and inserting
``and (ii)'';
(C) in subsection (f)(1), by striking ``part B'' and
all that follows through ``part E'' in each place that
the phrase occurs and inserting ``part B, part D, or
part E'';
(D) in subsection (h)--

[[Page 1951]]
123 STAT. 1951

(i) in paragraph (2), by striking
``(h)(4)(A)(i)'' and inserting ``(g)(4)(A)(i)'';
and
(ii) in paragraph (3), by striking
``(h)(4)(B)(i)'' and inserting ``(g)(4)(B)(i)'';
and
(E) in subsection (n), by striking ``section 1113 of
Public Law 97-252'' and inserting ``section 12(f) of the
Military Selective Service Act (50 U.S.C. App.
462(f))'';
(5) in section 485 (20 U.S.C. 1092)--
(A) in subsection (a)--
(i) in paragraph (1)--
(I) the matter preceding
subparagraph (A), by striking ``also
referred to as the Family Educational
Rights and Privacy Act of 1974'' and
inserting ``commonly known as the
`Family Educational Rights and Privacy
Act of 1974' ''; and
(II) in subparagraph (I), by
striking ``handicapped students'' and
inserting ``students with
disabilities'';
(ii) in paragraph (4)(B), by inserting
``during which'' after ``time period''; and
(iii) in the matter preceding subclause (I) of
paragraph (7)(B)(iv), by inserting ``education''
after ``higher'';
(B) in subsection (e)(3)(B), by inserting ``during
which'' after ``time period'';
(C) in subsection (f)--
(i) in the matter preceding subparagraph (A)
of paragraph (1), by inserting ``of'' after
``foreign institution''; and
(ii) in paragraphs (3), (4)(A), (5), and
(8)(A), by striking ``under this title'' each
place it appears and inserting ``under this title,
other than a foreign institution of higher
education,'';
(D) in subsection (g)(2), by striking ``subparagraph
(G)'' and inserting ``paragraph (1)(G)'';
(E) in subsection (i)--
(i) in paragraph (2), by striking ``eligible
institution participating in any program under
this title'' and inserting ``institution described
in paragraph (1)'';
(ii) in paragraph (3), in the matter preceding
subparagraph (A), by striking ``eligible
institution participating in any program under
this title'' and inserting ``institution described
in paragraph (1)''; and
(iii) in paragraph (5)(B), by striking ``the
Family Educational Rights and Privacy Act of
1974'' and inserting ``commonly known as the
`Family Educational Rights and Privacy Act of
1974' '';
(F) in subsection (k)(2), by inserting ``section''
before ``484(r)(1)''; and
(G) in the matter preceding clause (i) of subsection
(l)(1)(A), by striking ``subparagraph (B)'' and
inserting ``paragraph (2)'';
(6) in section 485A (20 U.S.C. 1092a)--
(A) in subsection (a)--
(i) by striking ``or defined in subpart I of
part C of title VII of the Public Health Service
Act'' and inserting ``or an eligible lender as
defined in section

[[Page 1952]]
123 STAT. 1952

719 of the Public Health Service Act (42 U.S.C.
292o)''; and
(ii) by striking ``under subpart I of part C
of title VII of the Public Health Service Act
(known as Health Education Assistance Loans)'' and
inserting ``under part A of title VII of the
Public Health Service Act (42 U.S.C. 292 et
seq.)'';
(B) in subsection (b), by striking ``subpart I of
part C of title VII of the Public Health Service Act''
and inserting ``part A of title VII of the Public Health
Service Act (42 U.S.C. 292 et seq.)'';
(C) in subsection (e)--
(i) by striking ``Health Education Assistance
Loan'' and inserting ``loan under part A of title
VII of the Public Health Service Act (42 U.S.C.
292 et seq.)''; and
(ii) in paragraph (2), by striking
``733(e)(3)'' and inserting ``707(e)(3)''; and
(D) in subsection (f)--
(i) in paragraph (1)--
(I) in the second sentence, by
striking ``subpart I of part C of title
VII of the Public Health Service Act''
and inserting ``part A of title VII of
the Public Health Service Act (42 U.S.C.
292 et seq.)''; and
(II) in the fourth sentence, by
striking ``728(a)'' and inserting
``710''; and
(ii) in paragraph (2), by striking ``subpart I
of part C of title VII of the Public Health
Service Act'' and inserting ``part A of title VII
of the Public Health Service Act (42 U.S.C. 292 et
seq.)'';
(7) in section 485B (20 U.S.C. 1092b)--
(A) in subsection (a)(5), by striking ``))'' and
inserting ``)''; and
(B) in subsection (d)(3)(D), by striking ``the
Family Educational Rights and Privacy Act of 1974'' and
inserting ``commonly known as the `Family Educational
Rights and Privacy Act of 1974' '';
(8) in section 487 (20 U.S.C. 1094)--
(A) in subsection (a)(23)(A), by inserting ``of
1993'' after ``Registration Act'';
(B) in subsection (c)(1)--
(i) in subparagraph (A)(i), by striking
``students receives'' and inserting ``students
receive'';
(ii) in subparagraph (F), by striking
``paragraph (2)(B)'' and inserting ``paragraph
(3)(B)''; and
(iii) in subparagraph (H), by striking
``paragraph (2)(B)'' and inserting ``paragraph
(3)(B)'';
(C) in subsection (f)(1), by striking ``496(c)(4)''
and inserting ``496(c)(3)''; and
(D) in subsection (g)(1), by striking ``subsection
(f)(2)'' and inserting ``subsection (e)(2)'';
(9) in section 487A(b) (20 U.S.C. 1094a(b))--
(A) in paragraph (1)--
(i) by striking ``Any activities'' and
inserting ``Any experimental sites''; and
(ii) by striking ``June 30, 2009'' and
inserting ``June 30, 2010''; and

[[Page 1953]]
123 STAT. 1953

(B) by adding at the end the following:
``(4) Determination of success.--For the purposes of
paragraph (1), the Secretary shall make a determination of
success regarding an institution's participation as an
experimental site based on--
``(A) the ability of the experimental site to reduce
administrative burdens to the institution, as documented
in the Secretary's biennial report under paragraph (2),
without creating costs for the taxpayer; and
``(B) whether the experimental site has improved the
delivery of services to, or otherwise benefitted,
students.'';
(10) in section 489(a) (20 U.S.C. 1096(a))--
(A) in the third sentence, by striking ``has agreed
to assign under section 463(a)(6)(B)'' and inserting
``has referred under section 463(a)(4)(B)''; and
(B) in the fourth sentence, by striking ``484(h)''
and inserting ``484(g)'';
(11) in section 491(l)(2)(A) (20 U.S.C. 1098(l)(2)(A)), by
inserting ``the'' after ``enactment of''; and
(12) in section 492(a) (20 U.S.C. 1098a(a))--
(A) in paragraph (1), by striking ``regulations''
and all that follows through ``The'' and inserting
``regulations for this title. The''; and
(B) in paragraph (2), by striking ``Issues'' and all
that follows through ``provide'' and inserting
``Issues.--The Secretary shall provide''.
SEC. 408. PROGRAM INTEGRITY.

Part H of title IV (20 U.S.C. 1099a et seq.) is amended--
(1) in section 496(a)(6)(G) (20 U.S.C. 1099b(a)(6)(G)), by
striking the period at the end and inserting a semicolon; and
(2) in section 498(c)(2) (20 U.S.C. 1099c(c)(2)), by
striking ``for profit'' and inserting ``for-profit''.
SEC. 409. <>  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 this title, or to
any regulations promulgated under those amendments.

TITLE V--DEVELOPING INSTITUTIONS

SEC. 501. DEVELOPING INSTITUTIONS.

Section 502(b)(2) (20 U.S.C. 1101a(b)(2)) is amended by striking
``which determination'' and inserting ``which the determination''.

TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

SEC. 601. INTERNATIONAL EDUCATION PROGRAMS.

(a) Higher Education Act of 1965.--Title VI (20 U.S.C. 1121 et seq.)
is amended--
(1) in section 604(a) (20 U.S.C. 1124(a))--

[[Page 1954]]
123 STAT. 1954

(A) in the matter preceding subparagraph (A) of
paragraph (2), by inserting ``the'' before ``Federal'';
and
(B) in paragraph (7)(D), by striking ``institution,
combination'' and inserting ``applicant, consortium,'';
and
(2) in section 622(a) (20 U.S.C. 1131-1(a)), by inserting a
period after ``title''.

(b) Higher Education Opportunity Act.--The matter preceding
paragraph (1) of section 621 of the Higher Education Opportunity Act
(Public Law 110-315) <>  is amended by striking
``Section 631 (20 U.S.C. 1132)'' and inserting ``Section 631(a) (20
U.S.C. 1132(a))''.

TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT

SEC. 701. GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS.

Title VII (20 U.S.C. 1133 et seq.) is amended--
(1) in the matter preceding paragraph (1) of section 721(d)
(20 U.S.C. 1136(d)), by striking ``services through'' and all
that follows through ``resource centers'' and inserting
``services through pre-college programs, undergraduate prelaw
information resource centers'';
(2) in section 723(b)(1)(P) (20 U.S.C. 1136a(b)(1)(P)), by
striking ``Sate'' and inserting ``State'';
(3) in section 744(c)(6)(C) (20 U.S.C. 1138c(c)(6)(C)), by
inserting ``of the National Academies'' after ``Institute of
Medicine'';
(4) in section 760 (20 U.S.C. 1140), by striking paragraph
(1) and inserting the following:
``(1) Comprehensive transition and postsecondary program for
students with intellectual <>
disabilities.--The term `comprehensive transition and
postsecondary program for students with intellectual
disabilities' means a degree, certificate, or nondegree program
that meets each of the following:
``(A) Is offered by an institution of higher
education.
``(B) Is designed to support students with
intellectual disabilities who are seeking to continue
academic, career and technical, and independent living
instruction at an institution of higher education in
order to prepare for gainful employment.
``(C) Includes an advising and curriculum structure.
``(D) Requires students with intellectual
disabilities to participate on not less than a half-time
basis as determined by the institution, with such
participation focusing on academic components, and
occurring through 1 or more of the following activities:
``(i) Regular enrollment in credit-bearing
courses with nondisabled students offered by the
institution.
``(ii) Auditing or participating in courses
with nondisabled students offered by the
institution for which the student does not receive
regular academic credit.
``(iii) Enrollment in noncredit-bearing,
nondegree courses with nondisabled students.
``(iv) Participation in internships or work-
based training in settings with nondisabled
individuals.

[[Page 1955]]
123 STAT. 1955

``(E) Requires students with intellectual
disabilities to be socially and academically integrated
with non-disabled students to the maximum extent
possible.'';
(5) in section 772 (20 U.S.C. 1140l)--
(A) in subsection (a)(2)(A), by striking ``with in''
and inserting ``with''; and
(B) in the matter preceding subclause (I) of
subsection (b)(1)(C)(ii), by striking ``subparagraph
(C)'' and inserting ``clause (i)'';
(6) in section 781 (20 U.S.C. 1141)--
(A) in subsection (c)(1), by striking ``Service''
each place the term appears and inserting ``Services'';
(B) in the matter preceding paragraph (1) of
subsection (e)--
(i) by striking ``(as defined'' and all that
follows through ``this Act)'' and inserting ``(as
described in section 435(p))''; and
(ii) by striking ``435(j)'' and inserting
``428(b)'';
(C) in subsection (g)(2), by striking ``Service''
and inserting ``Services''; and
(D) in subsection (i)--
(i) in paragraph (1)(D), by striking
``consortia'' and inserting ``consortium''; and
(ii) in paragraph (2)--
(I) in the paragraph heading, by
striking ``consortia'' and inserting
``consortium''; and
(II) by striking ``consortia'' each
place the term appears and inserting
``consortium''.

TITLE VIII--ADDITIONAL PROGRAMS

SEC. 801. ADDITIONAL PROGRAMS.

Title VIII (20 U.S.C. 1161a et seq.) is amended--
(1) in section 802(d)(2)(D) (20 U.S.C. 1161b(d)(2)(D)), by
striking ``regulation'' and inserting ``regulations'';
(2) in section 804(d) (20 U.S.C. 1161d(d))--
(A) in the heading, by striking ``Definition'' and
inserting ``Definitions''; and
(B) by striking paragraph (2) and inserting the
following:
``(2) Public health service act.--The terms `accredited' and
`school of nursing' have the meanings given those terms in
section 801 of the Public Health Service Act (42 U.S.C. 296).'';
(3) in section 808(a)(1) (20 U.S.C. 1161h(a)(1)), by
striking ``the Family Education Rights and Privacy Act of 1974''
and inserting ``section 444 of the General Education Provisions
Act (commonly known as the `Family Educational Rights and
Privacy Act of 1974')'';
(4) in section 819(b)(3) (20 U.S.C. 1161j(b)(3)), by
inserting a period after ``101(a)'';
(5) in section 820 (20 U.S.C. 1161k)--
(A) in subsection (d)(5), by inserting ``the''
before ``grant'';
(B) in subsection (f)(2), by striking ``subpart''
each place the term appears and inserting ``section'';
and

[[Page 1956]]
123 STAT. 1956

(C) in subsection (h), by striking ``use'' and
inserting ``used'';
(6) in section 821 (20 U.S.C. 1161l)--
(A) in subsection (a)(1), by striking ``subsection
(g)'' and inserting ``subsection (f)''; and
(B) in subsection (c)(1)(B), by striking ``within''
and inserting ``in'';
(7) in section 824(f)(3) (20 U.S.C. 1161l-3(f)(3))--
(A) in subparagraph (A), by inserting ``a'' after
``submitting''; and
(B) in subparagraph (C), by striking ``pursing'' and
inserting ``pursuing'';
(8) in section 825(a) (20 U.S.C. 1161l-4(a)), by striking
``the Family Educational Rights and Privacy Act of 1974'' and
inserting ``commonly known as the `Family Educational Rights and
Privacy Act of 1974' '';
(9) in section 826(3) (20 U.S.C. 1161l-5(3)), by striking
``the Family Educational Rights and Privacy Act of 1974'' and
inserting ``commonly known as the `Family Educational Rights and
Privacy Act of 1974' '';
(10) in section 830(a)(1)(B) (20 U.S.C. 1161m(a)(1)(B)), by
striking ``of for'' and inserting ``of'';
(11) in section 833(e)(1) (20 U.S.C. 1161n-2(e)(1))--
(A) in the matter preceding subparagraph (A), by
striking ``because of'' and inserting ``based on''; and
(B) in subparagraph (D), by striking ``purposes of
this section'' and inserting ``purpose of this part'';
(12) in section 841(c)(1) (20 U.S.C. 1161o(c)(1)), by
striking ``486A(d)'' and inserting ``486A(b)(1)'';
(13) in section 851(j) (20 U.S.C. 1161p(j)), by inserting
``to be appropriated'' after ``authorized''; and
(14) in section 894(b)(2) (20 U.S.C. 1161y(b)(2)), by
striking ``the Family Educational Rights and Privacy Act of
1974'' and inserting ``commonly known as the `Family Educational
Rights and Privacy Act of 1974' ''.
SEC. 802. AMENDMENTS TO OTHER HIGHER EDUCATION ACTS.

(a) Higher Education Amendments of 1998.--
(1) Incarcerated individuals.--Section 821(h) of the Higher
Education Amendments of 1998 (20 U.S.C. 1151(h)) is amended to
read as follows:

``(h) Allocation of Funds.--
``(1) Fiscal year 2009.--From the funds appropriated
pursuant to subsection (i) for fiscal year 2009, the Secretary
shall allot to each State an amount that bears the same
relationship to such funds as the total number of incarcerated
individuals described in paragraphs (1) and (2) of subsection
(e) in the State bears to the total number of such individuals
in all States.
``(2) Future fiscal years.--From the funds appropriated
pursuant to subsection (i) for each fiscal year after fiscal
year 2009, the Secretary shall allot to each State an amount
that bears the same relationship to such funds as the total
number of students eligible under subsection (e) in such State
bears to the total number of such students in all States.''.

[[Page 1957]]
123 STAT. 1957

(2) Underground railroad.--Section 841(c) of the Higher
Education Amendments of 1998 (20 U.S.C. 1153(c)) is amended by
inserting ``this section'' after ``to carry out''.

(b) Education of the Deaf Act of 1986.--Section 203(b)(2) of the
Education of the Deaf Act of 1986 (20 U.S.C. 4353(b)(2)) is amended by
striking ``and subsections (b) and (c) of section 209.'' and inserting
``and subsections (a), (b), and (c) of section 209.''.

Approved July 1, 2009.

LEGISLATIVE HISTORY--H.R. 1777:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 155 (2009):
Mar. 30, considered and passed House.
June 23, considered and passed Senate, amended. House
concurred in Senate amendment.