< Back to H.R. 2669 (110th Congress, 2007–2009)

Text of the College Cost Reduction and Access Act

This bill was enacted after being signed by the President on September 27, 2007. The text of the bill below is as of Jun 12, 2007 (Introduced).

This is not the latest text of this bill.

Source: GPO

I

110th CONGRESS

1st Session

H. R. 2669

IN THE HOUSE OF REPRESENTATIVES

June 12, 2007

(for himself and Mr. Hinojosa) introduced the following bill; which was referred to the Committee on Education and Labor

A BILL

To provide for reconciliation pursuant to section 601 of the concurrent resolution on the budget for fiscal year 2008.

1.

Short title; table of contents

(a)

Short title

This Act may be referred to as the College Cost Reduction Act of 2007.

(b)

Table of contents

Sec. 1. Short title; table of contents.

Sec. 2. References; effective date.

Title I—Investing in Student Aid

Part A—Increasing the purchasing power of Pell Grants

Sec. 101. Mandatory Pell Grant Increases.

Sec. 102. Support for working students.

Sec. 103. Simplified needs test and automatic zero improvements.

Sec. 104. Definitions.

Part B—Making Student Loans More Affordable

Sec. 111. Interest rate reductions.

Sec. 112. Increases in loan limits.

Sec. 113. Reduction of lender special allowance payments.

Sec. 114. Elimination of exceptional performer status for lenders.

Sec. 115. Reduction of lender insurance percentage.

Sec. 116. Guaranty agency collection retention.

Sec. 117. Unit costs for account maintenance fees.

Sec. 118. Increased loan fees from lenders.

Sec. 119. Student loan information.

Part C—Rewarding Service in Repayment

Sec. 141. Loan forgiveness for service in areas of national need.

Sec. 428K. Loan forgiveness for service in areas of national need.

Sec. 142. Income contingent repayment for public sector employees.

Sec. 143. Income-based repayment.

Sec. 493C. Income-based repayment.

Sec. 144. Definition of economic hardship.

Sec. 145. Deferrals.

Sec. 146. Maximum repayment period.

Title II—Reducing the Cost of College

Sec. 201. State commitment to affordable college education.

Sec. 132. State commitment to affordable college education.

Sec. 202. Consumer information and public accountability in higher education.

Sec. 131. Consumer information and public accountability in higher education.

Sec. 203. Incentives and rewards for low tuition.

Sec. 401B. Incentives and rewards for low tuition.

Sec. 204. Cooperative education rewards for institutions that restrain tuition increases.

Title VIII—Cooperative education rewards for institutions that restrain tuition increases

Sec. 801. Eligible institutions.

Sec. 802. Authorization of appropriations; reservations.

Sec. 803. Grants for cooperative education.

Sec. 804. Demonstration and innovation projects; training and resource centers; and research.

Title III—Ensuring a Highly Qualified Teacher in Every Classroom

Part A—TEACH Grants

Sec. 301. TEACH Grants.

Subpart 9—TEACH Grants

Sec. 420L. Program established.

Sec. 420M. Eligibility; applications; selection.

Sec. 420N. Definitions.

Sec. 420O. Program period and funding.

Part B—Centers of Excellence

Sec. 311. Centers of excellence.

Part C—Centers of Excellence

Sec. 231. Definitions.

Sec. 232. Centers of excellence.

Sec. 233. Appropriations.

Title IV—College Access Challenge Grant Program

Sec. 401. College Access Challenge grants.

2.

References; effective date

(a)

References

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

(b)

Effective Date

Except as otherwise expressly provided therein, the amendments made by this Act shall be effective on October 1, 2007.

I

Investing in Student Aid

A

Increasing the purchasing power of Pell Grants

101.

Mandatory Pell Grant Increases

(a)

Extension of authority

Section 401(a) (20 U.S.C. 1070a(a)) is amended by striking fiscal year 2004 and inserting fiscal year 2013.

(b)

Funding for increases

Section 401(b) (20 U.S.C. 1070a(b)) is amended by adding at the end the following new paragraph:

(9)

Additional funds

(A)

In general

There are authorized to be appropriated, and there are appropriated, to carry out subparagraph (B) of this paragraph (in addition to any other amounts appropriated to carry out this section and out of any money in the Treasury not otherwise appropriated) the following amounts:

(i)

$420,000,000 for fiscal year 2008;

(ii)

$870,000,000 for fiscal year 2009;

(iii)

$1,330,000,000 for fiscal year 2010;

(iv)

$1,820,000,000 for fiscal year 2011;

(v)

$2,340,000,000 for fiscal year 2012;

(vi)

$2,390,000,000 for fiscal year 2013;

(vii)

$2,430,000,000 for fiscal year 2014;

(viii)

$2,470,000,000 for fiscal year 2015;

(ix)

$2,500,000,000 for fiscal year 2016; and

(x)

$2,520,000,000 for fiscal year 2017.

(B)

Increase in Federal Pell Grants

The amounts made available pursuant to subparagraph (A) of this paragraph shall be used to increase the amount of the maximum Pell Grant for which a student shall be eligible during an award year, as specified in the last enacted appropriation Act applicable to that award year, by—

(i)

$100 for award year 2008–2009;

(ii)

$200 for award year 2009–2010;

(iii)

$300 for award year 2010–2011;

(iv)

$400 for award year 2011–2012; and

(v)

$500 for award year 2012–2013 and each subsequent award year.

(C)

Use of fiscal year funds for award years

The amounts made available by subparagraph (A) for any fiscal year shall be available and remain available for use under subparagraph (B) for the award year that begins in such fiscal year.

.

(c)

Authorized maximums

Section 401(b)(2)(A) (20 U.S.C. 1070a(b)(2)(A)) is amended to read as follows:

(2)
(A)

The amount of the Federal Pell Grant for a student eligible under this part shall be—

(i)

$7,600 for academic year 2008–2009;

(ii)

$8,600 for academic year 2009–2010;

(iii)

$9,600 for academic year 2010–2011;

(iv)

$10,600 for academic year 2011–2012;

(v)

$11,600 for academic year 2012–2013,

less an amount equal to the amount determined to be the expected family contribution with respect to that student for that year.

.

(d)

Tuition Sensitivity

(1)

Amendment

Section 401(b) (20 U.S.C. 1070a(b)) is further amended—

(A)

by striking paragraph (3); and

(B)

by redesignating paragraphs (4) through (9) as paragraphs (3) through (8), respectively.

(2)

Effective date

The amendments made by paragraph (1) of this subsection are effective on the date of enactment of this Act.

(e)

Multiple Grants

Paragraph (5) of section 401(b) (as redesignated by subsection (d)(2)) is amended to read as follows:

(5)

Year-round pell grants

The Secretary is authorized, for students enrolled full time in a baccalaureate or associate’s degree program of study at an eligible institution, to award such students not more than two Pell grants during an award year to permit such students to accelerate progress toward their degree objectives by enrolling in academic programs for 12 months rather than 9 months.

.

(f)

Academic Competitiveness Grants

Section 401A (as amended by section 8003 of Public Law 109–171) is amended—

(1)

in subsection (c)(3)(A)(ii), by inserting , except as part of a secondary school program of study before the semicolon;

(2)

by redesignating subsection (g) as subsection (h); and

(3)

by inserting after subsection (f) the following new subsection:

(g)

Determination of academic year

Notwithstanding section 481(a)(2), for the purpose of determining eligibility for a grant under this section, a student shall be considered to be enrolled or accepted for enrollment in the first, second, third, or fourth academic year of a program of undergraduate education based on the student’s class standing, as determined by the institution of higher education at which the student is enrolled or accepted for enrollment.

.

102.

Support for working students

(a)

Dependent Students

Subparagraph (D) of section 475(g)(2) (20 U.S.C. 1087oo)(g)(2)(D)) is amended to read as follows:

(D)

an income protection allowance of the following amount (or a successor amount prescribed by the Secretary under section 478)—

(i)

for the 2009–2010 academic year, $3,750;

(ii)

for the 2010–2011 academic year, $4,500;

(iii)

for the 2011–2012 academic year, $5,250; and

(iv)

for the 2012–2013 academic year, $6,000;

.

(b)

Independent Students Without Dependents Other Than a Spouse

Clause (iv) of section 476(b)(1)(A) (20 U.S.C. 1087pp(b)(1)(A)(iv)) is amended to read as follows:

(iv)

an income protection allowance of the following amount (or a successor amount prescribed by the Secretary under section 478)—

(I)

for single or separated students, or married students where both are enrolled pursuant to subsection (a)(2)—

(aa)

for the 2009–2010 academic year, $6,690;

(bb)

for the 2010–2011 academic year, $7,160;

(cc)

for the 2011–2012 academic year, $7,630; and

(dd)

for the 2012–2013 academic year, $8,090; and

(II)

for married students where 1 is enrolled pursuant to subsection (a)(2)—

(aa)

for the 2009–2010 academic year, $10,720;

(bb)

for the 2010–2011 academic year, $11,470;

(cc)

for the 2011–2012 academic year, $12,220; and

(dd)

for the 2012–2013 academic year, $12,960;

.

(c)

Updated tables and amounts

Section 478(b) (20 U.S.C. 1087rr(b)) is amended—

(1)

in paragraph (1)—

(A)

by striking Revised tables.—For each and inserting

Revised tables.—

(A)

In general.—For each

;

(B)

in subparagraph (A) (as designated by subparagraph (A)), in the third sentence—

(i)

by striking preceding sentence and inserting subparagraph (A); and

(ii)

by striking For the 2007–2008 and inserting the following:

(B)

Special rule for 2007–2008 academic year

For the 2007–2008

; and

(C)

by adding at the end the following:

(C)

Special rule for 2009–2010 through 2012–2013 academic years

For the 2009–2010 academic year, and for each of the 3 succeeding academic years, the Secretary shall revise the tables in accordance with this paragraph, except that, for the table in section 477(b)(4), the Secretary shall revise such table by increasing the amounts contained in such table for the preceding academic year by 10 percent.

; and

(2)

in paragraph (2), by striking shall be developed and all that follows through the period at the end and inserting

shall be developed—

(A)

for academic year 2008–2009, by increasing each of the dollar amounts contained in such section as such section was in effect on the day before the date of enactment of the College Cost Reduction Act of 2007 by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary) between December 2006 and the December next preceding the beginning of such academic year, and rounding the result to the nearest $10; and

(B)

for each academic year after 2012–2013, by increasing each of the dollar amounts contained in such section for academic year 2012–2013 by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary) between December 2006 and the December next preceding the beginning of such academic year, and rounding the result to the nearest $10;

.

(d)

Effective date

The amendments made by subsections (a) and (b) shall take effect on October 1, 2008, and the amendment made by subsection (c) shall take effect on July 1, 2008.

103.

Simplified needs test and automatic zero improvements

(a)

Simplified Needs Test

Section 479 (20 U.S.C. 1087ss) is amended—

(1)

in subsection (b)—

(A)

in paragraph (1)(A)(i)—

(i)

in subclause (II), by striking or after the semicolon;

(ii)

by redesignating subclause (III) as subclause (IV);

(iii)

by inserting after subclause (II) the following:

(III)

1 of whom is a dislocated worker; or

; and

(iv)

in subclause (IV) (as redesignated by clause (ii)), by striking 12-month and inserting 24-month; and

(B)

in subparagraph (B)(i)—

(i)

in subclause (II), by striking or after the semicolon;

(ii)

by redesignating subclause (III) as subclause (IV);

(iii)

by inserting after subclause (II) the following:

(III)

1 of whom is a dislocated worker; or

; and

(iv)

in subclause (IV) (as redesignated by clause (ii)), by striking 12-month and inserting 24-month;

(2)

in subsection (c)—

(A)

in paragraph (1)—

(i)

in subparagraph (A)—

(I)

in clause (ii), by striking or after the semicolon;

(II)

by redesignating clause (iii) as clause (iv);

(III)

by inserting after clause (ii) the following:

(iii)

1 of whom is a dislocated worker; or

; and

(IV)

in clause (iv) (as redesignated by subclause (II)), by striking 12-month and inserting 24-month; and

(ii)

in subparagraph (B), by striking $20,000 and inserting $30,000; and

(B)

in paragraph (2)—

(i)

in subparagraph (A)—

(I)

in clause (ii), by striking or after the semicolon;

(II)

by redesignating clause (iii) as clause (iv);

(III)

by inserting after clause (ii) the following:

(iii)

is a dislocated worker; or

; and

(IV)

in clause (iv) (as redesignated by subclause (II)), by striking 12-month and inserting 24-month; and

(ii)

in subparagraph (B), by striking $20,000 and inserting $30,000; and

(C)

in the flush matter following paragraph (2)(B), by adding at the end the following: The Secretary shall annually adjust the income level necessary to qualify an applicant for the zero expected family contribution. The income level shall be adjusted according to increases in the Consumer Price Index, as defined in section 478(f).; and

(3)

in subsection (d)—

(A)

by redesignating paragraphs (1) through (6) as subparagraphs (A) through (F), respectively;

(B)

by striking (d) Definition and all that follows through the term and inserting the following:

(d)

Definitions

In this section:

(1)

Dislocated worker

The term dislocated worker has the meaning given the term in section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801).

(2)

Means-tested Federal Benefit Program

The term

.

(b)

Discretion of Student Financial Aid Administrators

Section 479A(a) (20 U.S.C. 1087tt(a)) is amended in the third sentence by inserting a family member who is a dislocated worker (as defined in section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801)), after recent unemployment of a family member,.

(c)

Effective Date

The amendments made by this section shall be effective on July 1, 2009.

104.

Definitions

(a)

Total income

Section 480(a) (20 U.S.C. 1087vv(a)) is amended—

(1)

in paragraph (1), by inserting before the period at the end the following: , except that the Secretary may, by regulation, provide for the use of the previous tax year when and to the extent necessary to carry out the sense of Congress in section 133 of the College Cost Reduction Act of 2007; and

(2)

in paragraph (2)—

(A)

by striking and no portion and inserting no portion; and

(B)

by inserting and no distribution from any qualified education benefit described in subsection (f)(3) that is not subject to Federal income tax, after 1986,.

(b)

Untaxed income and benefits

Section 480(b) (20 U.S.C. 1087vv(b)) is amended to read as follows:

(b)

Untaxed income and benefits

(1)

The term untaxed income and benefits means—

(A)

child support received;

(B)

workman's compensation;

(C)

veteran's benefits such as death pension, dependency, and indemnity compensation, but excluding veterans’ education benefits as defined in subsection (c);

(D)

interest on tax-free bonds;

(E)

housing, food, and other allowances (excluding rent subsidies for low-income housing) for military, clergy, and others (including cash payments and cash value of benefits);

(F)

cash support or any money paid on the students behalf, except, for dependent students, funds provided by the students parents;

(G)

untaxed portion of pensions;

(H)

payments to individual retirement accounts and Keogh accounts excluded from income for Federal income tax purposes; and

(I)

any other untaxed income and benefits, such as Black Lung Benefits, Refugee Assistance, railroad retirement benefits, or Job Training Partnership Act noneducational benefits or benefits received through participation in employment and training activities under title I of the Workforce Investment Act of 1998.

(2)

The term untaxed income and benefits shall not include the amount of additional child tax credit claimed for Federal income tax purposes.

.

(c)

Assets

Section 480(f) (20 U.S.C. 1087vv(f)) is amended—

(1)

in paragraph (3), by striking shall not be considered an asset of a student for purposes of section 475 and inserting shall be considered an asset of the parent for purposes of section 475;

(2)

by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively; and

(3)

by inserting after paragraph (3) the following:

(4)

A qualified education benefit shall be considered an asset of the student for purposes of section 476 and 477.

.

(d)

Other financial assistance

Section 480(j)(2) (20 U.S.C. 1087vv(j)(2)) is amended by inserting , or a distribution that is not includable in gross income under section 529 of such Code, under another prepaid tuition plan offered by a State, or under a Coverdell education savings account under section 530 of such Code, after 1986.

(e)

Effective Date

The amendments made by this section shall be effective on July 1, 2009.

B

Making Student Loans More Affordable

111.

Interest rate reductions

(a)

FFEL Interest Rates

(1)

Section 427A(l) (20 U.S.C. 1077a(l)) is amended by adding at the end the following new paragraph:

(4)

Reduced rates for undergraduate subsidized loans

Notwithstanding subsection (h) and paragraph (1) of this subsection, with respect to any loan to an undergraduate student made, insured, or guaranteed under this part (other than a loan made pursuant to section 428B, 428C, or 428H) for which the first disbursement is made on or after July 1, 2006, and before July 1, 2013, the applicable rate of interest shall be as follows:

(A)

For a loan for which the first disbursement is made on or after July 1, 2006, and before July 1, 2008, 6.80 percent on the unpaid principal balance of the loan.

(B)

For a loan for which the first disbursement is made on or after July 1, 2008, and before July 1, 2009, 6.12 percent on the unpaid principal balance of the loan.

(C)

For a loan for which the first disbursement is made on or after July 1, 2009, and before July 1, 2010, 5.44 percent on the unpaid principal balance of the loan.

(D)

For a loan for which the first disbursement is made on or after July 1, 2010, and before July 1, 2011, 4.76 percent on the unpaid principal balance of the loan.

(E)

For a loan for which the first disbursement is made on or after July 1, 2011, and before July 1, 2012, 4.08 percent on the unpaid principal balance of the loan.

(F)

For a loan for which the first disbursement is made on or after July 1, 2012 and before July 1, 2013, 3.40 percent on the unpaid principal balance of the loan.

.

(2)

Special allowance cross reference

Section 438(b)(2)(I)(ii)(II) (20 U.S.C. 1086(b)(2)(I)(ii)(II)) is amended by striking section 427A(l)(1) and inserting section 427A(l)(1) or (l)(4).

(b)

Direct Loan interest rates

Section 455(b)(7) (20 U.S.C. 1087e(b)(7)) is amended by adding at the end the following new subparagraph:

(D)

Reduced rates for undergraduate FDSL

Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Stafford Loans made to undergraduate students for which the first disbursement is made on or after July 1, 2006, and before July 1, 2013, the applicable rate of interest shall be as follows:

(i)

For a loan for which the first disbursement is made on or after July 1, 2006, and before July 1, 2008, 6.80 percent on the unpaid principal balance of the loan.

(ii)

For a loan for which the first disbursement is made on or after July 1, 2008, and before July 1, 2009, 6.12 percent on the unpaid principal balance of the loan.

(iii)

For a loan for which the first disbursement is made on or after July 1, 2009, and before July 1, 2010, 5.44 percent on the unpaid principal balance of the loan.

(iv)

For a loan for which the first disbursement is made on or after July 1, 2010, and before July 1, 2011, 4.76 percent on the unpaid principal balance of the loan.

(v)

For a loan for which the first disbursement is made on or after July 1, 2011, and before July 1, 2012, 4.08 percent on the unpaid principal balance of the loan.

(vi)

For a loan for which the first disbursement is made on or after July 1, 2012, and before July 1, 2013, 3.40 percent on the unpaid principal balance of the loan.

.

112.

Increases in loan limits

(a)

Increase in third and subsequent year limits

(1)

Federal insurance limits

Section 425(a)(1)(A)(iii) (20 U.S.C. 1075(a)(1)(A)(iii)) is amended by striking $5,500 and inserting $7,500.

(2)

Guaranty limits

Section 428(b)(1)(A)(iii)(I) (20 U.S.C. 1078(b)(1)(A)(iii)(I)) is amended by striking $5,500 and inserting $7,500.

(b)

Increase in aggregate limits

(1)

Federal insurance limits

Section 425(a)(2)(A) (20 U.S.C. 1075(a)(2)(A)(i)) is amended—

(A)

in clause (i), by striking $23,000 and inserting $30,500; and

(B)

in clause (ii), by striking $65,500 and inserting $73,000.

(2)

Guaranty limits

Section 428(b)(1)(B) (20 U.S.C. 1078(b)(1)(A)(iii)(I)) is amended—

(A)

in clause (i), by striking $23,000 and inserting $30,500; and

(B)

in clause (ii), by striking $65,500 and inserting $73,000.

(c)

Effective Date

The amendments made by this section shall be effective July 1, 2008.

113.

Reduction of lender special allowance payments

Section 438(b)(2)(I) (20 U.S.C. 1087–1(b)(2)(I)) is amended—

(1)

in clause (i), by striking clauses (ii), (iii), and (iv) and inserting the following clauses; and

(2)

by adding at the end the following new clause:

(vi)

Reduction for loans on or after October 1, 2007

With respect to a loan on which the applicable interest rate is determined under section 427A(l), the percentage to be added under clause (i)(III) in computing the special allowance payment pursuant to this subparagraph shall be the following:

(I)

In general and PLUS loans

1.79 percent in the case of a loan described in clause (i) or (iii) for which the first disbursement of principal is made on or after October 1, 2007.

(II)

In school and grace period

1.19 percent in the case of a loan described in clause (ii)(II) for which the first disbursement of principal is made on or after October 1, 2007.

(III)

Consolidation loans

2.09 percent in the case of a loan described in clause (iv) for which the first disbursement of principal is made on or after October 1, 2007

.

114.

Elimination of exceptional performer status for lenders

(a)

Elimination of Status

Part B of title IV (20 U.S.C. 1071 et seq.) is amended by striking section 428I (20 U.S.C. 1078–9).

(b)

Conforming amendments

Part B of title IV is further amended—

(1)

in section 428(c)(1) (20 U.S.C. 1078(c)(1))—

(A)

by striking subparagraph (D); and

(B)

by redesignating subparagraphs (E) through (H) as subparagraphs (D) through (G), respectively; and

(2)

in section 438(b)(5) (20 U.S.C. 1087–1(b)(5)), by striking the matter following subparagraph (B).

(c)

Effective date

The amendments made by subsections (a) and (b) shall take effect on October 1, 2007.

115.

Reduction of lender insurance percentage

(a)

Amendment

Subparagraph (G) of section 428(b)(1) (20 U.S.C. 1078(b)(1)(G)) is amended to read as follows:

(G)

insures 95 percent of the unpaid principal of loans insured under the program, except that—

(i)

such program shall insure 100 percent of the unpaid principal of loans made with funds advanced pursuant to section 428(j) or 439(q); and

(ii)

notwithstanding the preceding provisions of this subparagraph, such program shall insure 100 percent of the unpaid principal amount of exempt claims as defined in subsection (c)(1)(G);

.

(b)

Effective date

The amendment made by subsection (a) shall take effect with respect to loans made on or after October 1, 2007.

116.

Guaranty agency collection retention

Clause (ii) of section 428(c)(6)(A) (20 U.S.C. 1078(c)(6)(A)(ii)) is amended to read as follows:

(ii)

an amount equal to 23 percent of such payments for use in accordance with section 422B, except that beginning October 1, 2007, this subparagraph shall be applied by substituting 16 percent for 23 percent.

.

117.

Unit costs for account maintenance fees

Section 458(b) (20 U.S.C. 1087h(b)) is amended—

(1)

by striking Account and inserting the following:

(1)

For fiscal years 2006 and 2007

For fiscal years 2006 and 2007, account

; and

(2)

by adding at the end the following new paragraph:

(2)

For fiscal year 2008 and succeeding fiscal years

(A)

Unit cost basis

For fiscal year 2008 and each succeeding fiscal year, the Secretary shall calculate the account maintenance fees payable to guaranty agencies under subsection (a)(3), on a per-loan cost basis in accordance with subparagraph (B) of this paragraph.

(B)

Determinations

To determine the amount that shall be paid under subsection (a)(3) per outstanding loan guaranteed by a guaranty agency for fiscal year 2008 and succeeding fiscal years, the Secretary shall—

(i)

establish the per-loan cost basis amount by—

(I)

dividing the total amount of account maintenance fees paid under subsection (a)(3) in fiscal year 2006, by

(II)

the number of loans under part B that were outstanding in that fiscal year; and

(ii)

determine on October 1 of fiscal year 2008 and each subsequent fiscal year, and pay to each guaranty agency, an amount equal to the product of the number of loans under part B that are outstanding on October 1 of that fiscal year and insured by that guaranty agency multiplied by—

(I)

the amount determined under clause (i); increased by

(II)

a percentage equal to the percentage increase in the GDP price index (as determined by the Bureau of Labor Statistics of the Department of Labor) between the calendar quarter ending on June 30, 2006, and the calendar quarter ending on the June 30 preceding such October 1 of such fiscal year.

.

118.

Increased loan fees from lenders

Paragraph (2) of section 438(d) (20 U.S.C. 1087–1(d)(2)) is amended to read as follows:

(2)

Amount of loan fees

(A)

Amount

The amount of the loan fee which shall be deducted under paragraph (1), but which may not be collected from the borrower, shall be equal to—

(i)

except as provided in clauses (ii) and (iii), 0.50 percent of the principal amount of the loan with respect to any loan under this part for which the first disbursement was made on or after October 1, 1993;

(ii)

1.0 percent of the principal amount of the loan with respect to any loan under this part for which the first disbursement was made on or after October 1, 2007, that is held by any holder other than a holder designated by the Secretary as a small lender under subparagraph (B); and

(iii)

0.0 percent of the principal amount of the loan with respect to any loan under this part for which the first disbursement was made on or after October 1, 2007, that is held by any holder that, together with its affiliated holders, is designated by the Secretary as a small lender under subparagraph (B).

(B)

Designation of small lenders

In determining which holders of eligible loans qualify as small lenders for purposes of subparagraph (A)(iii), the Secretary shall, using the most recently available data with respect to the total principal amount of eligible loans held by holders—

(i)

rank all holders (combined with their affiliated holders) of eligible loans in descending order by total principal amount of eligible loans held;

(ii)

calculate the total principal amount of eligible loans held by all holders; and

(iii)

identify the subset of consecutively ranked holders under clause (i), starting with the lowest ranked holder, that together hold a total principal amount of such loans equal to 15 percent of the total amount calculated under clause (ii), but excluding the holder, if any, whose holdings when added cause the total holdings of the subset to equal but not exceed such 15 percent of such total amount calculated; and

(iv)

designate as small lenders any holder identified as a member of the subset under clause (iii).

.

119.

Student loan information

Section 428(k) (20 U.S.C. 1078(k)) is amended by adding at the end the following new paragraph:

(4)

Student loan information

(A)

Notwithstanding any other provision of law or regulation, a lender, secondary market, holder, or guaranty agency shall provide, free of charge and in a timely and effective manner, any student loan information maintained by that entity that is requested by an institution of higher education and any third-party servicer (as defined in section 481(c)) working on behalf of that institution to prevent student loan defaults.

(B)

An institution and any third-party servicer obtaining access to information under subparagraph (A) shall safeguard that information in order to prevent potential abuses of that information, including identity theft.

(C)

Any third party servicer that obtains information under this subparagraph shall only use the information in a manner directly related to the default prevention work the servicer is performing on behalf of the institution of higher education.

(D)

Any third party servicer that obtains information under this subparagraph shall be subject to any regulations established by the Secretary pursuant to section 432 concerning the misuse of such information, including any penalties for such misuse.

.

C

Rewarding Service in Repayment

141.

Loan forgiveness for service in areas of national need

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

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 student loan obligation of a borrower in the amount specified in subsection (c), for any new borrower after the date of enactment of the College Cost Reduction Act of 2007, who—

(A)

has been employed full-time for at least 5 consecutive complete school, academic, or calendar years, as appropriate, in an area of national need 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; and

(B)

to cancel a qualified loan amount for a loan made under part D of this title.

(3)

Regulations

The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section.

(b)

Areas of national need

For purposes of this section, an individual shall be treated as employed in an area of national need if the individual is employed full time as any of the following:

(1)

Early childhood educators

An individual who is employed as an early childhood educator in an eligible preschool program or eligible early childhood education program in a low-income community, and who is involved directly in the care, development, and education of infants, toddlers, or young children through age 5.

(2)

Nurses

An individual who is employed—

(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

An individual who has obtained a baccalaureate degree in a critical foreign language and is employed—

(A)

in an elementary or secondary school as a teacher of a critical foreign language; or

(B)

in an agency of the United States Government in a position that regularly requires the use of such critical foreign language.

(4)

Librarians

An individual who is employed 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 their total student enrollments composed of children counted under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965; or

(B)

an elementary or secondary school which is in the school district of a local educational agency which is eligible in such year for assistance pursuant to title I of the Elementary and Secondary Education Act of 1965, and which for the purpose of this paragraph and for that year has been determined by the Secretary (pursuant to regulations and after consultation with the State educational agency of the State in which the school is located) to be a school in which the enrollment of children counted under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965 exceeds 30 percent of the total enrollment of that school.

(5)

Highly Qualified Teachers: Bilingual Education and Low-income Communities

An individual who—

(A)

is highly qualified as such term is defined in section 9101 of the Elementary and Secondary Education Act of 1965; and

(B)
(i)

is employed as a full-time teacher of bilingual education; or

(ii)

is employed as a teacher for service in a public or nonprofit private elementary or secondary school which is in the school district of a local educational agency which is eligible in such year for assistance pursuant to title I of the Elementary and Secondary Education Act of 1965, and which for the purpose of this paragraph and for that year has been determined by the Secretary (pursuant to regulations and after consultation with the State educational agency of the State in which the school is located) to be a school in which the enrollment of children counted under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965 exceeds 40 percent of the total enrollment of that school.

(6)

Child Welfare Workers

An individual who—

(A)

has obtained a degree in social work or a related field with a focus on serving children and families; and

(B)

is employed in public or private child welfare services.

(7)

Speech-language pathologists

An individual who is a speech-language pathologist, who is employed in an eligible preschool program or an elementary or secondary school, and who has, at a minimum, a graduate degree in speech-language pathology, or communication sciences and disorders.

(8)

National service

An individual who is engaged as a participant in project under the National and Community Service Act of 1990 (as such terms are defined in section 101 of such Act (42 U.S.C. 12511)).

(9)

Public sector employees

An individual who is employed in government, public safety (including as a first responder, firefighter, police officer, or other law enforcement or public safety officer), emergency management (including as an emergency medical technician), public health, or public interest legal services (including prosecution or public defense).

(c)

Qualified loan amount

The Secretary shall forgive not more than $5,000 in the aggregate of the student loan obligation of a borrower that is outstanding after the completion of the fifth consecutive school, academic, or calendar year of employment, as appropriate, described in subsection (a)(1).

(d)

Construction

Nothing in this section shall be construed to authorize the refunding of any repayment of a loan.

(e)

Segal Americorps Education Award Recipients

A student borrower who qualifies for the maximum education award under subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12601 et seq.) shall not receive under this section more than the difference between the maximum benefit available under this section and the maximum award available under such subtitle.

(f)

National service award recipients

A student borrower who receives the maximum education award under subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12601 et seq.) shall not receive under this section more than the difference between the maximum benefit available under this section and the award received under such subtitle.

(g)

Ineligibility for double benefits

No borrower may receive a reduction of loan obligations under both this section and section 428J or 460.

(h)

Definitions

In this section:

(1)

Critical foreign language

The term critical foreign language includes the languages of Arabic, Korean, Japanese, Chinese, Pashto, Persian-Farsi, Serbian-Croatian, Russian, Portuguese, and any other language identified by the Secretary of Education, in consultation with the Defense Language Institute, the Foreign Service Institute, and the National Security Education Program, as a critical foreign language need.

(2)

Early childhood educator

The term early childhood educator means an early childhood educator who works directly with children in an eligible preschool program or eligible early childhood education program who has completed a baccalaureate or advanced degree in early childhood development, 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 provides for the care, development, and education of infants, toddlers, or young children through age 5, meets any applicable State or local government licensing, certification, approval, and registration requirements, and is operated by—

(A)

a public or private school that may be supported, sponsored, supervised, or administered by a local educational agency;

(B)

a Head Start agency serving as a grantee designated under the Head Start Act (42 U.S.C. 9831 et seq.);

(C)

a nonprofit or community based organization; or

(D)

a child care program, including a home.

(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 2 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

In this subsection, the term low-income community means a community in which 70 percent of households earn less than 85 percent of the State median household income.

(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 section 801 of the Public Health Service Act (42 U.S.C. 296)).

(iv)

A nursing degree from a diploma school of nursing (as defined in section 801 of the Public Health Service Act (42 U.S.C. 296)).

(7)

Speech-language pathologist

The term speech-language pathologist means a speech-language pathologist who meets all of the following:

(A)

the speech-language pathologist 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) of this Act; and

(B)

the speech-language pathologist meets or exceeds the qualifications as defined in section 1861(ll) of the Social Security Act (42 U.S.C. 1395x).

(i)

Program funding

There shall be available to the Secretary to carry out this section, from funds not otherwise appropriated, such sums as may be necessary to provide loan forgiveness in accordance with this section to each eligible individual.

.

142.

Income contingent repayment for public sector employees

Section 455(e) (20 U.S.C. 1087e(e)) is amended by adding at the end the following:

(7)

Repayment plan for public sector employees

(A)

In general

The Secretary shall forgive the balance due on any loan made under this part or section 428C(b)(5) for a borrower—

(i)

who has made 120 payments on such loan pursuant to income contingent repayment; and

(ii)

who is employed, and was employed for the 10-year period in which the borrower made the 120 payments described in clause (i), in a public sector job.

(B)

Public sector job

In this paragraph, the term public sector job means a full-time job in emergency management, government, public safety, law enforcement, public health, education (including early childhood education), social work in a public child or family service agency, or public interest legal services (including prosecution or public defense).

(8)

Return to standard repayment

A borrower who is repaying a loan made under this part pursuant to income contingent repayment may choose, at any time, to terminate repayment pursuant to income contingent repayment and repay such loan under the standard repayment plan.

.

143.

Income-based repayment

(a)

Amendment

Part G of title IV (20 U.S.C. 1088 et seq.) is further amended by adding at the end the following:

493C.

Income-based repayment

(a)

Definitions

In this section:

(1)

Excepted PLUS loan

The term excepted PLUS loan means a loan under section 428B, or a Federal Direct PLUS Loan, that is made, insured, or guaranteed on behalf of a dependent student.

(2)

Partial financial hardship

The term partial financial hardship means the amount by which—

(A)

the annual amount due on the total amount of loans made, insured, or guaranteed under part B or D (other than an excepted PLUS loan) to a borrower as calculated under the standard repayment plan under section 428(b)(9)(A)(i) or 455(d)(1)(A); exceeds

(B)

15 percent of the result obtained by calculating the amount by which—

(i)

the borrower's, and the borrower’s spouse’s (if applicable), adjusted gross income; exceeds

(ii)

150 percent of the poverty line applicable to the borrower's family size as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)).

(b)

Income-based repayment program authorized

Notwithstanding any other provision of this Act, the Secretary shall carry out a program under which—

(1)

a borrower of any loan made, insured, or guaranteed under part B or D (other than an excepted PLUS loan) who has a partial financial hardship may elect, during any period the borrower has the partial financial hardship, to have the borrower's aggregate monthly payment for all such loans not exceed the result described in subsection (a)(2)(B) divided by 12;

(2)

the holder of such a loan shall apply the borrower's monthly payment under this subsection first toward interest due on the loan and then toward the principal of the loan;

(3)

any interest due and not paid under paragraph (2) shall be capitalized;

(4)

any principal due and not paid under paragraph (2) shall be deferred;

(5)

the amount of time the borrower makes monthly payments under paragraph (1) may exceed 10 years;

(6)

if the borrower no longer has a partial financial hardship or no longer wishes to continue the election under this subsection, then—

(A)

the maximum monthly payment required to be paid for all loans made to the borrower under part B or D (other than an excepted PLUS loan) shall not exceed the monthly amount calculated under section 428(b)(9)(A)(i) or 455(d)(1)(A) when the borrower first made the election described in this subsection; and

(B)

the amount of time the borrower is permitted to repay such loans may exceed 10 years;

(7)

the Secretary shall repay or cancel any outstanding balance of principal and interest due on all loans made under part B or D (other than a loan under section 428B or a Federal Direct PLUS Loan) to a borrower who—

(A)

is in deferment due to an economic hardship described in section 435(o) for a period of time prescribed by the Secretary, not to exceed 20 years; or

(B)
(i)

makes the election under this subsection; and

(ii)

for a period of time prescribed by the Secretary, not to exceed 20 years (including any period during which the borrower is in deferment due to an economic hardship described in section 435(o)), meets 1 or more of the following requirements:

(I)

Has made reduced monthly payments under paragraph (1).

(II)

Has made monthly payments of not less than the monthly amount calculated under section 428(b)(9)(A)(i) or 455(d)(1)(A) when the borrower first made the election described in this subsection.

(III)

Has made payments under a standard repayment plan under section 428(b)(9)(A)(i) or 455(d)(1)(A).

(IV)

Has made payments under an income contingent repayment plan under section 455(d)(1)(D); and

(8)

a borrower who is repaying a loan made under this part pursuant to income-based repayment may elect, at any time, to terminate repayment pursuant to income-based repayment and repay such loan under the standard repayment plan.

.

(b)

Conforming ICR amendment

Section 455(d)(1)(D) (20 U.S.C. 1087e(d)(1)(D)) is amended by inserting made on behalf of a dependent student after PLUS loan.

144.

Definition of economic hardship

Section 435(o) (20 U.S.C. 1085(o)) is amended—

(1)

in paragraph (1)—

(A)

in subparagraph (A)(ii), by striking 100 percent of the poverty line for a family of 2 and inserting 150 percent of the poverty line applicable to the borrower's family size;

(B)

by striking subparagraph (B); and

(C)

by redesignating subparagraph (C) as subparagraph (B); and

(2)

in paragraph (2), by striking (1)(C) and inserting (1)(B).

145.

Deferrals

(a)

FISL

Section 427(a)(2)(C)(iii) (20 U.S.C. 1077(a)(2)(C)(iii)) is amended by striking not in excess of 3 years.

(b)

Interest subsidies

Section 428(b)(1)(M)(iv) (20 U.S.C. 1078(b)(1)(M)(iv)) is amended by striking not in excess of 3 years.

(c)

Direct loans

Section 455(f)(2)(D) (20 U.S.C. 1087e(f)(2)(D)) is amended by striking not in excess of 3 years.

(d)

Perkins

Section 464(c)(2)(A)(iv) (20 U.S.C. 1087dd(c)(2)(A)(iv)) is amended by striking not in excess of 3 years.

146.

Maximum repayment period

(a)

In general

Section 455(e) (20 U.S.C. 1087e(e)) is amended by adding at the end the following:

(9)

Maximum repayment period

In calculating the extended period of time for which an income contingent repayment plan under this subsection may be in effect for a borrower, the Secretary shall include all time periods during which a borrower of loans under part B, part D, or part E—

(A)

is not in default on any loan that is included in the income contingent repayment plan; and

(B)
(i)

is in deferment due to an economic hardship described in section 435(o);

(ii)

makes monthly payments under paragraph (1) or (6) of section 493C(b); or

(iii)

makes payments under a standard repayment plan described in section 428(b)(9)(A)(i) or subsection (d)(1)(A).

.

(b)

Technical correction

Section 455(d)(1)(C) (20 U.S.C. 1087e(d)(1)(C)) is amended by striking 428(b)(9)(A)(v) and inserting 428(b)(9)(A)(iv).

II

Reducing the Cost of College

201.

State commitment to affordable college education

Title I is amended by inserting after section 131 (20 U.S.C. 1015) the following new section:

132.

State commitment to affordable college education

(a)

Maintenance of effort required

No State shall reduce the total amount provided by the State for public institutions of higher education in such State for any academic year beginning on or after July 1, 2008, to an amount which is less than the average amount provided by such State to such institutions of higher education during the 5 most recent preceeding academic years for which satisfactory data is available.

(b)

Withholding of all LEAP funds for violations

Notwithstanding any other provision of law, the Secretary of Education shall withhold from any State that violates subsection (a) any amount that would otherwise be available to the State under the Leveraging Educational Assistance Partnership Program under subpart 4 of part A of title IV until such State has corrected such violation.

.

202.

Consumer information and public accountability in higher education

Section 131 of the Higher Education Act of 1965 (20 U.S.C. 1015) is amended to read as follows:

131.

Consumer information and public accountability in higher education

(a)

College Opportunity On-Line (COOL) Website Re-Design Process

In carrying out this section, the Commissioner of Education Statistics—

(1)

shall identify the data elements that are of greatest importance to prospective students, enrolled students, and their families, paying particular attention to low-income, non-traditional student populations, and first-generation college students;

(2)

shall convene a group of individuals with expertise in the collection and reporting of data related to institutions of higher education, the use of consumer data, and consumer marketing in general to—

(A)

determine the relevance of particular data elements to prospective students, enrolled students, and families;

(B)

assess the cost-effectiveness of various ways in which institutions of higher education might produce relevant data;

(C)

determine the general comparability of the data across institutions of higher education;

(D)

make recommendations regarding the inclusion of specific data items and the most effective and least burdensome methods of collecting and reporting useful data from institutions of higher education; and

(3)

shall ensure that the redesigned COOL website—

(A)

uses, to the extent practicable, data elements currently provided by institutions of higher education to the Secretary;

(B)

includes clear and uniform information determined to be relevant to prospective students, enrolled students, and families;

(C)

provides comparable information, by ensuring that data are based on accepted criteria and common definitions;

(D)

includes a sorting function that permits users to customize their search for and comparison of institutions of higher education based on the information identified through the process as prescribed in paragraph (1) as being of greatest relevance to choosing an institution of higher education.

(b)

Data Collection

(1)

Data system

The Commissioner of Education Statistics shall continue to redesign the relevant parts of the Integrated Postsecondary Education Data System to include additional data as required by this section and to continue to improve the usefulness and timeliness of data collected by such systems in order to inform consumers about institutions of higher education.

(2)

College consumer profile

The Secretary shall continue to publish on the COOL website, for each academic year and in accordance with standard definitions developed by the Commissioner of Education Statistics (including definitions developed under section 131(a)(3)(A) as in effect on the day before the date of enactment of the College Cost Reduction Act of 2007), from at least all institutions of higher education participating in programs under title IV the following information:

(A)

The tuition and fees charged for a first-time, full-time, full-year undergraduate student.

(B)

The room and board charges for a first-time, full-time, full-year undergraduate student.

(C)

The price of attendance for a first-time, full-time, full-year undergraduate student, consistent with the provisions of section 472.

(D)

The average amount of financial assistance received by a first-year, full-time, full-year undergraduate student, including—

(i)

each type of assistance or benefits described in 428(a)(2)(C)(ii);

(ii)

institutional and other assistance; and

(iii)

Federal loans under parts B, D, and E of title IV.

(E)

The number of first-time, full-time, full-year undergraduate students receiving financial assistance described in each clause of subparagraph (D).

(F)

The institutional instructional expenditure per full-time equivalent student.

(G)

Student enrollment information, including information on the number and percentage of full-time and part-time students, the number and percentage of resident and non-resident students.

(H)

Faculty-to-student ratios.

(I)

Faculty information, including the total number of faculty and the percentage of faculty who are full-time employees of the institution and the percentage who are part-time.

(J)

Completion and graduation rates of undergraduate students, identifying whether the completion or graduation rates are from a 2-year or 4-year program of instruction and, in the case of a 2-year program of instruction, the percentage of students who transfer to 4-year institutions prior or subsequent to completion or graduation.

(K)

A link to the institution of higher education with information of interest to students including mission, accreditation, student services (including services for students with disabilities), transfer of credit policies, any articulation agreements entered into by the institution, and, if appropriate, placement rates and other measures of success in preparing students for entry into or advancement in the workforce.

(L)

The college affordability information elements specified in subsection (c).

(M)

Any additional information that the Secretary may require.

(c)

College affordability information elements

The college affordability information elements required by subsection (b)(2)(L) shall include, for each institution submitting data—

(1)

the sticker price of the institution for the 3 most recent academic years;

(2)

the net tuition price of the institution for the 3 most recent academic years;

(3)

the percentage change in both the sticker price and the net tuition price over the 3-year time period that is being reported;

(4)

the percentage change in the CPI over the same 3-year time period; and

(5)

whether the institution has been placed on affordability alert status as required by subsection (d)(3).

(d)

Outcomes and Actions

(1)

Response from institution

Effective on June 30, 2008, an institution that increases its sticker price at a percentage rate for any 3-year interval ending on or after that date that exceeds two times the rate of change in the CPI over the same time period shall provide a report to the Secretary, in such a form, at such time, and containing such information as the Secretary may require. Such report shall be published by the Secretary on the COOL website, and shall include—

(A)

a description of the factors contributing to the increase in the institution’s costs and in the tuition and fees charged to students; and

(B)

if determinations of tuition and fee increases are not within the exclusive control of the institution, a description of the agency or instrumentality of State government or other entity that participates in such determinations and the authority exercised by such agency, instrumentality, or entity.

(2)

Quality-efficiency task forces

(A)

Required

Each institution subject to paragraph (1) that has a percentage change in its sticker price that is in the highest 5 percent of all institutions subject to paragraph (1) shall establish a quality-efficiency task force to review the operations of such institution.

(B)

Membership

Such task force shall include administrators, business and civic leaders, and faculty, and may include students, trustees, parents of students, and alumni of such institution.

(C)

Functions

Such task force shall analyze institutional operating costs in comparison with such costs at other institutions within the class of institutions. Such analysis should identify areas where, in comparison with other institutions in such class, the institution operates more expensively to produce a similar result. Any identified areas should then be targeted for in-depth analysis for cost reduction opportunities.

(D)

Report

Not later than one year after a quality-efficiency task force is established pursuant to subparagraph (A), the results of the analysis by a such task force shall be submitted to the Secretary and shall be made available to the public on the COOL website.

(3)

Consequences for 2-year continuation of failure

If the Secretary determines that an institution that is subject to paragraph (1)) has failed to reduce the subsequent increase in sticker price to equal to or below two times the rate of change in the CPI for 2 consecutive academic years subsequent to the 3-year interval used under paragraph (1), the Secretary shall place the institution on affordability alert status.

(4)

Exemptions

Notwithstanding paragraph (3), an institution shall not be placed on affordability alert status if, for any 3-year interval for which sticker prices are computed under paragraph (1)

(A)

with respect to the class of institutions described in paragraph (6) to which the institution belongs, the sticker price of the institution is in the lowest quartile of institutions within such class, as determined by the Secretary, during the last year of such 3-year interval; or

(B)

the institution has a percentage change in its sticker price computed under paragraph (1) that exceeds two times the rate of change in the CPI over the same time period, but the dollar amount of the sticker price increase is less than $500.

(5)

Information to state agencies

Any institution that reports under paragraph (1)(B) that an agency or instrumentality of State government or other entity participates in the determinations of tuition and fee increases shall, prior to submitting any information to the Secretary under this subsection, submit such information to, and request the comments and input of, such agency, instrumentality, or entity. With respect to any such institution, the Secretary shall provide a copy of any communication by the Secretary with that institution to such agency, instrumentality, or entity.

(6)

Classes of institutions

For purposes of this subsection, the classes of institutions shall be those sectors used by the Integrated Postsecondary Education Data System, based on whether the institution is public, nonprofit private, or for-profit private, and whether the institution has a 4-year, 2-year, or less than 2-year program of instruction.

(7)

Data rejection

Nothing in this subsection shall be construed as allowing the Secretary to reject the data submitted by an individual institution of higher education.

(e)

Information to the Public

The Secretary shall work with public and private entities to promote broad public awareness, particularly among middle and high school students and their families, of the information made available under this section, including by distribution to students who participate in or receive benefits from means-tested federally funded education programs and other Federal programs determined by the Secretary.

(f)

Fines

In addition to actions authorized in section 487(c), the Secretary may impose a fine in an amount not to exceed $25,000 on an institution of higher education for failing to provide the information required by this section in a timely and accurate manner, or for failing to otherwise cooperate with the National Center for Education Statistics regarding efforts to obtain data under subsections (c) and (i) and pursuant to the program participation agreement entered into under section 487.

(g)

Regulations

The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section.

(h)

Definitions

For the purposes of this section:

(1)

Net tuition price

The term net tuition price means the average tuition and fees charged to a first-time, full-time, full-year undergraduate student, minus the average grants provided to such students, for any academic year.

(2)

Sticker price

The term sticker price means the average tuition and fees charged to a first-time, full-time, full-year undergraduate student by an institution of higher education for any academic year.

(3)

CPI

The term CPI means the Consumer Price Index-All Urban Consumers (Current Series).

.

203.

Incentives and rewards for low tuition

Subpart 1 of part A of title IV is amended by inserting after section 401A (20 U.S.C. 1070a–1) the following new section:

401B.

Incentives and rewards for low tuition

(a)

Rewards for low tuition

For any institution of higher education that, for academic year 2008–2009 or any succeeding academic year, such institution’s annual net tuition price increase (expressed as a percentage) for the most recent academic year for which satisfactory data is available is equal to or less than the percentage change in the higher education price index for such academic year, the Secretary shall, notwithstanding any other provision of the law, provide such institution an amount sufficient to provide a 25 percent increase under subpart 1 of part A of title IV to each Pell Grant recipient attending such institution for the next award year beginning after the date of such determination. Each such institution shall distribute any amounts received under this subsection among such Pell Grant recipients by increasing the amount of their Pell Grant awards by 25 percent.

(b)

Rewards for guaranteed tuition

(1)

Bonus

For each institution of higher education that the Secretary of Education determines complies with the requirements of paragraph (2) or paragraph (3) of this subsection, the Secretary shall, notwithstanding any other provision of the law, provide such institution an amount sufficient to provide a 10 percent increase under subpart 1 of part A of title IV to each Pell Grant recipient attending such institution for the next award year beginning after the date of such determination. Each such institution shall distribute any amounts received under this subsection among such Pell Grant recipients by increasing the amount of their Pell Grant awards by 10 percent.

(2)

4-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 such institution guarantees that for any academic year beginning on or after July 1, 2008, and for each of the 4 succeeding continuous academic years, the net tuition price charged to an undergraduate student will not exceed—

(A)

the amount that the student was charged for an academic year at the time he or she first enrolled in the institution of higher education, plus

(B)

the product of the percentage increase in the higher education price index for the prior academic year, or the most recent prior academic year for which data is available, multiplied by the amount determined under subparagraph (A).

(3)

Less-than 4-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 such institution guarantees that for any academic year (or the equivalent) beginning on or after July 1, 2008, and for each of the 1.5 succeeding continuous academic years, the net tuition price charged to an undergraduate student will not exceed—

(A)

the amount that the student was charged for an academic year at the time he or she first enrolled in the institution of higher education, plus

(B)

the product of the percentage increase in the higher education price index for the prior academic year, or the most recent prior academic year for which data is available, multiplied by the amount determined under subparagraph (A).

(c)

Maintaining affordable tuition

For any institution of higher education whose increase in the annual net tuition price (expressed as a percentage), for the most recent academic year for which satisfactory data is available, is greater than the percentage increase in the higher education price index for such academic year, the Secretary shall require such institution to submit to the Secretary the following information, within 6 months of such determination:

(1)

a detailed report on the exact causes for the net tuition price increase that outlines revenues and expenditures; and

(2)

cost containment strategies to lower net tuition prices.

(d)

Definitions

(1)

Net tuition price

The term net tuition price has the same meaning as provided in section 131(k).

(2)

Higher education price index

The term higher education price index means a statistical measure of change over time in the prices of a fixed market basket of goods and services purchased by colleges and universities through current fund educational and general expenditures (excluding expenditures for research), as developed by the Bureau of Labor Statistics.

(e)

Funding

There shall be available to the Secretary to carry out this section, from funds not otherwise appropriated, $15,000,000 for each of the fiscal years 2008 through 2012.

(f)

Sunset

The authority to carry out this section shall expire at the end of fiscal year 2012.

.

204.

Cooperative education rewards for institutions that restrain tuition increases

The Higher Education Act of 1965 (20 U.S.C. 1101 et seq.) is amended by adding at the end the following title:

VIII

Cooperative education rewards for institutions that restrain tuition increases

801.

Eligible institutions

(a)

Eligible institutions

An institution of higher education shall be eligible to apply for a grant under this title if such institution, and a combination of such institutions shall be eligible to apply for such a grant if each institution in such combination—

(1)

for the academic year for which the institution is applying, keeps such institution’s annual net tuition price increase (expressed as a percentage) for the most recent academic year for which satisfactory data is available equal to or less than the percentage change in the higher education price index for such year; and

(2)

for such academic year, provides the guarantee required by paragraph (2) or (3) of section 401A(b).

(b)

Definitions

(1)

Cooperative education

For the purpose of this title the term cooperative education means the provision of alternating or parallel periods of academic study and public or private employment in order 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.

(2)

Calculation of index

The net tuition price index shall be equal to the percentage increase in the net tuition price charged for a first-time, full-time, full-year undergraduate student between a preceding academic year and the most recent academic year for which satisfactory data are available.

(3)

Net tuition price

The term net tuition price means the average tuition and fees charged to first-time, full-year, full-time undergraduate students, minus the average grants provided to such students, for any academic year.

(4)

Tuition

The term tuition means the average price of or payment for actual instruction of first-time, full-year, full-time undergraduate students at an institution of higher education, for any academic year.

802.

Authorization of appropriations; reservations

(a)

Appropriations

There shall be available to the Secretary to carry out this title from funds not otherwise appropriated $15,000,000 for each of the fiscal years 2008 through 2012.

(b)

Reservations

Of the amount appropriated for each such fiscal year—

(1)

not less than 50 percent shall be available for carrying out grants to institutions of higher education and combinations of such institutions described in section 803(a)(1)(A) for cooperative education under section 803;

(2)

not less than 25 percent shall be available for carrying out grants to institutions of higher education described in section 803(a)(1)(B) for cooperative education under section 803;

(3)

not to exceed 11 percent shall be available for demonstration projects under paragraph (1) of section 804(a);

(4)

not to exceed 11 percent shall be available for training and resource centers under paragraph (2) of section 804(a); and

(5)

not to exceed 3 percent shall be available for research under paragraph (3) of section 804(a).

(c)

Availability of appropriations

Appropriations under this title shall not be available for the payment of compensation of students for employment by employers under arrangements pursuant to this title.

(d)

Sunset

The authority to carry out this title shall expire at the end of fiscal year 2012.

803.

Grants for cooperative education

(a)

Grants authorized

(1)

In general

The Secretary is authorized—

(A)

from the amount available under section 802(b)(1) in each fiscal year and in accordance with the provisions of this title, to make grants to institutions of higher education or combinations of such institutions that have not received a grant under this paragraph in the 10-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 combinations of institutions; and

(B)

from the amount available under section 802(b)(2) in each fiscal year and in accordance with the provisions of this title, to make grants to institutions of higher education that are operating an existing cooperative education program as determined by the Secretary to pay the cost of planning, establishing, expanding, or carrying out programs of cooperative education by such institutions.

(2)

Program requirement

Cooperative education programs assisted under this section shall provide alternating or parallel periods of academic study and of public or private employment, giving students work experience related to their academic or occupational objectives and the opportunity to earn the funds necessary for continuing and completing their education.

(3)

Amount of grants

(A)

The amount of each grant awarded pursuant to paragraph (1)(A) to any institution of higher education or combination 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 which bears the same ratio to the amount reserved pursuant to section 802(b)(2) for such fiscal year as the number of unduplicated students placed in cooperative education jobs during the preceding fiscal year (other than cooperative education jobs under section 804 and as determined by the Secretary) by such institution of higher education 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 which 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 which 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 paragraphs (1)(A) and (1)(B) to the same institution of higher education or combination of such institution in any one fiscal year.

(5)

Uses

Grants under paragraph (1)(B) shall be used exclusively—

(A)

to expand the quality and participation of a cooperative education program;

(B)

for outreach in new curricular areas; and

(C)

for outreach to potential participants including underrepresented and nontraditional populations.

(b)

Applications

Each institution of higher education or combination of such institutions desiring to receive a grant under this section shall submit an application to the Secretary at such time and in such manner as the Secretary shall prescribe. Each such application shall—

(1)

set forth the program or activities for which a grant is authorized under this section;

(2)

specify each portion of such program or activities which will be performed by a nonprofit organization or institution other than the applicant and the compensation to be paid for such performance;

(3)

provide that the applicant will expend during such fiscal year 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 which assures, that the applicant will continue the cooperative education program beyond the 5-year period of Federal assistance described in subsection (c)(1) at a level which 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 2-year program which 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 the normal full-time academic workload;

(6)

provide that the applicant will—

(A)

for each fiscal year for which the applicant receives a grant, make such reports with respect to the impact of the cooperative education program in the previous fiscal year as may be essential to ensure that the applicant is complying with the provisions of this section, 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 average income for students derived from working in cooperative education jobs; and

(v)

the increase or decrease in the number of unduplicated students placed in cooperative education jobs in each fiscal year compared to the previous fiscal year; and

(B)

keep such records as are essential to ensure that the applicant is complying with the provisions of this title, including the notation of cooperative education employment on the student’s transcript;

(7)

describe the extent to which programs in the academic discipline for which the application is made have had a favorable reception by 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 assure proper disbursement of, and accounting for, Federal funds paid to the applicant under this title;

(11)

demonstrate a commitment to serving all underserved populations; and

(12)

include such other information as is essential to carry out the provisions of this title.

(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 combination of such institutions—

(A)

a grant pursuant to subsection (a)(1)(A) for more than 5 fiscal years; or

(B)

a grant pursuant to subsection (a)(1)(B) for more than 5 fiscal years.

(2)

Federal share

The Federal share of a grant under section 803(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

Any provision of law to the contrary notwithstanding, the Secretary shall not waive the provisions of this subsection.

(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.

804.

Demonstration and innovation projects; training and resource centers; and research

(a)

Authorization

The Secretary is authorized, in accordance with the provisions of this section, to make grants and enter into contracts for—

(1)

the conduct of demonstration projects designed to demonstrate or determine the feasibility or value of innovative methods of cooperative education from the amounts available in each fiscal year under section 802(b)(3);

(2)

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)

furnish 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 which 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 institutions other than the comprehensive cooperative education institution 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

from the amounts available in each fiscal year under section 802(b)(4); and
(3)

the conduct of research relating to cooperative education, from the amounts available in each fiscal year under section 802(b)(5).

(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 combinations 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 make an especially significant contribution to attaining the objectives of this section.

(2)

Limitation

(A)

The Secretary may not use more than 3 percent of the amount appropriated to carry out this section in each fiscal year to enter into contracts described in paragraph (1)(A).

(B)

The Secretary may use not more than 3 percent of the amount appropriated to carry out this section in each fiscal year to enter into contracts described in paragraph (1)(B).

(c)

Supplement not supplant

A recipient of a grant or contract under this section may use the funds provided only so as to supplement and, to the extent possible, increase the level of funds that would, in the absence of such funds, be 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.

.

III

Ensuring a Highly Qualified Teacher in Every Classroom

A

TEACH Grants

301.

TEACH Grants

Part A of title IV (20 U.S.C. 1070a et seq.) is amended by adding at the end the following new subpart:

9

TEACH Grants

420L.

Program established

(a)

Program Authority

(1)

Payments required

The Secretary shall pay to each eligible institution such sums as may be necessary to pay to each eligible student (defined in accordance with section 484) who files an application and agreement in accordance with section 420M, and who qualifies—

(A)

under paragraph (2) of section 420M(a), a TEACH Grant in the amount of $4,000 for each academic year during which that student is in attendance at the institution; and

(B)

under paragraphs (2) and (3) of section 420M(a), a Bonus TEACH Grant in the amount of $500 (in addition to the amount of the TEACH Grant under subparagraph (A)) for each academic year during which that student so qualifies.

(2)

Reference

Grants made under—

(A)

paragraph (1)(A) shall be known as Teacher Education Assistance for College and Higher Education Grants or TEACH Grants; and

(B)

paragraph (1)(B) shall be known as Bonus TEACH Grants.

(b)

Payment methodology

(1)

Prepayment

Not less than 85 percent of any funds provided to an institution under subsection (a) shall be advanced to eligible institutions prior to the start of each payment period and shall be based upon an amount requested by the institution as needed to pay eligible students until such time as the Secretary determines and publishes in the Federal Register with an opportunity for comment, an alternative payment system that provides payments to institutions in an accurate and timely manner, except that this sentence shall not be construed to limit the authority of the Secretary to place an institution on a reimbursement system of payment.

(2)

Direct payment

Nothing in this section shall be interpreted to prohibit the Secretary from paying directly to students, in advance of the beginning of the academic term, an amount for which they are eligible, in cases where the eligible institution elects not to participate in the disbursement system required by paragraph (1).

(3)

Distribution of grants to students

Payments under this subpart shall be made, in accordance with regulations promulgated by the Secretary for such purpose, in such manner as will best accomplish the purposes of this subpart. Any disbursement allowed to be made by crediting the student's account shall be limited to tuition and fees and, in the case of institutionally-owned housing, room and board. The student may elect to have the institution provide other such goods and services by crediting the student's account.

(c)

Reductions in amount

(1)

Part-time students

In any case where a student attends an institution of higher education on less than a full-time basis (including a student who attends an institution of higher education on less than a half-time basis) during any academic year, the amount of a grant under this subpart for which that student is eligible shall be reduced in proportion to the degree to which that student is not attending on a full-time basis, in accordance with a schedule of reductions established by the Secretary for the purposes of this subpart, computed in accordance with this subpart. Such schedule of reductions shall be established by regulation and published in the Federal Register in accordance with section 482 of this Act.

(2)

No exceeding cost

The amount of a grant awarded under this subpart, in combination with Federal assistance and other student assistance, shall not exceed the cost of attendance (as defined in section 472) at the institution at which that student is in attendance. If, with respect to any student, it is determined that the amount of a TEACH Grant or a Bonus TEACH Grant exceeds the cost of attendance for that year, the amount of the TEACH Grant or Bonus TEACH Grant, respectively, shall be reduced until such grant does not exceed the cost of attendance at such institution.

(d)

Period of eligibility for grants

(1)

Undergraduate students

The period during which an undergraduate student may receive grants under this subpart shall be the period required for the completion of the first undergraduate baccalaureate course of study being pursued by that student at the institution at which the student is in attendance except that—

(A)

any period during which the student is enrolled in a noncredit or remedial course of study as defined in paragraph (3) shall not be counted for the purpose of this paragraph; and

(B)

the total amount that a student may receive under this subpart for undergraduate study shall not exceed $16,000 with respect to a student who receives only TEACH Grants, and $18,000 with respect to a student who receives TEACH Grants and Bonus TEACH Grants.

(2)

Graduate students

The period during which a graduate student may receive grants under this subpart shall be the period required for the completion of a master’s degree course of study being pursued by that student at the institution at which the student is in attendance, except that the total amount that a student may receive under this subpart for graduate study shall not exceed $8,000 with respect to a student who receives only TEACH Grants, and $10,000 with respect to a student who receives TEACH Grants and Bonus TEACH Grants.

(3)

Remedial course; study abroad

Nothing in this section shall exclude from eligibility courses of study which are noncredit or remedial in nature (including courses in English language acquisition) which are determined by the institution to be necessary to help the student be prepared for the pursuit of a first undergraduate baccalaureate degree or certificate or, in the case of courses in English language instruction, to be necessary to enable the student to utilize already existing knowledge, training, or skills. Nothing in this section shall exclude from eligibility programs of study abroad that are approved for credit by the home institution at which the student is enrolled.

420M.

Eligibility; applications; selection

(a)

Applications; demonstration of eligibility

(1)

Filing required

The Secretary shall from time to time set dates by which students shall file applications for grants under this subpart. Each student desiring a grant under this subpart for any year shall file an application containing such information and assurances as the Secretary may deem necessary to enable the Secretary to carry out the functions and responsibilities of this subpart.

(2)

Demonstration of TEACH Grant eligibility

Each application submitted under paragraph (1) for a TEACH Grant shall contain such information as is necessary to demonstrate that—

(A)

if the applicant is an enrolled student—

(i)

the student is an eligible student for purposes of section 484;

(ii)

the student—

(I)

has a grade point average that is determined, under standards prescribed by the Secretary, to be comparable to a 3.25 average on a zero to 4.0 scale, except that, if the student is in the first year of a program of undergraduate education, such grade point average shall be determined on the basis of the student’s cumulative high school grade point average; or

(II)

displayed high academic aptitude by receiving a score above the 75th percentile on at least one of the batteries in an undergraduate or graduate school admissions test; and

(iii)

the student is completing coursework and other requirements necessary to begin a career in teaching, or plans to complete such coursework and requirements prior to graduating; or

(B)

if the applicant is a current or prospective teacher applying for a grant to obtain a graduate degree—

(i)

the applicant is a teacher or a retiree from another occupation with expertise in a field in which there is a shortage of teachers, such as math, science, special education, English language acquisition, or another high-need subject; or

(ii)

the applicant is or was a teacher who is using high-quality alternative certification routes, such as Teach for America, to get certified.

(3)

Demonstration of Bonus TEACH Grant eligibility

Each application submitted under paragraph (1) for a Bonus TEACH Grant shall contain such information as is necessary to demonstrate that—

(A)

the applicant is eligible for, and has applied for, a TEACH Grant; and

(B)

the applicant is—

(i)

a student pursuing an undergraduate degree in mathematics, science, or a science-related field; and

(ii)

a student enrolled in a qualified teacher preparation program, as defined in section 420N.

(b)

Agreements To serve

Each application under subsection (a) shall contain or be accompanied by an agreement by the applicant that—

(1)

the applicant will—

(A)

serve as a full-time teacher for a total of not less than 4 academic years within 8 years after completing the course of study for which the applicant received a TEACH Grant under this subpart;

(B)

teach in a school described in section 465(a)(2)(A);

(C)

with respect to an applicant for—

(i)

TEACH Grants, teach in any of the following fields: mathematics, science, a foreign language, bilingual education, or special education, or as a reading specialist, or another field documented as high-need by the Federal Government, State government, or local education agency and approved by the Secretary; or

(ii)

TEACH Grants and Bonus TEACH Grants, teach mathematics, science, or a science-related field;

(D)

submit evidence of such employment in the form of a certification by the chief administrative officer of the school upon completion of each year of such service; and

(E)

comply with the requirements for being a highly qualified teacher as defined in section 9101 of the Elementary and Secondary Education Act of 1965; and

(2)

in the event that the applicant is determined to have failed or refused to carry out such service obligation, the sum of the amounts of any TEACH Grants and Bonus TEACH Grants received by such applicant will be treated as a loan and collected from the applicant in accordance with subsection (c) and the regulations thereunder.

(c)

Repayment for failure To complete service

In the event that any recipient of a grant under this subpart fails or refuses to comply with the service obligation in the agreement under subsection (b), the sum of the amounts of any TEACH Grants and Bonus TEACH Grants received by such recipient shall be treated as a Direct Loan under part D of title IV, and shall be subject to repayment, together with interest thereon accruing after the period of service, in accordance with terms and conditions specified by the Secretary in regulations under this subpart.

420N.

Definitions

For the purposes of this subpart:

(1)

Eligible institution

The term eligible institution means an institution of higher education as defined in section 102, except that such term does not include an institution described in subsection (a)(1)(A) of that section.

(2)

Qualified teacher preparation program

The term qualified teacher preparation program means a program for students described in subsection (a)(2)(A) of section 420M or teachers described in subsection (a)(2)(B) of such section (referred to jointly in this paragraph as teacher candidates) that—

(A)

recruits and prepares teacher candidates who major in science, technology fields, engineering, or mathematics disciplines to become certified as elementary and secondary teachers in those disciplines, with the goals of improving teacher knowledge and effectiveness and increasing elementary and secondary student academic achievement;

(B)

is implemented by an institution of higher education in partnership with high-need local educational agencies;

(C)

offers a baccalaureate degree with a concurrent teacher certification to teacher candidates;

(D)

is implemented in coordination with the faculty of the education, sciences, and mathematics departments of the institution of higher education;

(E)

utilizes experienced teachers who have a demonstrated record of success in teaching underserved students to instruct teacher candidates in science, technology fields, engineering, or mathematics disciplines;

(F)

provides teacher candidates with—

(i)

support services, including mentoring by experienced teachers who have a demonstrated record of success in teaching underserved students;

(ii)

exposure to, and field experience in, the classroom within the first year of entering the qualified teacher preparation program; and

(iii)

other related support practices while the teacher candidates are participating in the program, and after such candidates graduate from the isntitution of higher education and are employed as teachers;

(G)

participates in partnerships which include the institution of higher education and local educational agencies and charter districts to provide opportunities for teacher candidate field work;

(H)

focuses on increasing the number of teachers in the science, technology fields, engineering, or mathematics disciplines; and

(I)

encourages individuals from underrepresented populations to enter into the teaching profession.

420O.

Program period and funding

There shall be available to the Secretary to carry out this subpart, from funds not otherwise appropriated, such sums as may be necessary to provide TEACH Grants and Bonus TEACH Grants in accordance with this subpart to each eligible student.

.

B

Centers of Excellence

311.

Centers of excellence

Title II (20 U.S.C. 1021 et seq.) is amended by adding at the end the following:

C

Centers of Excellence

231.

Definitions

As used in this part:

(1)

Eligible institution

The term eligible institution means—

(A)

an institution of higher education that has a teacher preparation program that meets the requirements of section 203(b)(2) 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)); or

(v)

a Native Hawaiian-serving institution (as defined in section 317(b));

(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 232 is located at an institution described in subparagraph (A).

(2)

Highly qualified

The term highly qualified when used with respect to an individual means that the individual is highly qualified as determined under section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801) or section 602 of the Individuals with Disabilities Education Act (20 U.S.C. 1401).

(3)

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 (20 U.S.C. 6368).

(4)

Scientifically based research

The term scientifically based research has the meaning given such term in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).

232.

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 part 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 based research, and are able to use advanced technology effectively in the classroom, including use for instructional techniques to improve student academic achievement, by—

(A)

retraining faculty; and

(B)

designing (or redesigning) teacher preparation programs that—

(i)

prepare teachers to close student achievement gaps, are based on rigorous academic content, scientifically based research (including scientifically based reading research), and challenging State student academic content 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; or

(B)

induction and support for teachers and principals during their first 3 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.

(5)

Disseminating information on effective practices for teacher preparation and successful teacher certification and licensure assessment preparation strategies.

(6)

Activities authorized under sections 202, 203, and 204.

(c)

Application

Any eligible institution desiring a grant under this section shall submit an application to the Secretary at such a time, in such a manner, and accompanied by such information the Secretary may require.

(d)

Minimum grant amount

The minimum amount of each grant under this part shall be $500,000.

(e)

Limitation on administrative expenses

An eligible institution that receives a grant under this part may not use more than 2 percent of the grant funds for purposes of administering the grant.

(f)

Regulations

The Secretary shall prescribe such regulations as may be necessary to carry out this part.

233.

Appropriations

There shall be available to the Secretary, from funds not otherwise appropriated, $50,000,000 for the period beginning with fiscal year 2008 and ending with fiscal year 2012, to carry out this part beginning with academic year 2008–2009, which shall remain available until expended. The authority to carry out this part shall expire at the end of fiscal year 2012.

.

IV

College Access Challenge Grant Program

401.

College Access Challenge grants

(a)

Challenge grant program established

(1)

Program established

The Secretary shall establish a program to award matching grants to philanthropic organizations to increase the number of eligible students from underserved populations who enter and complete college by providing grants to philanthropic organizations who are members of eligible consortia to carry out the activities of the consortia to achieve this purpose, including—

(A)

providing need-based grants to eligible students;

(B)

providing support to eligible students through school- or institution-based mentoring programs; and

(C)

conducting outreach programs to encourage eligible students to pursue higher education.

(2)

Grant period; renewability

Grants under this section shall be awarded for one 5-year period, and may not be renewed.

(3)

Grant amounts

(A)

In general

A grant awarded under this part for a given fiscal year to a philanthropic organization shall be in an amount equal to lesser of—

(i)

200 percent of the amount of charitable gifts received in the preceding fiscal year by the eligible consortia, including charitable gifts received by the individual members of the consortia; or

(ii)

the maximum grant amount established by the Secretary by regulation, pursuant to subsection (f).

(B)

Gifts provided in cash or in-kind

For the purposes of subparagraph (A), the charitable gifts received by an eligible consortia and its members may be provided in cash or in-kind, including physical non-cash contributions of monetary value such as property, facilities, and equipment, but excluding services.

(b)

Uses of Grant

(1)

In general

A philanthropic organization receiving a grant under this section shall—

(A)

provide grants to eligible students; and

(B)

distribute grants to members of the consortia with which the philanthropic organization is affiliated, in accordance with the plan described in subsection (c)(2)(A), to fund the activities of such consortia in accordance with the application under subsection (c).

(2)

Limitation

Not more than 15 percent of the funds made available annually through a grant under this section may be used for administrative purposes.

(c)

Applications

A philanthropic organization 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. Such application shall include the following:

(1)

A description of an eligible consortia that meets the requirements of subsection (d), with which the philanthropic organization is affiliated, in accordance with subsection (g).

(2)

A detailed description of—

(A)

the philanthropic organization’s plans for distributing the matching grant funds among the members of the eligible consortia; and

(B)

the eligible consortia’s plans for using the matching grant funds, including how the funds will be used to provide financial aid, mentoring, and outreach programs to eligible students.

(3)

A plan to ensure the viability of the eligible consortia and the work of the consortia beyond the grant period.

(4)

A detailed description of the activities that carry out this section that are conducted by the eligible consortia at the time of the application, and how the matching grant funds will assist the eligible consortia with expanding and enhancing such activities.

(5)

A description of the organizational structure that will be used to administer the activities carried out under the plan, including a description of the system used to track the participation of students who receive grants to degree completion.

(6)

A description of the strategies that will be used to identify eligible students who are enrolled in secondary school and who may benefit from the activities of the eligible consortia.

(d)

Eligible consortia

An eligible consortia with which a philanthropic organization is affiliated for the program under this section shall—

(1)

be a partnership of mulitple entities that have agreed to work together carry out this section, including—

(A)

such philanthropic organization, which shall serve as the manager of the consortia;

(B)

a State that demonstrates a commitment to ensuring the creation of a Statewide system to address the issues of early intervention and financial support for eligible students to enter and remain in college; and

(C)

at the discretion of the philanthropic organization described in subparagraph (A), additional partners, including other non-profit organizations, government entities (including local municipalities, school districts, cities, and counties), institutions of higher education, and other public or private programs that provide mentoring or outreach programs; and

(2)

conducts activites to assist eligible students with entering and remaining in college, which include—

(A)

providing need-based grants to eligible students;

(B)

providing early notification to low-income students of their potential eligibility for Federal financial aid, as well as financial aid and other support available from the eligible consortia;

(C)

encouraging increased eligible student participation in higher education through mentoring or outreach programs; and

(D)

conducting marketing and outreach efforts that are designed to—

(i)

encourage full participation of eligible students in the activities of the consortia that carry out the purposes of this section; and

(ii)

provide the communities impacted by the activities of the consortia with a general knowledge about the efforts of the consortia.

(e)

Annual report

A philanthropic organization receiving a grant under this section shall prepare and submit an annual report to the Secretary on the activities carried out with such grant. The report shall include—

(1)

each activity that was provided to eligible students over the course of the year;

(2)

the cost of providing each such activity;

(3)

the number and percentage of eligible students who received grants, mentoring, and outreach services; and

(4)

the total amount of charitable gifts received by the eligible consortia (including its members) with which the philanthropic organization is affiliated for the fiscal year.

(f)

Regulations

The Secretary shall promulgate regulations to carry out this section. Such regulations shall include—

(1)

the maximum grant amount that may be awarded to a philanthropic organization under this section;

(2)

the minimum amount of chartable gifts an eligible consortia (including its members) shall receive in a fiscal year for the philanthropic organization affiliated with such consortia to be eligible for a grant under this section.

(g)

Definitions

For the purposes of this section:

(1)

Eligible student

The term eligible student means an individual who—

(A)

is a member of an underserved population;

(B)

is enrolled—

(i)

in a secondary school pursuing a high school diploma; or

(ii)

in an institution of higher education or is planning to attend an institution of higher education; and

(C)

either—

(i)

is receiving, or has received, financial assistance or support services from the consortium; or

(ii)

meets 2 or more of the following criteria:

(I)

Has an expected family contribution equal to zero (as described in section 479) or a comparable alternative based upon the State's approved criteria in section 415C(b)(4).

(II)

Has qualified for a free lunch, or at the State's discretion a reduced price lunch, under the school lunch program established under the Richard B. Russell National School Lunch Act.

(III)

Qualifies for the State's maximum need-based undergraduate award.

(IV)

Is participating in, or has participated in, a Federal, State, institutional, or community mentoring or outreach program, as recognized by the eligible consortia carrying out activities under this section.

(2)

Philanthropic organization

The term philanthropic organization means a non-profit organization—

(A)

that does not receive funds under title IV of the Higher Education Act of 1965 or under the Elementary and Secondary Education Act of 1965;

(B)

that is not a local educational agency or an insitution of higher education;

(C)

that has a demonstrated record of dispersing grant aid to underserved populations to ensure access to, and participation in, higher education;

(D)

that is affiliated with an eligible consortia (as defined in subsection (e)) to carry out this section; and

(E)

the primary purpose of which is to provide financial aid and support services to students from underrepresented populations to increase the number of such students who enter and remain in college.

(3)

State

The term State means each of the several States of the United States, the District of Columbia, and Puerto Rico.

(4)

Underserved population

The term underserved population means a group of individuals who traditionally have not been well represented in the general population of students who pursue and successfully complete a higher education degree.

(h)

Program funding

(1)

In general

There shall be available to the Secretary to carry out this section, from funds not otherwise appropriated, $300,000,000 for the period beginning with fiscal year 2008 and ending with fiscal year 2012.

(2)

Use of excess funds

If, at the end of a fiscal year, the funds available for awarding grants under this section exceed the amount necessary to make such grants, then all of the excess funds shall remain available for the subsequent fiscal year, and shall be used to award grants under section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) for such subsequent fiscal year.

(i)

Sunset

The authority to carry out this section shall expire at the end of fiscal year 2012.