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S. 1642 (110th): Higher Education Amendments of 2007

The text of the bill below is as of Jun 18, 2007 (Introduced).

Source: GPO

II

110th CONGRESS

1st Session

S. 1642

IN THE SENATE OF THE UNITED STATES

June 18, 2007

(for himself, Mr. Enzi, Mr. Bingaman, Mr. Brown, Mr. Dodd, Mrs. Clinton, Mrs. Murray, Mr. Obama, Mr. Reed, and Mr. Sanders) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

A BILL

To extend the authorization of programs under the Higher Education Act of 1965, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Higher Education Amendments of 2007.

(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. References.

Sec. 3. General effective date.

TITLE I—GENERAL PROVISIONS

Sec. 101. Additional definitions.

Sec. 102. General definition of institution of higher education.

Sec. 103. Definition of institution of higher education for purposes of title IV programs.

Sec. 104. Protection of student speech and association rights.

Sec. 105. Accreditation and institutional quality and integrity advisory committee.

Sec. 106. Drug and alcohol abuse prevention.

Sec. 107. Prior rights and obligations.

Sec. 108. Transparency in college tuition for consumers.

Sec. 109. Databases of student information prohibited.

Sec. 110. Performance-based organization for the delivery of Federal student financial assistance.

Sec. 111. Procurement flexibility.

Sec. 112. Institution and lender reporting and disclosure requirements.

TITLE II—TEACHER QUALITY ENHANCEMENT

Sec. 201. Teacher quality partnership grants.

Sec. 202. General provisions.

TITLE III—INSTITUTIONAL AID

Sec. 301. Program purpose.

Sec. 302. Definitions; eligibility.

Sec. 303. American Indian tribally controlled colleges and universities.

Sec. 304. Alaska native and native Hawaiian-serving institutions.

Sec. 305. Native American-serving, nontribal institutions.

Sec. 306. Part B definitions.

Sec. 307. Grants to institutions.

Sec. 308. Allotments to institutions.

Sec. 309. Professional or graduate institutions.

Sec. 310. Authority of the Secretary.

Sec. 311. Authorization of appropriations.

Sec. 312. Technical corrections.

TITLE IV—Student Assistance

Part A—Grants to students in attendance at institutions of higher education

Sec. 401. Federal Pell Grants.

Sec. 402. Academic competitiveness grants.

Sec. 403. Federal trio programs.

Sec. 404. Gaining early awareness and readiness for undergraduate programs.

Sec. 405. Academic achievement incentive scholarships.

Sec. 406. Federal supplemental educational opportunity grants.

Sec. 407. Leveraging Educational Assistance Partnership program.

Sec. 408. Special programs for students whose families are engaged in migrant and seasonal farmwork.

Sec. 409. Robert C. Byrd Honors Scholarship Program.

Sec. 410. Child care access means parents in school.

Sec. 411. Learning anytime anywhere partnerships.

Part B—Federal family education loan program

Sec. 421. Federal payments to reduce student interest costs.

Sec. 422. Federal Consolidation Loans.

Sec. 423. Default Reduction Program.

Sec. 424. Reports to consumer reporting agencies and institutions of higher education.

Sec. 425. Common forms and formats.

Sec. 426. Student loan information by eligible lenders.

Sec. 427. Consumer education information.

Sec. 428. Definition of eligible lender.

Sec. 429. Discharge and cancellation rights in cases of disability.

Sec. 430. Special allowances.

Part C—Federal work-study programs

Sec. 441. Authorization of appropriations.

Sec. 442. Allowance for books and supplies.

Sec. 443. Grants for Federal work-study programs.

Sec. 444. Job location and development programs.

Sec. 445. Work colleges.

Part D—Federal Perkins Loans

Sec. 451. Cancellation of loans for certain public service.

Part E—Need analysis

Sec. 461. Cost of attendance.

Sec. 462. Definitions.

Part F—General provisions relating to student assistance

Sec. 471. Definitions.

Sec. 472. Compliance calendar.

Sec. 473. Forms and regulations.

Sec. 474. Student eligibility.

Sec. 475. Statute of limitations and State court judgments.

Sec. 476. Institutional refunds.

Sec. 477. Institutional and financial assistance information for students.

Sec. 478. National Student Loan Data System.

Sec. 479. Early awareness of financial aid eligibility.

Sec. 480. Program participation agreements.

Sec. 481. Regulatory relief and improvement.

Sec. 482. Transfer of allotments.

Sec. 483. Purpose of administrative payments.

Sec. 484. Advisory Committee on Student Financial Assistance.

Sec. 485. Regional meetings.

Sec. 486. Year 2000 requirements at the Department.

Part G—Program integrity

Sec. 491. Recognition of accrediting agency or association.

Sec. 492. Administrative capacity standard.

Sec. 493. Program review and data.

Sec. 494. Timely information about loans.

Sec. 495. Auction evaluation and report.

TITLE V—Developing Institutions

Sec. 501. Authorized activities.

Sec. 502. Postbaccalaureate opportunities for Hispanic Americans.

Sec. 503. Applications.

Sec. 504. Cooperative arrangements.

Sec. 505. Authorization of appropriations.

TITLE VI—International education programs

Sec. 601. Findings.

Sec. 602. Graduate and undergraduate language and area centers and programs.

Sec. 603. Undergraduate international studies and foreign language programs.

Sec. 604. Research; studies.

Sec. 605. Technological innovation and cooperation for foreign information access.

Sec. 606. Selection of certain grant recipients.

Sec. 607. American overseas research centers.

Sec. 608. Authorization of appropriations for international and foreign language studies.

Sec. 609. Centers for international business education.

Sec. 610. Education and training programs.

Sec. 611. Authorization of appropriations for business and international education programs.

Sec. 612. Minority foreign service professional development program.

Sec. 613. Institutional development.

Sec. 614. Study abroad program.

Sec. 615. Advanced degree in international relations.

Sec. 616. Internships.

Sec. 617. Financial assistance.

Sec. 618. Report.

Sec. 619. Gifts and donations.

Sec. 620. Authorization of appropriations for the Institute for International Public Policy.

Sec. 621. Definitions.

Sec. 622. Assessment and enforcement.

TITLE VII—GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

Sec. 701. Purpose.

Sec. 702. Allocation of Jacob K. Javits Fellowships.

Sec. 703. Stipends.

Sec. 704. Authorization of appropriations for the Jacob K. Javits Fellowship Program.

Sec. 705. Institutional eligibility under the Graduate Assistance in Areas of National Need Program.

Sec. 706. Awards to graduate students.

Sec. 707. Additional assistance for cost of education.

Sec. 708. Authorization of appropriations for the Graduate Assistance in Areas of National Need Program.

Sec. 709. Legal educational opportunity program.

Sec. 710. Fund for the improvement of postsecondary education.

Sec. 711. Special projects.

Sec. 712. Authorization of appropriations for the fund for the improvement of postsecondary education.

Sec. 713. Repeal of the urban community service program.

Sec. 714. Grants for students with disabilities.

Sec. 715. Applications for demonstration projects to ensure students with disabilities receive a quality higher education.

Sec. 716. Authorization of appropriations for demonstration projects to ensure students with disabilities receive a quality higher education.

TITLE VIII—Miscellaneous

Sec. 801. Miscellaneous.

TITLE IX—AMENDMENTS TO OTHER LAWS

Part A—Education of the Deaf Act of 1986

Sec. 901. Laurent Clerc National Deaf Education Center.

Sec. 902. Agreement with Gallaudet University.

Sec. 903. Agreement for the National Technical Institute for the Deaf.

Sec. 904. Cultural experiences grants.

Sec. 905. Audit.

Sec. 906. Reports.

Sec. 907. Monitoring, evaluation, and reporting.

Sec. 908. Liaison for educational programs.

Sec. 909. Federal endowment programs for Gallaudet University and the National Technical Institute for the Deaf.

Sec. 910. Oversight and effect of agreements.

Sec. 911. International students.

Sec. 912. Research priorities.

Sec. 913. Authorization of appropriations.

Part B—United States Institute of Peace Act

Sec. 921. United States Institute of Peace Act.

Part C—The Higher Education Amendments of 1998

Sec. 931. Repeals.

Sec. 932. Grants to States for workplace and community transition training for incarcerated youth offenders.

Sec. 933. Underground railroad educational and cultural program.

Sec. 934. Olympic scholarships under the Higher Education Amendments of 1992.

Part D—Indian Education

SUBPART 1—Tribal Colleges and Universities

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

SUBPART 2—Navajo Higher Education

Sec. 945. Short title.

Sec. 946. Reauthorization of Navajo Community College Act.

2.

References

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

3.

General effective date

Except as otherwise provided in this Act or the amendments made by this Act, the amendments made by this Act shall take effect on July 1, 2007.

I

GENERAL PROVISIONS

101.

Additional definitions

(a)

Amendment

Section 103 (20 U.S.C. 1003) is amended—

(1)

by redesignating paragraphs (9) through (16) as paragraphs (13) through (20); respectively;

(2)

by redesignating paragraphs (4) through (8) as paragraphs (7) through (11), respectively;

(3)

by redesignating paragraphs (1), (2), and (3) as paragraphs (2), (4), and (5), respectively;

(4)

by inserting before paragraph (2) (as redesignated by paragraph (2)) the following:

(1)

Authorizing committees

The term authorizing committees means the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and Labor of the House of Representatives.

;

(5)

by inserting after paragraph (2) (as redesignated by paragraph (3)) the following:

(3)

Critical foreign language

The term critical foreign language means each of the languages contained in the list of critical languages designated by the Secretary in the Federal Register on August 2, 1985 (50 Fed. Reg. 149, 31413; enacted under the authority of section 212(d) of the Education for Economic Security Act (repealed by section 2303 of the Augustus F. Hawkins-Robert T. Stafford Elementary and Secondary School Improvement Amendments of 1988)), except that in the implementation of this definition with respect to a specific title, the Secretary may set priorities according to the purposes of such title and the national security, economic competitiveness, and educational needs of the United States.

;

(6)

by inserting after paragraph (5) (as redesignated by paragraph (3)) the following:

(6)

Distance education

(A)

In general

Except as otherwise provided, the term distance education means education that uses 1 or more of the technologies described in subparagraph (B)—

(i)

to deliver instruction to students who are separated from the instructor; and

(ii)

to support regular and substantive interaction between the students and the instructor, synchronously or asynchronously.

(B)

Inclusions

For the purposes of subparagraph (A), the technologies used may include—

(i)

the Internet;

(ii)

one-way and two-way transmissions through open broadcast, closed circuit, cable, microwave, broadband lines, fiber optics, satellite, or wireless communications devices;

(iii)

audio conferencing; or

(iv)

video cassette, DVDs, and CD–ROMs, if the cassette, DVDs, and CD–ROMs are used in a course in conjunction with the technologies listed in clauses (i) through (iii).

; and

(7)

by inserting after paragraph (11) (as redesignated by paragraph (2)) the following:

(12)

Poverty line

The term poverty line means the poverty line (as defined in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2))) applicable to a family of the size involved.

.

(b)

Conforming Amendments

The Act (20 U.S.C. 1001 et seq.) is amended—

(1)

in section 131(a)(3)(B) (20 U.S.C. 1015(a)(3)(B)), by striking Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives and inserting authorizing committees;

(2)

in section 141(d)(4)(B) (20 U.S.C. 1018(d)(4)(B)), by striking Committee on Education and the Workforce of the House of Representatives and the Committee on Labor and Human Resources of the Senate and inserting authorizing committees;

(3)

in section 401(f)(3) (20 U.S.C. 1070a(f)(3)), by striking to the Committee on Appropriations and all that follows through House of Representatives and inserting to the Committee on Appropriations of the Senate, the Committee on Appropriations of the House of Representatives, and the authorizing committees;

(4)

in section 428 (20 U.S.C. 1078)—

(A)

in subsection (c)(9)(K), by striking House Committee on Education and the Workforce and the Senate Committee on Labor and Human Resources and inserting authorizing committees;

(B)

in the matter following paragraph (2) of subsection (g), by striking Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives and inserting authorizing committees; and

(C)

in subsection (n)(4), by striking Committee on Education and the Workforce of the House of Representatives and the Committee on Labor and Human Resources of the Senate and inserting authorizing committees;

(5)

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

(A)

in the matter preceding subparagraph (A) of paragraph (2), by striking Chairperson and all that follows through House of Representatives and inserting members of the authorizing committees;

(B)

in paragraph (3), by striking Chairperson and all that follows through House of Representatives and inserting members of the authorizing committees; and

(C)

in paragraph (5), by striking Chairperson and all that follows through House of Representatives and inserting members of the authorizing committees;

(6)

in section 432 (20 U.S.C. 1082)—

(A)

in subsection (f)(1)(C), by striking the Committee on Education and the Workforce of the House of Representatives or the Committee on Labor and Human Resources of the Senate and inserting either of the authorizing committees; and

(B)

in the matter following subparagraph (D) of subsection (n)(3), by striking Committee on Education and the Workforce of the House of Representatives and the Committee on Labor and Human Resources of the Senate and inserting authorizing committees;

(7)

in section 437(c)(1) (20 U.S.C. 1087(c)(1)), by striking Committee on Education and the Workforce of the House of Representatives and the Committee on Labor and Human Resources of the Senate and inserting authorizing committees;

(8)

in section 439 (20 U.S.C. 1087–2)—

(A)

in subsection (d)(1)(E)(iii), by striking advise the Chairman and all that follows through House of Representatives and inserting advise the members of the authorizing committees;

(B)

in subsection (r)—

(i)

in paragraph (3), by striking inform the Chairman and all that follows through House of Representatives, and inserting inform the members of the authorizing committees;

(ii)

in paragraph (5)(B), by striking plan, to the Chairman and all that follows through Education and Labor and inserting plan, to the members of the authorizing committees;

(iii)

in paragraph (6)(B)—

(I)

by striking plan, to the Chairman and all that follows through House of Representatives and inserting plan, to the members of the authorizing committees; and

(II)

by striking Chairmen and ranking minority members of such Committees and inserting members of the authorizing committees;

(iv)

in paragraph (8)(C), by striking implemented to the Chairman and all that follows through House of Representatives, and and inserting implemented to the members of the authorizing committees, and to; and

(v)

in the matter preceding subparagraph (A) of paragraph (10), by striking days to the Chairman and all that follows through Education and Labor and inserting days to the members of the authorizing committees; and

(C)

in subsection (s)(2)—

(i)

in the matter preceding clause (i) of subparagraph (A), by striking Treasury and to the Chairman and all that follows through House of Representatives and inserting Treasury and to the members of the authorizing committees; and

(ii)

in subparagraph (B), by striking Treasury and to the Chairman and all that follows through House of Representatives and inserting Treasury and to the members of the authorizing committees;

(9)

in section 455(b)(8)(B) (20 U.S.C. 1087e(b)(8)(B)), by striking Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives and inserting authorizing committees;

(10)

in section 482(d) (20 U.S.C. 1089(d)), by striking Committee on Labor and Human Resources of the Senate and the Committee on Education and Labor of the House of Representatives and inserting authorizing committees;

(11)

in section 483(c) (20 U.S.C. 1090(c)), by striking Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives and inserting authorizing committees;

(12)

in section 485 (20 U.S.C. 1092)—

(A)

in subsection (f)(5)(A), by striking Committee on Education and the Workforce of the House of Representatives and the Committee on Labor and Human Resources of the Senate and inserting authorizing committees; and

(B)

in subsection (g)(4)(B), by striking Committee on Education and the Workforce of the House of Representatives and the Committee on Labor and Human Resources of the Senate and inserting authorizing committees;

(13)

in section 486 (20 U.S.C. 1093)—

(A)

in subsection (e), by striking Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives and inserting authorizing committees; and

(B)

in subsection (f)(3)—

(i)

in the matter preceding clause (i) of subparagraph (A), by striking Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives and inserting authorizing committees; and

(ii)

in the matter preceding clause (i) of subparagraph (B), by striking Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives and inserting authorizing committees;

(14)

in section 487A(a)(5) (20 U.S.C. 1094a(a)(5)), by striking Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives and inserting authorizing committees; and

(15)

in section 498B(d) (20 U.S.C. 1099c–2(d))—

(A)

in paragraph (1), by striking Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives and inserting authorizing committees; and

(B)

in paragraph (2), by striking Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives and inserting authorizing committees.

102.

General definition of institution of higher education

Section 101 (20 U.S.C. 1001) is amended—

(1)

in subsection (a)(3), by inserting , or awards a degree that is acceptable for admission to a graduate or professional degree program, subject to the review and approval by the Secretary after such a degree; and

(2)

by striking subsection (b)(2) and inserting the following:

(2)

a public or nonprofit private educational institution in any State that, in lieu of the requirement in subsection (a)(1), admits as regular students persons—

(A)

who are beyond the age of compulsory school attendance in the State in which the institution is located; or

(B)

who will be dually or concurrently enrolled in the institution and a secondary school.

.

103.

Definition of institution of higher education for purposes of title IV programs

Section 102 (20 U.S.C. 1002) is amended—

(1)

by striking subclause (II) of subsection (a)(2)(A)(i) and inserting the following:

(II)

the institution has or had a clinical training program that was approved by a State as of January 1, 1992, and has continuously operated a clinical training program in not less than 1 State that is approved by such State;

;

(2)

in subsection (b)—

(A)

in paragraph (1)—

(i)

in subparagraph (D), by inserting and after the semicolon;

(ii)

in subparagraph (E), by striking ; and and inserting a period; and

(iii)

by striking subparagraph (F); and

(B)

by striking paragraph (2) and inserting the following:

(2)

Additional institutions

The term proprietary institution of higher education also includes a proprietary educational institution in any State that, in lieu of the requirement in section 101(a)(1), admits as regular students persons—

(A)

who are beyond the age of compulsory school attendance in the State in which the institution is located; or

(B)

who will be dually or concurrently enrolled in the institution and a secondary school.

; and

(3)

by striking subsection (c)(2) and inserting the following:

(2)

Additional institutions

The term postsecondary vocational institution also includes an educational institution in any State that, in lieu of the requirement in section 101(a)(1), admits as regular students persons—

(A)

who are beyond the age of compulsory school attendance in the State in which the institution is located; or

(B)

who will be dually or concurrently enrolled in the institution and a secondary school.

.

104.

Protection of student speech and association rights

Section 112 (20 U.S.C. 1011a) is amended—

(1)

in subsection (a)—

(A)

by inserting (1) before It is the sense; and

(B)

by adding at the end the following:

(2)

It is the sense of Congress that—

(A)

the diversity of institutions and educational missions is one of the key strengths of American higher education;

(B)

individual colleges and universities have different missions and each institution should design its academic program in accordance with its educational goals;

(C)

a college should facilitate the free and open exchange of ideas;

(D)

students should not be intimidated, harassed, discouraged from speaking out, or discriminated against;

(E)

students should be treated equally and fairly; and

(F)

nothing in this paragraph shall be construed to modify, change, or infringe upon any constitutionally protected religious liberty, freedom, expression, or association.

; and

(2)

in subsection (b)(1), by inserting , provided that the imposition of such sanction is done objectively and fairly after higher education.

105.

Accreditation and institutional quality and integrity advisory committee

(a)

In general

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

114.

Accreditation and institutional quality and integrity committee

(a)

Establishment

There is established in the Department an Accreditation and Institutional Quality and Integrity Advisory Committee (in this section referred to as the Committee) to assess the process of accreditation and the institutional eligibility and certification of such institutions under title IV.

(b)

Membership

(1)

In general

The Committee shall have 15 members, of which—

(A)

5 members shall be appointed by the Secretary;

(B)

5 members shall be appointed by the Speaker of the House of Representatives upon the recommendation of the majority leader and minority leader of the House of Representatives; and

(C)

5 members shall be appointed by the President pro tempore of the Senate upon the recommendation of the majority leader and minority leader of the Senate.

(2)

Qualifications

Individuals shall be appointed as members of the Committee on—

(A)

the basis of the individuals' experience, integrity, impartiality, and good judgment;

(B)

from among individuals who are representatives of, or knowledgeable concerning, education and training beyond secondary education, representatives of all sectors and types of institutions of higher education (as defined in section 102); and

(C)

on the basis of the individuals' technical qualifications, professional standing, and demonstrated knowledge in the fields of accreditation and administration in higher education.

(3)

Terms of members

The term of office of each member of the Committee shall be for 6 years, except that any member appointed to fill a vacancy occurring prior to the expiration of the term for which the member’s predecessor was appointed shall be appointed for the remainder of such term.

(4)

Vacancy

A vacancy on the Committee shall be filled in the same manner as the original appointment was made not later than 90 days after the vacancy occurred. If a vacancy occurs in a position to be filled by the Secretary, the Secretary shall publish a Federal Register notice soliciting nominations for the position not later than 30 days after being notified of the vacancy.

(5)

Initial terms

The terms of office for the initial members of the Committee shall be—

(A)

2 years for members appointed under paragraph (1)(A);

(B)

4 years for members appointed under paragraph (1)(B); and

(C)

6 years for members appointed under paragraph (1)(C).

(6)

Chairperson

The members of the Committee shall select a chairperson from among the members.

(c)

Functions

The Committee shall—

(1)

advise the Secretary with respect to establishment and enforcement of the standards of accrediting agencies or associations under subpart 2 of part H of title IV;

(2)

advise the Secretary with respect to the recognition of a specific accrediting agency or association;

(3)

advise the Secretary with respect to the preparation and publication of the list of nationally recognized accrediting agencies and associations;

(4)

advise the Secretary with respect to the eligibility and certification process for institutions of higher education under title IV, together with recommendations for improvements in such process;

(5)

advise the Secretary with respect to the relationship between—

(A)

accreditation of institutions of higher education and the certification and eligibility of such institutions; and

(B)

State licensing responsibilities with respect to such institutions; and

(6)

carry out such other advisory functions relating to accreditation and institutional eligibility as the Secretary may prescribe in regulation.

(d)

Meeting procedures

(1)

Schedule

(A)

Biannual meetings

The Committee shall meet not less often than twice each year, at the call of the Chairperson.

(B)

Publication of Date

The Committee shall submit the date and location of each meeting in advance to the Secretary, and the Secretary shall publish such information in the Federal Register not later than 30 days before the meeting.

(2)

Agenda

(A)

Establishment

The agenda for a meeting of the Committee shall be established by the Chairperson and shall be submitted to the members of the Committee upon notification of the meeting.

(B)

Opportunity for public comment

The agenda shall include, at a minimum, opportunity for public comment during the Committee’s deliberations.

(3)

Secretary’s designee

(A)

Attendance at meeting

The Chairperson shall invite the Secretary’s designee to attend all meetings of the Committee.

(B)

Role of designee

The Secretary’s designee may be present at a Committee meeting to facilitate the exchange and free flow of information between the Secretary and the Committee. The designee shall have no authority over the agenda of the meeting, the items on that agenda, or on the resolution of any agenda item.

(4)

Federal advisory committee Act

The provisions of the Federal Advisory Committee Act (5 U.S.C. App.) shall apply to the Committee, except that section 14 of such Act shall not apply.

(e)

Report and notice

(1)

Notice

The Secretary shall annually publish in the Federal Register—

(A)

a list containing, for each member of the Committee—

(i)

the member's name;

(ii)

the date of the expiration of the member's term of office; and

(iii)

the individual described in subsection (b)(1) who appointed the member; and

(B)

a solicitation of nominations for each expiring term of office on the Committee of a member appointed by the Secretary.

(2)

Report

Not later than September 30 of each year, the Committee shall make an annual report to the Secretary, the authorizing committees, and the public. The annual report shall contain—

(A)

a detailed summary of the agenda and activities of, and the findings and recommendations made by, the Committee during the preceding fiscal year;

(B)

a list of the date and location of each meeting during the preceding fiscal year;

(C)

a list of the members of the Committee and appropriate contact information; and

(D)

a list of the functions of the Committee, including any additional functions established by the Secretary through regulation.

(f)

Termination

The Committee shall terminate on September 30, 2012.

.

(b)

Termination of NACIQI

The National Advisory Committee on Institutional Quality and Integrity, established under section 114 of the Higher Education Act of 1965 (as such section was in effect the day before the date of enactment of this Act) shall terminate 90 days after such date.

106.

Drug and alcohol abuse prevention

Section 120(a)(2) (20 U.S.C. 1011i(a)(2)) is amended—

(1)

in subparagraph (A), by striking and after the semicolon;

(2)

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

(3)

by inserting after subparagraph (A) (as amended by paragraph (1)) the following:

(B)

determine the number of drug and alcohol-related incidents and fatalities that—

(i)

occur on the institution's property or as part of any of the institution's activities; and

(ii)

are reported to the institution;

(C)

determine the number and type of sanctions described in paragraph (1)(E) that are imposed by the institution as a result of drug and alcohol-related incidents and fatalities on the institution's property or as part of any of the institution's activities; and

.

107.

Prior rights and obligations

Section 121(a) (20 U.S.C. 1011j(a)) is amended—

(1)

in paragraph (1), by striking 1999 and for each of the 4 succeeding fiscal years and inserting 2008 and for each succeeding fiscal year; and

(2)

in paragraph (2), by striking 1999 and for each of the 4 succeeding fiscal years and inserting 2008 and for each succeeding fiscal year.

108.

Transparency in college tuition for consumers

Part C of title I (20 U.S.C. 1015) is amended by adding at the end the following:

132.

Transparency in college tuition for consumers

(a)

Net price

In this section, the term net price means the average yearly tuition and fees paid by a full-time undergraduate student at an institution of higher education, after discounts and grants from the institution, Federal Government, or a State have been applied to the full price of tuition and fees at the institution.

(b)

Higher education price index

(1)

In general

Not later than 1 year after the date of enactment of the Higher Education Amendments of 2007, the Commission of the Bureau of Labor Statistics, in consultation with the Commissioner of Education Statistics and representatives of institutions of higher education, shall develop higher education price indices that accurately reflect the annual change in tuition and fees for undergraduate students in the categories of institutions listed in paragraph (2). Such indices shall be updated annually.

(2)

Development

The higher education price index under paragraph (1) shall be developed for each of the following categories:

(A)

4-year public degree-granting institutions of higher education.

(B)

4-year private degree-granting institutions of higher education.

(C)

2-year public degree-granting institutions of higher education.

(D)

2-year private degree-granting institutions of higher education.

(E)

Less than 2-year institutions of higher education.

(F)

All types of institutions described in subparagraphs (A) through (E).

(3)

Authorization of appropriations

There are authorized to be appropriated to carry out this subsection such sums as may be necessary.

(c)

Reporting

(1)

In general

The Secretary shall annually report, in a national list and in a list for each State, a ranking of institutions of higher education according to such institutions' change in tuition and fees over the preceding 2 years. The purpose of such lists is to provide consumers with general information on pricing trends among institutions of higher education nationally and in each State.

(2)

Compilation

(A)

In general

The lists described in paragraph (1) shall be compiled according to the following categories:

(i)

4-year public institutions of higher education.

(ii)

4-year private, nonprofit institutions of higher education.

(iii)

4-year private, for-profit institutions of higher education.

(iv)

2-year public institutions of higher education.

(v)

2-year private, nonprofit institutions of higher education.

(vi)

2-year private, for-profit institutions of higher education.

(vii)

Less than 2-year public institutions of higher education.

(viii)

Less than 2-year private, nonprofit institutions of higher education.

(ix)

Less than 2-year private, for-profit institutions of higher education.

(B)

Percentage and dollar change

The lists described in paragraph (1) shall include 2 lists for each of the categories under subparagraph (A) as follows:

(i)

1 list in which data is compiled by percentage change in tuition and fees over the preceding 2 years.

(ii)

1 list in which data is compiled by dollar change in tuition and fees over the preceding 2 years.

(3)

Higher education price increase watch lists

Upon completion of the development of the higher education price indices described in paragraph (1), the Secretary shall annually report, in a national list, and in a list for each State, a ranking of each institution of higher education whose tuition and fees outpace such institution’s applicable higher education price index described in subsection (b). Such lists shall—

(A)

be known as the Higher Education Price Increase Watch Lists;

(B)

report the full price of tuition and fees at the institution and the net price;

(C)

where applicable, report the average price of room and board for students living on campus at the institution, except that such price shall not be used in determining whether an institution’s cost outpaces such institution’s applicable higher education price index; and

(D)

be compiled by the Secretary in a public document to be widely published and disseminated in paper form and through the website of the Department.

(4)

State higher education appropriations chart

The Secretary shall annually report, in charts for each State—

(A)

a comparison of the percentage change in State appropriations per enrolled student in a public institution of higher education in the State to the percentage change in tuition and fees for each public institution of higher education in the State for each of the previous 5 years; and

(B)

the total amount of need-based and merit-based aid provided by the State to students enrolled in a public institution of higher education in the State.

(5)

Sharing of information

The Secretary shall share the information under paragraphs (1) through (4) with private sector college guidebook publishers.

(d)

Net price calculator

(1)

Development

Not later than 1 year after the date of enactment of the Higher Education Amendments of 2007, the Secretary shall, in consultation with institutions of higher education, develop and make several model net price calculators to help students, families, and consumers determine the net price of an institution of higher education, which institutions of higher education may, at their discretion, elect to use pursuant to paragraph (3).

(2)

Categories

The model net price calculators described in paragraph (1) shall be developed for each of the following categories:

(A)

4-year public institutions of higher education.

(B)

4-year private, nonprofit institutions of higher education.

(C)

4-year private, for-profit institutions of higher education.

(D)

2-year public institutions of higher education.

(E)

2-year private, nonprofit institutions of higher education.

(F)

2-year private, for-profit institutions of higher education.

(G)

Less than 2-year public institutions of higher education.

(H)

Less than 2-year private, nonprofit institutions of higher education.

(I)

Less than 2-year private, for-profit institutions of higher education.

(3)

Use of net price calculator by institutions

Not later than 3 years after the date of enactment of the Higher Education Amendments of 2007, each institution of higher education that receives Federal funds under this Act shall adopt and use a net price calculator to help students, families, and other consumers determine the net price of such institution of higher education. Such calculator may be—

(A)

based on a model calculator developed by the Department; or

(B)

developed by the institution of higher education.

(4)

Authorization of appropriations

There are authorized to be appropriated to carry out this subsection such sums as may be necessary.

(e)

Net price reporting in application information

An institution of higher education that receives Federal funds under this Act shall include, in the materials accompanying an application for admission to the institution, the most recent information regarding the net price of the institution, calculated for each quartile of students based on the income of either the students’ parents or, in the case of independent students (as such term is described in section 480), of the students, for each of the 2 academic years preceding the academic year for which the application is produced.

(f)

Enhanced college information website

(1)

In general

(A)

In general

Not later than 90 days after the date of enactment of the Higher Education Amendments of 2007, the Secretary shall contract with an independent organization with demonstrated experience in the development of consumer-friendly websites to develop improvements to the website known as the College Opportunities On-Line (COOL) so that it better meets the needs of students, families, and consumers for accurate and appropriate information on institutions of higher education.

(B)

Implementations

Not later than 1 year after the date of enactment of the Higher Education Amendments of 2007, the Secretary shall implement the improvements developed by the independent organization described under subparagraph (A) to the college information website.

(2)

University and college accountability network

Not later than 1 year after the date of enactment of the Higher Education Amendments of 2007, the Secretary shall develop a model document for annually reporting basic information about an institution of higher education that chooses to participate, to be posted on the college information website and made available to institutions of higher education, students, families, and other consumers. Such document shall be known as the University and College Accountability Network (U–CAN), and shall include, the following information about the institution of higher education for the most recent academic year for which the institution has available data, presented in a consumer-friendly manner:

(A)

A statement of the institution’s mission and specialties.

(B)

The total number of undergraduate students who applied, were admitted, and enrolled at the institution.

(C)

Where applicable, reading, writing, mathematics, and combined scores on the SAT or ACT for the middle 50 percent range of the institution’s freshman class.

(D)

Enrollment of full-time, part-time, and transfer students at the institution, at the undergraduate and (where applicable) graduate levels.

(E)

Percentage of male and female undergraduate students enrolled at the institution.

(F)

Percentage of enrolled undergraduate students from the State in which the institution is located, from other States, and from other countries.

(G)

Percentage of enrolled undergraduate students at the institution by race and ethnic background.

(H)

Retention rates for full-time and part-time first-time first-year undergraduate students enrolled at the institution.

(I)

Average time to degree or certificate completion for first-time, first-year undergraduate students enrolled at the institution.

(J)

Percentage of enrolled undergraduate students who graduate within 2 years (in the case of 2-year institutions), and 4, 5 and 6 years (in the case of 2 and 4-year institutions).

(K)

Number of students who obtained a certificate or an associate's, bachelor’s, master’s, or doctoral degree at the institution.

(L)

The undergraduate major areas of study with the highest number of degrees awarded.

(M)

The student-faculty ratio, and number of full-time, part-time, and adjunct faculty at the institution.

(N)

Percentage of faculty at the institution with the highest degree in their field.

(O)

The percentage change in total price in tuition and fees and the net price for an undergraduate at the institution in each of the preceding 5 academic years.

(P)

The total average yearly cost of tuition and fees, room and board, and books and other related costs for an undergraduate student enrolled at the institution, for—

(i)

full-time undergraduate students living on campus;

(ii)

full-time undergraduate students living off-campus; and

(iii)

in the case of students attending a public institution of higher education, such costs for in-State and out-of-State students living on and off-campus.

(Q)

The average yearly grant amount (including Federal, State, and institutional aid) for a student enrolled at the institution.

(R)

The average yearly amount of Federal student loans, and other loans provided through the institution, to undergraduate students enrolled at the institution.

(S)

The total yearly grant aid available to undergraduate students enrolled at the institution, from the Federal Government, a State, the institution, and other sources.

(T)

The percentage of undergraduate students enrolled at the institution receiving Federal, State, and institutional grants, student loans, and any other type of student financial assistance provided publicly or through the institution, such as Federal work-study funds.

(U)

The average net price for all undergraduate students enrolled at the institution.

(V)

The percentage of first-year undergraduate students enrolled at the institution who live on campus and off campus.

(W)

Information on the policies of the institution related to transfer of credit from other institutions.

(X)

Information on campus safety required to be collected under section 485(f).

(Y)

Links to the appropriate sections of the institution’s website that provide information on student activities offered by the institution, such as intercollegiate sports, student organizations, study abroad opportunities, intramural and club sports, specialized housing options, community service opportunities, cultural and arts opportunities on campus, religious and spiritual life on campus, and lectures and outside learning opportunities.

(Z)

Links to the appropriate sections of the institution’s website that provide information on services offered by the institution to students during and after college, such as internship opportunities, career and placement services, and preparation for further education.

(3)

Consultation

The Secretary shall ensure that current and prospective college students, family members of such students, and institutions of higher education are consulted in carrying out paragraphs (1) and (2).

(4)

Authorization of appropriations

There are authorized to be appropriated to carry out this subsection such sums as may be necessary.

(g)

GAO report

The Comptroller General of the United States shall—

(1)

conduct a study on the time and cost burdens to institutions of higher education associated with completing the Integrated Postsecondary Education Data System (IPEDS), which study shall—

(A)

report on the time and cost burden of completing the IPEDS survey for 4-year, 2-year, and less than 2-year institutions of higher education; and

(B)

present recommendations for reducing such burden;

(2)

not later than 1 year after the date of enactment of the Higher Education Amendments of 2007, submit to Congress a preliminary report regarding the findings of the study described in paragraph (1); and

(3)

not later than 2 years after the date of enactment of the Higher Education Amendments of 2007, submit to Congress a final report regarding such findings.

.

109.

Databases of student information prohibited

Part C of title I (20 U.S.C. 1015), as amended by section 108, is further amended by adding at the end the following:

133.

Database of student information prohibited

(a)

Prohibition

Except as described in (b), nothing in this Act shall be construed to authorize the development, implementation, or maintenance of a Federal database of personally identifiable information on individuals receiving assistance under this Act, attending institutions receiving assistance under this Act, or otherwise involved in any studies or other collections of data under this Act, including a student unit record system, an education bar code system, or any other system that tracks individual students over time.

(b)

Exception

The provisions of subsection (a) shall not affect the loan obligation enforcement activities described in section 485B.

(c)

State databases

Nothing in this Act shall prohibit a State or a consortium of States from developing, implementing, or maintaining State-developed databases that track individuals over time, including student unit record systems that contain information related to enrollment, attendance, graduation and retention rates, student financial assistance, and graduate employment outcomes.

.

110.

Performance-based organization for the delivery of Federal student financial assistance

Section 141 (20 U.S.C. 1018) is amended—

(1)

in subsection (a)—

(A)

in paragraph (1), by striking operational and inserting administrative and oversight; and

(B)

in paragraph (2)(D), by striking of the operational functions and inserting and administration;

(2)

in subsection (b)—

(A)

in paragraph (1)—

(i)

in subparagraph (A), by striking the information systems administered by the PBO, and other functions performed by the PBO and inserting the Federal student financial assistance programs authorized under title IV; and

(ii)

by striking subparagraph (C) and inserting the following:

(C)

assist the Chief Operating Officer in identifying goals for—

(i)

the administration of the systems used to administer the Federal student financial assistance programs authorized under title IV; and

(ii)

the updating of such systems to current technology.

; and

(B)

in paragraph (2)—

(i)

in the matter preceding subparagraph (A), by striking administration of the information and financial systems that support and inserting the administration of Federal;

(ii)

in subparagraph (A)—

(I)

in the matter preceding clause (i), by striking of the delivery system for Federal student assistance and inserting for the Federal student assistance programs authorized under title IV;

(II)

by striking clauses (i) and (ii) and inserting the following:

(i)

the collection, processing, and transmission of data to students, institutions, lenders, State agencies, and other authorized parties;

(ii)

the design and technical specifications for software development and procurement for systems supporting the student financial assistance programs authorized under title IV;

;

(III)

in clause (iii), by striking delivery and inserting administration;

(IV)

in clause (iv)—

(aa)

by inserting the after supporting; and

(bb)

by striking and after the semicolon;

(V)

in clause (v), by striking systems that support those programs. and inserting the administration of the Federal student assistance programs authorized under title IV; and; and

(VI)

by adding at the end the following:

(vi)

ensuring the integrity of the student assistance programs authorized under title IV.

; and

(iii)

in subparagraph (B), by striking operations and services and inserting activities and functions; and

(3)

in subsection (c)—

(A)

in the subsection heading, by striking Performance Plan and Report and inserting Performance Plan, Report, and Briefing;

(B)

in paragraph (1)(C)—

(i)

in clause (iii), by striking information and delivery; and

(ii)

in clause (iv)—

(I)

by striking Developing an and inserting Developing; and

(II)

by striking delivery and information system and inserting systems;

(C)

in paragraph (2)—

(i)

in subparagraph (A), by inserting the after PBO and; and

(ii)

in subparagraph (B), by striking Officer and inserting Officers;

(D)

in paragraph (3), by inserting students, after consult with; and

(E)

by adding at the end the following:

(4)

Briefing on enforcement of student loan provisions

The Chief Operating Officer shall provide an annual briefing to the members of the authorizing committees on the steps the PBO has taken and is taking to ensure that lenders are providing the information required under clauses (iii) and (iv) of section 428(c)(3)(C) and sections 428(b)(1)(Z) and 428C(b)(1)(F).

;

(4)

in subsection (d)—

(A)

in paragraph (1), by striking the second sentence; and

(B)

in paragraph (5)—

(i)

in subparagraph (B), by striking paragraph (2) and inserting paragraph (4); and

(ii)

in subparagraph (C), by striking this;

(5)

in subsection (f)—

(A)

in paragraph (2), by striking to borrowers and inserting to students, borrowers,; and

(B)

in paragraph (3)(A), by striking (1)(A) and inserting (1);

(6)

in subsection (g)(3), by striking not more than 25;

(7)

in subsection (h), by striking organizational effectiveness and inserting effectiveness;

(8)

by striking subsection (i);

(9)

by redesignating subsection (j) as subsection (i); and

(10)

in subsection (i) (as redesignated by paragraph (9)), by striking , including transition costs.

111.

Procurement flexibility

Section 142 (20 U.S.C. 1018a) is amended—

(1)

in subsection (b)—

(A)

in paragraph (1)—

(i)

by striking for information systems supporting the programs authorized under title IV; and

(ii)

by striking and after the semicolon;

(B)

in paragraph (2), by striking the period at the end and inserting ; and; and

(C)

by adding at the end the following:

(3)

through the Chief Operating Officer—

(A)

to the maximum extent practicable, utilize procurement systems that streamline operations, improve internal controls, and enhance management; and

(B)

assess the efficiency of such systems and assess such systems’ ability to meet PBO requirements.

;

(2)

by striking subsection (c)(2) and inserting the following:

(2)

Fee for service arrangements

The Chief Operating Officer shall, when appropriate and consistent with the purposes of the PBO, acquire services related to the functions set forth in section 141(b)(2) from any entity that has the capability and capacity to meet the requirements set by the PBO. The Chief Operating Officer is authorized to pay fees that are equivalent to those paid by other entities to an organization that provides services that meet the requirements of the PBO, as determined by the Chief Operating Officer.

;

(3)

in subsection (d)(2)(B), by striking on Federal Government contracts;

(4)

in subsection (g)—

(A)

in paragraph (4)(A)—

(i)

in the subparagraph heading, by striking Sole source.— and inserting Single-source basis.—; and

(ii)

by striking sole-source and inserting single-source; and

(B)

in paragraph (7), by striking sole-source and inserting single-source;

(5)

in subsection (h)(2)(A), by striking sole-source and inserting single-source; and

(6)

in subsection (l), by striking paragraph (3) and inserting the following:

(3)

Single-source basis

The term single-source basis, with respect to an award of a contract, means that the contract is awarded to a source after soliciting an offer or offers from, and negotiating with, only such source (although such source is not the only source in the marketplace capable of meeting the need) because such source is the most advantageous source for purposes of the award.

.

112.

Institution and lender reporting and disclosure requirements

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

E

Lender and institution requirements relating to educational loans

151.

Definitions

In this part:

(1)

Cost of attendance

The term cost of attendance has the meaning given the term in section 472.

(2)

Covered institution

The term covered institution

(A)

means any educational institution that offers a postsecondary educational degree, certificate, or program of study (including any institution of higher education, as such term is defined in section 102) and receives any Federal funding or assistance; and

(B)

includes any employee or agent of the educational institution or any organization or entity affiliated with, or directly or indirectly controlled by, such institution.

(3)

Educational loan

The term educational loan means any loan made, insured, or guaranteed under title IV.

(4)

Educational loan arrangement

The term educational loan arrangement means an arrangement or agreement between a lender and a covered institution—

(A)

under which arrangement or agreement a lender provides or otherwise issues educational loans to the students attending the covered institution or the parents of such students; and

(B)

which arrangement or agreement—

(i)

relates to the covered institution recommending, promoting, endorsing, or using educational loans of the lender; and

(ii)

involves the payment of any fee or provision of other material benefit by the lender to the institution or to groups of students who attend the institution.

(5)

Lender

The term lender

(A)

means—

(i)

any lender—

(I)

of a loan made, insured, or guaranteed under part B or D of title IV; and

(II)

that is a financial institution, as such term is defined in section 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6809); and

(ii)

in the case of any loan issued or provided to a student under part D of title IV, the Secretary; and

(B)

includes any individual, group, or entity acting on behalf of the lender in connection with an educational loan.

(6)

Officer

The term officer includes a director or trustee of an institution.

152.

Requirements for lenders and institutions participating in educational loan arrangements

(a)

Use of lender name

A covered institution that enters into an educational loan arrangement has a duty to disclose the name of the lender in documentation related to the loan.

(b)

Disclosures

(1)

Disclosures by lenders

Before a lender issues or otherwise provides an educational loan to a student, the lender shall provide the student, in writing, with the disclosures described in paragraph (2).

(2)

Disclosures

The disclosures required by this paragraph shall include a clear and prominent statement—

(A)

of the interest rates of the educational loan being offered;

(B)

showing sample educational loan costs, disaggregated by type;

(C)

that describes, with respect to each type of educational loan being offered—

(i)

the types of repayment plans that are available;

(ii)

whether, and under what conditions, early repayment may be made without penalty;

(iii)

when and how often interest on the loan will be capitalized;

(iv)

the terms and conditions of deferments or forbearance;

(v)

all available repayment benefits, the percentage of all borrowers who qualify for such benefits, and the percentage of borrowers who received such benefits in the preceding academic year, for each type of loan being offered;

(vi)

the collection practices in the case of default;

(vii)

all fees that the borrower may be charged, including late payment penalties and associated fees; and

(viii)

whether the amount of all loans issued by the lender to the borrower exceeds the student’s cost of attendance; and

(D)

of such other information as the Secretary may require.

(c)

Disclosures to the secretary by lender

(1)

In general

Each lender shall, on an annual basis, report to the Secretary any reasonable expenses paid or given under section 435(d)(5)(D), 487(a)(21)(A)(ii), or 487(a)(21)(A)(iv) to any employee who is employed in the financial aid office of a covered institution, or who otherwise has responsibilities with respect to educational loans or other financial aid of the institution. Such reports shall include—

(A)

the amount of each specific instance in which the lender provided such reimbursement;

(B)

the name of the financial aid official or other employee to whom the reimbursement was made;

(C)

the dates of the activity for which the reimbursement was made; and

(D)

a brief description of the activity for which the reimbursement was made.

(2)

Report to Congress

The Secretary shall compile the information in paragraph (1) in a report and transmit such report to the authorizing committees annually.

153.

Interest rate report for institutions and lenders participating in educational loan arrangements

(a)

Secretary duties

(1)

Report and model format

Not later than 180 days after the date of enactment of the Higher Education Amendments of 2007, the Secretary shall—

(A)

prepare a report on the adequacy of the information provided to students and the parents of such students about educational loans, after consulting with students, representatives of covered institutions (including financial aid administrators, registrars, and business officers), lenders, loan servicers, and guaranty agencies;

(B)

include in the report a model format, based on the report's findings, to be used by lenders and covered institutions in carrying out subsections (b) and (c)—

(i)

that provides information on the applicable interest rates and other terms and conditions of the educational loans provided by a lender to students attending the institution, or the parents of such students, disaggregated by each type of educational loans provided to such students or parents by the lender, including—

(I)

the interest rate and terms and conditions of the loans offered by the lender for the upcoming academic year;

(II)

with respect to such loans, any benefits that are contingent on the repayment behavior of the borrower;

(III)

the average amount borrowed from the lender by students enrolled in the institution who obtain loans of such type from the lender for the preceding academic year;

(IV)

the average interest rate on such loans provided to such students for the preceding academic year; and

(V)

the amount that the borrower may repay in interest, based on the standard repayment period of a loan, on the average amount borrowed from the lender by students enrolled in the institution who obtain loans of such type from the lender for the preceding academic year; and

(ii)

which format shall be easily usable by lenders, institutions, guaranty agencies, loan servicers, parents, and students; and

(C)
(i)

submit the report and model format to the authorizing committees; and

(ii)

make the report and model format available to covered institutions, lenders, and the public.

(2)

Use of form

The Secretary shall take such steps as necessary to make the model format available to covered institutions and to encourage—

(A)

lenders subject to subsection (b) to use the model format in providing the information required under subsection (b); and

(B)

covered institutions to use such format in preparing the information report under subsection (c).

(b)

Lender duties

Each lender that has an educational loan arrangement with a covered institution shall annually, by a date determined by the Secretary, provide to the covered institution and to the Secretary the information included on the model format for each type of educational loan provided by the lender to students attending the covered institution, or the parents of such students, for the preceding academic year.

(c)

Covered institution duties

Each covered institution shall—

(1)

prepare and submit to the Secretary an annual report, by a date determined by the Secretary, that includes, for each lender that has an educational loan arrangement with the covered institution and that has submitted to the institution the information required under subsection (b)—

(A)

the information included on the model format for each type of educational loan provided by the lender to students attending the covered institution, or the parents of such students; and

(B)

a detailed explanation of why the covered institution believes the terms and conditions of each type of educational loan provided pursuant to the agreement are beneficial for students attending the covered institution, or the parents of such students; and

(2)

ensure that the report required under paragraph (1) is made available to the public and provided to students attending or planning to attend the covered institution, and the parents of such students, in time for the student or parent to take such information into account before applying for or selecting an educational loan.

.

II

TEACHER QUALITY ENHANCEMENT

201.

Teacher quality partnership grants

Part A of title II (20 U.S.C. 1021 et seq.) is amended to read as follows:

A

Teacher quality partnership grants

201.

Purposes; definitions

(a)

Purposes

The purposes of this part are to—

(1)

improve student achievement;

(2)

improve the quality of the current and future teaching force by improving the preparation of prospective teachers and enhancing professional development activities;

(3)

hold institutions of higher education accountable for preparing highly qualified teachers; and

(4)

recruit qualified individuals, including minorities and individuals from other occupations, into the teaching force.

(b)

Definitions

In this part:

(1)

Arts and sciences

The term arts and sciences means—

(A)

when referring to an organizational unit of an institution of higher education, any academic unit that offers 1 or more academic majors in disciplines or content areas corresponding to the academic subject matter areas in which teachers provide instruction; and

(B)

when referring to a specific academic subject area, the disciplines or content areas in which academic majors are offered by the arts and sciences organizational unit.

(2)

Children from low-income families

The term children from low-income families means children as described in section 1124(c)(1)(A) of the Elementary and Secondary Education Act of 1965.

(3)

Core academic subjects

The term core academic subjects has the meaning given the term in section 9101 of the Elementary and Secondary Education Act of 1965.

(4)

Early childhood education program

The term early childhood education program means—

(A)

a Head Start program or an Early Head Start program carried out under the Head Start Act (42 U.S.C. 9831 et seq.);

(B)

a State licensed or regulated child care program or school; or

(C)

a State prekindergarten program that serves children from birth through kindergarten and that addresses the children’s cognitive (including language, early literacy, and pre-numeracy), social, emotional, and physical development.

(5)

Early childhood educator

The term early childhood educator means an individual with primary responsibility for the education of children in an early childhood education program.

(6)

Educational service agency

The term educational service agency has the meaning given the term in section 9101 of the Elementary and Secondary Education Act of 1965.

(7)

Eligible partnership

The term eligible partnership means an entity that—

(A)

shall include—

(i)

a high-need local educational agency;

(ii)

a high-need school or a consortium of high-need schools served by the high-need local educational agency or, as applicable, a high-need early childhood education program;

(iii)

a partner institution;

(iv)

a school, department, or program of education within such partner institution; and

(v)

a school or department of arts and sciences within such partner institution; and

(B)

may include any of the following:

(i)

The Governor of the State.

(ii)

The State educational agency.

(iii)

The State board of education.

(iv)

The State agency for higher education.

(v)

A business.

(vi)

A public or private nonprofit educational organization.

(vii)

An educational service agency.

(viii)

A teacher organization.

(ix)

A high-performing local educational agency, or a consortium of such local educational agencies, that can serve as a resource to the partnership.

(x)

A charter school (as defined in section 5210 of the Elementary and Secondary Education Act of 1965).

(xi)

A school or department within the partner institution that focuses on psychology and human development.

(xii)

A school or department within the partner institution with comparable expertise in the disciplines of teaching, learning, and child and adolescent development.

(8)

Essential components of reading instruction

The term essential components of reading instruction has the meaning given such term in section 1208 of the Elementary and Secondary Education Act of 1965.

(9)

Exemplary teacher

The term exemplary teacher has the meaning given such term in section 9101 of the Elementary and Secondary Education Act of 1965.

(10)

High-need early childhood education program

The term high-need early childhood education program means an early childhood education program that is among the highest 25 percent of early childhood programs in the geographic area served by the local educational agency in the partnership, in terms of the percentage of students from families with incomes below the poverty line.

(11)

High-need local educational agency

The term high-need local educational agency means a local educational agency—

(A)
(i)

for which not less than 20 percent of the children served by the agency are children from low-income families;

(ii)

that serves not fewer than 10,000 children from low-income families; or

(iii)

with a total of less than 600 students in average daily attendance at the schools that are served by the agency and all of whose schools are designated with a school locale code of 6, 7, or 8, as determined by the Secretary; and

(B)
(i)

for which there is a high percentage of teachers not teaching in the academic subject areas or grade levels in which the teachers were trained to teach; or

(ii)

for which there is a high teacher turnover rate or a high percentage of teachers with emergency, provisional, or temporary certification or licensure.

(12)

High-need school

The term high-need school means a public elementary school or public secondary school that—

(A)

is among the highest 25 percent of schools served by the local educational agency that serves the school, in terms of the percentage of students from families with incomes below the poverty line; or

(B)

is designated with a school locale code of 6, 7, or 8, as determined by the Secretary.

(13)

Highly competent

The term highly competent, when used with respect to an early childhood educator, means an educator—

(A)

with specialized education and training in development and education of young children from birth until entry into kindergarten;

(B)

with—

(i)

a baccalaureate degree in an academic major in the arts and sciences; or

(ii)

an associate’s degree in a related educational area; and

(C)

who has demonstrated a high level of knowledge and use of content and pedagogy in the relevant areas associated with quality early childhood education.

(14)

Highly qualified

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

(15)

Induction program

The term induction program means a formalized program for new teachers during not less than the teachers' first 2 years of teaching that is designed to provide support for, and improve the professional performance and advance the retention in the teaching field of, beginning teachers. Such program shall promote effective teaching skills and shall include the following components:

(A)

High-quality teacher mentoring.

(B)

Periodic, structured time for collaboration with teachers in the same department or field, as well as time for information-sharing among teachers, principals, administrators, and participating faculty in the partner institution.

(C)

The application of empirically based practice and scientifically valid research on instructional practices.

(D)

Opportunities for new teachers to draw directly upon the expertise of teacher mentors, faculty, and researchers to support the integration of empirically based practice and scientifically valid research with practice.

(E)

The development of skills in instructional and behavioral interventions derived from empirically based practice and, where applicable, scientifically valid research.

(F)

Faculty who—

(i)

model the integration of research and practice in the classroom; and

(ii)

assist new teachers with the effective use and integration of technology in the classroom.

(G)

Interdisciplinary collaboration among exemplary teachers, faculty, researchers, and other staff who prepare new teachers on the learning process and the assessment of learning.

(H)

Assistance with the understanding of data, particularly student achievement data, and the data's applicability in classroom instruction.

(I)

Regular evaluation of the new teacher.

(16)

Limited english proficient

The term limited English proficient has the meaning given such term in section 9101 of the Elementary and Secondary Education Act of 1965.

(17)

Partner institution

The term partner institution means an institution of higher education, which may include a 2-year institution of higher education offering a dual program with a 4-year institution of higher education, participating in an eligible partnership that has a teacher preparation program—

(A)

whose graduates exhibit strong performance on State-determined qualifying assessments for new teachers through—

(i)

demonstrating that 80 percent or more of the graduates of the program who intend to enter the field of teaching have passed all of the applicable State qualification assessments for new teachers, which shall include an assessment of each prospective teacher’s subject matter knowledge in the content area in which the teacher intends to teach; or

(ii)

being ranked among the highest-performing teacher preparation programs in the State as determined by the State—

(I)

using criteria consistent with the requirements for the State report card under section 205(b); and

(II)

using the State report card on teacher preparation required under section 205(b), after the first publication of such report card and for every year thereafter; or

(B)

that requires—

(i)

each student in the program to meet high academic standards and participate in intensive clinical experience;

(ii)

each student in the program preparing to become a teacher to become highly qualified; and

(iii)

each student in the program preparing to become an early childhood educator to meet degree requirements, as established by the State, and become highly competent.

(18)

Principles of scientific research

The term principles of scientific research means research that—

(A)

applies rigorous, systematic, and objective methodology to obtain reliable and valid knowledge relevant to education activities and programs;

(B)

presents findings and makes claims that are appropriate to and supported by the methods that have been employed; and

(C)

includes, appropriate to the research being conducted—

(i)

use of systematic, empirical methods that draw on observation or experiment;

(ii)

use of data analyses that are adequate to support the general findings;

(iii)

reliance on measurements or observational methods that provide reliable and generalizable findings;

(iv)

claims of causal relationships only in research designs that substantially eliminate plausible competing explanations for the obtained results, which may include but shall not be limited to random-assignment experiments;

(v)

presentation of studies and methods in sufficient detail and clarity to allow for replication or, at a minimum, to offer the opportunity to build systematically on the findings of the research;

(vi)

acceptance by a peer-reviewed journal or critique by a panel of independent experts through a comparably rigorous, objective, and scientific review; and

(vii)

use of research designs and methods appropriate to the research question posed.

(19)

Professional development

The term professional development has the meaning given the term in section 9101 of the Elementary and Secondary Education Act of 1965.

(20)

Scientifically valid research

The term scientifically valid research includes applied research, basic research, and field-initiated research in which the rationale, design, and interpretation are soundly developed in accordance with accepted principles of scientific research.

(21)

Teacher mentoring

The term teacher mentoring means the mentoring of new or prospective teachers through a new or established program that—

(A)

includes clear criteria for the selection of teacher mentors who will provide role model relationships for mentees, which criteria shall be developed by the eligible partnership and based on measures of teacher effectiveness;

(B)

provides high-quality training for such mentors, including instructional strategies for literacy instruction;

(C)

provides regular and ongoing opportunities for mentors and mentees to observe each other’s teaching methods in classroom settings during the day in a high-need school in the high-need local educational agency in the eligible partnership;

(D)

provides mentoring to each mentee by a colleague who teaches in the same field, grade, or subject as the mentee;

(E)

promotes empirically based practice of, and scientifically valid research on, where applicable—

(i)

teaching and learning;

(ii)

assessment of student learning;

(iii)

the development of teaching skills through the use of instructional and behavioral interventions; and

(iv)

the improvement of the mentees' capacity to measurably advance student learning; and

(F)

includes—

(i)

common planning time or regularly scheduled collaboration for the mentor and mentee; and

(ii)

joint professional development opportunities.

(22)

Teaching skills

The term teaching skills means skills that enable a teacher to—

(A)

increase student learning, achievement, and the ability to apply knowledge;

(B)

effectively convey and explain academic subject matter;

(C)

employ strategies grounded in the disciplines of teaching and learning that—

(i)

are based on empirically based practice and scientifically valid research, where applicable, on teaching and learning;

(ii)

are specific to academic subject matter; and

(iii)

focus on the identification of students' specific learning needs, particularly students with disabilities, students who are limited English proficient, students who are gifted and talented, and students with low literacy levels, and the tailoring of academic instruction to such needs;

(D)

conduct an ongoing assessment of student learning;

(E)

effectively manage a classroom;

(F)

communicate and work with parents and guardians, and involve parents and guardians in their children's education; and

(G)

use age-appropriate strategies and practices for children, including in early childhood education programs.

(23)

Teaching residency program

The term teaching residency program means a school-based teacher preparation program in which a prospective teacher—

(A)

for 1 academic year, teaches alongside a mentor teacher, who is the teacher of record;

(B)

receives concurrent instruction during the year described in subparagraph (A) from the partner institution, which courses may be taught by local educational agency personnel or residency program faculty, in the teaching of the content area in which the teacher will become certified or licensed;

(C)

acquires effective teaching skills; and

(D)

prior to completion of the program, earns a master's degree, attains full State teacher certification or licensure, and becomes highly qualified.

202.

Partnership grants

(a)

Program authorized

From amounts made available under section 208, the Secretary is authorized to award grants, on a competitive basis, to eligible partnerships, to enable the eligible partnerships to carry out the activities described in subsection (c).

(b)

Application

Each eligible partnership desiring a grant under this section shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may require. Each such application shall contain—

(1)

a needs assessment of all the partners in the eligible partnership with respect to the preparation, ongoing training, professional development, and retention, of general and special education teachers, principals, and, as applicable, early childhood educators;

(2)

a description of the extent to which the program prepares prospective and new teachers with strong teaching skills;

(3)

a description of the extent to which the program will prepare prospective and new teachers to understand research and data and the applicability of research and data in the classroom;

(4)

a description of how the partnership will coordinate strategies and activities assisted under the grant with other teacher preparation or professional development programs, including those funded under the Elementary and Secondary Education Act of 1965 and the Individuals with Disabilities Education Act, and through the National Science Foundation, and how the activities of the partnership will be consistent with State, local, and other education reform activities that promote student achievement;

(5)

a resource assessment that describes the resources available to the partnership, including—

(A)

the integration of funds from other related sources;

(B)

the intended use of the grant funds;

(C)

the commitment of the resources of the partnership to the activities assisted under this section, including financial support, faculty participation, and time commitments, and to the continuation of the activities when the grant ends;

(6)

a description of—

(A)

how the partnership will meet the purposes of this part;

(B)

how the partnership will carry out the activities required under subsection (d) or (e) based on the needs identified in paragraph (1), with the goal of improving student achievement;

(C)

the partnership's evaluation plan under section 204(a);

(D)

how the partnership will align the teacher preparation program with the—

(i)

early learning standards for early childhood education programs, as applicable, of the State in which the partnership is located; and

(ii)

the student academic achievement standards and academic content standards under section 1111(b)(2) of the Elementary and Secondary Education Act of 1965, established by the State in which the partnership is located;

(E)

how faculty at the partner institution will work with, during the term of the grant, highly qualified teachers in the classrooms of schools served by the high-need local educational agency in the partnership to provide high-quality professional development activities;

(F)

how the partnership will design, implement, or enhance a year-long, rigorous, and enriching teaching preservice clinical program component;

(G)

the in-service professional development strategies and activities to be supported; and

(H)

how the partnership will collect, analyze, and use data on the retention of all teachers and early childhood educators in schools and early childhood programs located in the geographic area served by the partnership to evaluate the effectiveness of the partnership's teacher and educator support system; and

(7)

with respect to the induction program required as part of the activities carried out under this section—

(A)

a demonstration that the schools and departments within the institution of higher education that are part of the induction program have relevant and essential roles in the effective preparation of teachers, including content expertise and expertise in teaching;

(B)

a demonstration of the partnership's capability and commitment to the use of empirically based practice and scientifically valid research on teaching and learning, and the accessibility to and involvement of faculty;

(C)

a description of how the teacher preparation program will design and implement an induction program to support all new teachers through not less than the first 2 years of teaching in the further development of the new teachers' teaching skills, including the use of mentors who are trained and compensated by such program for the mentors' work with new teachers; and

(D)

a description of how faculty involved in the induction program will be able to substantially participate in an early childhood education program or an elementary or secondary school classroom setting, as applicable, including release time and receiving workload credit for such participation.

(c)

Required use of grant funds

An eligible partnership that receives a grant under this part shall use grant funds to carry out a program for the pre-baccalaureate preparation of teachers under subsection (d), a teaching residency program under subsection (e), or both such programs.

(d)

Partnership grants for pre-baccalaureate preparation of teachers

An eligible partnership that receives a grant to carry out an effective program for the pre-baccalaureate preparation of teachers shall carry out a program that includes all of the following:

(1)

Reforms

(A)

In general

Implementing reforms, described in subparagraph (B), within each teacher preparation program and, as applicable, each preparation program for early childhood education programs, of the eligible partnership that is assisted under this section, to hold each program accountable for—

(i)

preparing—

(I)

current or prospective teachers to be highly qualified (including teachers in rural school districts who may teach multiple subjects, special educators, and teachers of students who are limited English proficient who may teach multiple subjects);

(II)

such teachers and, as applicable, early childhood educators, to understand empirically based practice and scientifically valid research on teaching and learning and its applicability, and to use technology effectively, including the use of instructional techniques to improve student achievement; and

(III)

as applicable, early childhood educators to be highly competent; and

(ii)

promoting strong teaching skills and, as applicable, techniques for early childhood educators to improve children’s cognitive, social, emotional, and physical development.

(B)

Required reforms

The reforms described in subparagraph (A) shall include—

(i)

implementing teacher preparation program curriculum changes that improve, evaluate, and assess how well all prospective and new teachers develop teaching skills;

(ii)

using empirically based practice and scientifically valid research, where applicable, about the disciplines of teaching and learning so that all prospective teachers and, as applicable, early childhood educators—

(I)

can understand and implement research-based teaching practices in classroom-based instruction;

(II)

have knowledge of student learning methods;

(III)

possess skills to analyze student academic achievement data and other measures of student learning and use such data and measures to improve instruction in the classroom;

(IV)

possess teaching skills and an understanding of effective instructional strategies across all applicable content areas that enable the teachers and early childhood educators to—

(aa)

meet the specific learning needs of all students, including students with disabilities, students who are limited English proficient, students who are gifted and talented, students with low literacy levels and, as applicable, children in early childhood education programs; and

(bb)

differentiate instruction for such students; and

(V)

can successfully employ effective strategies for reading instruction using the essential components of reading instruction;

(iii)

ensuring collaboration with departments, programs, or units of a partner institution outside of the teacher preparation program in all academic content areas to ensure that new teachers receive training in both teaching and relevant content areas in order to become highly qualified;

(iv)

developing and implementing an induction program; and

(v)

developing admissions goals and priorities with the hiring objectives of the high-need local educational agency in the eligible partnership.

(2)

Clinical experience and interaction

Developing and improving a sustained and high-quality pre-service clinical education program to further develop the teaching skills of all prospective teachers and, as applicable, early childhood educators, involved in the program. Such program shall do the following:

(A)

Incorporate year-long opportunities for enrichment activity or a combination of activities, including—

(i)

clinical learning in classrooms in high-need schools served by the high-need local educational agency in the eligible partnership and identified by the eligible partnership; and

(ii)

closely supervised interaction between faculty and new and experienced teachers, principals, and other administrators at early childhood education programs (as applicable), elementary schools, or secondary schools, and providing support for such interaction.

(B)

Integrate pedagogy and classroom practice and promote effective teaching skills in academic content areas.

(C)

Provide high-quality teacher mentoring.

(D)
(i)

Be offered over the course of a program of teacher preparation;

(ii)

be tightly aligned with course work (and may be developed as a 5th year of a teacher preparation program); and

(iii)

where feasible, allow prospective teachers to learn to teach in the same school district in which the teachers will work, learning the instructional initiatives and curriculum of that district.

(E)

Provide support and training for those individuals participating in an activity for prospective teachers described in this paragraph or paragraph (1) or (2), and for those who serve as mentors for such teachers, based on each individual’s experience. Such support may include—

(i)

with respect to a prospective teacher or a mentor, release time for such individual’s participation;

(ii)

with respect to a faculty member, receiving course workload credit and compensation for time teaching in the eligible partnership's activities; and

(iii)

with respect to a mentor, a stipend.

(3)

Induction programs for new teachers

Creating an induction program for new teachers, or, in the case of an early childhood education program, providing mentoring or coaching for new early childhood educators.

(4)

Support and training for participants in early childhood education programs

In the case of an eligible partnership focusing on early childhood educator preparation, implementing initiatives that increase compensation for early childhood educators who attain associate or baccalaureate degrees in early childhood education.

(5)

Teacher recruitment

Developing and implementing effective mechanisms to ensure that the eligible partnership is able to recruit qualified individuals to become highly qualified teachers through the activities of the eligible partnership.

(e)

Partnership grants for the establishment of teaching residency programs

(1)

In general

An eligible partnership receiving a grant to carry out an effective teaching residency program shall carry out a program that includes all of the following activities:

(A)

Supporting a teaching residency program described in paragraph (2) for high-need subjects and areas, as determined by the needs of the high-need local educational agency in the partnership.

(B)

Modifying staffing procedures to provide greater flexibility for local educational agency and school leaders to establish effective school-level staffing in order to facilitate placement of graduates of the teaching residency program in cohorts that facilitate professional collaboration, both among graduates of the teaching residency program and between such graduates and mentor teachers in the receiving school.

(C)

Ensuring that teaching residents that participated in the teaching residency program receive—

(i)

effective preservice preparation as described in paragraph (2);

(ii)

teacher mentoring;

(iii)

induction through the induction program as the teaching residents enter the classroom as new teachers; and

(iv)

the preparation described in subparagraphs (A), (B), and (C) of subsection (d)(2).

(2)

Teaching residency programs

(A)

Establishment and design

A teaching residency program under this paragraph shall be a program based upon models of successful teaching residencies that serves as a mechanism to prepare teachers for success in the high-need schools in the eligible partnership, and shall be designed to include the following characteristics of successful programs:

(i)

The integration of pedagogy, classroom practice, and teacher mentoring.

(ii)

Engagement of teaching residents in rigorous graduate-level coursework to earn a master’s degree while undertaking a guided teaching apprenticeship.

(iii)

Experience and learning opportunities alongside a trained and experienced mentor teacher—

(I)

whose teaching shall complement the residency program so that classroom clinical practice is tightly aligned with coursework;

(II)

who shall have extra responsibilities as a teacher leader of the teaching residency program, as a mentor for residents, and as a teacher coach during the induction program for novice teachers, and for establishing, within the program, a learning community in which all individuals are expected to continually improve their capacity to advance student learning; and

(III)

who may have full relief from teaching duties as a result of such additional responsibilities.

(iv)

The establishment of clear criteria for the selection of mentor teachers based on measures of teacher effectiveness and the appropriate subject area knowledge. Evaluation of teacher effectiveness shall be based on observations of such domains of teaching as the following:

(I)

Planning and preparation, including demonstrated knowledge of content, pedagogy, and assessment, including the use of formative assessments to improve student learning.

(II)

Appropriate instruction that engages students with different learning styles.

(III)

Collaboration with colleagues to improve instruction.

(IV)

Analysis of gains in student learning, based on multiple measures, that, when feasible, may include valid and reliable objective measures of the influence of teachers on the rate of student academic progress.

(V)

In the case of mentor candidates who will be mentoring current or future literacy and mathematics coaches or instructors, appropriate skills in the essential components of reading instruction, teacher training in literacy instructional strategies across core subject areas, and teacher training in mathematics instructional strategies, as appropriate.

(v)

Grouping of teaching residents in cohorts to facilitate professional collaboration among such residents.

(vi)

The development of admissions goals and priorities aligned with the hiring objectives of the local educational agency partnering with the program, as well as the instructional initiatives and curriculum of the agency, in exchange for a commitment by the agency to hire graduates from the teaching residency program.

(vii)

Support for residents, once the teaching residents are hired as teachers of record, through an induction program, professional development, and networking opportunities to support the residents through not less than the residents' first 2 years of teaching.

(B)

Selection of individuals as teacher residents

(i)

Eligible individual

In order to be eligible to be a teacher resident in a teaching residency program under this paragraph, an individual shall—

(I)

be a recent graduate of a 4-year institution of higher education or a mid-career professional from outside the field of education possessing strong content knowledge or a record of professional accomplishment; and

(II)

submit an application to the teaching residency program.

(ii)

Selection criteria

An eligible partnership carrying out a teaching residency program under this subparagraph shall establish criteria for the selection of eligible individuals to participate in the teaching residency program based on the following characteristics:

(I)

Strong content knowledge or record of accomplishment in the field or subject area to be taught.

(II)

Strong verbal and written communication skills, which may be demonstrated by performance on appropriate tests.

(III)

Other attributes linked to effective teaching, which may be determined by interviews or performance assessments, as specified by the eligible partnership.

(C)

Stipend and service requirement

(i)

Stipend

A teaching residency program under this paragraph shall provide a 1-year living stipend or salary to teaching residents during the 1-year teaching residency program.

(ii)

Service requirement

As a condition of receiving a stipend under this subparagraph, a teaching resident shall agree to teach in a high-need school served by the high-need local educational agency in the eligible partnership for a period of 3 or more years after completing the 1-year teaching residency program.

(iii)

Repayment

If a teaching resident who received a stipend under this subparagraph does not complete the service requirement described in clause (ii), such individual shall repay to the high-need local educational agency a pro rata portion of the stipend amount for the amount of teaching time that the individual did not complete.

(f)

Consultation

(1)

In general

Members of an eligible partnership that receives a grant under this section shall engage in regular consultation throughout the development and implementation of programs and activities under this section.

(2)

Regular communication

To ensure timely and meaningful consultation, regular communication shall occur among all members of the eligible partnership, including the high-need local educational agency. Such communication shall continue throughout the implementation of the grant and the assessment of programs and activities under this section.

(3)

Written consent

The Secretary may approve changes in grant activities of a grant under this section only if a written consent signed by all members of the eligible partnership is submitted to the Secretary.

(g)

Construction

Nothing in this section shall be construed to prohibit an eligible partnership from using grant funds to coordinate with the activities of eligible partnerships in other States or on a regional basis through Governors, State boards of education, State educational agencies, State agencies responsible for early childhood education, local educational agencies, or State agencies for higher education.

(h)

Supplement, Not Supplant

Funds made available under this section shall be used to supplement, and not supplant, other Federal, State, and local funds that would otherwise be expended to carry out activities under this section.

203.

Administrative provisions

(a)

Duration; Number of Awards; Payments

(1)

Duration

A grant awarded under this part shall be awarded for a period of 5 years.

(2)

Number of awards

An eligible partnership may not receive more than 1 grant during a 5-year period. Nothing in this title shall be construed to prohibit an individual member, that can demonstrate need, of an eligible partnership that receives a grant under this title from entering into another eligible partnership consisting of new members and receiving a grant with such other eligible partnership before the 5-year period described in the preceding sentence applicable to the eligible partnership with which the individual member has first partnered has expired.

(3)

Payments

The Secretary shall make annual payments of grant funds awarded under this part.

(b)

Peer Review

(1)

Panel

The Secretary shall provide the applications submitted under this part to a peer review panel for evaluation. With respect to each application, the peer review panel shall initially recommend the application for funding or for disapproval.

(2)

Priority

In recommending applications to the Secretary for funding under this part, the panel shall give priority—

(A)

to applications from broad-based eligible partnerships that involve businesses and community organizations; and

(B)

to eligible partnerships so that the awards promote an equitable geographic distribution of grants among rural and urban areas.

(3)

Secretarial selection

The Secretary shall determine, based on the peer review process, which applications shall receive funding and the amounts of the grants. In determining the grant amount, the Secretary shall take into account the total amount of funds available for all grants under this part and the types of activities proposed to be carried out by the eligible partnership.

(c)

Matching requirements

(1)

In general

Each eligible partnership receiving a grant under this part shall provide, from non-Federal sources, an amount equal to 100 percent of the amount of the grant, which may be provided in cash or in-kind, to carry out the activities supported by the grant.

(2)

Waiver

The Secretary may waive all or part of the matching requirement described in paragraph (1) for any fiscal year for an eligible partnership, if the Secretary determines that applying the matching requirement to the eligible partnership would result in serious hardship or an inability to carry out the authorized activities described in this part.

(d)

Limitation on Administrative Expenses

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

204.

Accountability and evaluation

(a)

Eligible Partnership Evaluation

Each eligible partnership submitting an application for a grant under this part shall establish and include in such application, an evaluation plan that includes strong performance objectives. The plan shall include objectives and measures for increasing—

(1)

student achievement for all students as measured by the eligible partnership;

(2)

teacher retention in the first 3 years of a teacher’s career;

(3)

improvement in the pass rates and scaled scores for initial State certification or licensure of teachers; and

(4)
(A)

the percentage of highly qualified teachers hired by the high-need local educational agency participating in the eligible partnership;

(B)

the percentage of such teachers who are members of under represented groups;

(C)

the percentage of such teachers who teach high-need academic subject areas (such as reading, mathematics, science, and foreign language, including less commonly taught languages and critical foreign languages);

(D)

the percentage of such teachers who teach in high-need areas (including special education, language instruction educational programs for limited English proficient students, and early childhood education);

(E)

the percentage of such teachers in high-need schools, disaggregated by the elementary, middle, and high school levels; and

(F)

as applicable, the percentage of early childhood education program classes in the geographic area served by the eligible partnership taught by early childhood educators who are highly competent.

(b)

Information

An eligible partnership receiving a grant under this part shall ensure that teachers, principals, school superintendents, and faculty and leadership at institutions of higher education located in the geographic areas served by the eligible partnership under this part are provided information about the activities carried out with funds under this part, including through electronic means.

(c)

Revocation of Grant

If the Secretary determines that an eligible partnership receiving a grant under this part is not making substantial progress in meeting the purposes, goals, objectives, and measures, as appropriate, of the grant by the end of the third year of a grant under this part, then the Secretary shall require such eligible partnership to submit a revised application that identifies the steps the partnership will take to make substantial progress to meet the purposes, goals, objectives, and measures, as appropriate, of this part.

(d)

Evaluation and Dissemination

The Secretary shall evaluate the activities funded under this part and report the Secretary’s findings regarding the activities to the authorizing committees. The Secretary shall broadly disseminate—

(1)

successful practices developed by eligible partnerships under this part; and

(2)

information regarding such practices that were found to be ineffective.

205.

Accountability for programs that prepare teachers

(a)

Institutional and Program Report Cards on the Quality of Teacher Preparation

(1)

Report card

Each institution of higher education that conducts a traditional teacher preparation program or alternative routes to State certification or licensure program and that enrolls students receiving Federal assistance under this Act shall report annually to the State and the general public, in a uniform and comprehensible manner that conforms with the definitions and methods established by the Secretary, both for traditional teacher preparation programs and alternative routes to State certification or licensure programs, the following information:

(A)

Pass rates and scaled scores

For the most recent year for which the information is available for those students who took the assessments and are enrolled in the traditional teacher preparation program or alternative routes to State certification or licensure program, and for those who have taken the assessments and have completed the traditional teacher preparation program or alternative routes to State certification or licensure program during the 2-year period preceding such year, for each of the assessments used for teacher certification or licensure by the State in which the program is located—

(i)

the percentage of students who have completed 100 percent of the nonclinical coursework and taken the assessment who pass such assessment;

(ii)

the percentage of all such students who passed each such assessment;

(iii)

the percentage of students taking an assessment who completed the teacher preparation program after enrolling in the program, which shall be made available widely and publicly by the State;

(iv)

the average scaled score for all students who took each such assessment;

(v)

a comparison of the program’s pass rates with the average pass rates for programs in the State; and

(vi)

a comparison of the program’s average scaled scores with the average scaled scores for programs in the State.

(B)

Program information

The criteria for admission into the program, the number of students in the program (disaggregated by race and gender), the average number of hours of supervised clinical experience required for those in the program, the number of full-time equivalent faculty and students in the supervised clinical experience, and the total number of students who have been certified or licensed as teachers, disaggregated by subject and area of certification or licensure.

(C)

Statement

In States that require approval or accreditation of teacher preparation programs, a statement of whether the institution’s program is so approved or accredited, and by whom.

(D)

Designation as low-performing

Whether the program has been designated as low-performing by the State under section 207(a).

(E)

Use of technology

A description of the activities that prepare teachers to effectively integrate technology into curricula and instruction and effectively use technology to collect, manage, and analyze data in order to improve teaching, learning, and decisionmaking for the purpose of increasing student academic achievement.

(2)

Report

Each eligible partnership receiving a grant under section 202 shall report annually on the progress of the eligible partnership toward meeting the purposes of this part and the objectives and measures described in section 204(a).

(3)

Fines

The Secretary may impose a fine not to exceed $25,000 on an institution of higher education for failure to provide the information described in this subsection in a timely or accurate manner.

(4)

Special rule

In the case of an institution of higher education that conducts a traditional teacher preparation program or alternative routes to State certification or licensure program and has fewer than 10 scores reported on any single initial teacher certification or licensure assessment during an academic year, the institution shall collect and publish information, as required under paragraph (1)(A), with respect to an average pass rate and scaled score on each State certification or licensure assessment taken over a 3-year period.

(b)

State Report Card on the Quality of Teacher Preparation

(1)

In general

Each State that receives funds under this Act shall provide to the Secretary, annually, in a uniform and comprehensible manner that conforms with the definitions and methods established by the Secretary, a State report card on the quality of teacher preparation in the State, both for traditional teacher preparation programs and for alternative routes to State certification or licensure programs, which shall include not less than the following:

(A)

A description of reliability and validity of the teacher certification and licensure assessments, and any other certification and licensure requirements, used by the State.

(B)

The standards and criteria that prospective teachers must meet in order to attain initial teacher certification or licensure and to be certified or licensed to teach particular academic subject areas or in particular grades within the State.

(C)

A description of how the assessments and requirements described in subparagraph (A) are aligned with the State’s challenging academic content standards required under section 1111(b)(1) of the Elementary and Secondary Education Act of 1965 and State early learning standards for early childhood education programs.

(D)

For each of the assessments used by the State for teacher certification or licensure—

(i)

for each institution of higher education located in the State and each entity located in the State that offers an alternative route for teacher certification or licensure, the percentage of students at such institution or entity who have completed 100 percent of the nonclinical coursework and taken the assessment who pass such assessment;

(ii)

the percentage of all such students at all such institutions taking the assessment who pass such assessment; and

(iii)

the percentage of students taking an assessment who completed the teacher preparation program after enrolling in the program, which shall be made available widely and publicly by the State.

(E)

A description of alternative routes to State certification or licensure in the State (including any such routes operated by entities that are not institutions of higher education), if any, including, for each of the assessments used by the State for teacher certification or licensure—

(i)

the percentage of individuals participating in such routes, or who have completed such routes during the 2-year period preceding the date of the determination, who passed each such assessment; and

(ii)

the average scaled score of individuals participating in such routes, or who have completed such routes during the period preceding the date of the determination, who took each such assessment.

(F)

A description of the State’s criteria for assessing the performance of teacher preparation programs within institutions of higher education in the State. Such criteria shall include indicators of the academic content knowledge and teaching skills of students enrolled in such programs.

(G)

For each teacher preparation program in the State, the criteria for admission into the program, the number of students in the program, disaggregated by race and gender (except that such disaggregation shall not be required in a case in which the number of students in a category is insufficient to yield statistically reliable information or the results would reveal personally identifiable information about an individual student), the average number of hours of supervised clinical experience required for those in the program, and the number of full-time equivalent faculty, adjunct faculty, and students in supervised clinical experience.

(H)

For the State as a whole, and for each teacher preparation program in the State, the number of teachers prepared, in the aggregate and reported separately by—

(i)

area of certification or licensure;

(ii)

academic major; and

(iii)

subject area for which the teacher has been prepared to teach.

(I)

Using the data generated under subparagraphs (G) and (H), a description of the extent to which teacher preparation programs are helping to address shortages of highly qualified teachers, by area of certification or licensure, subject, and specialty, in the State’s public schools.

(J)

A description of the activities that prepare teachers to effectively integrate technology into curricula and instruction and effectively use technology to collect, manage, and analyze data in order to improve teaching, learning, and decisionmaking for the purpose of increasing student academic achievement.

(2)

Prohibition against creating a national list

The Secretary shall not create a national list or ranking of States, institutions, or schools using the scaled scores provided under this subsection.

(c)

Report of the Secretary on the Quality of Teacher Preparation

(1)

Report card

The Secretary shall provide to Congress, and publish and make widely available, a report card on teacher qualifications and preparation in the United States, including all the information reported in subparagraphs (A) through (J) of subsection (b)(1). Such report shall identify States for which eligible partnerships received a grant under this part. Such report shall be so provided, published, and made available annually.

(2)

Report to congress

The Secretary shall prepare and submit a report to Congress that contains the following:

(A)

A comparison of States’ efforts to improve the quality of the current and future teaching force.

(B)

A comparison of eligible partnerships’ efforts to improve the quality of the current and future teaching force.

(C)

The national mean and median scaled scores and pass rate on any standardized test that is used in more than 1 State for teacher certification or licensure.

(3)

Special rule

In the case of a teacher preparation program with fewer than 10 scores reported on any single initial teacher certification or licensure assessment during an academic year, the Secretary shall collect and publish information, and make publicly available, with respect to an average pass rate and scaled score on each State certification or licensure assessment taken over a 3-year period.

(d)

Coordination

The Secretary, to the extent practicable, shall coordinate the information collected and published under this part among States for individuals who took State teacher certification or licensure assessments in a State other than the State in which the individual received the individual’s most recent degree.

206.

State functions

(a)

State Assessment

In order to receive funds under this Act, a State shall have in place a procedure to identify and assist, through the provision of technical assistance, low-performing programs of teacher preparation. Such State shall provide the Secretary an annual list of such low-performing teacher preparation programs that includes an identification of those programs at risk of being placed on such list. Such levels of performance shall be determined solely by the State and may include criteria based on information collected pursuant to this part. Such assessment shall be described in the report under section 205(b).

(b)

Termination of Eligibility

Any program of teacher preparation from which the State has withdrawn the State’s approval, or terminated the State’s financial support, due to the low performance of the program based upon the State assessment described in subsection (a)—

(1)

shall be ineligible for any funding for professional development activities awarded by the Department;

(2)

shall not be permitted to accept or enroll any student that receives aid under title IV in the institution’s teacher preparation program; and

(3)

shall provide transitional support, including remedial services if necessary, for students enrolled at the institution at the time of termination of financial support or withdrawal of approval.

(c)

Negotiated Rulemaking

If the Secretary develops any regulations implementing subsection (b)(2), the Secretary shall submit such proposed regulations to a negotiated rulemaking process, which shall include representatives of States, institutions of higher education, and educational and student organizations.

(d)

Application of the Requirements

The requirements of this section shall apply to both traditional teacher preparation programs and alternative routes to State certification and licensure programs.

207.

General provisions

(a)

Methods

In complying with sections 205 and 206, the Secretary shall ensure that States and institutions of higher education use fair and equitable methods in reporting and that the reporting methods do not allow identification of individuals.

(b)

Special Rule

For each State that does not use content assessments as a means of ensuring that all teachers teaching in core academic subjects within the State are highly qualified, as required under section 1119 of the Elementary and Secondary Education Act of 1965 and in accordance with the State plan submitted or revised under section 1111 of such Act, and that each person employed as a special education teacher in the State who teaches elementary school, middle school, or secondary school is highly qualified by the deadline, as required under section 612(a)(14)(C) of the Individuals with Disabilities Education Act—

(1)

the Secretary shall, to the extent practicable, collect data comparable to the data required under this part from States, local educational agencies, institutions of higher education, or other entities that administer such assessments to teachers or prospective teachers; and

(2)

notwithstanding any other provision of this part, the Secretary shall use such data to carry out requirements of this part related to assessments, pass rates, and scaled scores.

(c)

Release of Information to Teacher Preparation Programs

(1)

In general

For the purpose of improving teacher preparation programs, a State educational agency that receives funds under this Act, or that participates as a member of a partnership, consortium, or other entity that receives such funds, shall provide to a teacher preparation program, upon the request of the teacher preparation program, any and all pertinent education-related information that—

(A)

may enable the teacher preparation program to evaluate the effectiveness of the program’s graduates or the program itself; and

(B)

is possessed, controlled, or accessible by the State educational agency.

(2)

Content of information

The information described in paragraph (1)—

(A)

shall include an identification of specific individuals who graduated from the teacher preparation program to enable the teacher preparation program to evaluate the information provided to the program from the State educational agency with the program’s own data about the specific courses taken by, and field experiences of, the individual graduates; and

(B)

may include—

(i)

kindergarten through grade 12 academic achievement and demographic data, without revealing personally identifiable information about an individual student, for students who have been taught by graduates of the teacher preparation program; and

(ii)

teacher effectiveness evaluations for teachers who graduated from the teacher preparation program.

208.

Authorization of appropriations

There are authorized to be appropriated to carry out this part such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years.

.

202.

General provisions

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

C

General provisions

231.

Limitations

(a)

Federal control prohibited

Nothing in this title shall be construed to permit, allow, encourage, or authorize any Federal control over any aspect of any private, religious, or home school, whether or not a home school is treated as a private school or home school under State law. This section shall not be construed to prohibit private, religious, or home schools from participation in programs or services under this title.

(b)

No change in state control encouraged or required

Nothing in this title shall be construed to encourage or require any change in a State’s treatment of any private, religious, or home school, whether or not a home school is treated as a private school or home school under State law.

(c)

National system of teacher certification or licensure prohibited

Nothing in this title shall be construed to permit, allow, encourage, or authorize the Secretary to establish or support any national system of teacher certification or licensure.

.

III

INSTITUTIONAL AID

301.

Program purpose

Section 311 (20 U.S.C. 1057) is amended—

(1)

in subsection (b)—

(A)

in paragraph (1), by striking 351 and inserting 391; and

(B)

in paragraph (3)(F), by inserting , including services that will assist in the education of special populations before the period; and

(2)

in subsection (c)—

(A)

in paragraph (6), by inserting , including innovative, customized, remedial education and English language instruction courses designed to help retain students and move the students rapidly into core courses and through program completion before the period;

(B)

by redesignating paragraphs (7) through (12) as paragraphs (8) through (13), respectively;

(C)

by inserting after paragraph (6) the following:

(7)

Education or counseling services designed to improve the financial literacy and economic literacy of students or the students’ parents.

;

(D)

in paragraph (12) (as redesignated by subparagraph (B)), by striking distance learning academic instruction capabilities and inserting distance education technologies; and

(E)

in the matter preceding subparagraph (A) of paragraph (13) (as redesignated by subparagraph (B)), by striking subsection (c) and inserting subsection (b) and section 391.

302.

Definitions; eligibility

Section 312 (20 U.S.C. 1058) is amended—

(1)

in subsection (b)(1)(A), by striking subsection (c) of this section and inserting subsection (d); and

(2)

in subsection (d)(2), by striking subdivision and inserting paragraph.

303.

American Indian tribally controlled colleges and universities

Section 316 (20 U.S.C. 1059c) is amended—

(1)

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

(3)

Tribal college or university

The term Tribal College or University means an institution that—

(A)

qualifies for funding under the Tribally Controlled College or University Assistance Act of 1978 (25 U.S.C. 1801 et seq.) or the Navajo Community College Assistance Act of 1978 (25 U.S.C. 640a note); or

(B)

is cited in section 532 of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note).

;

(2)

in subsection (c)(2)—

(A)

in subparagraph (B), by inserting before the semicolon at the end the following: and the acquisition of real property adjacent to the campus of the institution;

(B)

by redesignating subparagraphs (G), (H), (I), (J), (K), and (L) as subparagraphs (H), (I), (J), (K), (L), and (N), respectively;

(C)

by inserting after subparagraph (F) the following:

(G)

education or counseling services designed to improve the financial literacy and economic literacy of students or the students' parents;

;

(D)

in subparagraph (L) (as redesignated by subparagraph (B)), by striking and after the semicolon;

(E)

by inserting after subparagraph (L) (as redesignated by subparagraph (B)) the following:

(M)

developing or improving facilities for Internet use or other distance education technologies; and

; and

(F)

in subparagraph (N) (as redesignated by subparagraph (B)), by striking subparagraphs (A) through (K) and inserting subparagraphs (A) through (M); and

(3)

by striking subsection (d) and inserting the following:

(d)

Application, Plan, and Allocation

(1)

Institutional eligibility

To be eligible to receive assistance under this section, a Tribal College or University shall be an eligible institution under section 312(b).

(2)

Application

(A)

In general

A Tribal College or University desiring to receive assistance under this section shall submit an application to the Secretary at such time, and in such manner, as the Secretary may reasonably require.

(B)

Streamlined process

The Secretary shall establish application requirements in such a manner as to simplify and streamline the process for applying for grants.

(3)

Allocations to institutions

(A)

Construction grants

(i)

In general

Of the amount appropriated to carry out this section for any fiscal year, the Secretary may reserve 30 percent for the purpose of awarding 1-year grants of not less than $1,000,000 to address construction, maintenance, and renovation needs at eligible institutions.

(ii)

Preference

In providing grants under clause (i), the Secretary shall give preference to eligible institutions that have not yet received an award under this section.

(B)

Allotment of remaining funds

(i)

In general

Except as provided in clause (ii), the Secretary shall distribute the remaining funds appropriated for any fiscal year to each eligible institution as follows:

(I)

60 percent of the remaining appropriated funds shall be distributed among the eligible Tribal Colleges and Universities on a pro rata basis, based on the respective Indian student counts (as defined in section 2(a) of the Tribally Controlled College or University Assistance Act of 1978 (25 U.S.C. 1801(a)) of the Tribal Colleges and Universities; and

(II)

the remaining 40 percent shall be distributed in equal shares to the eligible Tribal Colleges and Universities.

(ii)

Minimum grant

The amount distributed to a Tribal College or University under clause (i) shall not be less than $500,000.

(4)

Special rules

(A)

Concurrent funding

For the purposes of this part, no Tribal College or University that is eligible for and receives funds under this section shall concurrently receive funds under other provisions of this part or part B.

(B)

Exemption

Section 313(d) shall not apply to institutions that are eligible to receive funds under this section.

.

304.

Alaska native and native Hawaiian-serving institutions

Section 317(c)(2) (20 U.S.C. 1059d(c)(2)) is amended—

(1)

in subparagraph (G), by striking and after the semicolon;

(2)

in subparagraph (H), by striking the period and inserting ; and; and

(3)

by adding at the end the following:

(I)

education or counseling services designed to improve the financial literacy and economic literacy of students or the students’ parents.

.

305.

Native American-serving, nontribal institutions

(a)

Grant Program Authorized

Part A of title III (20 U.S.C. 1057 et seq.) is amended by adding at the end the following:

318.

Native American-serving, nontribal institutions

(a)

Program Authorized

The Secretary shall provide grants and related assistance to Native American-serving, nontribal institutions to enable such institutions to improve and expand their capacity to serve Native Americans.

(b)

Definitions

In this section:

(1)

Native american

The term Native American means an individual who is of a tribe, people, or culture that is indigenous to the United States.

(2)

Native american-serving, nontribal institution

The term Native American-serving, nontribal institution means an institution of higher education that, at the time of application—

(A)

has an enrollment of undergraduate students that is not less than 10 percent Native American students; and

(B)

is not a Tribal College or University (as defined in section 316).

(c)

Authorized Activities

(1)

Types of activities authorized

Grants awarded under this section shall be used by Native American-serving, nontribal institutions to assist such institutions to plan, develop, undertake, and carry out activities to improve and expand such institutions’ capacity to serve Native Americans.

(2)

Examples of authorized activities

Such programs may include—

(A)

the purchase, rental, or lease of scientific or laboratory equipment for educational purposes, including instructional and research purposes;

(B)

renovation and improvement in classroom, library, laboratory, and other instructional facilities;

(C)

support of faculty exchanges, and faculty development and faculty fellowships to assist faculty in attaining advanced degrees in the faculty’s field of instruction;

(D)

curriculum development and academic instruction;

(E)

the purchase of library books, periodicals, microfilm, and other educational materials;

(F)

funds and administrative management, and acquisition of equipment for use in strengthening funds management;

(G)

the joint use of facilities such as laboratories and libraries; and

(H)

academic tutoring and counseling programs and student support services.

(d)

Application Process

(1)

Institutional eligibility

A Native American-serving, nontribal institution desiring to receive assistance under this section shall submit to the Secretary such enrollment data as may be necessary to demonstrate that the institution is a Native American-serving, nontribal institution, along with such other information and data as the Secretary may by regulation require.

(2)

Applications

(A)

Permission to submit applications

Any institution that is determined by the Secretary to be a Native American-serving, nontribal institution may submit an application for assistance under this section to the Secretary.

(B)

Simplified and streamlined format

The Secretary shall, to the extent possible, prescribe a simplified and streamlined format for applications under this section that takes into account the limited number of institutions that are eligible for assistance under this section.

(C)

Content

An application submitted under subparagraph (A) shall include—

(i)

a 5-year plan for improving the assistance provided by the Native American-serving, nontribal institution to Native Americans; and

(ii)

such other information and assurances as the Secretary may require.

(3)

Special rules

(A)

Eligibility

No Native American-serving, nontribal institution that receives funds under this section shall concurrently receive funds under other provisions of this part or part B.

(B)

Exemption

Section 313(d) shall not apply to institutions that are eligible to receive funds under this section.

(C)

Distribution

In awarding grants under this section, the Secretary shall, to the extent possible and consistent with the competitive process under which such grants are awarded, ensure maximum and equitable distribution among all eligible institutions.

.

(b)

Minimum grant amount

Section 399 (20 U.S.C. 1068h) is amended by adding at the end the following:

(c)

Minimum Grant Amount

The minimum amount of a grant under this title shall be $200,000.

.

306.

Part B definitions

Section 322(4) (20 U.S.C. 1061(4)) is amended by inserting , in consultation with the Commissioner for Education Statistics before and the Commissioner.

307.

Grants to institutions

Section 323(a) (20 U.S.C. 1062(a)) is amended—

(1)

in the matter preceding paragraph (1), by striking 360(a)(2) and inserting 399(a)(2);

(2)

by redesignating paragraphs (7) through (12) as paragraphs (8) through (13), respectively; and

(3)

by inserting after paragraph (6) the following:

(7)

Education or counseling services designed to improve the financial literacy and economic literacy of students or the students’ parents.

.

308.

Allotments to institutions

Section 324 (20 U.S.C. 1063) is amended by adding at the end the following:

(h)

Special Rule on Eligibility

Notwithstanding any other provision of this section, a part B institution shall not receive an allotment under this section unless the part B institution provides, on an annual basis, data indicating that the part B institution—

(1)

enrolled Federal Pell Grant recipients in the preceding academic year;

(2)

in the preceding academic year, has graduated students from a program of academic study that is licensed or accredited by a nationally recognized accrediting agency or association recognized by the Secretary pursuant to part H of title IV where appropriate; and

(3)

where appropriate, has graduated students who, within the past 5 years, enrolled in graduate or professional school.

.

309.

Professional or graduate institutions

Section 326 (20 U.S.C. 1063b) is amended—

(1)

in subsection (c)—

(A)

in paragraph (2), by inserting , and for the acquisition and development of real property that is adjacent to the campus for such construction, maintenance, renovation, or improvement after services;

(B)

by redesignating paragraphs (5) through (7) as paragraphs (7) through (9), respectively;

(C)

by inserting after paragraph (4) the following:

(5)

tutoring, counseling, and student service programs designed to improve academic success;

(6)

education or counseling services designed to improve the financial literacy and economic literacy of students or the students’ parents;

;

(D)

in paragraph (7) (as redesignated by subparagraph (B)), by striking establish or improve and inserting establishing or improving;

(E)

in paragraph (8) (as redesignated by subparagraph (B))—

(i)

by striking assist and inserting assisting; and

(ii)

by striking and after the semicolon;

(F)

in paragraph (9) (as redesignated by subparagraph (B)), by striking the period and inserting ; and; and

(G)

by adding at the end the following:

(10)

other activities proposed in the application submitted under subsection (d) that—

(A)

contribute to carrying out the purposes of this part; and

(B)

are approved by the Secretary as part of the review and acceptance of such application.

;

(2)

in subsection (e)—

(A)

in paragraph (1)—

(i)

by inserting a colon after the following;

(ii)

in subparagraph (Q), by striking and at the end;

(iii)

in subparagraph (R), by striking the period and inserting a semicolon; and

(iv)

by adding at the end the following:

(S)

Alabama State University qualified graduate program;

(T)

Coppin State University qualified graduate program;

(U)

Prairie View A & M University qualified graduate program;

(V)

Fayetteville State University qualified graduate program;

(W)

Delaware State University qualified graduate program;

(X)

Langston University qualified graduate program; and

(Y)

West Virginia State University qualified graduate program.

;

(B)

in paragraph (2)(A)—

(i)

by inserting in law or after instruction; and

(ii)

by striking mathematics, or and inserting mathematics, psychometrics, or;

(C)

in paragraph (3)—

(i)

by striking 1998 and inserting 2007; and

(ii)

by striking (Q) and (R) and inserting (S), (T), (U), (V), (W), (X), and (Y);

(3)

in subsection (f)—

(A)

in paragraph (1), by striking (P) and inserting (R);

(B)

in paragraph (2), by striking (Q) and (R) and inserting (S), (T), (U), (V), (W), (X), and (Y); and

(C)

in paragraph (3)—

(i)

by striking subparagraphs (A) and (B) and inserting the following:

(A)

The amount of non-Federal funds for the fiscal year for which the determination is made that the institution or program listed in subsection (e)—

(i)

allocates from institutional resources;

(ii)

secures from non-Federal sources, including amounts appropriated by the State and amounts from the private sector; and

(iii)

will utilize to match Federal funds awarded for the fiscal year for which the determination is made under this section to the institution or program.

(B)

The number of students enrolled in the qualified graduate programs of the eligible institution or program, for which the institution or program received and allocated funding under this section in the preceding year.

;

(ii)

in subparagraph (C), by striking (or the equivalent) enrolled in the eligible professional or graduate school and all that follows through the period and inserting enrolled in the qualified programs or institutions listed in paragraph (1).;

(iii)

in subparagraph (D)—

(I)

by striking students and inserting Black American students or minority students; and

(II)

by striking institution and inserting institution or program; and

(iv)

by striking subparagraph (E) and inserting the following:

(E)

The percentage that the total number of Black American students and minority students who receive their first professional, master’s, or doctoral degrees from the institution or program in the academic year preceding the academic year for which the determination is made, represents of the total number of Black American students and minority students in the United States who receive their first professional, master’s, or doctoral degrees in the professions or disciplines related to the course of study at such institution or program, respectively, in the preceding academic year.

; and

(4)

in subsection (g), by striking 1998 and inserting 2007.

310.

Authority of the Secretary

Section 345 (20 U.S.C. 1066d) is amended—

(1)

in paragraph (6), by striking and after the semicolon;

(2)

in paragraph (7), by striking the period at the end and inserting ; and; and

(3)

by adding at the end the following:

(8)

not later than 90 days after the date of enactment of the Higher Education Amendments of 2007, shall submit to the authorizing committees a report on the progress of the Department in implementing the recommendations made by the Government Accountability Office in October 2006 for improving the Historically Black College and Universities Capital Financing Program.

.

311.

Authorization of appropriations

Subsection (a) of section 399 (20 U.S.C. 1068h) is amended to read as follows:

(a)

Authorizations

(1)

Part A

(A)

There are authorized to be appropriated to carry out part A (other than sections 316, 317, and 318) such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years.

(B)

There are authorized to be appropriated to carry out section 316 such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years.

(C)

There are authorized to be appropriated to carry out section 317 such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years.

(D)

There are authorized to be appropriated to carry out section 318 such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years.

(2)

Part B

(A)

There are authorized to be appropriated to carry out part B (other than section 326) such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years.

(B)

There are authorized to be appropriated to carry out section 326 such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years.

(3)

Part C

There are authorized to be appropriated to carry out part C such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years.

(4)

Part D

(A)

There are authorized to be appropriated to carry out part D (other than section 345(7), but including section 347) such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years.

(B)

There are authorized to be appropriated to carry out section 345(7) such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years.

(5)

Part E

There are authorized to be appropriated to carry out part E such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years.

.

312.

Technical corrections

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

(1)

in section 342(5)(C) (20 U.S.C. 1066a(5)(C)), by striking ,, and inserting ,;

(2)

in section 343(e) (20 U.S.C. 1066b(e)), by inserting Sale of Qualified Bonds.— before Notwithstanding;

(3)

in the matter preceding clause (i) of section 365(9)(A) (20 U.S.C. 1067k(9)(A)), by striking support and inserting supports;

(4)

in section 391(b)(7)(E) (20 U.S.C. 1068(b)(7)(E)), by striking subparagraph (E) and inserting subparagraph (D);

(5)

in the matter preceding subparagraph (A) of section 392(b)(2) (20 U.S.C. 1068a(b)(2)), by striking eligible institutions under part A institutions and inserting eligible institutions under part A; and

(6)

in the matter preceding paragraph (1) of section 396 (20 U.S.C. 1068e), by striking 360 and inserting 399.

IV

Student Assistance

A

Grants to students in attendance at institutions of higher education

401.

Federal Pell Grants

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

(1)

in subsection (a)(1)—

(A)

in the first sentence, by striking 2004 and inserting 2013; and

(B)

in the second sentence, by striking ,, and inserting ,;

(2)

in subsection (b)—

(A)

by striking paragraph (2)(A) and inserting the following:

(2)
(A)

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

(i)

$5,400 for academic year 2008–2009;

(ii)

$5,700 for academic year 2009–2010;

(iii)

$6,000 for academic year 2010–2011; and

(iv)

$6,300 for academic year 2011–2012,

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

;

(B)

by striking paragraph (3);

(C)

by redesignating paragraphs (4) through (8) as paragraphs (3) through (7), respectively;

(D)

in paragraph (4) (as redesignated by subparagraph (C)), by striking $400, except and all that follows through the period and inserting 10 percent of the maximum basic grant level specified in the appropriate Appropriation Act for such academic year, except that a student who is eligible for a Federal Pell Grant in an amount that is equal to or greater than 5 percent of such level but less than 10 percent of such level shall be awarded a Federal Pell grant in the amount of 10 percent of such level.; and

(E)

by striking paragraph (5) (as redesignated by subparagraph (C)) and inserting the following:

(5)

In the case of a student who is enrolled, on at least a half-time basis and for a period of more than 1 academic year in a 2-year or 4-year program of instruction for which an institution of higher education awards an associate or baccalaureate degree, the Secretary shall allow such student to receive not more than 2 Federal Pell Grants during a single award year to permit such student to accelerate the student’s progress toward a degree by attending additional sessions. In the case of a student receiving more than 1 Federal Pell Grant in a single award year, the total amount of Federal Pell Grants awarded to such student for the award year may exceed the maximum basic grant level specified in the appropriate Appropriation Act for such award year.

; and

(3)

in subsection (c), by adding at the end the following:

(5)

The period of time during which a student may receive Federal Pell Grants shall not exceed 18 semesters, or an equivalent period of time as determined by the Secretary pursuant to regulations, which period shall—

(A)

be determined without regard to whether the student is enrolled on a full-time basis during any portion of the period of time; and

(B)

include any period of time for which the student received a Federal Pell Grant prior to the date of enactment of the Higher Education Amendments of 2007.

.

402.

Academic competitiveness grants

Section 401A (20 U.S.C. 1070a–1) is amended—

(1)

by striking subsection (a) and inserting the following:

(a)

Academic competitiveness grant program authorized

The Secretary shall award grants, in the amounts specified in subsection (d)(1), to eligible students to assist the eligible students in paying their college education expenses.

;

(2)

in subsection (b)—

(A)

in paragraph (1), by striking academic; and

(B)

in paragraph (2), by striking third or fourth academic and inserting third, fourth, or fifth;

(3)

in subsection (c)—

(A)

in the matter preceding paragraph (1), by striking full-time and all that follows through is made and inserting student who;

(B)

by striking paragraph (1) and inserting the following:

(1)

is eligible for a Federal Pell Grant for the award year in which the determination of eligibility is made for a grant under this section;

;

(C)

by striking paragraph (2) and inserting the following:

(2)

is enrolled or accepted for enrollment in an institution of higher education on not less than a half-time basis; and

; and

(D)

in paragraph (3)—

(i)

by striking subparagraph (A) and inserting the following:

(A)

the first year of a program of undergraduate education at a 2- or 4-year degree-granting institution of higher education (including a program of not less than 1 year for which the institution awards a certificate), has successfully completed, after January 1, 2006, a rigorous secondary school program of study established by a State or local educational agency and recognized as such by the Secretary;

;

(ii)

in subparagraph (B)—

(I)

in the matter preceding clause (i), by striking academic and all that follows through higher education and inserting year of a program of undergraduate education at a 2- or 4-year degree-granting institution of higher education (including a program of not less than 2 years for which the institution awards a certificate); and

(II)

in clause (ii)—

(aa)

by striking academic; and

(bb)

by striking or after the semicolon at the end;

(iii)

in subparagraph (C)—

(I)

by striking academic;

(II)

by striking four and inserting 4;

(III)

by striking clause (i)(II) and inserting the following:

(II)

a critical foreign language; and

; and

(IV)

in clause (ii), by striking the period at the end and inserting a semicolon; and

(iv)

by adding at the end the following:

(D)

the third or fourth year of a program of undergraduate education at an institution of higher education (as defined in section 101(a)) that demonstrates, to the satisfaction of the Secretary, that the institution—

(i)

offers a single liberal arts curriculum leading to a baccalaureate degree, under which students are not permitted by the institution to declare a major in a particular subject area, but do study, in such years, a subject described in subparagraph (C)(i) that is at least equal to the requirements for an academic major at an institution of higher education that offers a baccalaureate degree in such subject, as certified by the appropriate official of the demonstrating institution; and

(ii)

offered such curriculum prior to February 8, 2006; or

(E)

the fifth year of a program of undergraduate education that requires 5 full years of coursework for which a baccalaureate degree is awarded by a degree-granting institution of higher education, as certified by the appropriate official of such institution—

(i)

is pursuing a major in—

(I)

the physical, life, or computer sciences, mathematics, technology, or engineering (as determined by the Secretary pursuant to regulations); or

(II)

a critical foreign language; and

(ii)

has obtained a cumulative grade point average of at least 3.0 (or the equivalent as determined under regulations prescribed by the Secretary) in the coursework required for the major described in clause (i).

;

(4)

in subsection (d)—

(A)

in paragraph (1)—

(i)

in subparagraph (A)—

(I)

by striking The and inserting In general.—The;

(II)

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

(III)

in clause (iii), by striking subsection (c)(3)(C). and inserting subparagraph (C) or (D) of subsection (c)(3), for each of the 2 years described in such subparagraphs; or; and

(IV)

by adding at the end the following:

(iv)

$4,000 for an eligible student under subsection (c)(3)(E).

; and

(ii)

in subparagraph (B)—

(I)

by striking Notwithstanding and inserting Limitation; ratable reduction.—Notwithstanding;

(II)

by redesignating clauses (i), (ii), and (iii), as clauses (ii), (iii), and (iv), respectively; and

(III)

by inserting before clause (ii), as redesignated under subclause (II), the following:

(i)

in any case in which a student attends an institution of higher education on less than a full-time basis, the amount of the grant to which such student is eligible shall be reduced in the same manner as a Federal Pell Grant is reduced under section 401(b)(2)(B);

;

(B)

by striking paragraph (2) and inserting the following:

(2)

Limitations

(A)

No grants for previous credit

The Secretary may not award a grant under this section to any student for a year of a program of undergraduate education described in subparagraph (A), (B), (C), (D), or (E) of subsection (c)(3) for which the student received credit before the date of enactment of the Higher Education Reconciliation Act of 2005.

(B)

Number of grants

(i)

First year

In the case of a student described in subsection (c)(3)(A), the Secretary may not award more than 1 grant to such student for such first year of study.

(ii)

Second year

In the case of a student described in subsection (c)(3)(B), the Secretary may not award more than 1 grant to such student for such second year of study.

(iii)

Third and fourth years

In the case of a student described in subparagraph (C) or (D) of subsection (c)(3), the Secretary may not award more than 1 grant to such student for each of the third and fourth years of study.

(iv)

Fifth year

In the case of a student described in subsection (c)(3)(E), the Secretary may not award more than 1 grant to such student for such fifth year of study.

; and

(C)

by adding at the end the following:

(3)

Calculation of grant payments

An institution of higher education shall make payments for a grant awarded under this section in the same manner, using the same payment periods, as such institution makes payments for Federal Pell Grants under section 401.

;

(5)

by striking subsection (e)(2) and inserting the following:

(2)

Availability of funds

Funds made available under paragraph (1) for a fiscal year shall remain available for the succeeding fiscal year.

;

(6)

in subsection (f)—

(A)

by striking at least one and inserting not less than 1; and

(B)

by striking subsection (c)(3)(A) and (B) and inserting subparagraphs (A) and (B) of subsection (c)(3); and

(7)

in subsection (g), by striking academic and inserting award.

403.

Federal trio programs

(a)

Program Authority; Authorization of Appropriations

Section 402A (20 U.S.C. 1070a–11) is amended—

(1)

in subsection (b)—

(A)

in paragraph (2)—

(i)

in the matter preceding subparagraph (A), by striking 4 and inserting 5;

(ii)

by striking subparagraph (A); and

(iii)

by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively; and

(B)

by striking paragraph (3) and inserting the following:

(3)

Minimum grants

Unless the institution or agency requests a smaller amount, an individual grant authorized under this chapter shall be awarded in an amount that is not less than $200,000, except that an individual grant authorized under section 402G shall be awarded in an amount that is not less than $170,000.

;

(2)

in subsection (c)—

(A)

in paragraph (2), by striking service delivery and inserting high quality service delivery, as determined under subsection (f),;

(B)

in paragraph (3)(B), by striking is not required to and inserting shall not; and

(C)

in paragraph (5), by striking campuses and inserting different campuses;

(3)

in subsection (e), by striking (g)(2) each place the term occurs and inserting (h)(4);

(4)

by redesignating subsections (f) and (g) as subsections (g) and (h), respectively;

(5)

by inserting after subsection (e) the following:

(f)

Outcome Criteria

(1)

Use for prior experience determination

The Secretary shall use the outcome criteria described in paragraphs (2) and (3) to evaluate the programs provided by a recipient of a grant under this chapter, and the Secretary shall determine an eligible entity’s prior experience of high quality service delivery, as required under subsection (c)(2), based on the outcome criteria.

(2)

Disaggregation of relevant data

The outcome criteria under this subsection shall be disaggregated by low-income students, first generation college students, and individuals with disabilities, in the schools and institutions of higher education served by the program to be evaluated.

(3)

Contents of outcome criteria

The outcome criteria under this subsection shall measure, annually and for longer periods, the quality and effectiveness of programs authorized under this chapter and shall include the following:

(A)

For programs authorized under section 402B, the extent to which the eligible entity met or exceeded the entity’s objectives established in the entity’s application for such program regarding—

(i)

the delivery of service to a total number of students served by the program;

(ii)

the continued secondary school enrollment of such students;

(iii)

the graduation of such students from secondary school;

(iv)

the enrollment of such students in an institution of higher education; and

(v)

to the extent practicable, the postsecondary education completion of such students.

(B)

For programs authorized under section 402C, the extent to which the eligible entity met or exceeded the entity's objectives for such program regarding—

(i)

the delivery of service to a total number of students served by the program, as agreed upon by the entity and the Secretary for the period;

(ii)

such students’ school performance, as measured by the grade point average, or its equivalent;

(iii)

such students’ academic performance, as measured by standardized tests, including tests required by the students’ State;

(iv)

the retention in, and graduation from, secondary school of such students; and

(v)

the enrollment of such students in an institution of higher education.

(C)

For programs authorized under section 402D—

(i)

the extent to which the eligible entity met or exceeded the entity’s objectives regarding the retention in postsecondary education of the students served by the program;

(ii)
(I)

in the case of an entity that is an institution of higher education offering a baccalaureate degree, the extent to which the entity met or exceeded the entity’s objectives regarding such students’ completion of the degree programs in which such students were enrolled; or

(II)

in the case of an entity that is an institution of higher education that does not offer a baccalaureate degree, the extent to which the entity met or exceeded the entity’s objectives regarding—

(aa)

the completion of a degree or certificate by such students; and

(bb)

the transfer of such students to institutions of higher education that offer baccalaureate degrees;

(iii)

the extent to which the entity met or exceeded the entity’s objectives regarding the delivery of service to a total number of students, as agreed upon by the entity and the Secretary for the period; and

(iv)

the extent to which the entity met or exceeded the entity’s objectives regarding such students remaining in good academic standing.

(D)

For programs authorized under section 402E, the extent to which the entity met or exceeded the entity’s objectives for such program regarding—

(i)

the delivery of service to a total number of students, as agreed upon by the entity and the Secretary for the period;

(ii)

the provision of appropriate scholarly and research activities for the students served by the program;

(iii)

the acceptance and enrollment of such students in graduate programs; and

(iv)

the continued enrollment of such students in graduate study and the attainment of doctoral degrees by former program participants.

(E)

For programs authorized under section 402F, the extent to which the entity met or exceeded the entity’s objectives for such program regarding—

(i)

the enrollment of students without a secondary school diploma or its recognized equivalent, who were served by the program, in programs leading to such diploma or equivalent;

(ii)

the enrollment of secondary school graduates who were served by the program in programs of postsecondary education;

(iii)

the delivery of service to a total number of students, as agreed upon by the entity and the Secretary for the period; and

(iv)

the provision of assistance to students served by the program in completing financial aid applications and college admission applications.

(4)

Measurement of progress

In order to determine the extent to which an outcome criterion described in paragraphs (2) or (3) is met or exceeded, an eligible entity receiving assistance under this chapter shall compare the eligible entity's target for the criterion, as established in the eligible entity's application, with the results for the criterion, measured as of the last day of the applicable time period for the determination.

;

(6)

in subsection (g) (as redesignated by paragraph (4))—

(A)

in the first sentence, by striking $700,000,000 for fiscal year 1999 and all that follows through the period and inserting such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years.; and

(B)

by striking the fourth sentence; and

(7)

in subsection (h) (as redesignated by paragraph (4))—

(A)

by redesignating paragraphs (1) through (4) as paragraphs (3) through (6), respectively;

(B)

by inserting before paragraph (3) (as redesignated by subparagraph (A)) the following:

(1)

Different campus

The term different campus means a site of an institution of higher education that—

(A)

is geographically apart from the main campus of the institution;

(B)

is permanent in nature; and

(C)

offers courses in educational programs leading to a degree, certificate, or other recognized educational credential.

(2)

Different population

The term different population means a group of individuals, with respect to whom an eligible entity desires to serve through an application for a grant under this chapter, that—

(A)

is separate and distinct from any other population that the entity has applied for a grant under this chapter to serve; or

(B)

while sharing some of the same needs as another population that the eligible entity has applied for a grant under this chapter to serve, has distinct needs for specialized services.

;

(C)

in paragraph (5) (as redesignated by subparagraph (A))—

(i)

in subparagraph (A), by striking or after the semicolon;

(ii)

in subparagraph (B), by striking the period at the end and inserting ; or; and

(iii)

by adding at the end the following:

(C)

was a member of a reserve component of the Armed Forces called to active duty for a period of more than 180 days.

; and

(D)

in paragraph (6), by striking subparagraph (A) or (B) of paragraph (3) and inserting subparagraph (A), (B), or (C) of paragraph (5).

(b)

Talent Search

Section 402B (20 U.S.C. 1070a–12) is amended—

(1)

in subsection (a)—

(A)

in paragraph (1), by striking to identify qualified youths with potential for education at the postsecondary level and to encourage such youths and inserting to encourage eligible youths;

(B)

in paragraph (2), by inserting , and facilitate the application for, after the availability of; and

(C)

in paragraph (3), by striking , but who have the ability to complete such programs, to reenter and inserting to enter or reenter, and complete;

(2)

by redesignating subsection (c) as subsection (d);

(3)

by striking subsection (b) and inserting the following:

(b)

Required Services

Any project assisted under this section shall provide—

(1)

academic tutoring, or connections to high quality academic tutoring services, to enable students to complete secondary or postsecondary courses, which may include instruction in reading, writing, study skills, mathematics, science, and other subjects;

(2)

advice and assistance in secondary course selection and, if applicable, initial postsecondary course selection;

(3)

assistance in preparing for college entrance examinations and completing college admission applications;

(4)
(A)

information on both the full range of Federal student financial aid programs (including Federal Pell Grant awards and loan forgiveness) and resources for locating public and private scholarships; and

(B)

assistance in completing financial aid applications, including the Free Application for Federal Student Aid described in section 483(a);

(5)

guidance on and assistance in—

(A)

secondary school reentry;

(B)

alternative education programs for secondary school dropouts that lead to the receipt of a regular secondary school diploma;

(C)

entry into general educational development (GED) programs; or

(D)

postsecondary education; and

(6)

education or counseling services designed to improve the financial literacy and economic literacy of students or the students' parents, including financial planning for postsecondary education.

(c)

Permissible Services

Any project assisted under this section may provide services such as—

(1)

personal and career counseling or activities;

(2)

information and activities designed to acquaint youths with the range of career options available to the youths;

(3)

exposure to the campuses of institutions of higher education, as well as cultural events, academic programs, and other sites or activities not usually available to disadvantaged youth;

(4)

workshops and counseling for families of students served;

(5)

mentoring programs involving elementary or secondary school teachers or counselors, faculty members at institutions of higher education, students, or any combination of such persons; and

(6)

programs and activities as described in subsection (b) or paragraphs (1) through (5) of this subsection that are specially designed for students who are limited English proficient, students with disabilities, students who are homeless children and youths (as such term is defined in section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)), or students who are in foster care or are aging out of the foster care system.

; and

(4)

in the matter preceding paragraph (1) of subsection (d) (as redesignated by paragraph (2)), by striking talent search projects under this chapter and inserting projects under this section.

(c)

Upward Bound

Section 402C (20 U.S.C. 1070a–13) is amended—

(1)

by striking subsection (b) and inserting the following:

(b)

Required Services

Any project assisted under this section shall provide—

(1)

academic tutoring to enable students to complete secondary or postsecondary courses, which may include instruction in reading, writing, study skills, mathematics, science, and other subjects;

(2)

advice and assistance in secondary and postsecondary course selection;

(3)

assistance in preparing for college entrance examinations and completing college admission applications;

(4)
(A)

information on both the full range of Federal student financial aid programs (including Federal Pell Grant awards and loan forgiveness) and resources for locating public and private scholarships; and

(B)

assistance in completing financial aid applications, including the Free Application for Federal Student Aid described in section 483(a);

(5)

guidance on and assistance in—

(A)

secondary school reentry;

(B)

alternative education programs for secondary school dropouts that lead to the receipt of a regular secondary school diploma;

(C)

entry into general educational development (GED) programs; or

(D)

postsecondary education; and

(6)

education or counseling services designed to improve the financial literacy and economic literacy of students or the students' parents, including financial planning for postsecondary education.

;

(2)

in subsection (c)—

(A)

in the subsection heading, by striking Required Services and inserting Additional Required Services for Multiple-Year Grant Recipients; and

(B)

by striking upward bound project assisted under this chapter and inserting project assisted under this section;

(3)

by redesignating subsections (d) and (e) as subsections (f) and (g), respectively;

(4)

by inserting after subsection (c) the following:

(d)

Permissible Services

Any project assisted under this section may provide such services as—

(1)

exposure to cultural events, academic programs, and other activities not usually available to disadvantaged youth;

(2)

information, activities and instruction designed to acquaint youths participating in the project with the range of career options available to the youths;

(3)

on-campus residential programs;

(4)

mentoring programs involving elementary school or secondary school teachers or counselors, faculty members at institutions of higher education, students, or any combination of such persons;

(5)

work-study positions where youth participating in the project are exposed to careers requiring a postsecondary degree;

(6)

special services to enable veterans to make the transition to postsecondary education; and

(7)

programs and activities as described in subsection (b), subsection (c), or paragraphs (1) through (6) of this subsection that are specially designed for students who are limited English proficient, students with disabilities, students who are homeless children and youths (as such term is defined in section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)), or students who are in foster care or are aging out of the foster care system.

(e)

Priority

In providing assistance under this section the Secretary—

(1)

shall give priority to projects assisted under this section that select not less than 30 percent of all first-time participants in the projects from students who have a high academic risk for failure; and

(2)

shall not deny participation in a project assisted under this section to a student because the student will enter the project after the 9th grade.

;

(5)

in the matter preceding paragraph (1) of subsection (f) (as redesignated by paragraph (3)), by striking upward bound projects under this chapter and inserting projects under this section; and

(6)

in subsection (g) (as redesignated by paragraph (3))—

(A)

by striking during June, July, and August each place the term occurs and inserting during the summer school recess, for a period not to exceed 3 months; and

(B)

by striking (b)(10) and inserting (d)(5).

(d)

Student Support Services

Section 402D (20 U.S.C. 1070a–14) is amended—

(1)

in subsection (a)—

(A)

in paragraph (2), by striking and after the semicolon;

(B)

by striking paragraph (3) and inserting the following:

(3)

to foster an institutional climate supportive of the success of low-income and first generation college students, students with disabilities, students who are limited English proficient, students who are homeless children and youths (as such term is defined in section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)), and students who are in foster care or are aging out of the foster care system.

; and

(C)

by adding at the end the following:

(4)

to improve the financial literacy and economic literacy of students, including—

(A)

basic personal income, household money management, and financial planning skills; and

(B)

basic economic decisionmaking skills.

;

(2)

by redesignating subsections (c) and (d) as subsections (d) and (e);

(3)

by striking subsection (b) and inserting the following:

(b)

Required Services

A project assisted under this section shall provide—

(1)

academic tutoring to enable students to complete postsecondary courses, which may include instruction in reading, writing, study skills, mathematics, science, and other subjects;

(2)

advice and assistance in postsecondary course selection;

(3)
(A)

information on both the full range of Federal student financial aid programs (including Federal Pell Grant awards and loan forgiveness) and resources for locating public and private scholarships; and

(B)

assistance in completing financial aid applications, including the Free Application for Federal Student Aid described in section 483(a);

(4)

education or counseling services designed to improve the financial literacy and economic literacy of students, including financial planning for postsecondary education;

(5)

activities designed to assist students participating in the project in securing college admission and financial assistance for enrollment in graduate and professional programs; and

(6)

activities designed to assist students enrolled in 2-year institutions of higher education in securing admission and financial assistance for enrollment in a 4-year program of postsecondary education.

(c)

Permissible Services

A project assisted under this section may provide services such as—

(1)

consistent, individualized personal, career, and academic counseling, provided by assigned counselors;

(2)

information, activities, and instruction designed to acquaint youths participating in the project with the range of career options available to the students;

(3)

exposure to cultural events and academic programs not usually available to disadvantaged students;

(4)

activities designed to acquaint students participating in the project with the range of career options available to the students;

(5)

mentoring programs involving faculty or upper class students, or a combination thereof;

(6)

securing temporary housing during breaks in the academic year for students who are homeless children and youths (as such term is defined in section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)) or were formerly homeless children and youths and students who are in foster care or are aging out of the foster care system; and

(7)

programs and activities as described in subsection (b) or paragraphs (1) through (5) of this subsection that are specially designed for students who are limited English proficient, students with disabilities, students who are homeless children and youths (as such term is defined in section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)) or were formerly homeless children and youths, or students who are in foster care or are aging out of the foster care system.

;

(4)

in subsection (d)(1) (as redesignated by paragraph (2)), by striking subsection (b) and inserting subsection (c); and

(5)

in the matter preceding paragraph (1) of subsection (e) (as redesignated by paragraph (2)), by striking student support services projects under this chapter and inserting projects under this section.

(e)

Postbaccalaureate Achievement Program Authority

Section 402E (20 U.S.C. 1070a–15) is amended—

(1)

in subsection (b)—

(A)

in the subsection heading, by inserting Required before Services;

(B)

in the matter preceding paragraph (1), by striking A postbaccalaureate achievement project assisted under this section may provide services such as— and inserting A project assisted under this section shall provide—;

(C)

in paragraph (5), by inserting and after the semicolon;

(D)

in paragraph (6), by striking the semicolon and inserting a period; and

(E)

by striking paragraphs (7) and (8);

(2)

by redesignating subsections (c) through (f) as subsections (d) through (g), respectively;

(3)

by inserting after subsection (b) the following:

(c)

Permissible Services

A project assisted under this section may provide services such as—

(1)

education or counseling services designed to improve the financial literacy and economic literacy of students, including financial planning for postsecondary education;

(2)

mentoring programs involving faculty members at institutions of higher education, students, or any combination of such persons; and

(3)

exposure to cultural events and academic programs not usually available to disadvantaged students.

;

(4)

in the matter preceding paragraph (1) of subsection (d) (as redesignated by paragraph (2)), by striking postbaccalaureate achievement;

(5)

in the matter preceding paragraph (1) of subsection (f) (as redesignated by paragraph (2)), by striking postbaccalaureate achievement project and inserting project under this section; and

(6)

in subsection (g) (as redesignated by paragraph (2))—

(A)

by striking 402A(f) and inserting 402A(g); and

(B)

by striking 1993 through 1997 and inserting 2007 through 2012.

(f)

Educational Opportunity Centers

Section 402F (20 U.S.C. 1070a–16) is amended—

(1)

in subsection (a)—

(A)

in paragraph (1), by striking and after the semicolon;

(B)

in paragraph (2), by striking the period at the end and inserting ; and; and

(C)

by adding at the end the following:

(3)

to improve the financial literacy and economic literacy of students, including—

(A)

basic personal income, household money management, and financial planning skills; and

(B)

basic economic decisionmaking skills.

; and

(2)

in subsection (b)—

(A)

by redesignating paragraphs (5) through (10) as paragraphs (6) through (11), respectively;

(B)

by inserting after paragraph (4) the following:

(5)

education or counseling services designed to improve the financial literacy and economic literacy of students;

;

(C)

by striking paragraph (7) (as redesignated by subparagraph (A)) and inserting the following:

(7)

individualized personal, career, and academic counseling;

; and

(D)

by striking paragraph (11) (as redesignated by subparagraph (A)) and inserting the following:

(11)

programs and activities as described in paragraphs (1) through (10) that are specially designed for students who are limited English proficient, students with disabilities, or students who are homeless children and youths (as such term is defined in section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)), or programs and activities for students who are in foster care or are aging out of the foster care system.

.

(g)

Staff Development Activities

Section 402G(b)(3) (20 U.S.C. 1070a–17(b)(3)) is amended by inserting , including strategies for recruiting and serving students who are homeless children and youths (as such term is defined in section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)) and students who are in foster care or are aging out of the foster care system before the period at the end.

(h)

Reports, Evaluations, and Grants for Project Improvement and Dissemination

Section 402H (20 U.S.C. 1070a–18) is amended—

(1)

by striking the section heading and inserting reports, evaluations, and grants for project improvement and dissemination.;

(2)

by redesignating subsections (a) through (c) as subsections (b) through (d), respectively;

(3)

by inserting before subsection (b) (as redesignated by paragraph (2)) the following:

(a)

Reports to the authorizing committees

The Secretary shall submit annually, to the authorizing committees, a report that documents the performance of all programs funded under this chapter. The report shall—

(1)

be submitted not later than 24 months after the eligible entities receiving funds under this chapter are required to report their performance to the Secretary;

(2)

focus on the programs' performance on the relevant outcome criteria determined under section 402A(f)(4);

(3)

aggregate individual project performance data on the outcome criteria in order to provide national performance data for each program;

(4)

include, when appropriate, descriptive data, multi-year data, and multi-cohort data; and

(5)

include comparable data on the performance nationally of low-income students, first-generation students, and students with disabilities.

; and

(4)

in subsection (b) (as redesignated by paragraph (2)), by striking paragraph (2) and inserting the following:

(2)

Practices

(A)

In general

The evaluations described in paragraph (1) shall identify institutional, community, and program or project practices that are particularly effective in—

(i)

enhancing the access of low-income individuals and first-generation college students to postsecondary education;

(ii)

the preparation of the individuals and students for postsecondary education; and

(iii)

fostering the success of the individuals and students in postsecondary education.

(B)

Primary purpose

Any evaluation conducted under this chapter shall have as its primary purpose the identification of particular practices that further the achievement of the outcome criteria determined under section 402A(f)(4).

(C)

Dissemination and use of evaluation findings

The Secretary shall disseminate to eligible entities and make available to the public the practices identified under subparagraph (B). The practices may be used by eligible entities that receive assistance under this chapter after the dissemination.

(3)

Evaluation special rules

(A)

Recruitment

The Secretary shall not require an eligible entity desiring to receive assistance under this chapter to recruit students to serve as a control group for purposes of evaluating any program or project assisted under this chapter.

(B)

Permissible priority

If the Secretary elects to provide for the conduct of an evaluation of a program or project under this chapter using a control group, then the Secretary may give priority in providing assistance under this chapter, subject to section 402C(e), to an eligible entity that elects to participate in such an evaluation.

.

404.

Gaining early awareness and readiness for undergraduate programs

(a)

Early Intervention and College Awareness Program Authorized

Section 404A (20 U.S.C. 1070a–21) is amended—

(1)

by striking subsection (a) and inserting the following:

(a)

Program Authorized

The Secretary is authorized, in accordance with the requirements of this chapter, to establish a program that encourages eligible entities to provide support to eligible low-income students to assist the students in obtaining a secondary school diploma (or its recognized equivalent) and to prepare for and succeed in postsecondary education, by providing—

(1)

financial assistance, academic support, additional counseling, mentoring, outreach, and supportive services to middle school and secondary school students to reduce—

(A)

the risk of such students dropping out of school; or

(B)

the need for remedial education for such students at the postsecondary level; and

(2)

information to students and their parents about the advantages of obtaining a postsecondary education and the college financing options for the students and their parents.

;

(2)

by striking subsection (b)(2)(A) and inserting the following:

(A)

give priority to eligible entities that have a prior, demonstrated commitment to early intervention leading to college access through collaboration and replication of successful strategies;

; and

(3)

by striking subsection (c)(2) and inserting the following:

(2)

a partnership—

(A)

consisting of—

(i)

1 or more local educational agencies; and

(ii)

1 or more degree granting institutions of higher education; and

(B)

which may include not less than 2 other community organizations or entities, such as businesses, professional organizations, State agencies, institutions or agencies sponsoring programs authorized under subpart 4, or other public or private agencies or organizations.

.

(b)

Requirements

Section 404B (20 U.S.C. 1070a–22) is amended—

(1)

by striking subsection (a) and inserting the following:—

(a)

Funding Rules

(1)

Distribution

In awarding grants from the amount appropriated under section 404G for a fiscal year, the Secretary shall take into consideration—

(A)

the geographic distribution of such awards; and

(B)

the distribution of such awards between urban and rural applicants.

(2)

Special rule

The Secretary shall annually reevaluate the distribution of funds described in paragraph (1) based on number, quality, and promise of the applications.

;

(2)

by striking subsections (b), (e), and (f);

(3)

by redesignating subsections (c), (d), and (g) as subsections (b), (c), and (d), respectively; and

(4)

by adding at the end the following:

(e)

Supplement, Not Supplant

Grant funds awarded under this chapter shall be used to supplement, and not supplant, other Federal, State, and local funds that would otherwise be expended to carry out activities assisted under this chapter.

.

(c)

Application

Section 404C (20 U.S.C. 1070a–23) is amended—

(1)

in the section heading, by striking eligible entity plans and inserting applications;

(2)

in subsection (a)—

(A)

in the subsection heading, by striking Plan and inserting Application;

(B)

in paragraph (1)—

(i)

by striking a plan and inserting an application; and

(ii)

by striking the second sentence; and

(C)

by striking paragraph (2) and inserting the following:

(2)

Contents

Each application submitted pursuant to paragraph (1) shall be in such form, contain or be accompanied by such information or assurances, and be submitted at such time as the Secretary may require. Each such application shall, at a minimum—

(A)

describe the activities for which assistance under this chapter is sought, including how the eligible entity will carry out the required activities described in section 404D(a);

(B)

describe how the eligible agency will meet the requirements of section 404E;

(C)

provide assurances that adequate administrative and support staff will be responsible for coordinating the activities described in section 404D;

(D)

ensure that activities assisted under this chapter will not displace an employee or eliminate a position at a school assisted under this chapter, including a partial displacement such as a reduction in hours, wages or employment benefits;

(E)

describe, in the case of an eligible entity described in section 404A(c)(2), how the eligible entity will define the cohorts of the students served by the eligible entity pursuant to section 404B(d), and how the eligible entity will serve the cohorts through grade 12, including—

(i)

how vacancies in the program under this chapter will be filled; and

(ii)

how the eligible entity will serve students attending different secondary schools;

(F)

describe how the eligible entity will coordinate programs with other existing Federal, State, or local programs to avoid duplication and maximize the number of students served;

(G)

provide such additional assurances as the Secretary determines necessary to ensure compliance with the requirements of this chapter; and

(H)

provide information about the activities that will be carried out by the eligible entity to support systemic changes from which future cohorts of students will benefit.

;

(3)

in the matter preceding subparagraph (A) of subsection (b)(1)—

(A)

by striking a plan and inserting an application; and

(B)

by striking such plan and inserting such application; and

(4)

in subsection (c)(1), by striking the semicolon at the end and inserting “including—

(A)

the amount contributed to a student scholarship fund established under section 404E; and

(B)

the amount of the costs of administering the scholarship program under section 404E;

.

(d)

Activities

Section 404D (20 U.S.C. 1070a–24) is amended to read as follows:

404D.

Activities

(a)

Required Activities

Each eligible entity receiving a grant under this chapter shall carry out the following:

(1)

Provide information regarding financial aid for postsecondary education to participating students in the cohort described in subsection 404B(d)(1)(A).

(2)

Encourage student enrollment in rigorous and challenging curricula and coursework, in order to reduce the need for remedial coursework at the postsecondary level.

(3)

Support activities designed to improve the number of participating students who—

(A)

obtain a secondary school diploma; and

(B)

complete applications for and enroll in a program of postsecondary education.

(4)

In the case of an eligible entity described in section 404A(c)(1), provide for the scholarships described in section 404E.

(b)

Optional Activities for States and Partnerships

An eligible entity that receives a grant under this chapter may use grant funds to carry out 1 or more of the following activities:

(1)

Providing tutoring and supporting mentors, including adults or former participants of a program under this chapter, for eligible students.

(2)

Conducting outreach activities to recruit priority students described in subsection (d) to participate in program activities.

(3)

Providing supportive services to eligible students.

(4)

Supporting the development or implementation of rigorous academic curricula, which may include college preparatory, Advanced Placement, or International Baccalaureate programs, and providing participating students access to rigorous core courses that reflect challenging State academic standards.

(5)

Supporting dual or concurrent enrollment programs between the secondary school and institution of higher education partners of an eligible entity described in section 404A(c)(2), and other activities that support participating students in—

(A)

meeting challenging academic standards;

(B)

successfully applying for postsecondary education;

(C)

successfully applying for student financial aid; and

(D)

developing graduation and career plans.

(6)

Providing support for scholarships described in section 404E.

(7)

Introducing eligible students to institutions of higher education, through trips and school-based sessions.

(8)

Providing an intensive extended school day, school year, or summer program that offers—

(A)

additional academic classes; or

(B)

assistance with college admission applications.

(9)

Providing other activities designed to ensure secondary school completion and postsecondary education enrollment of at-risk children, such as—

(A)

the identification of at-risk children;

(B)

after-school and summer tutoring;

(C)

assistance to at-risk children in obtaining summer jobs;

(D)

academic counseling;

(E)

volunteer and parent involvement;

(F)

encouraging former or current participants of a program under this chapter to serve as peer counselors;

(G)

skills assessments;

(H)

personal counseling;

(I)

family counseling and home visits;

(J)

staff development; and

(K)

programs and activities described in this subsection that are specially designed for students who are limited English proficient.

(10)

Enabling eligible students to enroll in Advanced Placement or International Baccalaureate courses, or college entrance examination preparation courses.

(11)

Providing services to eligible students in the participating cohort described in section 404B(d)(1)(A), through the first year of attendance at an institution of higher education.

(c)

Additional Optional Activities for States

In addition to the required activities described in subsection (a) and the optional activities described in subsection (b), an eligible entity described in section 404A(c)(1) receiving funds under this chapter may use grant funds to carry out 1 or more of the following activities:

(1)

Providing technical assistance to—

(A)

middle schools or secondary schools that are located within the State; or

(B)

partnerships described in section 404A(c)(2) that are located within the State.

(2)

Providing professional development opportunities to individuals working with eligible cohorts of students described in section 404B(d)(1)(A).

(3)

Providing strategies and activities that align efforts in the State to prepare eligible students for attending and succeeding in postsecondary education, which may include the development of graduation and career plans.

(4)

Disseminating information on the use of scientifically based research and best practices to improve services for eligible students.

(5)
(A)

Disseminating information on effective coursework and support services that assist students in obtaining the goals described in subparagraph (B)(ii).

(B)

Identifying and disseminating information on best practices with respect to—

(i)

increasing parental involvement; and

(ii)

preparing students, including students with disabilities and students who are limited English proficient, to succeed academically in, and prepare financially for, postsecondary education.

(6)

Working to align State academic standards and curricula with the expectations of postsecondary institutions and employers.

(7)

Developing alternatives to traditional secondary school that give students a head start on attaining a recognized postsecondary credential (including an industry certificate, an apprenticeship, or an associate’s or a bachelor’s degree), including school designs that give students early exposure to college-level courses and experiences and allow students to earn transferable college credits or an associate’s degree at the same time as a secondary school diploma.

(8)

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

(d)

Priority Students

For eligible entities not using a cohort approach, the eligible entity shall treat as priority students any student in middle or secondary school who is eligible—

(1)

to be counted under section 1124(c) of the Elementary and Secondary Education Act of 1965;

(2)

for free or reduced price meals under the Richard B. Russell National School Lunch Act;

(3)

for assistance under a State program funded under part A or E of title IV of the Social Security Act (42 U.S.C. 601 et seq., 670 et seq.); or

(4)

for assistance under subtitle B of title VII of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 et seq.).

(e)

Allowable Providers

In the case of eligible entities described in section 404A(c)(1), the activities required by this section may be provided by service providers such as community-based organizations, schools, institutions of higher education, public and private agencies, nonprofit and philanthropic organizations, businesses, institutions and agencies sponsoring programs authorized under subpart 4, and other organizations the State determines appropriate.

.

(e)

Scholarship Component

Section 404E (20 U.S.C. 1070a–25) is amended—

(1)

by striking subsections (e) and (f);

(2)

by redesignating subsections (b), (c), and (d) as subsections (d), (f), and (g), respectively;

(3)

by inserting after subsection (a) the following:

(b)

Limitation

(1)

In general

Subject to paragraph (2), each eligible entity described in section 404A(c)(1) that receives a grant under this chapter shall use not less than 25 percent and not more than 50 percent of the grant funds for activities described in section 404D (except for the activity described in subsection (a)(4) of such section), with the remainder of such funds to be used for a scholarship program under this section in accordance with such subsection.

(2)

Exception

Notwithstanding paragraph (1), the Secretary may allow an eligible entity to use more than 50 percent of grant funds received under this chapter for such activities, if the eligible entity demonstrates that the eligible entity has another means of providing the students with the financial assistance described in this section and describes such means in the application submitted under section 404C.

(c)

Notification of Eligibility

Each eligible entity providing scholarships under this section shall provide information on the eligibility requirements for the scholarships to all participating students upon the students’ entry into the programs assisted under this chapter.

;

(4)

in subsection (d) (as redesignated by paragraph (2)), by striking the lesser of and all that follows through the period at the end of paragraph (2) and inserting the minimum Federal Pell Grant award under section 401 for such award year.;

(5)

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

(e)

Portability of Assistance

(1)

In general

Each eligible entity described in section 404A(c)(1) that receives a grant under this chapter shall create or organize a trust for each cohort described in section 404B(d)(1)(A) for which the grant is sought in the application submitted by the entity, which trust shall be an amount that is not less than the minimum scholarship amount described in subsection (d), multiplied by the number of students participating in the cohort.

(2)

Requirement for portability

Funds contributed to the trust for a cohort shall be available to a student in the cohort when the student has—

(A)

completed a secondary school diploma, its recognized equivalent, or other recognized alternative standard for individuals with disabilities; and

(B)

enrolled in an institution of higher education.

(3)

Qualified educational expenses

Funds available to an eligible student from a trust may be used for—

(A)

tuition, fees, books, supplies, and equipment required for the enrollment or attendance of the eligible student at an institution of higher education; and

(B)

in the case of an eligible student with special needs, expenses for special needs services which are incurred in connection with such enrollment or attendance.

(4)

Return of funds

(A)

Redistribution

(i)

In general

Trust funds that are not used by an eligible student within 6 years of the student’s scheduled completion of secondary school may be redistributed by the eligible entity to other eligible students.

(ii)

Return of excess to the secretary

If, after meeting the requirements of paragraph (1) and, if applicable, redistributing excess funds in accordance with clause (i), an eligible entity has funds remaining, the eligible entity shall return excess funds to the Secretary for distribution to other grantees under this chapter.

(B)

Nonparticipating entity

Notwithstanding subparagraph (A), in the case of an eligible entity described in section 404A(c)(1)(A) that does not receive assistance under this subpart for 6 fiscal years, the eligible entity shall return any trust funds not awarded or obligated to eligible students to the Secretary for distribution to other grantees under this chapter.

; and

(6)

in subsection (g) (as redesignated by paragraph (2))—

(A)

in paragraph (2), by striking 1993 and inserting 2001; and

(B)

in paragraph (4), by striking early intervention component required under section 404D and inserting activities required under section 404D(a).

(f)

Repeal of 21st Century Scholar Certificates

Chapter 2 of subpart 2 of part A of title IV (20 U.S.C. 1070a–21 et seq.) is further amended—

(1)

by striking section 404F; and

(2)

by redesignating sections 404G and 404H as sections 404F and 404G, respectively.

(g)

Authorization of Appropriations

Section 404G (as redesignated by subsection (f)) (20 U.S.C. 1070a–28) is amended by striking $200,000,000 for fiscal year 1999 and all that follows through the period and inserting such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years..

(h)

Conforming Amendments

Chapter 2 of subpart 2 of part A of title IV (20 U.S.C. 1070a–21 et seq.) is further amended—

(1)

in section 404A(b)(1), by striking 404H and inserting 404G;

(2)

in section 404B(a)(1), by striking 404H and inserting 404G; and

(3)

in section 404F(c) (as redesignated by subsection (f)(2)), by striking 404H and inserting 404G.

405.

Academic achievement incentive scholarships

Chapter 3 of subpart 2 of part A of title IV (20 U.S.C. 1070a–31 et seq.) is repealed.

406.

Federal supplemental educational opportunity grants

(a)

Appropriations Authorized

Section 413A(b)(1) (20 U.S.C. 1070b(b)(1)) is amended by striking $675,000,000 for fiscal year 1999 and all that follows through the period and inserting such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years..

(b)

Allocation of Funds

(1)

Allocation of funds

Section 413D (20 U.S.C. 1070b–3) is amended—

(A)

by striking subsection (a)(4); and

(B)

in subsection (c)(3)(D), by striking $450 and inserting $600.

(2)

Technical correction

Section 413D(a)(1) (20 U.S.C. 1070b–3(a)(1)) is amended by striking such institution and all that follows through the period and inserting such institution received under subsections (a) and (b) of this section for fiscal year 1999 (as such subsections were in effect with respect to allocations for such fiscal year)..

407.

Leveraging Educational Assistance Partnership program

(a)

Appropriations Authorized

Section 415A(b)(1) (20 U.S.C. 1070c(b)(1)) is amended to read as follows:

(1)

In general

There are authorized to be appropriated to carry out this subpart such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years.

.

(b)

Applications

Section 415C(b) (20 U.S.C. 1070c–2(b)) is amended—

(1)

in the matter preceding subparagraph (A) of paragraph (2), by striking not in excess of $5,000 per academic year and inserting not to exceed the lesser of $12,500 or the student’s cost of attendance per academic year; and

(2)

by striking paragraph (10) and inserting the following:

(10)

provides notification to eligible students that such grants are—

(A)

Leveraging Educational Assistance Partnership grants; and

(B)

funded by the Federal Government, the State, and other contributing partners.

.

(c)

Grants for Access and Persistence

Section 415E (20 U.S.C. 1070c–3a) is amended to read as follows:

415E.

Grants for access and persistence

(a)

Purpose

It is the purpose of this section to expand college access and increase college persistence by making allotments to States to enable the States to—

(1)

expand and enhance partnerships with institutions of higher education, early information and intervention, mentoring, or outreach programs, private corporations, philanthropic organizations, and other interested parties in order to—

(A)

carry out activities under this section; and

(B)

provide coordination and cohesion among Federal, State, and local governmental and private efforts that provide financial assistance to help low-income students attend an institution of higher education;

(2)

provide need-based grants for access and persistence to eligible low-income students;

(3)

provide early notification to low-income students of the students’ eligibility for financial aid; and

(4)

encourage increased participation in early information and intervention, mentoring, or outreach programs.

(b)

Allotments to States

(1)

In general

(A)

Authorization

From sums reserved under section 415A(b)(2) for each fiscal year, the Secretary shall make an allotment to each State that submits an application for an allotment in accordance with subsection (c) to enable the State to pay the Federal share, as described in paragraph (2), of the cost of carrying out the activities under subsection (d).

(B)

Determination of allotment

In making allotments under subparagraph (A), the Secretary shall consider the following:

(i)

Continuation of award

If a State continues to meet the specifications established in such State’s application under subsection (c), the Secretary shall make an allotment to such State that is not less than the allotment made to such State for the previous fiscal year.

(ii)

Priority

The Secretary shall give priority in making allotments to States that meet the requirements described in paragraph (2)(A)(ii).

(2)

Federal share

(A)

In general

The Federal share under this section shall be determined in accordance with the following:

(i)

If a State applies for an allotment under this section in partnership with—

(I)

any number of degree granting institutions of higher education in the State whose combined full-time enrollment represents less than a majority of all students attending institutions of higher education in the State; and

(II)
(aa)

philanthropic organizations that are located in, or that provide funding in, the State; or

(bb)

private corporations that are located in, or that do business in, the State,

then the Federal share of the cost of carrying out the activities under subsection (d) shall be equal to 50 percent.
(ii)

If a State applies for an allotment under this section in partnership with—

(I)

any number of degree granting institutions of higher education in the State whose combined full-time enrollment represents a majority of all students attending institutions of higher education in the State; and

(II)
(aa)

philanthropic organizations that are located in, or that provide funding in, the State; or

(bb)

private corporations that are located in, or that do business in, the State,

then the Federal share of the cost of carrying out the activities under subsection (d) shall be equal to 57 percent.
(B)

Non-federal share

(i)

In general

The non-Federal share under this section may be provided in cash or in kind, fully evaluated and in accordance with this subparagraph.

(ii)

In kind contribution

For the purpose of calculating the non-Federal share under this section, an in kind contribution is a non-cash award that has monetary value, such as provision of room and board and transportation passes, and that helps a student meet the cost of attendance.

(iii)

Effect on need analysis

For the purpose of calculating a student’s need in accordance with part F of this title, an in-kind contribution described in clause (ii) shall not be considered an asset or income.

(c)

Application for Allotment

(1)

In general

(A)

Submission

A State that desires to receive an allotment under this section on behalf of a partnership described in paragraph (3) shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require.

(B)

Content

An application submitted under subparagraph (A) shall include the following:

(i)

A description of the State’s plan for using the allotted funds.

(ii)

Assurances that the State will provide the non-Federal share from State, institutional, philanthropic, or private funds, of not less than the required share of the cost of carrying out the activities under subsection (d), as determined under subsection (b), in accordance with the following:

(I)

The State shall specify the methods by which non-Federal share funds will be paid and include provisions designed to ensure that funds provided under this section will be used to supplement, and not supplant, Federal and non-Federal funds available for carrying out the activities under this title.

(II)

A State that uses non-Federal funds to create or expand existing partnerships with nonprofit organizations or community-based organizations in which such organizations match State funds for student scholarships, may apply such matching funds from such organizations toward fulfilling the State’s non-Federal share obligation under this clause.

(iii)

Assurances that early information and intervention, mentoring, or outreach programs exist within the State or that there is a plan to make such programs widely available.

(iv)

A description of the organizational structure that the State has in place to administer the activities under subsection (d), including a description of the system the State will use to track the participation of students who receive grants under this section to degree completion.

(v)

Assurances that the State has a method in place, such as acceptance of the automatic zero expected family contribution determination described in section 479, to identify eligible low-income students and award State grant aid to such students.

(vi)

Assurances that the State will provide notification to eligible low-income students that grants under this section are—

(I)

Leveraging Educational Assistance Partnership Grants; and

(II)

funded by the Federal Government, the State, and other contributing partners.

(2)

State agency

The State agency that submits an application for a State under section 415C(a) shall be the same State agency that submits an application under paragraph (1) for such State.

(3)

Partnership

In applying for an allotment under this section, the State agency shall apply for the allotment in partnership with—

(A)

not less than 1 public and 1 private degree granting institution of higher education that are located in the State, if applicable;

(B)

new or existing early information and intervention, mentoring, or outreach programs located in the State; and

(C)

not less than 1—

(i)

philanthropic organization located in, or that provides funding in, the State; or

(ii)

private corporation located in, or that does business in, the State.

(4)

Roles of partners

(A)

State agency

A State agency that is in a partnership receiving an allotment under this section—

(i)

shall—

(I)

serve as the primary administrative unit for the partnership;

(II)

provide or coordinate non-Federal share funds, and coordinate activities among partners;

(III)

encourage each institution of higher education in the State to participate in the partnership;

(IV)

make determinations and early notifications of assistance as described under subsection (d)(2); and

(V)

annually report to the Secretary on the partnership’s progress in meeting the purpose of this section; and

(ii)

may provide early information and intervention, mentoring, or outreach programs.

(B)

Degree granting institutions of higher education

A degree granting institution of higher education that is in a partnership receiving an allotment under this section—

(i)

shall—

(I)

recruit and admit participating qualified students and provide such additional institutional grant aid to participating students as agreed to with the State agency;

(II)

provide support services to students who receive grants for access and persistence under this section and are enrolled at such institution; and

(III)

assist the State in the identification of eligible students and the dissemination of early notifications of assistance as agreed to with the State agency; and

(ii)

may provide funding for early information and intervention, mentoring, or outreach programs or provide such services directly.

(C)

Programs

An early information and intervention, mentoring, or outreach program that is in a partnership receiving an allotment under this section shall provide direct services, support, and information to participating students.

(D)

Philanthropic organization or private corporation

A philanthropic organization or private corporation that is in a partnership receiving an allotment under this section shall provide funds for grants for access and persistence for participating students, or provide funds or support for early information and intervention, mentoring, or outreach programs.

(d)

Authorized Activities

(1)

In general

(A)

Establishment of partnership

Each State receiving an allotment under this section shall use the funds to establish a partnership to award grants for access and persistence to eligible low-income students in order to increase the amount of financial assistance such students receive under this subpart for undergraduate education expenses.

(B)

Amount of grants

(i)

Partnerships with institutions serving less than a majority of students in the state

(I)

In general

In the case where a State receiving an allotment under this section is in a partnership described in subsection (b)(2)(A)(i), the amount of a grant for access and persistence awarded by such State shall be not less than the amount that is equal to the average undergraduate tuition and mandatory fees at 4-year public institutions of higher education in the State where the student resides (less any other Federal or State sponsored grant amount, work study amount, and scholarship amount received by the student), and such amount shall be used toward the cost of attendance at an institution of higher education located in the State.

(II)

Cost of attendance

A State that has a program, apart from the partnership under this section, of providing eligible low-income students with grants that are equal to the average undergraduate tuition and mandatory fees at 4-year public institutions of higher education in the State, may increase the amount of grants for access and persistence awarded by such State up to an amount that is equal to the average cost of attendance at 4-year public institutions of higher education in the State (less any other Federal or State sponsored grant amount, work study amount, and scholarship amount received by the student).

(ii)

Partnerships with institutions serving the majority of students in the state

In the case where a State receiving an allotment under this section is in a partnership described in subsection (b)(2)(A)(ii), the amount of a grant for access and persistence awarded by such State shall be not more than an amount that is equal to the average cost of attendance at 4-year public institutions of higher education in the State where the student resides (less any other Federal or State sponsored grant amount, college work study amount, and scholarship amount received by the student), and such amount shall be used by the student to attend an institution of higher education located in the State.

(C)

Special rules

(i)

Partnership institutions

A State receiving an allotment under this section may restrict the use of grants for access and persistence under this section by awarding the grants only to students attending institutions of higher education that are participating in the partnership.

(ii)

Out-of-State institutions

If a State provides grants through another program under this subpart to students attending institutions of higher education located in another State, such agreement may also apply to grants awarded under this section.

(2)

Early notification

(A)

In general

Each State receiving an allotment under this section shall annually notify low-income students, such as students who are eligible to receive a free lunch under the school lunch program established under the Richard B. Russell National School Lunch Act, in grade 7 through grade 12 in the State, of the students’ potential eligibility for student financial assistance, including a grant for access and persistence, to attend an institution of higher education.

(B)

Content of notice

The notification under subparagraph (A)—

(i)

shall include—

(I)

information about early information and intervention, mentoring, or outreach programs available to the student;

(II)

information that a student’s candidacy for a grant for access and persistence is enhanced through participation in an early information and intervention, mentoring, or outreach program;

(III)

an explanation that student and family eligibility and participation in other Federal means-tested programs may indicate eligibility for a grant for access and persistence and other student aid programs;

(IV)

a nonbinding estimation of the total amount of financial aid a low-income student with a similar income level may expect to receive, including an estimation of the amount of a grant for access and persistence and an estimation of the amount of grants, loans, and all other available types of aid from the major Federal and State financial aid programs;

(V)

an explanation that in order to be eligible for a grant for access and persistence, at a minimum, a student shall—

(aa)

meet the requirement under paragraph (3);

(bb)

graduate from secondary school; and

(cc)

enroll at an institution of higher education that is a partner in the partnership or qualifies under subsection (d)(1)(C)(ii);

(VI)

information on any additional requirements (such as a student pledge detailing student responsibilities) that the State may impose for receipt of a grant for access and persistence under this section; and

(VII)

instructions on how to apply for a grant for access and persistence and an explanation that a student is required to file a Free Application for Federal Student Aid authorized under section 483(a) to be eligible for such grant and assistance from other Federal and State financial aid programs; and

(ii)

may include a disclaimer that grant awards for access and persistence are contingent upon—

(I)

a determination of the student’s financial eligibility at the time of the student’s enrollment at an institution of higher education that is a partner in the partnership or qualifies under subsection (d)(1)(C)(ii);

(II)

annual Federal and State appropriations; and

(III)

other aid received by the student at the time of the student’s enrollment at such institution of higher education.

(3)

Eligibility

In determining which students are eligible to receive grants for access and persistence, the State shall ensure that each such student meets not less than 1 of the following:

(A)

Meets not less than 2 of the following criteria, with priority given to students meeting all of the following criteria:

(i)

Has an expected family contribution equal to zero (as 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 undergraduate award, as authorized under section 415C(b).

(iv)

Is participating in, or has participated in, a Federal, State, institutional, or community early information and intervention, mentoring, or outreach program, as recognized by the State agency administering activities under this section.

(B)

Is receiving, or has received, a grant for access and persistence under this section, in accordance with paragraph (5).

(4)

Grant award

Once a student, including those students who have received early notification under paragraph (2) from the State, applies for admission to an institution that is a partner in the partnership, files a Free Application for Federal Student Aid and any related existing State form, and is determined eligible by the State under paragraph (3), the State shall—

(A)

issue the student a preliminary award certificate for a grant for access and persistence with tentative award amounts; and

(B)

inform the student that payment of the grant for access and persistence award amounts is subject to certification of enrollment and award eligibility by the institution of higher education.

(5)

Duration of award

An eligible student that receives a grant for access and persistence under this section shall receive such grant award for each year of such student’s undergraduate education in which the student remains eligible for assistance under this title, including pursuant to section 484(c), and remains financially eligible as determined by the State, except that the State may impose reasonable time limits to degree completion.

(e)

Use of Funds for Administrative Costs Prohibited

A State that receives an allotment under this section shall not use any of the allotted funds to pay administrative costs associated with any of the authorized activities described in subsection (d).

(f)

Statutory and Regulatory Relief for Institutions of Higher Education

The Secretary may grant, upon the request of an institution of higher education that is in a partnership described in subsection (b)(2)(A)(ii) and that receives an allotment under this section, a waiver for such institution from statutory or regulatory requirements that inhibit the ability of the institution to successfully and efficiently participate in the activities of the partnership.

(g)

Applicability Rule

The provisions of this subpart which are not inconsistent with this section shall apply to the program authorized by this section.

(h)

Maintenance of Effort Requirement

Each State receiving an allotment under this section for a fiscal year shall provide the Secretary with an assurance that the aggregate amount expended per student or the aggregate expenditures by the State, from funds derived from non-Federal sources, for the authorized activities described in subsection (d) for the preceding fiscal year were not less than the amount expended per student or the aggregate expenditure by the State for the activities for the second preceding fiscal year.

(i)

Special Rule

Notwithstanding subsection (h), for purposes of determining a State’s share of the cost of the authorized activities described in subsection (d), the State shall consider only those expenditures from non-Federal sources that exceed the State’s total expenditures for need-based grants, scholarships, and work-study assistance for fiscal year 1999 (including any such assistance provided under this subpart).

(j)

Continuation and Transition

For the 2-year period that begins on the date of enactment of the Higher Education Amendments of 2007, the Secretary shall continue to award grants under section 415E of the Higher Education Act of 1965 as such section existed on the day before the date of enactment of such Act to States that choose to apply for grants under such predecessor section.

(k)

Reports

Not later than 3 years after the date of enactment of the Higher Education Amendments of 2007 and annually thereafter, the Secretary shall submit a report describing the activities and the impact of the partnerships under this section to the authorizing committees.

.

408.

Special programs for students whose families are engaged in migrant and seasonal farmwork

Section 418A (20 U.S.C. 1070d–2) is amended—

(1)

in subsection (b)—

(A)

in paragraph (1)(B)(i), by striking parents and inserting immediate family;

(B)

in paragraph (3)(B), by inserting (including preparation for college entrance examinations) after college program;

(C)

in paragraph (5), by striking weekly;

(D)

in paragraph (7), by striking and after the semicolon;

(E)

in paragraph (8)—

(i)

by inserting (such as transportation and child care) after services; and

(ii)

by striking the period at the end and inserting ; and; and

(F)

by adding at the end the following:

(9)

other activities to improve persistence and retention in postsecondary education.

;

(2)

in subsection (c)—

(A)

in paragraph (1)—

(i)

in subparagraph (A), by striking parents and inserting family;

(ii)

in subparagraph (B)—

(I)

in the matter preceding clause (i), by inserting to improve placement, persistence, and retention in postsecondary education after services; and

(II)

in clause (i), by striking and career and inserting career, and economic education or personal finance;

(iii)

in subparagraph (E), by striking and after the semicolon;

(iv)

by redesignating subparagraph (F) as subparagraph (G);

(v)

by inserting after subparagraph (E) the following:

(F)

internships; and

; and

(vi)

in subparagraph (G) (as redesignated by clause (iv)), by striking support services and inserting essential supportive services (such as transportation and child care); and

(B)

in paragraph (2)—

(i)

in subparagraph (A), by striking and after the semicolon;

(ii)

in subparagraph (B), by striking the period at the end and inserting , and coordinating such services, assistance, and aid with other non-program services, assistance, and aid, including services, assistance, and aid provided by community-based organizations, which may include mentoring and guidance; and; and

(iii)

by adding at the end the following:

(C)

for students attending 2-year institutions of higher education, encouraging the students to transfer to 4-year institutions of higher education, where appropriate, and monitoring the rate of transfer of such students.

;

(3)

in subsection (e), by striking section 402A(c)(1) and inserting section 402A(c)(2);

(4)

in subsection (f)—

(A)

in paragraph (1), by striking $150,000 and inserting $180,000; and

(B)

in paragraph (2), by striking $150,000 and inserting $180,000;

(5)

by redesignating subsections (g) and (h) as subsections (h) and (i), respectively;

(6)

by inserting after subsection (f) the following:

(g)

Reservation of funds

From the amounts made available under subsection (i), the Secretary may reserve not more than a total of ½ of 1 percent for outreach activities, technical assistance, and professional development programs relating to the programs under subsection (a).

;

(7)

by striking subsection (h) (as redesignated by paragraph (5)) and inserting the following:

(h)

Data Collection

The Commissioner for Education Statistics shall—

(1)

annually collect data on persons receiving services authorized under this subpart regarding such persons' rates of secondary school graduation, entrance into postsecondary education, and completion of postsecondary education;

(2)

not less often than once every 2 years, prepare and submit a report based on the most recently available data under paragraph (1) to the authorizing committees; and

(3)

make such report available to the public.

; and

(8)

in subsection (i) (as redesignated by paragraph (5))—

(A)

in paragraph (1), by striking $15,000,000 for fiscal year 1999 and all that follows through the period and inserting such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years.; and

(B)

in paragraph (2), by striking $5,000,000 for fiscal year 1999 and all that follows through the period and inserting such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years..

409.

Robert C. Byrd Honors Scholarship Program

(a)

Eligibility of Scholars

Section 419F(a) (20 U.S.C. 1070d–36(a)) is amended by inserting (or a home school, whether treated as a home school or a private school under State law) after public or private secondary school.

(b)

Authorization of Appropriations

Section 419K (20 U.S.C. 1070d–41) is amended by striking $45,000,000 for fiscal year 1999 and all that follows through the period and inserting such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years..

410.

Child care access means parents in school

(a)

Minimum Grant

Section 419N(b)(2)(B) (20 U.S.C. 1070e(b)(2)(B)) is amended—

(1)

by striking A grant and inserting the following:

(i)

In general

Except as provided in clause (ii), a grant

; and

(2)

by adding at the end the following:

(ii)

Increase trigger

For any fiscal year for which the amount appropriated under the authority of subsection (g) is equal to or greater than $20,000,000, a grant under this section shall be awarded in an amount that is not less than $30,000.

.

(b)

Definition of Low-Income Student

Paragraph (7) of section 419N(b) (20 U.S.C. 1070e(b)) is amended to read as follows:

(7)

Definition of low-income student

For the purpose of this section, the term low-income student means a student who—

(A)

is eligible to receive a Federal Pell Grant for the fiscal year for which the determination is made; or

(B)

would otherwise be eligible to receive a Federal Pell Grant for the fiscal year for which the determination is made, except that the student fails to meet the requirements of—

(i)

section 401(c)(1) because the student is enrolled in a graduate or first professional course of study; or

(ii)

section 484(a)(5) because the student is in the United States for a temporary purpose.

.

(c)

Authorization of Appropriations

Section 419N(g) (20 U.S.C. 1070e(g)) is amended by striking $45,000,000 for fiscal year 1999 and all that follows through the period and inserting such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years..

411.

Learning anytime anywhere partnerships

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

B

Federal family education loan program

421.

Federal payments to reduce student interest costs

Section 428 (as amended by this Act) (20 U.S.C. 1078) is further amended—

(1)

in subsection (b)—

(A)

in paragraph (1)—

(i)

in subparagraph (X), by striking and after the semicolon;

(ii)

in subparagraph (Y)—

(I)

by striking clause (i) and inserting the following:

(i)

the lender shall determine the eligibility of a borrower for a deferment described in subparagraph (M)(i) based on—

(I)

receipt of a request for deferment from the borrower and documentation of the borrower’s eligibility for the deferment;

(II)

receipt of a newly completed loan application that documents the borrower’s eligibility for a deferment;

(III)

receipt of student status information received by the lender that the borrower is enrolled on at least a half-time basis; or

(IV)

the lender’s confirmation of the borrower’s half-time enrollment status through use of the National Student Loan Data System, if the confirmation is requested by the institution of higher education.

; and

(II)

in clause (ii), by striking the period at the end and inserting ; and; and

(iii)

by adding at the end the following:

(Z)

provides that the lender shall, at the time the lender grants a deferment to a borrower who received a loan under section 428H and is eligible for a deferment under section 428(b)(1)(M), provide information to the borrower to enable the borrower to understand the impact of capitalization of interest on the borrower’s loan principal and total amount of interest to be paid during the life of the loan.

;

(B)

in paragraph (2)(F)—

(i)

in clause (i)—

(I)

in subclause (III), by striking and after the semicolon;

(II)

in subclause (IV), by striking and after the semicolon; and

(III)

by adding at the end the following:

(V)

the effective date of the transfer;

(VI)

the date the current servicer will stop accepting payments; and

(VII)

the date at which the new servicer will begin accepting payments.

; and

(C)

by striking paragraph (3) and inserting the following:

(3)

Restrictions on inducements, payments, mailings, and advertising

A guaranty agency shall not—

(A)

offer, directly or indirectly, premiums, payments, stock or other securities, prizes, travel, entertainment expenses, tuition repayment, or other inducements to—

(i)

any institution of higher education or the employees of an institution of higher education in order to secure applicants for loans made under this part; or

(ii)

any lender, or any agent, employee, or independent contractor of any lender or guaranty agency, in order to administer or market loans made under this part (other than a loan made under section 428H or a loan made as part of the guaranty agency’s lender-of-last-resort program pursuant to section 439(q)) for the purpose of securing the designation of the guaranty agency as the insurer of such loans;

(B)

conduct unsolicited mailings, by postal or electronic means, of educational loan application forms to students enrolled in secondary school or postsecondary educational institutions, or to the parents of such students, except that applications may be mailed, by postal or electronic means, to students or borrowers who have previously received loans guaranteed under this part by the guaranty agency;

(C)

perform, for an institution of higher education participating in a program under this title, any function that the institution is required to perform under part B, D, or G;

(D)

pay, on behalf of the institution of higher education, another person to perform any function that the institution of higher education is required to perform under part B, D, or G; or

(E)

conduct fraudulent or misleading advertising concerning loan availability, terms, or conditions.

It shall not be a violation of this paragraph for a guaranty agency to provide technical assistance to institutions of higher education comparable to the technical assistance provided to institutions of higher education by the Department.

; and

(2)

in subsection (c)—

(A)

in paragraph (2)(H)(i), by striking preclaims and inserting default aversion; and

(B)

in paragraph (3)(C)—

(i)

in clause (i), by striking and after the semicolon;

(ii)

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

(iii)

by inserting after clause (ii) the following:

(iii)

the lender shall, at the time of granting a borrower forbearance, provide information to the borrower to enable the borrower to understand the impact of capitalization of interest on the borrower’s loan principal and total amount of interest to be paid during the life of the loan; and

(iv)

the lender shall contact the borrower not less often than once every 180 days during the period of forbearance to inform the borrower of—

(I)

the amount of unpaid principal and the amount of interest that has accrued since the last statement of such amounts provided to the borrower by the lender;

(II)

the fact that interest will accrue on the loan for the period of forbearance;

(III)

the amount of interest that will be capitalized, and the date on which capitalization will occur;

(IV)

the ability of the borrower to pay the interest that has accrued before the interest is capitalized; and

(V)

the borrower’s option to discontinue the forbearance at any time; and

.

422.

Federal Consolidation Loans

(a)

Amendments

Section 428C(b)(1) (20 U.S.C. 1078–3(b)(1)) is amended—

(1)

in subparagraph (E), by striking and after the semicolon;

(2)

by redesignating subparagraph (F) as subparagraph (H); and

(3)

by inserting after subparagraph (E) the following:

(F)

that the lender will disclose, in a clear and conspicuous manner, to borrowers who consolidate loans made under part E of this title—

(i)

that once the borrower adds the borrower’s Federal Perkins Loan to a Federal Consolidation Loan, the borrower will lose all interest-free periods that would have been available, such as those periods when no interest accrues on the Federal Perkins Loan while the borrower is enrolled in school at least half-time, during the grace period, and during periods when the borrower’s student loan repayments are deferred;

(ii)

that the borrower will no longer be eligible for loan forgiveness of Federal Perkins Loans under any provision of section 465; and

(iii)

the occupations described in section 465(a)(2), individually and in detail, for which the borrower will lose eligibility for Federal Perkins Loan forgiveness; and

(G)

that the lender shall, upon application for a consolidation loan, provide the borrower with information about the possible impact of loan consolidation, including—

(i)

the total interest to be paid and fees to be paid on the consolidation loan, and the length of repayment for the loan;

(ii)

whether consolidation would result in a loss of loan benefits under this part or part D, including loan forgiveness, cancellation, and deferment;

(iii)

in the case of a borrower that plans to include a Federal Perkins Loan under part E in the consolidation loan, that once the borrower adds the borrower’s Federal Perkins Loan to a consolidation loan—

(I)

the borrower will lose all interest–free periods that would have been available for such loan under part E, such as the periods during which no interest accrues on the Federal Perkins Loan while the borrower is enrolled in school at least half-time, the grace period, and the periods during which the borrower’s student loan repayments are deferred under section 464(c)(2); and

(II)

the borrower will no longer be eligible for cancellation of part or all of a Federal Perkins loan under section 465(a);

(iv)

the ability of the borrower to prepay the consolidation loan, pay such loan on a shorter schedule, and to change repayment plans;

(v)

that borrower benefit programs for a consolidation loan may vary among different lenders;

(vi)

the consequences of default on the consolidation loan; and

(vii)

that by applying for a consolidation loan, the borrower is not obligated to agree to take the consolidation loan; and

.

(b)

Conforming amendment

Section 455(g) (20 U.S.C. 1087e(g)) is amended by striking 428C(b)(1)(F) and inserting 428C(b)(1)(H).

423.

Default Reduction Program

Section 428F (20 U.S.C. 1078–6) is amended by adding at the end the following:

(c)

Financial and Economic Literacy

Where appropriate as determined by the institution of higher education in which a borrower is enrolled, each program described in subsection (b) shall include making available financial and economic education materials for the borrower, including making the materials available before, during, or after rehabilitation of a loan.

.

424.

Reports to consumer reporting agencies and institutions of higher education

Section 430A (20 U.S.C. 1080a) is amended—

(1)

in the section heading, by striking Credit Bureaus and inserting Consumer reporting agencies; and

(2)

in subsection (a)—

(A)

in the first sentence, by striking with credit bureau organizations and inserting with each consumer reporting agency that compiles and maintains files on consumers on a nationwide basis (as defined in section 603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a(p));

(B)

by redesignating paragraphs (1), (2), and (3) as paragraphs (2), (4), and (5), respectively;

(C)

by inserting before paragraph (2) (as redesignated by subparagraph (B)), the following:

(1)

the type of loan made, insured, or guaranteed under this title;

;

(D)

by inserting after paragraph (2) (as redesignated by subparagraph (B)), the following:

(3)

information concerning the repayment status of the loan, which information shall be included in the file of the borrower, except that nothing in this subsection shall be construed to affect any otherwise applicable provision of the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.)

;

(E)

in paragraph (4) (as redesignated by subparagraph (B)), by striking and after the semicolon;

(F)

in paragraph (5) (as redesignated by subparagraph (B)), by striking the period and inserting ; and; and

(G)

by adding at the end the following:

(6)

any other information required to be reported by Federal law.

.

425.

Common forms and formats

Section 432(m)(1)(D)(i) (20 U.S.C. 1082(m)(1)(D)(i)) is amended by adding at the end the following: Unless otherwise notified by the Secretary, each institution of higher education that participates in the program under this part or part D may use a master promissory note for loans under this part and part D..

426.

Student loan information by eligible lenders

Section 433 (20 U.S.C. 1083) is amended by adding at the end the following:

(f)

Borrower Information and Privacy

Each entity participating in a program under this part that is subject to subtitle A of title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.) shall only use, release, disclose, sell, transfer, or give student information, including the name, address, social security number, or amount borrowed by a borrower or a borrower’s parent, in accordance with the provisions of such subtitle.

(g)

Loan Benefit Disclosures

(1)

In general

Each eligible lender, holder, or servicer of a loan made, insured, or guaranteed under this part shall provide the borrower with information on the loan benefit repayment options the lender, holder, or servicer offer, including information on reductions in interest rates—

(A)

by repaying the loan by automatic payroll or checking account deduction;

(B)

by completing a program of on-time repayment; and

(C)

under any other interest rate reduction program.

(2)

Information

Such borrower information shall include—

(A)

any limitations on such options;

(B)

explicit information on the reasons a borrower may lose eligibility for such an option;

(C)

examples of the impact the interest rate reductions will have on a borrower’s time for repayment and amount of repayment;

(D)

upon the request of the borrower, the effect the reductions in interest rates will have with respect to the borrower’s payoff amount and time for repayment; and

(E)

information on borrower recertification requirements.

.

427.

Consumer education information

Part B (20 U.S.C. 1071 et seq.) is amended by inserting after section 433 (20 U.S.C. 1083) the following:

433A.

Consumer education information

Each guaranty agency participating in a program under this part working with the institutions of higher education served by such guaranty agency (or in the case of an institution of higher education that provides loans exclusively through part D, the institution working with a guaranty agency or with the Secretary) shall develop and make available a quality educational program and materials to provide training for students in budgeting and financial management, including debt management and other aspects of financial literacy, such as the cost of using very high interest loans to pay for postsecondary education, particularly as budgeting and financial management relates to student loan programs authorized by this title. Nothing in this section shall be construed to prohibit a guaranty agency from using an existing program or existing materials to meet the requirement of this section. The activities described in this section shall be considered default reduction activities for the purposes of section 422.

.

428.

Definition of eligible lender

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

(1)

in paragraph (5)—

(A)

by redesignating subparagraphs (C) and (D) as subparagraphs (H) and (I), respectively; and

(B)

by striking subparagraphs (A) and (B) and inserting the following:

(A)

offered, directly or indirectly, points, premiums, payments (including payments for referrals and for processing or finder fees), prizes, stock or other securities, travel, entertainment expenses, tuition repayment, the provision of information technology equipment at below-market value, additional financial aid funds, or other inducements to any institution of higher education or any employee of an institution of higher education in order to secure applicants for loans under this part;

(B)

conducted unsolicited mailings, by postal or electronic means, of student loan application forms to students enrolled in secondary school or postsecondary institutions, or to parents of such students, except that applications may be mailed, by postal or electronic means, to students or borrowers who have previously received loans under this part from such lender;

(C)

entered into any type of consulting arrangement, or other contract to provide services to a lender, with an employee who is employed in the financial aid office of an institution of higher education, or who otherwise has responsibilities with respect to student loans or other financial aid of the institution;

(D)

compensated an employee who is employed in the financial aid office of an institution of higher education, or who otherwise has responsibilities with respect to educational loans or other financial aid of the institution, and who is serving on an advisory board, commission, or group established by a lender or group of lenders for providing such service, except that the eligible lender may reimburse such employee for reasonable expenses incurred in providing such service;

(E)

performed for an institution of higher education any function that the institution of higher education is required to carry out under part B, D, or G;

(F)

paid, on behalf of an institution of higher education, another person to perform any function that the institution of higher education is required to perform under part B, D, or G;

(G)

provided payments or other benefits to a student at an institution of higher education to act as the lender’s representative to secure applications under this title from individual prospective borrowers, unless such student—

(i)

is also employed by the lender for other purposes; and

(ii)

made all appropriate disclosures regarding such employment;

; and

(2)

by adding at the end the following:

(8)

Sunset of authority for school as lender program

(A)

Sunset

The authority provided under subsection (d)(1)(E) for an institution to serve as an eligible lender, and under paragraph (7) for an eligible lender to serve as a trustee for an institution of higher education or an organization affiliated with an institution of higher education, shall expire on June 30, 2011.

(B)

Application to existing institutional lenders

An institution that was an eligible lender under this subsection, or an eligible lender that served as a trustee for an institution of higher education or an organization affiliated with an institution of higher education under paragraph (7), before June 30, 2011, shall—

(i)

not issue any new loans in such a capacity under part B after June 30, 2011; and

(ii)

shall continue to carry out the institution’s responsibilities for any loans issued by the institution under part B on or before June 30, 2011, except that, beginning on June 30, 2010, the eligible institution or trustee may, notwithstanding any other provision of this Act, sell or otherwise dispose of such loans if all profits from the divestiture are used for need-based grant programs at the institution.

(C)

Audit requirement

All institutions serving as an eligible lender under subsection (d)(1)(E) and all eligible lenders serving as a trustee for an institution of higher education or an organization affiliated with an institution of higher education shall annually complete and submit to the Secretary a compliance audit to determine whether—

(i)

the institution or lender is using all proceeds from special allowance payments and interest payments from borrowers, interest subsidies received from the Department, and any proceeds from the sale or other disposition of loans, for need-based aid programs, in accordance with section 435(d)(2)(A)(viii);

(ii)

the institution or lender is using no more than a reasonable portion of the proceeds described in section 435(d)(2)(A)(viii) for direct administrative expenses; and

(iii)

the institution or lender is ensuring that the proceeds described in section 435(d)(2)(A)(viii) are being used to supplement, and not to supplant, non-Federal funds that would otherwise be used for need-based grant programs.

.

429.

Discharge and cancellation rights in cases of disability

(a)

FFEL and direct loans

Section 437(a) (20 U.S.C. 1087) is amended—

(1)

by inserting , or if a student borrower who has received such a loan is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death, has lasted for a continuous period of not less than 60 months, or can be expected to last for a continuous period of not less than 60 months after of the Secretary),; and

(2)

by adding at the end the following: “The Secretary may develop such safeguards as the Secretary determines necessary to prevent fraud and abuse in the discharge of liability under this subsection. Notwithstanding any other provision of this subsection, the Secretary may promulgate regulations to resume collection on loans discharged under this subsection in any case in which—

(1)

a borrower received a discharge of liability under this subsection and after the discharge the borrower—

(A)

receives a loan made, insured or guaranteed under this title; or

(B)

has earned income in excess of the poverty line; or

(2)

the Secretary determines necessary.

.

(b)

Perkins

Section 464(c) (20 U.S.C. 1087dd(c)) is amended—

(1)

in paragraph (1)(F)—

(A)

by striking or if he and inserting if the borrower; and

(B)

by inserting , or if the borrower is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death, has lasted for a continuous period of not less than 60 months, or can be expected to last for a continuous period of not less than 60 months after the Secretary; and

(2)

by adding at the end the following:

(8)

The Secretary may develop such additional safeguards as the Secretary determines necessary to prevent fraud and abuse in the cancellation of liability under paragraph (1)(F). Notwithstanding paragraph (1)(F), the Secretary may promulgate regulations to resume collection on loans cancelled under paragraph (1)(F) in any case in which—

(A)

a borrower received a cancellation of liability under paragraph (1)(F) and after the cancellation the borrower—

(i)

receives a loan made, insured or guaranteed under this title; or

(ii)

has earned income in excess of the poverty line; or

(B)

the Secretary determines necessary.

.

430.

Special allowances

(a)

Amendment

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

(2)

Amount of loan fees

(A)

In general

Except as provided in subparagraph (B), with respect to any loan made under this part for which the first disbursement was made on or after October 1, 1993, the amount of the loan fee that shall be deducted under paragraph (1) shall be equal to 0.50 percent of the principal amount of the loan.

(B)

Consolidation loans

With respect to any loan made under section 428C on or after July 1, 2007, the amount of the loan fee that shall be deducted under paragraph (1) shall be equal to 1.0 percent of the principal amount of the loan.

.

(b)

Effective Date

The amendment made by subsection (a) shall apply with respect to any loan made, insured, or guaranteed under part B of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.) for which the first disbursement is made on or after July 1, 2007.

C

Federal work-study programs

441.

Authorization of appropriations

Section 441(b) (42 U.S.C. 2751(b)) is amended by striking $1,000,000 for fiscal year 1999 and all that follows through the period and inserting such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years..

442.

Allowance for books and supplies

Section 442(c)(4)(D) (42 U.S.C. 2752(c)(4)(D)) is amended by striking $450 and inserting $600.

443.

Grants for Federal work-study programs

Section 443(b)(2) (42 U.S.C. 2753(b)(2)) is amended—

(1)

by striking subparagraph (A);

(2)

by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively; and

(3)

in subparagraph (A) (as redesignated by paragraph (2)), by striking “this subparagraph if” and all that follows through “institution;” and inserting “this subparagraph if—

(i)

the Secretary determines that enforcing this subparagraph would cause hardship for students at the institution; or

(ii)

the institution certifies to the Secretary that 15 percent or more of its total full-time enrollment participates in community service activities described in section 441(c) or tutoring and literacy activities described in subsection (d) of this section;

.

444.

Job location and development programs

Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amended by striking $50,000 and inserting $75,000.

445.

Work colleges

Section 448 (42 U.S.C. 2756b) is amended—

(1)

in subsection (a), by striking work-learning and inserting work-learning-service;

(2)

in subsection (b)—

(A)

in paragraph (1), by striking under subsection (f) and inserting for this section under section 441(b); and

(B)

in paragraph (2)—

(i)

in the matter preceding subparagraph (A), by striking pursuant to subsection (f) and inserting for this section under section 441(b);

(ii)

in subparagraph (A), by striking work-learning program and inserting comprehensive work-learning-service program;

(iii)

by redesignating subparagraphs (C) through (F) as subparagraphs (D) through (G), respectively;

(iv)

by inserting after subparagraph (B) the following:

(C)

support existing and new model student volunteer community service projects associated with local institutions of higher education, such as operating drop-in resource centers that are staffed by students and that link people in need with the resources and opportunities necessary to become self-sufficient; and

;

(v)

in subparagraph (E) (as redesignated by clause (iii)), by striking work-learning each place the term occurs and inserting work-learning-service; and

(vi)

in subparagraph (F) (as redesignated by clause (iii)), by striking work service learning and inserting work-learning-service;

(3)

in subsection (c), by striking by subsection (f) to use funds under subsection (b)(1) and inserting for this section under section 441(b) or to use funds under subsection (b)(1),;

(4)

in subsection (e)—

(A)

in paragraph (1)—

(i)

in subparagraph (A), by inserting 4-year, degree-granting after nonprofit;

(ii)

in subparagraph (B), by striking work-learning and inserting work-learning-service;

(iii)

by striking subparagraph (C) and inserting the following:

(C)

requires all resident students, including at least 1/2 of all resident students who are enrolled on a full-time basis, to participate in a comprehensive work-learning-service program for not less than 5 hours each week, or not less than 80 hours during each period of enrollment except summer school, unless the student is engaged in a study abroad or externship program that is organized or approved by the institution; and

; and

(iv)

in subparagraph (D), by striking work-learning and inserting work-learning-service; and

(B)

by striking paragraph (2) and inserting the following:

(2)

the term comprehensive work-learning-service program means a student work-learning-service program that—

(A)

is an integral and stated part of the institution's educational philosophy and program;

(B)

requires participation of all resident students for enrollment and graduation;

(C)

includes learning objectives, evaluation, and a record of work performance as part of the student's college record;

(D)

provides programmatic leadership by college personnel at levels comparable to traditional academic programs;

(E)

recognizes the educational role of work-learning-service supervisors; and

(F)

includes consequences for nonperformance or failure in the work-learning-service program similar to the consequences for failure in the regular academic program.

; and

(5)

by striking subsection (f).

D

Federal Perkins Loans

451.

Cancellation of loans for certain public service

Section 465(a) (20 U.S.C. 1087ee(a)) is amended—

(1)

in paragraph (2)—

(A)

in subparagraph (B), by striking Head Start Act which and inserting Head Start Act, or in a prekindergarten or child care program that is licensed or regulated by the State, that;

(B)

in subparagraph (H), by striking or after the semicolon;

(C)

in subparagraph (I), by striking the period and inserting a semicolon; and

(D)

by inserting before the matter following subparagraph (I) (as amended by subparagraph (C)) the following:

(J)

as a full-time faculty member at a Tribal College or University, as that term is defined in section 316;

(K)

as a librarian, if the librarian has a master’s degree in library science and is employed in—

(i)

an elementary school or secondary school that is eligible for assistance under title I of the Elementary and Secondary Education Act of 1965; or

(ii)

a public library that serves a geographic area that contains 1 or more schools eligible for assistance under title I of the Elementary and Secondary Education Act of 1965; or

(L)

as a full-time speech language therapist, if the therapist has a master’s degree and is working exclusively with schools that are eligible for assistance under title I of the Elementary and Secondary Education Act of 1965.

; and

(2)

in paragraph (3)(A)—

(A)

in clause (i)—

(i)

by inserting (D), after (C),; and

(ii)

by striking or (I) and inserting (I), (J), (K), or (L);

(B)

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

(C)

by striking clause (iii); and

(D)

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

E

Need analysis

461.

Cost of attendance

Section 472(3) (20 U.S.C. 1087kk(3)) is amended—

(1)

in subparagraph (B), by striking and after the semicolon;

(2)

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

(3)

by inserting after subparagraph (B), as amended by paragraph (1), the following:

(C)

for students who live in housing located on a military base or for which a basic allowance is provided under section 403(b) of title 37, United States Code, shall be an allowance based on the expenses reasonably incurred by such students for board but not for room; and

.

462.

Definitions

Section 480(b)(6) (20 U.S.C. 1087vv(b)(6)) is amended by inserting , except that the value of on-base military housing or the value of basic allowance for housing determined under section 403(b) of title 37, United States Code, received by the parents, in the case of a dependent student, or the student or student's spouse, in the case of an independent student, shall be excluded before the semicolon.

F

General provisions relating to student assistance

471.

Definitions

Section 481(a)(2)(B) (20 U.S.C. 1088(a)(2)(B)) is amended by inserting and that measures program length in credit hours or clock hours after baccalaureate degree.

472.

Compliance calendar

Section 482 (20 U.S.C. 1089) is amended by adding at the end the following:

(e)

Compliance Calendar

Prior to the beginning of each award year, the Secretary shall provide to institutions of higher education a list of all the reports and disclosures required under this Act. The list shall include—

(1)

the date each report or disclosure is required to be completed and to be submitted, made available, or disseminated;

(2)

the required recipients of each report or disclosure;

(3)

any required method for transmittal or dissemination of each report or disclosure;

(4)

a description of the content of each report or disclosure sufficient to allow the institution to identify the appropriate individuals to be assigned the responsibility for such report or disclosure;

(5)

references to the statutory authority, applicable regulations, and current guidance issued by the Secretary regarding each report or disclosure; and

(6)

any other information which is pertinent to the content or distribution of the report or disclosure.

.

473.

Forms and regulations

Section 483 (20 U.S.C. 1090) is amended—

(1)

by striking subsections (a) and (b) and inserting the following:

(a)

Common financial aid form development and processing

(1)

In general

(A)

Common forms

The Secretary, in cooperation with representatives of agencies and organizations involved in student financial assistance, shall produce, distribute, and process free of charge common financial reporting forms as described in this subsection to be used to determine the need and eligibility of a student for financial assistance under parts A through E of this title (other than under subpart 4 of part A). The forms shall be made available to applicants in both paper and electronic formats.

(B)

FAFSA

The common financial reporting forms described in this subsection (excluding the form described in paragraph (2)(B)), shall be referred to collectively as the Free Application for Federal Student Aid, or FAFSA.

(2)

Paper format

(A)

In general

The Secretary shall encourage applicants to file the electronic versions of the forms described in paragraph (3), but shall develop, make available, and process—

(i)

a paper version of EZ FAFSA, as described in subparagraph (B); and

(ii)

a paper version of the other forms described in this subsection, in accordance with subparagraph (C), for any applicant who does not meet the requirements of or does not wish to use the process described in subparagraph (B).

(B)

EZ FAFSA

(i)

In general

The Secretary shall develop and use, after appropriate field testing, a simplified paper application form for applicants meeting the requirements of section 479(c), which form shall be referred to as the EZ FAFSA.

(ii)

Required Federal data elements

The Secretary shall include on the EZ FAFSA only the data elements required to determine student eligibility and whether the applicant meets the requirements of section 479(c).

(iii)

Required State data elements

The Secretary shall include on the EZ FAFSA such data items as may be necessary to award State financial assistance, as provided under paragraph (5), except the Secretary shall not include a State's data if that State does not permit its applicants for State assistance to use the EZ FAFSA.

(iv)

Free availability and data distribution

The provisions of paragraphs (6) and (10) shall apply to the EZ FAFSA.

(C)

Phase-out of full paper FAFSA

(i)

Phase-out of printing of full paper FAFSA

At such time as the Secretary determines that it is not cost-effective to print the full paper version of FAFSA, the Secretary shall—

(I)

phase out the printing of the full paper version of FAFSA;

(II)

maintain on the Internet easily accessible, downloadable formats of the full paper version of FAFSA; and

(III)

provide a printed copy of the full paper version of FAFSA upon request.

(ii)

Use of savings

The Secretary shall utilize any savings realized by phasing out the printing of the full paper version of FAFSA and moving applicants to the electronic versions of FAFSA, to improve access to the electronic versions for applicants meeting the requirements of section 479(c).

(3)

Electronic versions

(A)

In general

The Secretary shall produce, make available through a broadly available website, and process electronic versions of the FAFSA and the EZ FAFSA.

(B)

Minimum questions

The Secretary shall use all available technology to ensure that a student using an electronic version of the FAFSA under this paragraph answers only the minimum number of questions necessary.

(C)

Reduced requirements

The Secretary shall enable applicants who meet the requirements of subsection (b) or (c) of section 479 to provide information on the electronic version of the FAFSA only for the data elements required to determine student eligibility and whether the applicant meets the requirements of subsection (b) or (c) of section 479.

(D)

State data

The Secretary shall include on the electronic version of the FAFSA the questions needed to determine whether the applicant is eligible for State financial assistance, as provided under paragraph (5), except that the Secretary shall not—

(i)

require applicants to complete data required by any State other than the applicant's State of residence; and

(ii)

include a State's data if such State does not permit its applicants for State assistance to use the electronic version of the FAFSA described in this paragraph.

(E)

Free availability and data distribution

The provisions of paragraphs (6) and (10) shall apply to the electronic version of the FAFSA.

(F)

Use of forms

Nothing in this subsection shall be construed to prohibit the use of the electronic versions of the forms developed by the Secretary pursuant to this paragraph by an eligible institution, eligible lender, a guaranty agency, a State grant agency, a private computer software provider, a consortium of such entities, or such other entity as the Secretary may designate. Data collected by the electronic versions of such forms shall be used only for the application, award, and administration of aid awarded under this title, State aid, or aid awarded by eligible institutions or such entities as the Secretary may designate. No data collected by such electronic versions of the forms shall be used for making final aid awards under this title until such data have been processed by the Secretary or a contractor or designee of the Secretary, except as may be permitted under this title.

(G)

Privacy

The Secretary shall ensure that data collection under this paragraph complies with section 552a of title 5, United States Code, and that any entity using an electronic version of a form developed by the Secretary under this paragraph shall maintain reasonable and appropriate administrative, technical, and physical safeguards to ensure the integrity and confidentiality of the information, and to protect against security threats, or unauthorized uses or disclosures of the information provided on the electronic version of the form.

(H)

Signature

Notwithstanding any other provision of this Act, the Secretary may permit an electronic version of a form developed under this paragraph to be submitted without a signature, if a signature is subsequently submitted by the applicant or if the applicant uses a personal identification number provided by the Secretary under subparagraph (I).

(I)

Personal identification numbers authorized

The Secretary is authorized to assign to an applicant a personal identification number—

(i)

to enable the applicant to use such number as a signature for purposes of completing an electronic version of a form developed under this paragraph; and

(ii)

for any purpose determined by the Secretary to enable the Secretary to carry out this title.

(J)

Personal identification number improvement

Not later than 180 days after the date of enactment of the Higher Education Amendments of 2007, the Secretary shall implement a real-time data match between the Social Security Administration and the Department to minimize the time required for an applicant to obtain a personal identification number when applying for aid under this title through an electronic version of a form developed under this paragraph.

(4)

Streamlined reapplication process

(A)

In general

The Secretary shall develop streamlined paper and electronic reapplication forms and processes for an applicant who applies for financial assistance under this title in the next succeeding academic year subsequent to an academic year for which such applicant applied for financial assistance under this title.

(B)

Updating of data elements

The Secretary shall determine, in cooperation with States, institutions of higher education, agencies, and organizations involved in student financial assistance, the data elements that may be transferred from the previous academic year's application and those data elements that shall be updated.

(C)

Reduced data authorized

Nothing in this title shall be construed as limiting the authority of the Secretary to reduce the number of data elements required of reapplicants.

(D)

Zero family contribution

Applicants determined to have a zero family contribution pursuant to section 479(c) shall not be required to provide any financial data in a reapplication form, except data that are necessary to determine eligibility under such section.

(5)

State requirements

(A)

In general

Except as provided in paragraphs (2)(B)(iii), (3)(D), and (4)(B), the Secretary shall include on the forms developed under this subsection, such State-specific data items as the Secretary determines are necessary to meet State requirements for need-based State aid. Such items shall be selected in consultation with State agencies in order to assist in the awarding of State financial assistance in accordance with the terms of this subsection. The number of such data items shall not be less than the number included on the common financial reporting form for the 2005–2006 award year unless a State notifies the Secretary that the State no longer requires those data items for the distribution of State need-based aid.

(B)

Annual review

The Secretary shall conduct an annual review to determine—

(i)

which data items each State requires to award need-based State aid; and

(ii)

if the State will permit an applicant to file a form described in paragraph (2)(B) or (3)(C).

(C)

Use of simplified application forms encouraged

The Secretary shall encourage States to take such steps as are necessary to encourage the use of simplified forms under this subsection, including those forms described in paragraphs (2)(B) and (3)(C), for applicants who meet the requirements of subsection (b) or (c) of section 479.

(D)

Consequences if State does not accept simplified forms

If a State does not permit an applicant to file a form described in paragraph (2)(B) or (3)(C) for purposes of determining eligibility for State need-based financial aid, the Secretary may determine that State-specific questions for such State will not be included on a form described in paragraph (2)(B) or (3)(B). If the Secretary makes such determination, the Secretary shall advise the State of the Secretary's determination.

(E)

Lack of State response to request for information

If a State does not respond to the Secretary’s request for information under subparagraph (B), the Secretary shall—

(i)

permit residents of that State to complete simplified forms under paragraphs (2)(B) and (3)(B); and

(ii)

not require any resident of such State to complete any data items previously required by that State under this section.

(F)

Restriction

The Secretary shall not require applicants to complete any financial or non-financial data items that are not required—

(i)

by the applicant's State; or

(ii)

by the Secretary.

(6)

Charges to students and parents for use of forms prohibited

The need and eligibility of a student for financial assistance under parts A through E (other than under subpart 4 of part A) may be determined only by using a form developed by the Secretary under this subsection. Such forms shall be produced, distributed, and processed by the Secretary, and no parent or student shall be charged a fee by the Secretary, a contractor, a third-party servicer or private software provider, or any other public or private entity for the collection, processing, or delivery of financial aid through the use of such forms. No data collected on a paper or electronic version of a form developed under this subsection, or other document that was created to replace, or used to complete, such a form, and for which a fee was paid, shall be used.

(7)

Restrictions on use of pin

No person, commercial entity, or other entity shall request, obtain, or utilize an applicant's personal identification number assigned under paragraph (3)(I) for purposes of submitting a form developed under this subsection on an applicant's behalf.

(8)

Application processing cycle

The Secretary shall enable students to submit forms developed under this subsection and initiate the processing of such forms under this subsection, as early as practicable prior to January 1 of the student's planned year of enrollment.

(9)

Early estimates of expected family contributions

The Secretary shall permit an applicant to complete a form described in this subsection in the years prior to enrollment in order to obtain from the Secretary a nonbinding estimate of the applicant's expected family contribution, computed in accordance with part F. Such applicant shall be permitted to update information submitted on a form described in this subsection using the process required under paragraph (4).

(10)

Distribution of data

Institutions of higher education, guaranty agencies, and States shall receive, without charge, the data collected by the Secretary using a form developed under this subsection for the purposes of processing loan applications and determining need and eligibility for institutional and State financial aid awards. Entities designated by institutions of higher education, guaranty agencies, or States to receive such data shall be subject to all the requirements of this section, unless such requirements are waived by the Secretary.

(11)

Third party servicers and private software providers

To the extent practicable and in a timely manner, the Secretary shall provide, to private organizations and consortia that develop software used by institutions of higher education for the administration of funds under this title, all the necessary specifications that the organizations and consortia must meet for the software the organizations and consortia develop, produce, and distribute (including any diskette, modem, or network communications) which are so used. The specifications shall contain record layouts for required data. The Secretary shall develop in advance of each processing cycle an annual schedule for providing such specifications. The Secretary, to the extent practicable, shall use multiple means of providing such specifications, including conferences and other meetings, outreach, and technical support mechanisms (such as training and printed reference materials). The Secretary shall, from time to time, solicit from such organizations and consortia means of improving the support provided by the Secretary.

(12)

Parent's Social Security number and birth date

The Secretary is authorized to include space on the forms developed under this subsection for the social security number and birth date of parents of dependent students seeking financial assistance under this title.

;

(2)

by redesignating subsections (c) through (e) as subsections (b) through (d), respectively;

(3)

in subsection (c) (as redesignated by paragraph (2)), by striking that is authorized and all that follows through the period at the end and inserting or other appropriate provider of technical assistance and information on postsecondary educational services that is authorized under section 663(a) of the Individuals with Disabilities Education Act. Not later than 2 years after the date of enactment of the Higher Education Amendments of 2007, the Secretary shall test and implement, to the extent practicable, a toll-free telephone based system to permit applicants who meet the requirements of 479(c) to submit an application over such system.;

(4)

by striking subsection (d) (as redesignated by paragraph (2)) and inserting the following:

(d)

Assistance in preparation of financial aid application

(1)

Preparation authorized

Notwithstanding any provision of this Act, an applicant may use a preparer for consultative or preparation services for the completion of a form developed under subsection (a) if the preparer satisfies the requirements of this subsection.

(2)

Preparer identification required

If an applicant uses a preparer for consultative or preparation services for the completion of a form developed under subsection (a), the preparer shall include the name, signature, address or employer's address, social security number or employer identification number, and organizational affiliation of the preparer on the applicant's form.

(3)

Additional requirements

A preparer that provides consultative or preparation services pursuant to this subsection shall—

(A)

clearly inform each individual upon initial contact, including contact through the Internet or by telephone, that the FAFSA and EZ FAFSA may be completed for free via paper or electronic versions of the forms that are provided by the Secretary;

(B)

include in any advertising clear and conspicuous information that the FAFSA and EZ FAFSA may be completed for free via paper or electronic versions of the forms that are provided by the Secretary;

(C)

if advertising or providing any information on a website, or if providing services through a website, include on the website a link to the website described in subsection (a)(3) that provides the electronic versions of the forms developed under subsection (a);

(D)

refrain from producing or disseminating any form other than the forms developed by the Secretary under subsection (a); and

(E)

not charge any fee to any individual seeking services who meets the requirements of subsection (b) or (c) of section 479.

(4)

Special rule

Nothing in this Act shall be construed to limit preparers of the financial reporting forms required to be made under this title that meet the requirements of this subsection from collecting source information from a student or parent, including Internal Revenue Service tax forms, in providing consultative and preparation services in completing the forms.

; and

(5)

by adding at the end the following:

(e)

Early application and award demonstration program

(1)

Purpose

The purpose of the demonstration program implemented under this subsection is to determine the feasibility of implementing a comprehensive early application and notification system for all dependent students and to measure the benefits and costs of such a system.

(2)

Program authorized

Not later than 2 years after the date of enactment of the Higher Education Amendments of 2007, the Secretary shall implement an early application demonstration program enabling dependent students who wish to participate in the program—

(A)

to complete an application under this subsection during the academic year that is 2 years prior to the year such students plan to enroll in an institution of higher education; and

(B)

based on the application described in subparagraph (A), to obtain, not later than 1 year prior to the year of the students' planned enrollment, information on eligibility for Federal Pell Grants, Federal student loans under this title, and State and institutional financial aid for the student's first year of enrollment in an the institution of higher education.

(3)

Early application and award

For all dependent students selected for participation in the demonstration program who submit a completed FAFSA, or, as appropriate, an EZ FAFSA, 2 years prior to the year such students plan to enroll in an institution of higher education, the Secretary shall, not later than 1 year prior to the year of such planned enrollment—

(A)

provide each student who meets the requirements under section 479(c) with a determination of such student's—

(i)

expected family contribution for the first year of the student's enrollment in an institution of higher education; and

(ii)

Federal Pell Grant award for the first such year, based on the maximum Federal Pell Grant award at the time of application;

(B)

provide each student who does not meet the requirements under section 479(c) with an estimate of such student’s—

(i)

expected family contribution for the first year of the student's planned enrollment; and

(ii)

Federal Pell Grant award for the first such year, based on the maximum Federal Pell Grant award at the time of application; and

(C)

remind the students of the need to update the students’ information during the calendar year of enrollment using the expedited reapplication process provided for in subsection (a)(4).

(4)

Participants

The Secretary shall include, as participants in the demonstration program—

(A)

States selected through the application process described in paragraph (5);

(B)

institutions of higher education within the selected States that are interested in participating in the demonstration program and that can make estimates or commitments of institutional student financial aid, as appropriate, to students the year before the students' planned enrollment date; and

(C)

secondary schools within the selected States that are interested in participating in the demonstration program and can commit resources to—

(i)

advertising the availability of the program;

(ii)

identifying students who might be interested in participating in the program;

(iii)

encouraging such students to apply; and

(iv)

participating in the evaluation of the program.

(5)

Applications

States that are interested in participating in the demonstration program shall submit an application to the Secretary at such time, in such form, and containing such information as the Secretary shall require. The application shall include—

(A)

information on the amount of the State's need-based student financial assistance available and the eligibility criteria for receiving such assistance;

(B)

a commitment to make, not later than the year before the dependent students participating in the demonstration program plan to enroll in an institution of higher education—

(i)

determinations of State financial aid awards to dependent students participating in the program who meet the requirements of section 479(c); and

(ii)

estimates of State financial aid awards to other dependent students participating in the program;

(C)

a plan for recruiting institutions of higher education and secondary schools with different demographic characteristics to participate in the program;

(D)

a plan for selecting institutions of higher education and secondary schools to participate in the program that—

(i)

demonstrate a commitment to encouraging students to submit a FAFSA, or, as appropriate, an EZ FAFSA, 2 years before the students' planned date of enrollment in an institution of higher education;

(ii)

serve different populations of students;

(iii)

in the case of institutions of higher education—

(I)

to the extent possible, are of varying types and control; and

(II)

commit to making, not later than the year prior to the year that dependent students participating in the demonstration program plan to enroll in the institution—

(aa)

institutional awards to participating dependent students who meet the requirements of section 479(c);

(bb)

estimates of institutional awards to other participating dependent students; and

(cc)

expected or tentative awards of grants or other financial aid available under this title (including supplemental grants under subpart 3 of part A), for all participating dependent students, along with information on State awards, as provided to the institution by the State;

(E)

a commitment to participate in the evaluation conducted by the Secretary; and

(F)

such other information as the Secretary may require.

(6)

Special provisions

(A)

Discretion of student financial aid administrators

A financial aid administrator at an institution of higher education participating in a demonstration program under this subsection may utilize the discretion, as provided under section 479A, as necessary, in awarding financial aid to students participating in the demonstration program.

(B)

Waivers

The Secretary is authorized to waive, for an institution participating in the demonstration program, any requirements under the title, or regulations prescribed under this title, that would make the demonstration program unworkable, except that the Secretary shall not waive any provisions with respect to the maximum award amounts for grants and loans under this title.

(7)

Outreach

The Secretary shall make appropriate efforts in order to notify States, institutions of higher education, and secondary schools of the demonstration program.

(8)

Evaluation

The Secretary shall conduct a rigorous evaluation of the demonstration program to measure the program's benefits and adverse effects, as the benefits and effects relate to the purpose of the program described in paragraph (1). In conducting the evaluation, the Secretary shall—

(A)

identify whether receiving financial aid awards or estimates, as applicable, 1 year prior to the year in which the student plans to enroll in an institution of higher education, has a positive impact on the higher education aspirations and plans of such student;

(B)

measure the extent to which using a student's income information from the year that is 2 years prior to the student's planned enrollment date had an impact on the ability of States and institutions to make financial aid awards and commitments;

(C)

determine what operational changes would be required to implement the program on a larger scale;

(D)

identify any changes to Federal law that would be necessary to implement the program on a permanent basis; and

(E)

identify the benefits and adverse effects of providing early awards or estimates on program costs, program operations, program integrity, award amounts, distribution, and delivery of aid.

(9)

Consultation

The Secretary shall consult, as appropriate, with the Advisory Committee on Student Financial Assistance established under section 491 on the design, implementation, and evaluation of the demonstration program.

(f)

Use of IRS data and reduced income and asset information To determine eligibility for student financial aid

(1)

Formation of study group

Not later than 180 days after the date of enactment of the Higher Education Amendments of 2007, the Comptroller General of the United States and the Secretary of Education shall convene a study group whose members shall include the Secretary of the Treasury, the Director of the Office of Management and Budget, the Director of the Congressional Budget Office, and such other individuals as the Comptroller General and Secretary of Education may designate.

(2)

Study required

The Comptroller General and the Secretary, in consultation with the study group convened under paragraph (1), shall design and conduct a study to identify and evaluate the means of simplifying the process of applying for Federal financial aid available under this title. The study shall focus on developing alternative approaches for calculating the expected family contribution that use substantially less income and asset data than the methodology currently used, as of the time of the study, for determining the expected family contribution.

(3)

Objectives of study

The objectives of the study required under paragraph (2) are—

(A)

to shorten the FAFSA and make it easier and less time-consuming to complete, thereby increasing higher education access for low-income students;

(B)

to examine the feasibility and evaluate the costs and benefits of using income data from the Internal Revenue Service to pre-populate the electronic version of the FAFSA;

(C)

to determine ways in which to provide reliable information on the amount of Federal grant aid and financial assistance a student can expect to receive, assuming constant income, 2 to 3 years before the student's enrollment; and

(D)

to simplify the process for determining eligibility for student financial aid without causing significant redistribution of Federal grants and subsidized loans under this title.

(4)

Required subjects of study

The study required under paragraph (2) shall consider—

(A)

how the expected family contribution of a student could be calculated using substantially less income and asset information than the approach currently used, as of the time of the study, to calculate the expected family contribution without causing significant redistribution of Federal grants and subsidized loans under this title, State aid, or institutional aid, or change in the composition of the group of recipients of such aid, which alternative approaches for calculating the expected family contribution shall, to the extent practicable—

(i)

rely mainly, in the case of students and parents who file income tax returns, on information available on the 1040, 1040EZ, and 1040A; and

(ii)

include formulas for adjusting income or asset information to produce similar results to the existing approach with less data;

(B)

how the Internal Revenue Service can provide income and other data needed to compute an expected family contribution for taxpayers and dependents of taxpayers to the Secretary of Education, and when in the application cycle the data can be made available;

(C)

whether data provided by the Internal Revenue could be used to—

(i)

prepopulate the electronic version of the FAFSA with student and parent taxpayer data; or

(ii)

generate an expected family contribution without additional action on the part of the student and taxpayer;

(D)

the extent to which the use of income data from 2 years prior to a student's planned enrollment date would change the expected family contribution computed in accordance with part F, and potential adjustments to the need analysis formula that would minimize the change;

(E)

the extent to which States and institutions would accept the data provided by the Internal Revenue Service to prepopulate the electronic version of the FAFSA in determining the distribution of State and institutional student financial aid funds;

(F)

the changes to the electronic version of the FAFSA and verification processes that would be needed or could be made if Internal Revenue Service data were used to prepopulate such electronic version;

(G)

the data elements currently collected, as of the time of the study, on the FAFSA that are needed to determine eligibility for student aid, or to administer Federal student financial aid programs, but are not needed to compute an expected family contribution, such as whether information regarding the student's citizenship or permanent residency status, registration for selective service, or driver’s license number could be reduced without adverse effects;

(H)

additional steps that can be taken to simplify the financial aid application process for students who (or, in the case of dependent students, whose parents) are not required to file an income tax return for the prior taxable year;

(I)

information on the State need for and usage of the full array of income, asset, and other information currently collected, as of the time of the study, on the FAFSA, including analyses of—

(i)

what data are currently used by States to determine eligibility for State student financial aid, and whether the data are used for merit or need-based aid;

(ii)

the extent to which the full array of income and asset information currently collected on the FAFSA play an important role in the awarding of need-based State financial aid, and whether the State could use income and asset information that was more limited to support determinations of eligibility for such State aid programs;

(iii)

whether data are required by State law, State regulations, or policy directives;

(iv)

what State official has the authority to advise the Department on what the State requires to calculate need-based State student financial aid;

(v)

the extent to which any State-specific information requirements could be met by completion of a State application linked to the electronic version of the FAFSA; and

(vi)

whether the State can use, as of the time of the study, or could use, a student's expected family contribution based on data from 2 years prior to the student's planned enrollment date and a calculation with reduced data elements and, if not, what additional information would be needed or what changes would be required; and

(J)

information on institutional needs, including the extent to which institutions of higher education are already using supplemental forms to collect additional data from students and their families to determine eligibility for institutional funds.

(5)

Use of data from the internal revenue service to prepopulate FAFSA forms

After the study required under this subsection has been completed, the Secretary may use Internal Revenue Service data to prepopulate the electronic version of the FAFSA if the Secretary, in a joint decision with the Secretary of Treasury, determines that such use will not significantly negatively impact students, institutions of higher education, States, or the Federal Government based on each of the following criteria:

(A)

Program costs.

(B)

Redistributive effects on students.

(C)

Accuracy of aid determinations.

(D)

Reduction of burden to the FAFSA filers.

(E)

Whether all States and institutions that currently accept the Federal aid formula accept the use of data from 2 years prior to the date of a student's planned enrollment in an institution of higher education to award Federal, State, and institutional aid, and as a result will not require students to complete any additional forms to receive this aid.

(6)

Consultation

The Secretary shall consult with the Advisory Committee on Student Financial Assistance established under section 491 as appropriate in carrying out this subsection.

(7)

Report

Not later than 18 months after the date of enactment of the Higher Education Amendments of 2007, the Comptroller General and the Secretary shall prepare and submit a report on the results of the study required under this subsection to the authorizing committees.

.

474.

Student eligibility

Section 484 (20 U.S.C. 1091) is amended—

(1)

in subsection (d), by adding at the end the following:

(4)

The student shall be determined by the institution of higher education as having the ability to benefit from the education or training offered by the institution of higher education, upon satisfactory completion of 6 credit hours or the equivalent coursework that are applicable toward a degree or certificate offered by the institution of higher education.

;

(2)

by striking subsection (l) and inserting the following:

(l)

Courses Offered Through Distance Education

(1)

Relation to correspondence courses

(A)

In general

A student enrolled in a course of instruction at an institution of higher education that is offered principally through distance education and leads to a recognized certificate, or associate, baccalaureate, or graduate degree, conferred by such institution, shall not be considered to be enrolled in correspondence courses.

(B)

Exception

An institution of higher education referred to in subparagraph (A) shall not include an institution or school described in section 3(3)(C) of the Carl D. Perkins Career and Technical Education Act of 2006.

(2)

Restriction or reductions of financial aid

A student’s eligibility to receive grants, loans, or work assistance under this title shall be reduced if a financial aid officer determines under the discretionary authority provided in section 479A that distance education results in a substantially reduced cost of attendance to such student.

(3)

Special rule

For award years prior to the date of enactment of this subsection, the Secretary shall not take any compliance, disallowance, penalty, or other action against a student or an eligible institution when such action arises out of such institution’s prior award of student assistance under this title if the institution demonstrates to the satisfaction of the Secretary that its course of instruction would have been in conformance with the requirements of this subsection.

; and

(3)

by adding at the end the following:

(s)

Students with intellectual disabilities

Notwithstanding subsection (a), in order to receive any grant or work assistance under subparts 1 and 3 of part A and part C of this title, a student with an intellectual disability shall—

(1)

be an individual with an intellectual disability whose mental retardation or other significant cognitive impairment substantially impacts the individual's intellectual and cognitive functioning;

(2)
(A)

be a student eligible for assistance under the Individuals with Disabilities Education Act who—

(i)

has completed secondary school with a diploma or certificate; or

(ii)

has completed secondary school; or

(B)

be an individual who is no longer eligible for assistance under the Individuals with Disabilities Education Act because the individual has exceeded the maximum age for which the State provides a free appropriate public education;

(3)

be enrolled or accepted for enrollment in a comprehensive transition and postsecondary education program that—

(A)

is designed for students with an intellectual disability who are seeking to continue academic, vocational, and independent living instruction at the institution in order to prepare for gainful employment and independent living;

(B)

includes an advising and curriculum structure;

(C)

requires students to participate on at least a half-time basis, as determined by the institution; or

(D)

includes—

(i)

regular enrollment in courses offered by the institution;

(ii)

auditing or participating in courses offered by the institution for which the student does not receive regular academic credit;

(iii)

enrollment in noncredit, nondegree courses;

(iv)

participation in internships; or

(v)

a combination of 2 or more of the activities described in clauses (i) through (iv);

(4)

be maintaining satisfactory progress in the program as determined by the institution, in accordance with standards established by the institution; and

(5)

meet the requirements of paragraphs (3), (4), (5), and (6) of subsection (a).

.

475.

Statute of limitations and State court judgments

Section 484A (20 U.S.C. 1091a) is amended—

(1)

in subsection (b)—

(A)

in paragraph (1), by striking and after the semicolon;

(B)

in paragraph (2), by striking the period and inserting ; and; and

(C)

by adding at the end the following:

(3)

in collecting any obligation arising from a loan made under part E of this title, an institution of higher education that has an agreement with the Secretary pursuant to section 463(a) shall not be subject to a defense raised by any borrower based on a claim of infancy.

; and

(2)

by adding at the end the following:

(d)

Special Rule

This section shall not apply in the case of a student who is deceased or to a deceased student’s estate or the estate of such student’s family. If a student is deceased, then the student’s estate or the estate of the student’s family shall not be required to repay any financial assistance under this title, including interest paid on the student’s behalf, collection costs, or other charges specified in this title.

.

476.

Institutional refunds

Section 484B(c)(2) (20 U.S.C. 1091B(c)(2)) is amended by striking “may determine the appropriate withdrawal date.” and inserting “may determine—

(A)

the appropriate withdrawal date; and

(B)

that the requirements of this section do not apply to the student.

.

477.

Institutional and financial assistance information for students

Section 485 (20 U.S.C. 1092) is amended—

(1)

in subsection (a)—

(A)

in paragraph (1)—

(i)

by striking subparagraph (M) and inserting the following:

(M)

the terms and conditions of the loans that students receive under parts B, D, and E;

;

(ii)

in subparagraph (N), by striking and after the semicolon;

(iii)

in subparagraph (O), by striking the period and inserting a semicolon; and

(iv)

by adding at the end the following:

(P)

institutional policies and sanctions related to copyright infringement that inform students that unauthorized distribution of copyrighted material on the institution’s information technology systems, including engaging in unauthorized peer-to-peer file sharing, may subject the students to civil and criminal penalties;”

(Q)

student body diversity at the institution, including information on the percentage of enrolled, full-time students who are—

(i)

male;

(ii)

female;

(iii)

from a low-income background; and

(iv)

a self-identified member of a major racial or ethnic group;

(R)

the placement in employment of, and types of employment obtained by, graduates of the institution’s degree or certificate programs, gathered from such sources as alumni surveys, student satisfaction surveys, the National Survey of Student Engagement, the Community College Survey of Student Engagement, State data systems, or other relevant sources;

(S)

the types of graduate and professional education in which graduates of the institution’s 4-year degree programs enrolled, gathered from such sources as alumni surveys, student satisfaction surveys, the National Survey of Student Engagement, State data systems, or other relevant sources; and

(T)

the fire safety report prepared by the institution pursuant to subsection (i).

;

(B)

by striking paragraph (4) and inserting the following:

(4)

For purposes of this section, institutions may—

(A)

exclude from the information disclosed in accordance with subparagraph (L) of paragraph (1) the completion or graduation rates of students who leave school to serve in the Armed Forces, on official church missions, or with a recognized foreign aid service of the Federal Government; or

(B)

in cases where the students described in subparagraph (A) represent 20 percent or more of the certificate- or degree-seeking, full-time, undergraduate students at the institution, the institution may recalculate the completion or graduation rates of such students by excluding from the calculation described in paragraph (3) the time period such students were not enrolled due to their service in the Armed Forces, on official church missions, or with a recognized foreign aid service of the Federal Government.

; and

(C)

by adding at the end the following:

(7)

The information disclosed under subparagraph (L) of paragraph (1), or reported under subsection (e), shall include information disaggregated by gender, by each major racial and ethnic subgroup, by recipients of a Federal Pell Grant, by recipients of a loan made under this part or part D (other than a loan made under section 428H or a Federal Direct Unsubsidized Stafford Loan) who did not receive a Federal Pell Grant, and by recipients of neither a Federal Pell Grant nor a loan made under this part or part D (other than a loan made under section 428H or a Federal Direct Unsubsidized Stafford Loan), if the number of students in such subgroup or with such status is sufficient to yield statistically reliable information and reporting would not reveal personally identifiable information about an individual student. If such number is not sufficient for such purposes, then the institution shall note that the institution enrolled too few of such students to so disclose or report with confidence and confidentiality.

;

(2)

in subsection (b)—

(A)

in paragraph (1)(A), by striking the subparagraph designation and all that follows through 465. and inserting the following:

(A)

Each eligible institution shall, through financial aid offices or otherwise, provide counseling to borrowers of loans that are made, insured, or guaranteed under part B (other than loans made pursuant to section 428C or loans made to parents pursuant to section 428B), or made under part D (other than Federal Direct Consolidation Loans or Federal Direct PLUS Loans made to parents) or E, prior to the completion of the course of study for which the borrower enrolled at the institution or at the time of departure from such institution. The counseling required by this subsection shall include—

(i)

information on the repayment plans available, including a discussion of the different features of each plan and sample information showing the difference in interest paid and total payments under each plan;

(ii)

the average anticipated monthly repayments under the standard repayment plan and, at the borrower’s request, the other repayment plans for which the borrower is eligible;

(iii)

such debt and management strategies as the institution determines are designed to facilitate the repayment of such indebtedness;

(iv)

an explanation that the borrower has the ability to prepay each such loan, pay the loan on a shorter schedule, and change repayment plans;

(v)

the terms and conditions under which the student may obtain full or partial forgiveness or cancellation of principal or interest under sections 428J, 460, and 465 (to the extent that such sections are applicable to the student’s loans);

(vi)

the terms and conditions under which the student may defer repayment of principal or interest or be granted forbearance under subsections (b)(1)(M) and (o) of section 428, 428H(e)(7), subsections (f) and (l) of section 455, and section 464(c)(2), and the potential impact of such deferment or forbearance;

(vii)

the consequences of default on such loans;

(viii)

information on the effects of using a consolidation loan to discharge the borrower’s loans under parts B, D, and E, including, at a minimum—

(I)

the effects of consolidation on total interest to be paid, fees to be paid, and length of repayment;

(II)

the effects of consolidation on a borrower’s underlying loan benefits, including all grace periods, loan forgiveness, cancellation, and deferment opportunities;

(III)

the ability of the borrower to prepay the loan or change repayment plans; and

(IV)

that borrower benefit programs may vary among different loan holders; and

(ix)

a notice to borrowers about the availability of the National Student Loan Data System and how the system can be used by a borrower to obtain information on the status of the borrower’s loans.

; and

(B)

by adding at the end the following:

(3)

Each eligible institution shall, during the exit interview required by this subsection, provide to a borrower of a loan made under part B, D, or E a clear and conspicuous notice describing the general effects of using a consolidation loan to discharge the borrower’s student loans, including—

(A)

the effects of consolidation on total interest to be paid, fees to be paid, and length of repayment;

(B)

the effects of consolidation on a borrower’s underlying loan benefits, including loan forgiveness, cancellation, and deferment;

(C)

the ability for the borrower to prepay the loan, pay on a shorter schedule, and to change repayment plans, and that borrower benefit programs may vary among different loan holders;

(D)

the tax benefits for which the borrower may be eligible; and

(E)

the consequences of default.

;

(3)

in subsection (d)(2)—

(A)

by inserting grant assistance, as well as State after describing State; and

(B)

by inserting and other means, including through the Internet before the period at the end;

(4)

in subsection (e), by striking paragraph (3) and inserting the following:

(3)

For purposes of this subsection, institutions may—

(A)

exclude from the reporting requirements under paragraphs (1) and (2) the completion or graduation rates of students and student athletes who leave school to serve in the Armed Forces, on official church missions, or with a recognized foreign aid service of the Federal Government; or

(B)

in cases where the students described in subparagraph (A) represent 20 percent or more of the certificate- or degree-seeking, full-time, undergraduate students at the institution, the institution may calculate the completion or graduation rates of such students by excluding from the calculations described in paragraph (1) the time period such students were not enrolled due to their service in the Armed Forces, on official church missions, or with a recognized foreign aid service of the Federal Government.

;

(5)

in subsection (f)—

(A)

in paragraph (1)—

(i)

the matter preceding subparagraph (A), by inserting , other than a foreign institution of higher education, after under this title; and

(ii)

by adding at the end the following:

(J)

A statement of current campus policies regarding immediate emergency response and evacuation procedures, including the use of electronic and cellular communication (if appropriate), which policies shall include procedures—

(i)

to notify the campus community in a reasonable and timely manner in the event of a significant emergency or dangerous situation, involving an immediate threat to the health or safety of students or staff, occurring on the campus;

(ii)

to publicize emergency response and evacuation procedures on an annual basis in a manner designed to reach students and staff; and

(iii)

to test emergency response and evacuation procedures on an annual basis.

;

(B)

by redesignating paragraph (15) as paragraph (17); and

(C)

by inserting after paragraph (14) the following:

(15)

Compliance report

The Secretary shall annually report to the authorizing committees regarding compliance with this subsection by institutions of higher education, including an up-to-date report on the Secretary's monitoring of such compliance.

(16)

Best practices

The Secretary may seek the advice and counsel of the Attorney General concerning the development, and dissemination to institutions of higher education, of best practices information about campus safety and emergencies.

; and

(6)

by adding at the end the following:

(h)

Transfer of Credit Policies

(1)

Disclosure

Each institution of higher education participating in any program under this title shall publicly disclose in a readable and comprehensible manner the institution’s transfer of credit policies which shall include a statement of the institution’s current transfer of credit policies that includes, at a minimum—

(A)

a statement that transfer of credit shall not be denied solely on the basis of the agency or association that accredited such other institution of higher education, if that agency or association is recognized by the Secretary pursuant to section 496 to be a reliable authority as to the quality of the education or training offered; and

(B)

a list of institutions of higher education with which the institution has established an articulation agreement.

(2)

Rule of construction

Nothing in this subsection shall be construed to—

(A)

authorize an officer or employee of the Department to exercise any direction, supervision, or control over the curriculum, program of instruction, administration, or personnel of any institution of higher education, or over any accrediting agency or association;

(B)

limit the application of the General Education Provisions Act; or

(C)

create any legally enforceable right on the part of a student to require an institution of higher education to accept a transfer of credit from another institution.

(i)

Disclosure of fire safety standards and measures

(1)

Annual fire safety reports on student housing required

Each eligible institution participating in any program under this title shall, on an annual basis, publish a fire safety report, which shall contain information with respect to the campus fire safety practices and standards of that institution, including—

(A)

statistics concerning the following in each on-campus student housing facility during the most recent calendar years for which data are available—

(i)

the number of fires and the cause of each fire;

(ii)

the number of injuries related to a fire that result in treatment at a medical facility;

(iii)

the number of deaths related to a fire; and

(iv)

the value of property damage caused by a fire;

(B)

a description of each on-campus student housing facility fire safety system, including the fire sprinkler system;

(C)

the number of regular mandatory supervised fire drills;

(D)

policies or rules on portable electrical appliances, smoking, and open flames (such as candles), procedures for evacuation, and policies regarding fire safety education and training programs provided to students, faculty, and staff; and

(E)

plans for future improvements in fire safety, if determined necessary by such institution.

(2)

Report to the secretary

Each eligible institution participating in any program under this title shall, on an annual basis submit to the Secretary a copy of the statistics required to be made available under subparagraph (A).

(3)

Current information to campus community

Each institution participating in any program under this title shall—

(A)

make, keep, and maintain a log, recording all fires in on-campus student housing facilities, including the nature, date, time, and general location of each fire; and

(B)

make annual reports to the campus community on such fires.

(4)

Responsibilities of the secretary

The Secretary shall—

(A)

make such statistics submitted to the Secretary available to the public; and

(B)

in coordination with nationally recognized fire organizations and representatives of institutions of higher education, representatives of associations of institutions of higher education, and other organizations that represent and house a significant number of students—

(i)

identify exemplary fire safety policies, procedures, programs, and practices;

(ii)

disseminate information to the Administrator of the United States Fire Administration;

(iii)

make available to the public information concerning those policies, procedures, programs, and practices that have proven effective in the reduction of fires; and

(iv)

develop a protocol for institutions to review the status of their fire safety systems.

(5)

Rules of construction

Nothing in this subsection shall be construed to—

(A)

authorize the Secretary to require particular policies, procedures, programs, or practices by institutions of higher education with respect to fire safety, other than with respect to the collection, reporting, and dissemination of information required by this subsection;

(B)

affect the Family Educational Rights and Privacy Act of 1974 or the regulations issued under section 264 of the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. 1320d–2 note).

(C)

create a cause of action against any institution of higher education or any employee of such an institution for any civil liability; and

(D)

establish any standard of care.

(6)

Compliance report

The Secretary shall annually report to the authorizing committees regarding compliance with this subsection by institutions of higher education, including an up-to-date report on the Secretary’s monitoring of such compliance.

(7)

Evidence

Notwithstanding any other provision of law, evidence regarding compliance or noncompliance with this subsection shall not be admissible as evidence in any proceeding of any court, agency, board, or other entity, except with respect to an action to enforce this subsection.

.

478.

National Student Loan Data System

Section 485B (20 U.S.C. 1092b) is amended—

(1)

in subsection (a)—

(A)

by redesignating paragraphs (6) through (10) as paragraphs (7) through (11), respectively;

(B)

in paragraph (5) (as added by Public Law 101–610), by striking effectiveness. and inserting effectiveness;; and

(C)

by redesignating paragraph (5) (as added by Public Law 101–234) as paragraph (6);

(2)

by redesignating subsections (d) through (g) as subsections (e) through (h), respectively; and

(3)

by inserting after subsection (c) the following:

(d)

Principles for administering the data system

In managing the National Student Loan Data System, the Secretary shall take actions necessary to maintain confidence in the data system, including, at a minimum—

(1)

ensuring that the primary purpose of access to the data system by guaranty agencies, eligible lenders, and eligible institutions of higher education is for legitimate program operations, such as the need to verify the eligibility of a student, potential student, or parent for loans under part B, D, or E;

(2)

prohibiting nongovernmental researchers and policy analysts from accessing personally identifiable information;

(3)

creating a disclosure form for students and potential students that is distributed when such students complete the common financial reporting form under section 483, and as a part of the exit counseling process under section 485(b), that—

(A)

informs the students that any title IV grant or loan the students receive will be included in the National Student Loan Data System, and instructs the students on how to access that information;

(B)

describes the categories of individuals or entities that may access the data relating to such grant or loan through the data system, and for what purposes access is allowed;

(C)

defines and explains the categories of information included in the data system;

(D)

provides a summary of the provisions of the Family Educational Rights and Privacy Act of 1974 and other applicable Federal privacy statutes, and a statement of the students' rights and responsibilities with respect to such statutes;

(E)

explains the measures taken by the Department to safeguard the students' data; and

(F)

includes other information as determined appropriate by the Secretary;

(4)

requiring guaranty agencies, eligible lenders, and eligible institutions of higher education that enter into an agreement with a potential student, student, or parent of such student regarding a loan under part B, D, or E, to inform the student or parent that such loan shall be—

(A)

submitted to the data system; and

(B)

accessible to guaranty agencies, eligible lenders, and eligible institutions of higher education determined by the Secretary to be authorized users of the data system;

(5)

regularly reviewing the data system to—

(A)

delete inactive users from the data system;

(B)

ensure that the data in the data system are not being used for marketing purposes; and

(C)

monitor the use of the data system by guaranty agencies and eligible lenders to determine whether an agency or lender is accessing the records of students in which the agency or lender has no existing financial interest; and

(6)

developing standardized protocols for limiting access to the data system that include—

(A)

collecting data on the usage of the data system to monitor whether access has been or is being used contrary to the purposes of the data system;

(B)

defining the steps necessary for determining whether, and how, to deny or restrict access to the data system; and

(C)

determining the steps necessary to reopen access to the data system following a denial or restriction of access.

; and