College Access and Opportunity Act of 2004 - Amends the Higher Education Act of 1965 (HEA) to revise and reauthorize various programs.
Revises the definition of institution of higher education to repeal: (1) a requirement that for-profit institutions of higher education derive at least ten percent of their revenue from funds that do not come from HEA title IV student assistance programs (the 90/10 rule); and (2) a restriction on distance education in terms of relative number of courses an institution may offer by telecommunications, and relative number of students enrolled in such courses, for purposes of student assistance program eligibility (the 50 percent rule). Allows for-profit institutions to compete with traditional institutions in applying for campus-based aid.
Revises HEA title IV (Student Assistance) to: (1) require a variable rather than a fixed interest rate for consolidation loans; (2) reduce loan origination fees; (3) increase subsidized loan limits; and (4) modify need analysis requirements. Establishes: (1) Pell Grants Plus grants for State scholar students; (2) policies for institutions' transfer of credits; (3) a college access initiative; (4) an expanded distance education demonstration; and (5) a college affordability demonstration.
Cancels student loan indebtedness for families of 9/11 victims.
Expresses the sense of the House of Representatives that HEA titles II, VI, and VII should be amended as provided in specified bills passed by the House.
Extends authorizations of appropriations for: (1) HEA title III grants for American Indian tribally controlled colleges and universities, Alaska Native and Native Hawaiian-serving institutions, and historically Black colleges and universities; (2) HEA title IV Pell grants, TRIO, GEAR UP, supplemental educational opportunity grants, LEAP, HEP/CAMP, Byrd scholarships, child care access, Federal Family Education Loans, work-study, Direct Loans, and Perkins Loans; (3) HEA title V Developing Institutions grants for Hispanic-serving institutions; and (4) programs under the Education of the Deaf Act of 1986, Higher Education Amendments of 1998, Tribally Controlled College or University Assistance Act of 1978, Navajo Community College Act, and Education Amendments of 1992.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4283 Introduced in House (IH)]
108th CONGRESS
2d Session
H. R. 4283
To amend and extend the Higher Education Act of 1965.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 5, 2004
Mr. Boehner (for himself and Mr. McKeon) introduced the following bill;
which was referred to the Committee on Education and the Workforce
_______________________________________________________________________
A BILL
To amend and extend the Higher Education Act of 1965.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``College Access and
Opportunity Act of 2004''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. References; effective date.
TITLE I--GENERAL PROVISIONS
Sec. 101. Definition of institution of higher education.
``Sec. 101. Definition of institution of higher education.
``Sec. 102. Institutions outside the United States.
``Sec. 123. Restrictions on funds for for-profit schools.
Sec. 102. New borrower definition.
Sec. 103. Student speech and association rights.
Sec. 104. Extension of National Advisory Committee on Institutional
Quality and Integrity.
Sec. 105. Alcohol and drug abuse prevention.
Sec. 106. Prior rights and obligations.
Sec. 107. Consumer information and public accountability in higher
education.
``Sec. 131. Consumer information and public accountability in
higher education.
Sec. 108. Performance-based organization.
TITLE II--TEACHER PREPARATION
Sec. 201. Sense of the House of Representatives.
TITLE III--INSTITUTIONAL AID
Sec. 301. Title III grants for American Indian Tribally Controlled
Colleges and Universities.
Sec. 302. Alaska Native and Native Hawaiian-serving institutions.
Sec. 303. Grants to part B institutions.
Sec. 304. Technical amendments.
Sec. 305. Title III authorizations.
TITLE IV--STUDENT ASSISTANCE
Part A--Grants to Students
Sec. 401. Pell Grants.
``Sec. 401A. Pell Grants Plus: achievement grants for State
scholars.
Sec. 402. TRIO programs.
Sec. 403. GEARUP.
Sec. 404. Federal Supplemental Educational Opportunity Grants.
Sec. 405. LEAP.
Sec. 406. HEP/CAMP program.
Sec. 407. Byrd Scholarship.
Sec. 408. Child care access.
Sec. 409. Learning anytime anywhere partnerships.
Sec. 410. Technical amendments.
Part B--Federal Family Education Loan Program
Sec. 421. Reauthorization of Federal Family Education Loan Program.
Sec. 422. Loan limits.
Sec. 423. Interest rates and special allowances.
Sec. 424. Additional loan terms and conditions.
Sec. 425. Consolidation loan changes.
Sec. 426. Unsubsidized Stafford loans.
Sec. 427. Teacher recruitment and retention.
Sec. 428. Additional administrative provisions.
Part C--Federal Work-Study Programs
Sec. 441. Authorization of appropriations.
Sec. 442. Community service.
Sec. 443. Allocation of funds.
Sec. 444. Books and supplies.
Sec. 445. Job location and development.
Sec. 446. Work colleges.
Part D--Federal Direct Loan Program
Sec. 451. Reauthorization of the Direct Loan Program.
Part E--Federal Perkins Loan Program
Sec. 461. Reauthorization of program.
Sec. 462. Loan terms and conditions.
Sec. 463. Loan cancellation.
Sec. 464. Technical amendments.
Part F--Need Analysis
Sec. 471. Simplified needs test improvements.
Sec. 472. Additional need analysis amendments.
Part G--General Provisions Relating to Student Financial Assistance
Sec. 481. Definition of academic year.
Sec. 482. Distance education.
Sec. 483. Expanding information dissemination regarding eligibility for
Pell Grants.
Sec. 484. Student eligibility.
Sec. 485. Institutional refunds.
Sec. 486. Institutional and financial assistance information for
students.
Sec. 487. College access initiative.
``Sec. 485D. College access initiative.
Sec. 488. Distance education demonstration program.
Sec. 489. College affordability demonstration program.
``Sec. 486A. College affordability demonstration program.
Sec. 490. Program participation agreements.
Sec. 491. Additional technical and conforming amendments.
Part H--Program Integrity
Sec. 495. Accreditation.
TITLE V--DEVELOPING INSTITUTIONS
Sec. 501. Definitional changes.
Sec. 502. Assurance of enrollment of needy students.
Sec. 503. Additional amendments.
Sec. 504. Title V authorization.
TITLE VI--TITLE VI AMENDMENTS
Sec. 601. Sense of the House.
TITLE VII--TITLE VII AMENDMENTS
Sec. 701. Sense of the House.
TITLE VIII--CLERICAL AMENDMENTS
Sec. 801. Clerical amendments.
TITLE IX--STUDENT LOAN FORGIVENESS FOR FAMILIES OF 9/11 VICTIMS
Sec. 901. Cancellation of student loan indebtedness for spouses,
surviving joint debtors, and parents.
TITLE X--AMENDMENTS TO OTHER EDUCATION LAWS
Part A--Education of the Deaf Act of 1986
Sec. 1001. Laurent Clerc National Deaf Education Center.
Sec. 1002. Authority.
Sec. 1003. Agreement for the National Technical Institute for the Deaf.
Sec. 1004. Definitions.
Sec. 1005. Audit.
Sec. 1006. Reports.
Sec. 1007. Liaison for educational programs.
Sec. 1008. Federal endowment programs for Gallaudet University and the
National Technical Institute for the Deaf.
Sec. 1009. Oversight and effect of agreements.
Sec. 1010. Authorization of appropriations.
Part B--Additional education laws
Sec. 1021. Amendment to Higher Education Amendments of 1998.
Sec. 1022. Tribally Controlled College or University Assistance Act of
1978.
Sec. 1023. Navajo Community College Act.
Sec. 1024. Education Amendments of 1992.
Sec. 1025. Study of student learning outcomes and public
accountability.
SEC. 2. REFERENCES; EFFECTIVE DATE.
(a) References.--Except as otherwise expressly provided, whenever
in this Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provision of the
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
(b) Effective Date.--Except as otherwise provided in this Act, the
amendments made by this Act shall take effect on the date of enactment
of this Act.
TITLE I--GENERAL PROVISIONS
SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.
(a) Amendment.--Title I is amended by striking sections 101 and 102
(20 U.S.C. 1001, 1002) and inserting the following:
``SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.
``(a) Institution of Higher Education.--For purposes of this Act,
the term `institution of higher education' means an educational
institution in any State that--
``(1) admits as regular students only persons who--
``(A) meet the requirements of section 484(d)(3),
or have a certificate of graduation from a school
providing secondary education, or the recognized
equivalent of such a certificate; or
``(B) are beyond the age of compulsory school
attendance in the State in which the institution is
located;
``(2) is legally authorized within such State to provide a
program of education beyond secondary education;
``(3)(A) is accredited by a nationally recognized
accrediting agency or association; or
``(B) if not so accredited, is a public or nonprofit
institution that has been granted preaccreditation status by
such an agency or association that has been recognized by the
Secretary for the granting of preaccreditation status, and the
Secretary has determined that there is satisfactory assurance
that the institution will meet the accreditation standards of
such an agency or association within a reasonable time; and
``(4) meets either of the following criteria:
``(A) is a nonprofit, for-profit, or public
institution that--
``(i) provides an educational program for
which the institution awards a bachelor's
degree;
``(ii) provides not less than a 2-year
educational program which is acceptable for
full credit towards such a degree; or
``(iii) provides not less than a 1-year
program of training that prepares students for
gainful employment in a recognized occupation;
or
``(B) is a nonprofit, for-profit, or public
institution that provides an eligible program (as
defined in section 481)--
``(i) for which the institution awards a
certificate; and
``(ii) that prepares students for gainful
employment in a recognized occupation.
``(b) Additional Limitations.--
``(1) For-profit postsecondary institutions.--
``(A) Duration of accreditation.--A for-profit
institution shall not be considered to be an
institution of higher education unless such institution
is accredited by a nationally recognized accrediting
agency or association and such institution has been in
existence for at least 2 years.
``(B) Institutional eligibility only for
competitive grants.--For the purposes of any program
providing grants to institutions for use by the
institution (and not for distribution among students),
a for-profit institution shall not be considered to be
an institution of higher education under this section
if such grants are awarded on any basis other than
competition on the merits of the grant proposal or
application.
``(2) Postsecondary vocational institutions.--A nonprofit
or public institution that meets the criteria of subsection
(a)(4)(B) shall not be considered to be an institution of
higher education unless such institution has been in existence
for at least 2 years.
``(3) Limitations based on management.--An institution
shall not be considered to meet the definition of an
institution of higher education in this section if--
``(A) the institution, or an affiliate of the
institution that has the power, by contract or
ownership interest, to direct or cause the direction of
the management or policies of the institution, has
filed for bankruptcy, except that this paragraph shall
not apply to a nonprofit institution, the primary
function of which is to provide health care educational
services (or an affiliate of such an institution that
has the power, by contract or ownership interest, to
direct or cause the direction of the institution's
management or policies) that filed for bankruptcy under
chapter 11 of title 11, United States Code, between
July 1, 1998, and December 1, 1998; or
``(B) the institution, the institution's owner, or
the institution's chief executive officer has been
convicted of, or has pled nolo contendere or guilty to,
a crime involving the acquisition, use, or expenditure
of Federal funds, or has been judicially determined to
have committed a crime involving the acquisition, use,
or expenditure involving Federal funds.
``(4) Limitation on course of study or enrollment.--An
institution shall not be considered to meet the definition of
an institution of higher education in subsection (a) if such
institution--
``(A) offers more than 50 percent of such
institution's courses by correspondence (excluding
courses offered by telecommunications as defined in
484(l)(4)), unless the institution is an institution
that meets the definition in section 3(3)(C) of the
Carl D. Perkins Vocational and Technical Education Act
of 1998;
``(B) enrolls 50 percent or more of the
institution's students in correspondence courses
(excluding courses offered by telecommunications as
defined in 484(l)(4)), unless the institution is an
institution that meets the definition in section
3(3)(C) of the Carl D. Perkins Vocational and Technical
Education Act of 1998, except that the Secretary, at
the request of the institution, may waive the
applicability of this subparagraph to the institution
for good cause, as determined by the Secretary in the
case of an institution of higher education that
provides a 2- or 4-year program of instruction (or
both) for which the institution awards an associate or
baccalaureate degree, respectively;
``(C) has a student enrollment in which more than
25 percent of the students are incarcerated, except
that the Secretary may waive the limitation contained
in this subparagraph for an institution that provides a
2- or 4-year program of instruction (or both) for which
the institution awards a bachelor's degree, or an
associate's degree or a postsecondary certificate,
respectively; or
``(D) has a student enrollment in which more than
50 percent of the students either do not meet the
requirements of section 484(d)(3) or do not have a
secondary school diploma or its recognized equivalent,
and does not provide a 2- or 4-year program of
instruction (or both) for which the institution awards
an associate's degree or a bachelor's degree,
respectively, except that the Secretary may waive the
limitation contained in this subparagraph if an
institution demonstrates to the satisfaction of the
Secretary that the institution exceeds such limitation
because the institution serves, through contracts with
Federal, State, or local government agencies,
significant numbers of students who do not meet the
requirements of section 484(d)(3) or do not have a
secondary school diploma or its recognized equivalent.
``(c) List of Accrediting Agencies.--For purposes of this section,
the Secretary shall publish a list of nationally recognized accrediting
agencies or associations that the Secretary determines, pursuant to
subpart 2 of part H of title IV, to be reliable authority as to the
quality of the education or training offered.
``(d) Certification.--The Secretary shall certify, for the purposes
of participation in title IV, an institution's qualification as an
institution of higher education in accordance with the requirements of
subpart 3 of part H of title IV.
``(e) Loss of Eligibility.--An institution of higher education
shall not be considered to meet the definition of an institution of
higher education in this section for the purposes of participation in
title IV if such institution is removed from eligibility for funds
under title IV as a result of an action pursuant to part H of title IV.
``SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES.
``(a) Institutions Outside the United States.--
``(1) In general.--An institution outside the United States
shall be considered to be an institution of higher education
only for purposes of part B of title IV if the institution is
comparable to an institution of higher education, as defined in
section 101, is legally authorized by the education ministry
(or comparable agency) of the country in which the school is
located, and has been approved by the Secretary for purposes of
that part. The Secretary shall establish criteria by regulation
for that approval and that determination of comparability. An
institution may not be so approved or determined to be
comparable unless such institution is a public or nonprofit
institution, except that, subject to paragraph (2)(B), a
graduate medical school or veterinary school located outside
the United States may be a for-profit institution.
``(2) Medical and veterinary school criteria.--In the case
of a graduate medical or veterinary school outside the United
States, such criteria shall include a requirement that a
student attending such school outside the United States is
ineligible for loans made, insured, or guaranteed under part B
of title IV unless--
``(A) in the case of a graduate medical school
located outside the United States--
``(i)(I) at least 60 percent of those
enrolled in, and at least 60 percent of the
graduates of, the graduate medical school
outside the United States were not persons
described in section 484(a)(5) in the year
preceding the year for which a student is
seeking a loan under part B of title IV; and
``(II) at least 60 percent of the
individuals who were students or graduates of
the graduate medical school outside the United
States or Canada (both nationals of the United
States and others) taking the examinations
administered by the Educational Commission for
Foreign Medical Graduates received a passing
score in the year preceding the year for which
a student is seeking a loan under part B of
title IV; or
``(ii) the institution has a clinical
training program that was approved by a State
as of January 1, 1992; or
``(B) in the case of a veterinary school located
outside the United States that is not a public or
nonprofit institution, the institution's students
complete their clinical training at an approved
veterinary school located in the United States.
``(b) Advisory Panel.--
``(1) In general.--For the purpose of qualifying a foreign
medical school as an institution of higher education only for
purposes of part B of title IV, the Secretary shall publish
qualifying criteria by regulation and establish an advisory
panel of medical experts that shall--
``(A) evaluate the standards of accreditation
applied to applicant foreign medical schools; and
``(B) determine the comparability of those
standards to standards for accreditation applied to
United States medical schools.
``(2) Failure to release information.--The failure of an
institution outside the United States to provide, release, or
authorize release to the Secretary of such information as may
be required by subsection (a)(2) shall render such institution
ineligible for the purpose of part B of title IV.
``(c) Special Rule.--If, pursuant to this section, an institution
located outside the United States loses eligibility to participate in
the programs under part B of title IV, then a student enrolled at such
institution may, notwithstanding such loss of eligibility, continue to
be eligible to receive a loan under part B of title IV while attending
such institution for the academic year succeeding the academic year in
which such loss of eligibility occurred.''.
(b) Restrictions on Funds for For-Profit Schools.--Part B of title
I is amended by inserting after section 122 (20 U.S.C. 1011k) the
following new section:
``SEC. 123. RESTRICTIONS ON FUNDS FOR FOR-PROFIT SCHOOLS.
``(a) In General.--Notwithstanding any other provision of this Act
authorizing the use of funds by an institution of higher education that
receives funds under this Act, none of the funds made available under
this Act to a for-profit institution of higher education may be used
for--
``(1) construction, maintenance, renovation, repair, or
improvement of classrooms, libraries, laboratories, or other
facilities;
``(2) establishing, improving, or increasing an endowment
fund; or
``(3) establishing or improving an institutional
development office to strengthen or improve contributions from
alumni and the private sector.
``(b) Exception.--Subsection (a) shall not apply to funds received
by the institution from the grant, loan, or work assistance that is
awarded under title IV to the students attending such institution.''.
(c) Conforming Amendments.--
(1) Section 114(a) (20 U.S.C. 1011c(a)) is amended by
striking ``(as defined in section 102)''.
(2) Section 428K(b) (20 U.S.C. 1078-11(b)) is amended by
striking paragraph (5).
(3) Section 435(a)(1) (20 U.S.C. 1085(a)(1)) is amended by
striking ``section 102'' and inserting ``section 101''.
(4) Subsection (d) of section 484 (20 U.S.C. 1091(d)) is
amended by striking the designation and heading of such
subsection and inserting the following:
``(d) Satisfaction of Secondary Education Standards.--''.
(5) Section 486(b)(2) (20 U.S.C. 1093(b)(2)) is amended by
striking ``102(a)(3)(A), 102(a)(3)(B)'' and inserting
``101(b)(4)(A), 101(b)(4)(B)''.
(6) Section 487(c)(1)(A)(iii) (20 U.S.C.
1094(c)(1)(A)(iii)) is amended by striking ``section
102(a)(1)(C)'' and inserting ``section 102''.
(7) Section 487(d) (20 U.S.C. 1094(d)) is amended by
striking ``section 102'' and inserting ``section 101''.
(8) Subsections (j) and (k) of section 496 (20 U.S.C.
1099b(j), (k)) are each amended by striking ``section 102'' and
inserting ``section 101''.
(9) Section 498(g)(3) (20 U.S.C. 1099c(g)(3)) is amended by
striking ``section 102(a)(1)(C)'' and inserting ``section
102''.
(10) Section 498(i) (20 U.S.C. 1099c(i)) is amended by
striking ``section 102'' and inserting ``section 101''.
(11) Section 498(j)(1) (20 U.S.C. 1099c) is amended by
striking ``except that such branch shall not be required to
meet the requirements of sections 102(b)(1)(E) and 102(c)(1)(C)
prior to seeking such certification'' and inserting ``except
that such branch shall not be required to be in existence for
at least 2 years prior to seeking such certification''.
(12) Section 498B(b) (20 U.S.C. 1099c-2(b)) is amended by
striking ``section 102(a)(1)(C)'' and inserting ``section
102''.
SEC. 102. NEW BORROWER DEFINITION.
Paragraph (7) of section 103 (20 U.S.C. 1003) is amended to read as
follows:
``(7) New borrower.--The term `new borrower' when used with
respect to any date for any loan under any provision of--
``(A) part B or part D of title IV means an
individual who on that date has no outstanding balance
of principal or interest owing on any loan made,
insured, or guaranteed under either of those parts; and
``(B) part E of title IV means an individual who on
that date has no outstanding balance of principal or
interest owing on any loan made under that part.''.
SEC. 103. STUDENT SPEECH AND ASSOCIATION RIGHTS.
Section 112 (20 U.S.C. 1011a) is amended--
(1) by amending subsection (a) to read as follows:
``(a) Protection of Rights.--It is the sense of Congress that--
``(1) no student attending an institution of higher
education on a full- or part-time basis should, on the basis of
participation in protected speech or protected association, be
excluded from participation in, be denied the benefits of, or
be subjected to discrimination or official sanction under any
education program, activity, or division of the institution
directly or indirectly receiving financial assistance under
this Act, whether or not such program, activity, or division is
sponsored or officially sanctioned by the institution; and
``(2) an institution of higher education should ensure that
a student attending such institution on a full- or part-time
basis is--
``(A) evaluated solely on the basis of their
reasoned answers and knowledge of the subjects and
disciplines they study and without regard to their
political, ideological, or religious beliefs;
``(B) assured that the selection of speakers and
allocation of funds for speakers, programs, and other
student activities will utilize methods that promote
intellectual pluralism and include diverse viewpoints;
``(C) presented diverse approaches and dissenting
sources and viewpoints within the instructional
setting; and
``(D) not excluded from participation in, denied
the benefits of, or subjected to discrimination or
official sanction on the basis of their political or
ideological beliefs under any education program,
activity, or division of the institution directly or
indirectly receiving financial assistance under this
Act, whether or not such program, activity, or division
is sponsored or officially sanctioned by the
institution.''; and
(2) in subsection (b)(1), by inserting after ``higher
education'' the following: ``, provided that the imposition of
such sanction is done objectively, fairly, and without regard
to the student's political, ideological, or religious
beliefs''.
SEC. 104. EXTENSION OF NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL
QUALITY AND INTEGRITY.
Section 114(g) (20 U.S.C. 1011c(g)) is amended by striking ``2004''
and inserting ``2011''.
SEC. 105. ALCOHOL AND DRUG ABUSE PREVENTION.
Section 120(e)(5) (20 U.S.C. 1011i(e)(5)) is amended--
(1) by striking ``1999'' and inserting ``2005''; and
(2) by striking ``4 succeeding fiscal years'' and inserting
``5 succeeding fiscal years''.
SEC. 106. PRIOR RIGHTS AND OBLIGATIONS.
Section 121(a) (20 U.S.C. 1011j(a)) is amended by striking ``1999
and for each of the 4'' each place it appears and inserting ``2005 and
for each of the 5''.
SEC. 107. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER
EDUCATION.
Section 131 (20 U.S.C. 1015) is amended to read as follows:
``SEC. 131. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER
EDUCATION.
``(a) Data Collection.--
``(1) Data systems.--The Secretary shall continue to
redesign the relevant parts of the postsecondary education data
systems to include additional data as required by this section
and to continue to improve the usefulness and timeliness of
data collected by such systems.
``(2) Information from institutions.--The Commissioner of
Education Statistics shall collect, for each academic year and
in accordance with standard definitions developed by the
Commissioner of Education Statistics (including definitions
developed under section 131(a)(3)(A) as in effect on the day
before the date of enactment of the College Access and
Opportunity Act of 2004) from at least all institutions of
higher education participating in programs under title IV, and
such institutions shall provide, the following data:
``(A) The tuition and fees charged for a full-time
undergraduate student.
``(B) The room and board charges for such a
student.
``(C) The cost of attendance for a full-time
undergraduate student, consistent with the provisions
of section 472.
``(D) The average amount of financial assistance
received by a full-time undergraduate student,
including--
``(i) each type of assistance or benefits
described in 428(a)(2)(C)(ii);
``(ii) fellowships;
``(iii) institutional and other assistance;
and
``(iv) loans under parts B and D.
``(E) The number of students receiving financial
assistance described in each clause of subparagraph
(D).
``(F) The average net price for students receiving
Federal, State, or institutional financial assistance.
``(G) The institutional instructional expenditure
per full-time equivalent student.
``(b) Data Dissemination.--The Secretary shall make available the
data collected pursuant to this section, including an institution's
college affordability index as calculated in accordance with subsection
(c). Such data shall be made available in a manner that permits the
review and comparison of data submissions of individual institutions of
higher education. Such data shall be presented in a form that is easily
accessible and understandable and allows parents and students to make
informed decisions based on the prices for typical full-time
undergraduate students and the institution's rate of cost increase.
``(c) College Affordability Index.--
``(1) In general.--The Secretary shall, on the basis of the
data submitted under subsection (a), calculate a college
affordability index for each institution of higher education
submitting such data and shall make the index available in
accordance with subsection (b) as soon as operationally
possible on the Department's college opportunity online Web
site.
``(2) Calculation of index.--The college affordability
index shall be equal to--
``(A) the percentage increase in the tuition and
fees charged for a first-time, full-time, full-year
undergraduate student between the first of the 3 most
recent preceding academic years and the last of those 3
academic years; divided by
``(B) the percentage increase in the Consumer Price
Index--All Urban Consumers (Current Series) from July
of the first of those 3 academic years to July of the
last of those 3 academic years.
``(d) Outcomes and Actions.--
``(1) Response from institution.--Effective on June 30,
2008, an institution that has a college affordability index
that exceeds 2.0 for any 3-year interval ending on or after
that date shall provide a report to the Secretary, in such a
form, at such time, and containing such information as the
Secretary may require. Such report shall include--
``(A) an explanation of the factors contributing to
the increase in the institution's costs and in the
tuition and fees charged to students;
``(B) a management plan stating the specific steps
the institution is and will be taking to reduce its
college affordability index;
``(C) an action plan, including a schedule, by
which the institution will reduce increases in or
stabilize, such costs and tuition and fees; and
``(D) if determinations of tuition and fee
increases are not within the exclusive control of the
institution, a description of the agency or
instrumentality of State government or other entity
that participates in such determinations and the
authority exercised by such agency, instrumentality, or
entity.
``(2) Information to the public.--Upon receipt of the
institution's report and management plan under paragraph (1),
the Secretary shall make the institution's report required
under paragraph (1) available to the public in accordance with
subsection (b).
``(3) Consequences for 2-year continuation of failure.--If
the Secretary determines that the institution has failed to
comply with the management plan and action plan submitted by
the institution under this subsection following the next 2
academic years that begin after the submission of such plans,
and has failed to reduce the college affordability index below
2.0 for such 2 academic years, the Secretary--
``(A) shall make available to the public a detailed
report provided by the institution on all costs and
expenditures, and on all tuition and fees charged to
students, for such 2 academic years;
``(B) shall place the institution on an
affordability alert status and shall make the
information regarding the institution's failure
available in accordance with subsection (b);
``(C) shall notify the institution's accrediting
agency of the institution's failure; and
``(D) may require the institution to submit to a
review and audit by the Inspector General of the
Department of Education to determine the cause of the
institution's failure.
``(4) Information to state agencies.--Any institution that
reports under paragraph (1)(D) that an agency or
instrumentality of State government or other entity
participates in the determinations of tuition and fee increases
shall, prior to submitting any information to the Secretary
under this subsection, submit such information to, and request
the comments and input of, such agency, instrumentality, or
entity. With respect to any such institution, the Secretary
shall provide a copy of any communication by the Secretary with
that institution to such agency, instrumentality, or entity.
``(5) Exemptions.--
``(A) Relative price exemption.--The Secretary
shall, for any 3-year interval for which college
affordability indexes are computed under paragraph (1),
determine and publish the dollar amount that, for each
class of institution described in subparagraph (C)
represents the maximum tuition and fees charged for a
full-time undergraduate student in the least costly
quartile of institutions within each such class during
the last year of such 3-year interval. An institution
that has a college affordability index computed under
paragraph (1) that exceeds 2.0 for any such 3-year
interval, but that, on average during such 3-year
interval, charges less than such maximum tuition and
fees shall not be subject to the actions required by
subparagraph (B) or (C) of paragraph (1), or any action
under paragraph (3), unless such institution, for a
subsequent 3-year interval, charges more than such
maximum tuition and fees.
``(B) Dollar increase exemption.--An institution
that has a college affordability index computed under
paragraph (1) that exceeds 2.0 for any 3-year interval,
but that exceeds such 2.0 by a dollar amount that is
less than $500, shall not be subject to the actions
required by subparagraph (B) or (C) of paragraph (1),
or any action under paragraph (3), unless such
institution has a college affordability index for a
subsequent 3-year interval that exceeds 2.0 by more
than such dollar amount.
``(C) Classes of institutions.--For purposes of
subparagraph (B), the classes of institutions shall be
those sectors used by the Integrated Postsecondary
Education Data System, based on whether the institution
is public, nonprofit private, or for-profit private,
and whether the institution has a 4-year, 2-year, or
less than 2-year program of instruction.
``(e) Fines.--In addition to actions authorized in section 487(c),
the Secretary may impose a fine in an amount not to exceed $25,000 on
an institution of higher education for failing to provide the
information described in this section in a timely and accurate manner,
or for failing to otherwise cooperate with the National Center for
Education Statistics regarding efforts to obtain data on the cost and
price of higher education under this section and pursuant to the
program participation agreement entered into under section 487.
``(f) GAO Study and Report.--
``(1) GAO study.--The Comptroller General shall conduct a
study of the policies and procedures implemented by
institutions in increasing the affordability of postsecondary
education. Such study shall include information with respect
to--
``(A) a list of those institutions that--
``(i) have reduced their college
affordability indexes; or
``(ii) are, as determined under subsection
(d)(5)(A), within the least costly quartile of
institutions within each class described in
subsection (d)(5)(C);
``(B) policies implemented to stem the increase in
tuition and fees and institutional costs;
``(C) the extent to which room and board costs and
prices changed;
``(D) the extent to which other services were
altered to affect tuition and fees;
``(E) the extent to which the institution's
policies affected student body demographics and time to
completion;
``(F) what, if any, operational factors played a
role in reducing tuition and fees;
``(G) the extent to which academic quality was
affected, and how;
``(H) the extent to which policies and practices
reducing costs and prices may be replicated from one
institution to another; and
``(I) other information as necessary to determine
best practices in increasing the affordability of
postsecondary education.
``(2) Interim and final reports.--The Comptroller General
shall submit an interim and a final report regarding the
findings of the study required by paragraph (1) to the
appropriate authorizing committees of Congress. The interim
report shall be submitted not later than July 31, 2010, and the
final report shall be submitted not later than July 31, 2012.
``(g) Student Aid Recipient Survey.--
``(1) Survey required.--The Secretary shall conduct a
survey of student aid recipients under title IV on a regular
cycle and State-by-State basis, but not less than once every 4
years--
``(A) to identify the population of students
receiving Federal student aid;
``(B) to describe the income distribution and other
socioeconomic characteristics of federally aided
students;
``(C) to describe the combinations of aid from
State, Federal, and private sources received by
students from all income groups;
``(D) to describe the debt burden of educational
loan recipients and their capacity to repay their
education debts, and the impact of such debt burden on
career choices;
``(E) to describe the role played by the price of
postsecondary education in the determination by
students of what institution to attend; and
``(F) to describe how the increased costs of
textbooks and other instructional materials affects the
costs of postsecondary education to students.
``(2) Survey design.--The survey shall be representative of
full-time and part-time, undergraduate, graduate, and
professional and current and former students in all types of
institutions, and designed and administered in consultation
with the Congress and the postsecondary education community.
``(3) Dissemination.--The Secretary shall disseminate the
information resulting from the survey in both printed and
electronic form.
``(h) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out the provisions of this
section.''.
SEC. 108. PERFORMANCE-BASED ORGANIZATION.
Section 141 (20 U.S.C. 1018) is amended--
(1) in subsection (a)(2)(B)--
(A) by inserting ``unit'' after ``to reduce the'';
and
(B) by inserting ``and, to the extent practicable,
the total costs of administering those programs'' after
``those programs'';
(2) in subsection (c)--
(A) in paragraph (1)(A), by striking ``Each year''
and inserting ``Each fiscal year'';
(B) in paragraph (1)(B), by inserting ``secondary
markets, guaranty agencies,'' after ``lenders,''; and
(C) in paragraph (2)(B), by striking ``Chief
Financial Officer Act of 1990 and'' and inserting
``Chief Financial Officers Act of 1990,'' and by
inserting before the period at the end the following:
``, and other relevant statutes''; and
(3) in subsection (f)(3)(A), by striking ``paragraph
(1)(A)'' and inserting ``paragraph (1)''.
TITLE II--TEACHER PREPARATION
SEC. 201. SENSE OF THE HOUSE OF REPRESENTATIVES.
It is the sense of the House of Representatives that title II of
the Higher Education Act of 1965 should be amended as provided in H.R.
2211 as passed by the House of Representatives on July 9, 2003.
TITLE III--INSTITUTIONAL AID
SEC. 301. TITLE III GRANTS FOR AMERICAN INDIAN TRIBALLY CONTROLLED
COLLEGES AND UNIVERSITIES.
(a) Eligible Institutions.--Subsection (b) of section 316 (20
U.S.C. 1059c(b)) is amended to read as follows:
``(b) Definitions.--
``(1) Eligible institutions.--For purposes of this section,
Tribal Colleges and Universities are the following:
``(A) any of the following institutions that
qualify for funding under the Tribally Controlled
College or University Assistance Act of 1978 or is
listed in Equity in Educational Land Grant Status Act
of 1994 (7 U.S.C. 301 note): Bay Mills Community
College; Blackfeet Community College; Cankdeska Cikana
Community College; Chief Dull Knife College; College of
Menominee Nation; Crownpoint Institute of Technology;
Dine College; D-Q University; Fond du Lac Tribal and
Community College; Fort Belknap College; Fort Berthold
Community College; Fort Peck Community College; Haskell
Indian Nations University; Institute of American Indian
and Alaska Native Culture and Arts Development; Lac
Courte Oreilles Ojibwa Community College; Leech Lake
Tribal College; Little Big Horn College; Little Priest
Tribal College; Nebraska Indian Community College;
Northwest Indian College; Oglala Lakota College;
Saginaw Chippewa Tribal College; Salish Kootenai
College; Si Tanka University--Eagle Butte Campus; Sinte
Gleska University; Sisseton Wahpeton Community College;
Sitting Bull College; Southwestern Indian Polytechnic
Institute; Stone Child College; Tohono O'Odham
Community College; Turtle Mountain Community College;
United Tribes Technical College; and White Earth Tribal
and Community College; and
``(B) any other institution that meets the
definition of tribally controlled college or university
in section 2 of the Tribally Controlled College or
University Assistance Act of 1978, and meets all other
requirements of this section.
``(2) Indian.--The term `Indian' has the meaning given the
term in section 2 of the Tribally Controlled College or
University Assistance Act of 1978.''.
(b) Distance Learning.--Subsection (c)(2) of such section is
amended--
(1) by amending subparagraph (B) to read as follows:
``(B) construction, maintenance, renovation, and
improvement in classrooms, libraries, laboratories, and
other instructional facilities, including purchase or
rental of telecommunications technology equipment or
services, and the acquisition of real property adjacent
to the campus of the institution on which to construct
such facilities;'';
(2) by striking ``and'' at the end of subparagraph (K);
(3) by redesignating subparagraph (L) as subparagraph (M);
and
(4) by inserting after subparagraph (K) the following new
subparagraph:
``(L) developing or improving facilities for
Internet use or other distance learning academic
instruction capabilities; and''.
(c) Application and Allotment.--Subsection (d) of such section is
amended to read as follows:
``(d) Application and Allotment.--
``(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.--Any 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.
``(3) Allotments to institutions.--
``(A) Allotment: pell grant basis.--From the amount
appropriated to carry out this section for any fiscal
year, the Secretary shall allot to each eligible
institution a sum which bears the same ratio to one-
half that amount as the number of Pell Grant recipients
in attendance at such institution at the end of the
award year preceding the beginning of that fiscal year
bears to the total number of Pell Grant recipients at
all eligible institutions.
``(B) Allotment: degree and certificate basis.--
From the amount appropriated to carry out this section
for any fiscal year, the Secretary shall allot to each
eligible institution a sum which bears the same ratio
to one-half that amount as the number of degrees or
certificates awarded by such institution during the
preceding academic year bears to the total number of
degrees or certificates at all eligible institutions.
``(C) Minimum grant.--Notwithstanding subparagraphs
(A) and (B), the amount allotted to each institution
under this section shall not be less than $400,000.
``(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.''.
SEC. 302. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING INSTITUTIONS.
(a) Distance Learning.--Section 317(c)(2) (20 U.S.C. 1059d(c)(2))
is amended--
(1) by amending subparagraph (B) to read as follows:
``(A) construction, maintenance, renovation, and
improvement in classrooms, libraries, laboratories, and
other instructional facilities, including purchase or
rental of telecommunications technology equipment or
services, and the acquisition of real property adjacent
to the campus of the institution on which to construct
such facilities;'';
(2) by striking ``and'' at the end of subparagraph (G);
(3) by striking the period at the end of subparagraph (H)
and inserting ``; and''; and
(4) by inserting after subparagraph (H) the following new
subparagraph:
``(I) development or improvement of facilities for
Internet use or other distance learning academic
instruction capabilities.''.
(b) Endowment Funds.--Section 317(c) is further amended by adding
at the end the following new paragraph:
``(3) Endowment funds.--
``(A) In general.--An Alaska Native or Native
Hawaiian-serving institution may use not more than 20
percent of the grant funds provided under this section
to establish or increase an endowment fund at the
institution.
``(B) Matching requirement.--In order to be
eligible to use grant funds in accordance with
subparagraph (A), the institution shall provide to the
endowment fund from non-Federal funds an amount equal
to the Federal funds used in accordance with
subparagraph (A), for the establishment or increase of
the endowment fund.
``(C) Applicability of other provisions.--The
provisions of part C regarding the establishment or
increase of an endowment fund, that the Secretary
determines are not inconsistent with this paragraph,
shall apply to funds used under subparagraph (A).''.
(c) Application Process.--Section 317(d) is amended--
(1) by adding at the end of paragraph (1) the following new
sentences: ``Each Alaska Native-serving institution and Native
Hawaiian-serving institution shall develop a 5-year plan for
improving the assistance provided to Alaska Native or Native
Hawaiian students. Such plan shall not be subject to approval
by the Secretary.''; and
(2) in paragraph (2)--
(A) by redesignating subparagraph (B) as
subparagraph (C); and
(B) by striking subparagraph (A) and inserting the
following:
``(A) an assurance that the institution has
developed a 5-year plan for serving Alaska Native or
Native Hawaiian students;
``(B) a list of activities and other information
that are consistent with the institution's 5-year plan;
and''.
SEC. 303. GRANTS TO PART B INSTITUTIONS.
(a) Use of Funds.--
(1) Facilities and equipment.--
(A) Undergraduate institutions.--Paragraph (2) of
section 323(a) (20 U.S.C. 1062(a)) is amended to read
as follows:
``(2) Construction, maintenance, renovation, and
improvement in classrooms, libraries, laboratories, and other
instructional facilities, including purchase or rental of
telecommunications technology equipment or services, and the
acquisition of real property adjacent to the campus of the
institution on which to construct such facilities.''.
(B) Graduate and professional schools.--Paragraph
(2) of section 326(c) is amended to read as follows:
``(2) construction, maintenance, renovation, and
improvement in classrooms, libraries, laboratories, and other
instructional facilities, including purchase or rental of
telecommunications technology equipment or services, and the
acquisition of real property adjacent to the campus of the
institution on which to construct such facilities;''.
(2) Outreach and collaboration.--Paragraph (11) of section
323(a) is amended to read as follows:
``(11) Establishing community outreach programs and
collaborative partnerships between part B institutions and
local elementary or secondary schools. Such partnerships may
include mentoring, tutoring, or other instructional
opportunities that will boost student academic achievement and
assist elementary and secondary school students in developing
the academic skills and the interest to pursue postsecondary
education.''.
(b) Technical Assistance.--Section 323 (20 U.S.C. 1062) is
amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new
subsection:
``(c) Technical Assistance.--
``(1) In general.--An institution may not use more than 2
percent of the grant funds provided under this part to secure
technical assistance services.
``(2) Technical assistance services.--Technical assistance
services may include assistance with enrollment management,
financial management, and strategic planning.
``(3) Report.--The institution shall report to the
Secretary on an annual basis, in such form as the Secretary
requires, on the use of funds under this subsection.''.
(c) Distance Learning.--Section 323(a)(2) (20 U.S.C. 1062(a)(2)) is
amended by inserting ``development or improvement of facilities for
Internet use or other distance learning academic instruction
capabilities and'' after ``including''.
(d) Minimum Grants.--Section 324(d)(1) (20 U.S.C. 1063(d)(1)) is
amended by inserting before the period at the end the following: ``,
except that, if the amount appropriated to carry out this part for any
fiscal year exceeds the amount required to provide to each institution
an amount equal to the total amount received by such institution under
subsections (a), (b), and (c) for the preceding fiscal year, then the
amount of such excess appropriation shall first be applied to increase
the minimum allotment under this subsection to $750,000''.
(e) Eligible Graduate or Professional Schools.--
(1) General authority.--Section 326(a)(1) (20 U.S.C.
1063b(a)(1)) is amended--
(A) by inserting ``(A)'' after ``subsection (e)
that'';
(B) by inserting before the period at the end the
following: ``, (B) is accredited by a nationally
recognized accrediting agency or association determined
by the Secretary to be a reliable authority as to the
quality of training offered, and (C) according to such
an agency or association, is in good standing''.
(2) Eligible institutions.--Section 326(e)(1) (20 U.S.C.
1063b(e)(1)) is amended--
(A) by striking ``and'' at the end of subparagraph
(Q);
(B) by striking the period at the end of
subparagraph (R) and inserting a semicolon; and
(C) by adding at the end the following new
subparagraphs:
``(S) Alabama State University qualified graduate
program;
``(T) Prairie View A&M University qualified
graduate program; and
``(U) Coppin State University qualified graduate
program.''.
(3) Conforming amendment.--Section 326(e)(3) (20 U.S.C.
1063b(e)(3)) is amended--
(A) by striking ``1998'' and inserting ``2004'';
and
(B) by striking ``(Q) and (R)'' and inserting
``(S), (T), and (U)''.
(f) Professional or Graduate Institutions.--Section 326(f) (20
U.S.C. 1063b(f)) is amended--
(1) in paragraph (1)--
(A) by striking ``$26,600,000'' and inserting
``$55,500,000''; and
(B) by striking ``(P)'' and inserting ``(R)'';
(2) in paragraph (2)--
(A) by striking ``$26,600,000 but not in excess of
$28,600,000'' and inserting ``$55,500,000, but not in
excess of $58,500,000''; and
(B) by striking ``subparagraphs (Q) and (R)'' and
inserting ``subparagraphs (S), (T), and (U)''; and
(3) in paragraph (3)--
(A) by striking ``$28,600,000'' and inserting
``$58,500,000''; and
(B) by striking ``(R)'' and inserting ``(U)''.
(g) Hold Harmless.--Section 326(g) (20 U.S.C. 1063b(g)) is amended
by striking ``1998'' and inserting ``2004''.
SEC. 304. TECHNICAL AMENDMENTS.
(a) Amendments.--Title III is further amended--
(1) in section 311(c) (20 U.S.C. 1057(c))--
(A) by redesignating paragraphs (7) through (12) as
paragraphs (8) through (13), respectively; and
(B) by inserting after paragraph (6) the following:
``(7) Education or counseling services designed to improve
the financial literacy and economic literacy of students and,
as appropriate, their parents.'';
(2) in section 312(b)(1)(F) (20 U.S.C. 1058(b)(1)(F)), by
inserting ``which is'' before ``located'';
(3) in section 312(b)(1) (20 U.S.C. 1058(b)(1)), by
redesignating subparagraphs (E) and (F) as subparagraphs (F)
and (G), respectively, and by inserting after subparagraph (D)
the following new subparagraph:
``(E) which provides a program that is not less
than a 2-year educational program that is acceptable
for full credit toward a bachelor's degree;'';
(4) in section 316(b)(3) (20 U.S.C. 1059c(b)(3)), by
striking ``give'' and inserting ``given'';
(5) in section 316(c)(2) (20 U.S.C. 1059c(c)(2))--
(A) by redesignating subparagraphs (G) through (M)
(as redesignated by section 301(b)(2) of this Act) as
subparagraphs (H) through (N), respectively;
(B) by inserting after subparagraph (F) the
following:
``(G) education or counseling services designed to
improve the financial literacy and economic literacy of
students and, as appropriate, their parents;''; and
(C) in subparagraph (N), as redesignated by
subparagraph (A), by striking ``subparagraphs (A)
through (K)'' and inserting ``subparagraphs (A) through
(M)'';
(6) in section 317(c)(2) (20 U.S.C. 1059d(c)(2))--
(A) in subparagraph (G), by striking ``and'' after
the semicolon;
(B) in subparagraph (H), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(I) education or counseling services designed to
improve the financial literacy and economic literacy of
students and, as appropriate, their parents.'';
(7) in section 323(a) (20 U.S.C. 1062(a))--
(A) by striking ``section 360(a)(2)'' and inserting
``399(a)(2)'';
(B) by redesignating paragraphs (7) through (12) as
paragraphs (8) through (13), respectively; and
(C) by inserting after paragraph (6) the following:
``(7) Education or counseling services designed to improve
the financial literacy and economic literacy of students and,
as appropriate, their parents.'';
(8) in section 324(d)(2) (20 U.S.C. 1063(d)(2)), by
striking ``section 360(a)(2)(A)'' and inserting ``section
399(a)(2)(A)'';
(9) in section 326(e)(1) (20 U.S.C. 1063b(e)(1)), in the
matter preceding subparagraph (A), by inserting a colon after
``the following'';
(10) in section 327(b) (20 U.S.C. 1063c(b)), by striking
``initial'';
(11) in section 342(5)(C) (20 U.S.C. 1066a(5)(C))--
(A) by inserting a comma after ``equipment'' the
first place it appears; and
(B) by striking ``technology,,'' and inserting
``technology,'';
(12) in section 343(e) (20 U.S.C. 1066b(e)), by inserting
after the subsection designation the following: ``Sale of
Qualified Bonds.--'';
(13) in section 351(a) (20 U.S.C. 1067a(a)), by striking
``of 1979''; and
(14) in section 396 (20 U.S.C. 1068e), by striking
``section 360'' and inserting ``section 399''.
(b) Repeal.--Section 1024 (20 U.S.C. 1135b-3), as transferred by
section 301(a)(5) of the Higher Education Amendments of 1998 (Public
Law 105-244; 112 Stat. 1636), is repealed.
SEC. 305. TITLE III AUTHORIZATIONS.
Section 399(a) (20 U.S.C. 1068h(a)) is amended--
(1) by striking ``1999'' each place it appears and
inserting ``2005'';
(2) by striking ``4 succeeding fiscal years'' each place it
appears and inserting ``5 succeeding fiscal years'';
(3) in paragraph (1)--
(A) by striking ``$10,000,000'' in subparagraph (B)
and inserting ``$23,800,000''; and
(B) by striking ``$5,000,000'' in subparagraph (C)
and inserting ``$11,000,000'';
(4) in paragraph (2)--
(A) by striking ``$135,000,000'' in subparagraph
(A) and inserting ``$241,000,000''; and
(B) by striking ``$35,000,000'' in subparagraph (B)
and inserting ``$59,000,000''; and
(5) in paragraph (4), by striking ``$110,000'' and
inserting ``$212,000''.
TITLE IV--STUDENT ASSISTANCE
PART A--GRANTS TO STUDENTS
SEC. 401. PELL GRANTS.
(a) Extension of Authority.--Section 401(a) (20 U.S.C. 1070a(a)) is
amended by striking ``2004'' and inserting ``2011''.
(b) Direct Payment.--Section 401(a) (20 U.S.C. 1070a(a)) is further
amended--
(1) by striking paragraph (2); and
(2) by redesignating paragraph (3) as paragraph (2).
(c) Maximum Grant Extension.--Paragraph (2)(A) of section 401(b)
(20 U.S.C. 1070a(b)(2)(A)) is amended to read as follows:
``(2)(A) The amount of the Federal Pell Grant for a student
eligible under this part shall be $5,800 for academic years 2005-2006
through 2010-2011, less an amount equal to the amount determined to be
the expected family contribution with respect to that student for that
year.''.
(d) Tuition Sensitivity.--Section 401(b) is further amended--
(1) by striking paragraph (3); and
(2) by redesignating paragraphs (4) through (8) as
paragraphs (3) through (7), respectively.
(e) Multiple Grants.--Paragraph (5) of section 401(b) (as
redesignated by subsection (d)(2)) is amended to read as follows:
``(5) Year-round pell grants.--
``(A) In general.--The Secretary shall, for
students enrolled full time in a baccalaureate degree
program of study at an eligible institution, award such
students two Pell grants during a single award year to
permit such students to accelerate progress toward
their degree objectives by enrolling in academic
programs for 12 months rather than 9 months.
``(B) Limitation.--The Secretary shall limit the
awarding of additional Pell grants under this paragraph
in a single award year to students attending
baccalaureate degree granting institutions that have a
graduation rate as reported by the Integrated
Postsecondary Education Data System for the 4 preceding
academic years of at least 30 percent.
``(C) Evaluation.--The Secretary shall conduct an
evaluation of the program under this paragraph and
submit to the Congress an evaluation report no later
than October 1, 2010.
``(D) Regulations required.--The Secretary shall
promulgate regulations implementing this paragraph.''.
(f) Eligibility Period.--Section 401(c)(2) (20 U.S.C. 1070a(c)(2))
is amended by inserting ``, for not more than one academic year,''
after ``which are determined by the institution'' in the first
sentence.
(g) Pell Grants Plus: Achievement Grants for State Scholars
Program.--
(1) Amendment.--Subpart 1 of part A of title IV is amended
by inserting after section 401 (20 U.S.C. 1070a) the following
new section:
``SEC. 401A. PELL GRANTS PLUS: ACHIEVEMENT GRANTS FOR STATE SCHOLARS.
``(a) Grants Authorized.--From sums appropriated to carry out
section 401, the Secretary shall establish a program to award Pell
Grants Plus to students who--
``(1) have successfully completed a rigorous high school
program of study established by a State or local educational
agency in consultation with a State coalition assisted by the
Center for State Scholars;
``(2) are enrolled full-time in the first academic year of
undergraduate education, and have not been previously enrolled
in a program of undergraduate education; and
``(3) are eligible to receive Federal Pell Grants for the
year in which the grant is awarded.
``(b) Amount of Grants.--
``(1) In general.--Except as provided in paragraph (2), the
amount of the grant awarded under this section shall be $1,000.
``(2) Assistance not to exceed cost of attendance.--A grant
awarded under this section to any student, in combination with
the Federal Pell Grant assistance and other student financial
assistance available to such student, may not exceed the
student's cost of attendance.
``(c) Selection of Recipients.--
``(1) Procedures established by regulation.--The Secretary
shall establish by regulation procedures for the determination
of eligibility of students for the grants awarded under this
section. Such procedures shall include measures to ensure that
eligibility is determined in a timely and accurate manner
consistent with the requirements of section 482 and the
submission of the financial aid form required by section 483.
``(2) Required information.--Each eligible student desiring
an award under this section shall submit at such time and in
such manner such information as the Secretary may reasonably
require.
``(3) Continuation of grant requirements.--In order for a
student to continue to be eligible to receive an award under
this section for the second year of undergraduate education,
the eligible student must--
``(A) maintain eligibility to receive a Federal
Pell Grant for that year;
``(B) obtain a grade point average of at least 3.0
(or the equivalent as determined under regulations
prescribed by the Secretary) for the first year of
undergraduate education; and
``(C) be enrolled full-time and fulfill the
requirements for satisfactory progress described in
section 484(c).
``(d) Evaluation, and Reports.--The Secretary shall monitor the
progress, retention, and completion rates of the students to whom
awards are provided under this section. In doing so, the Secretary
shall evaluate the impact of the Pell Grants Plus Program and report,
not less than biennially, to the authorizing committees of the House of
Representatives and the Senate.''.
(2) Conforming amendment.--Chapter 3 of subpart 2 of part A
of title IV (20 U.S.C. 1070a-31 through 1070a-35) is repealed.
SEC. 402. TRIO PROGRAMS.
(a) Duration of Grants.--
(1) Amendment.--Section 402A(b)(2) (20 U.S.C. 1070a-
11(b)(2)) is amended to read as follows:
``(2) Duration.--Grants or contracts awarded under this
chapter shall be awarded for a period of 5 years, except that--
``(A) grants under section 402G shall be awarded
for a period of 2 years; and
``(B) grants under section 402H shall be awarded
for a period determined by the Secretary.''.
(2) Transition to synchronous grant periods.--
Notwithstanding section 402A(b)(2) of the Higher Education Act
of 1965 (as in effect both prior to and after the amendment
made by paragraph (1) of this subsection), the Secretary of
Education may continue an award made before the date of
enactment of this Act under section 402B, 402C, 402D, 402E, or
402F of such Act as necessary to permit all the awards made
under such a section to expire at the end of the same fiscal
year, and thereafter to expire at the end of 5 years as
provided in the amendment made by paragraph (1) of this
subsection.
(b) Minimum Grants.--Section 402A(b)(3) (20 U.S.C. 1070a-11(b)(3))
is amended to read as follows:
``(3) Minimum grants.--Unless the institution or agency
requests a smaller amount, individual grants for programs
authorized under this chapter shall be no less than $200,000,
except that individual grants for programs authorized under
section 402G shall be no less than $170,000.''.
(c) Prior Experience; Novice Applicants.--Section 402A(c)(2) (20
U.S.C. 1070a-11(c)(2)) is amended--
(1) by striking ``In making grants'' and inserting ``(A)
Subject to subparagraph (B), in making grants''; and
(2) by adding at the end the following new subparagraph:
``(B) From the amount available under subsection (f) for a
program under this chapter (other than a program under section
402G or 402H) for any fiscal year in which the Secretary
conducts a competition for the award of grants or contracts
under such program, the Secretary shall reserve 10 percent of
such available amount for purposes of funding applications from
novice applicants. If the Secretary determines that there are
an insufficient number of qualified novice applicants to
utilize the amount so reserved, the Secretary shall restore the
unutilized remainder of the amount reserved for use by
applicants qualifying under subparagraph (A).''.
(d) Application Status.--Section 402A(c) (20 U.S.C. 1070a-11(c)) is
amended by striking paragraph (7).
(e) Documentation of Status.--Section 402A(e) (20 U.S.C. 1070a-
11(e)) is amended by striking ``(g)(2)'' each place it appears in
paragraphs (1) and (2) and inserting ``(g)(4)''.
(f) Authorization of Appropriations.--Section 402A(f) (20 U.S.C.
1070a-11(f)) is amended by striking ``$700,000,000 for fiscal year
1999, and such sums as may be necessary for each of the 4 succeeding
fiscal years'' and inserting ``$835,000,000 for fiscal year 2005 and
such sums as may be necessary for each of the 5 succeeding fiscal
years''.
(g) Definition.--Section 402A(g) (20 U.S.C. 1070a-11(g)) is
amended--
(1) in paragraph (3), by striking ``by reason of such
individual's age'';
(2) by redesignating paragraphs (1) through (4) as
paragraphs (3) through (6), respectively; and
(3) by inserting before paragraph (3), as redesignated, the
following:
``(1) Different campus.--The term `different campus' means
an institutional site 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 entity seeks to serve through an application for funding
under this chapter, that--
``(A) is separate and distinct from any other
population that the entity seeks to serve through an
application for funding under this chapter; or
``(B) while sharing some of the same needs as
another population that the entity seeks to serve
through an application for funding under this chapter,
has distinct needs for specialized services.''.
(h) Education and Counseling Services.--Chapter 1 of subpart 2 of
part A of title IV is further amended--
(1) in section 402B(b) (20 U.S.C. 1070a-12(b))--
(A) by redesignating paragraphs (3) through (10) as
paragraphs (4) through (11), respectively;
(B) by inserting after paragraph (2) the following:
``(3) education or counseling services designed to improve
the financial literacy and economic literacy of students and,
as appropriate, their parents;''; and
(C) in paragraph (11), as redesignated by
subparagraph (A), by striking ``paragraphs (1) through
(9)'' and inserting ``paragraphs (1) through (10)''.
(2) in section 402C (20 U.S.C. 1070a-13)--
(A) in subsection (b)--
(i) by redesignating paragraphs (2) through
(12) as paragraphs (3) through (13),
respectively;
(ii) by inserting after paragraph (1) the
following:
``(2) education or counseling services designed to improve
the financial literacy and economic literacy of students and,
as appropriate, their parents;''; and
(iii) in paragraph (13), as redesignated by
clause (i), by striking ``paragraphs (1)
through (11)'' and inserting ``paragraphs (1)
through (12)''; and
(B) in subsection (e), by striking ``subsection
(b)(10)'' and inserting ``subsection (b)(11)'';
(3) in section 402D(b) (20 U.S.C. 1070a-14(b))--
(A) by redesignating paragraphs (2) through (10) as
paragraphs (3) through (11), respectively;
(B) by inserting after paragraph (1) the following:
``(2) education or counseling services designed to improve
the financial literacy and economic literacy of students and,
as appropriate, their parents;''; and
(C) in paragraph (11), as redesignated by
subparagraph (A), by striking ``paragraphs (1) through
(9)'' and inserting ``paragraphs (1) through (10)'';
(4) in section 402E(b) (20 U.S.C. 1070a-15(b))--
(A) by redesignating paragraphs (7) and (8) as
paragraphs (8) and (9), respectively; and
(B) by inserting after paragraph (6) the following:
``(7) education or counseling services designed to improve
the financial literacy and economic literacy of students and,
as appropriate, their parents;'';
(5) in section 402F(b) (20 U.S.C. 1070a-16(b)) --
(A) by redesignating paragraphs (4) through (10) as
paragraphs (5) through (11), respectively;
(B) by inserting after paragraph (3) the following:
``(4) education or counseling services designed to improve
the financial literacy and economic literacy of students and,
as appropriate, their parents;''; and
(C) in paragraph (11), as redesignated by
subparagraph (A), by striking ``paragraphs (1) through
(9)'' and inserting ``paragraphs (1) through (10)''.
(i) Maximum Stipends.--Section 402C(e) (20 U.S.C. 1070a-13(e)) is
amended--
(1) by striking ``$60'' and inserting ``$100''; and
(2) by striking ``$40'' and inserting ``$60''.
(j) Student Support Services.--Section 402D(d)(6) (20 U.S.C. 1070a-
14(d)(6)) is amended--
(1) by striking ``and'' at the end of subparagraph (A);
(2) by striking the period at the end of subparagraph (B)
and inserting ``; and''; and
(3) by inserting after subparagraph (B) the following new
subparagraph:
``(C) working with other entities that serve low-
income working adults to increase access to and
successful progress in postsecondary education by low-
income working adults seeking their first postsecondary
degree or certificate.''.
(k) Postbaccalaureate Achievement Maximum Stipends.--Section
402E(e)(1) (20 U.S.C. 1070a-15(e)(1)) is amended by striking ``$2,800''
and inserting ``$5,000''.
(l) Educational Opportunity Centers: Application Approval.--Section
402F(c) (20 U.S.C. 1070a-16(c)) is amended--
(1) by striking ``and'' at the end of paragraph (2);
(2) by striking the period at the end of paragraph (3) and
inserting ``; and''; and
(3) by inserting after paragraph (3) the following new
paragraph:
``(4) consider the extent to which the proposed project
would provide services to low-income working adults in the
region to be served, in order to increase access to
postsecondary education by low-income working adults.''.
SEC. 403. GEARUP.
(a) Duration of Awards.--Section 404A(b) (20 U.S.C. 1070a-21(b)) is
amended--
(1) in paragraph (2)(B), by striking ``Higher Education
Amendments of 1998'' and inserting ``College Access and
Opportunity Act of 2004''; and
(2) by adding at the end thereof the following new
paragraph:
``(3) Duration.--An award made by the Secretary under this
chapter to an eligible entity described in paragraph (1) or (2)
of subsection (c) shall be for the period of 6 years.''.
(b) Continuing Eligibility.--Section 404A (20 U.S.C. 1070a-21) is
amended by adding at the end the following new subsection:
``(d) Continuing Eligibility.--An eligible entity shall not cease
to be an eligible entity upon the expiration of any grant under this
chapter (including a continuation award).''.
(c) Continuity of Service.--
(1) Cohort approach.--Section 404B(g)(1)(B) (20 U.S.C.
1070a-22(g)(1)(B)) is amended by inserting ``and provide the
option of continued services through the student's first year
of attendance at an eligible institution of higher education''
after ``grade level''.
(2) Early intervention.--Section 404D (20 U.S.C. 1070a-24)
is amended--
(A) in subsection (b)(2)(A), by inserting ``and
students in the first year of attendance at an eligible
institution of higher education'' after ``grade 12'';
and
(B) in subsection (c), by inserting ``and may
consider students in their first year of attendance at
an eligible institution who is eligible'' after ``grade
12''.
(d) Coordination.--Section 404C(a)(2) (20 U.S.C. 1070a-23(a)(2)) is
amended--
(1) by striking ``and'' at the end of subparagraph (A);
(2) by redesignating subparagraph (B) as subparagraph (C);
and
(3) by inserting after subparagraph (A) the following new
subparagraph:
``(B) describe activities for coordinating,
complementing, and enhancing services under this
chapter provided by other eligible entities in the
State; and''.
(e) Education and Counseling Services.--Section 404D(b)(2)(A)(ii)
(20 U.S.C. 1070a-24(b)(2)(A)(ii)) is amended by striking ``and academic
counseling'' and inserting ``academic counseling, and financial
literacy and economic literacy education or counseling''.
(f) Reauthorization.--Section 404H (20 U.S.C. 1070a-28) is amended
by striking ``$200,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years'' and inserting
``$300,000,000 for fiscal year 2005 and such sums as may be necessary
for each of the 5 succeeding fiscal years''.
SEC. 404. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS.
(a) Authorization of Appropriations.--Section 413A(b)(1) (20 U.S.C.
1070b(b)(1)) is amended by striking ``$675,000,000 for fiscal year 1999
and such sums as may be necessary for the 4 succeeding fiscal years''
and inserting ``$770,500,000 for fiscal year 2005 and such sums as may
be necessary for the 5 succeeding fiscal years''.
(b) Phaseout of Allocation Based on Previous Allocations.--
(1) Amendment.--Subsection (a) of section 413D (20 U.S.C.
1070b-3(a)) is amended to read as follows:
``(a) Allocation Based on Previous Allocation.--
``(1) Base guarantee.--From the amount appropriated
pursuant to section 413A(b) for each fiscal year after fiscal
year 2006, the Secretary shall, subject to paragraph (2), first
allocate to each eligible institution an amount equal to the
following percentage of the amount such institution received
under subsection (a) of this section for fiscal year 2006 (as
such subsection was in effect with respect to allocations for
such fiscal year):
``(A) 80 percent for fiscal years 2007 and 2008;
``(B) 60 percent for fiscal years 2009 and 2010;
``(C) 40 percent for fiscal years 2011 and 2012;
``(D) 20 percent for fiscal years 2013 and 2014;
and
``(E) 0 percent for fiscal year 2015 and any
succeeding fiscal year.
``(2) Ratable reductions for insufficient appropriations.--
``(A) Reduction of base guarantee.--If the amount
appropriated for any fiscal year is less than the
amount required to be allocated to all institutions
under this subsection, then the amount of the
allocation to each such institution shall be ratably
reduced.
``(B) Additional appropriations allocation.--If
additional amounts are appropriated for any such fiscal
year, such reduced amounts shall be increased on the
same basis as they were reduced (until the amount
allocated equals the amount required to be allocated
under this subsection).
``(3) Additional allocations for certain institutions.----
``(A) Allocations permitted.--Notwithstanding any
other provision of this section, the Secretary may
allocate an amount equal to not more than 10 percent of
the amount by which the amount appropriated in any
fiscal year to carry out this subpart exceeds
$700,000,000 among eligible institutions described in
subparagraph (B).
``(B) Eligible institutions.--For purposes of
subparagraph (A)--
``(i) an eligible institution that is a 4-
year institution may receive an allocation
under subparagraph (A) if more than 50 percent
of the students who are degree-seeking Pell
Grant recipients attending such institution
graduate within 4 calendar years of the first
day of enrollment; and
``(ii) an eligible institution that is a 2-
year institution may receive an allocation
under subparagraph (A) if more than 50 percent
of the students who are degree-seeking Pell
Grant recipients attending such institution
graduate within 2 calendar years of the first
day of enrollment.''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to any amounts appropriated under
section 413A(b) of the Higher Education Act of 1965 (20 U.S.C.
1070b(b)) for fiscal year 2007 or any succeeding fiscal year.
(c) Books and Supplies.--Section 413D(c)(3)(D) (20 U.S.C. 1070-
3(c)(3)(D)) is amended by striking ``$450'' and inserting ``$600''.
SEC. 405. LEAP.
Section 415A(b)(1) (20 U.S.C. 1070c(b)(1)) is amended--
(1) by striking ``1999'' and inserting ``2005''; and
(2) by striking ``4 succeeding'' and inserting ``5
succeeding''.
SEC. 406. HEP/CAMP PROGRAM.
Section 418A (20 U.S.C. 1070d-2) is amended--
(1) in subsection (b)(1)(B)(i), by inserting ``, or whose
spouse'' after ``themselves'';
(2) in subsection (b)(3)(B), by inserting ``, including
preparation for college entrance exams,'' after ``program'';
(3) in subsection (b)(8), by inserting ``, including child
care and transportation'' after ``supportive services'';
(4) by striking ``and'' at the end of subsection (b)(7), by
striking the period at the end of subsection (b)(8) and
inserting ``; and'', and by adding at the end of subsection (b)
the following new paragraph:
``(9) follow-up activity and reporting requirements, except
that not more than 2 percent of the funds provided under this
section may be used for such purposes.'';
(5) in subsection (c)(1)(A), by inserting ``, or whose
spouse'' after ``themselves'';
(6) in subsection (c)(1)(B), by striking clause (i) and
inserting the following:
``(i) personal, academic, career, and economic
education or personal finance counseling as an ongoing
part of the program;'';
(7) in subsection (c)(2)(B), by inserting ``(including
mentoring and guidance of such students)'' after ``services'';
(8) in subsection (c)(2), by striking ``and'' at the end of
subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``; and'', and by adding at the
end of subsection (c)(2) the following new subparagraph:
``(C) for students in any program that does not
award a bachelor's degree, encouraging the transfer to,
and persistence in, such a program, and monitoring the
rate of such transfer, persistence, and completion.'';
and
(9) in subsection (h)--
(A) in paragraph (1), by striking ``$15,000,000 for
fiscal year 1999 and such sums as may be necessary for
each of the 4 succeeding fiscal years'' and inserting
``$24,000,000 for fiscal year 2005 and such sums as may
be necessary for each of the 5 succeeding fiscal
years''; and
(B) in paragraph (2), by striking ``$5,000,000 for
fiscal year 1999 and such sums as may be necessary for
each of the 4 succeeding fiscal years'' and inserting
``$16,000,000 for fiscal year 2005 and such sums as may
be necessary for each of the 5 succeeding fiscal
years''.
SEC. 407. BYRD SCHOLARSHIP.
Section 419K (20 U.S.C. 1070d-41) is amended--
(1) by striking ``1999'' and inserting ``2005''; and
(2) by striking ``4 succeeding'' and inserting ``5
succeeding''.
SEC. 408. CHILD CARE ACCESS.
Section 419N(g) (20 U.S.C. 1070e(g)) is amended--
(1) by striking ``1999'' and inserting ``2005''; and
(2) by striking ``4 succeeding'' and inserting ``5
succeeding''.
SEC. 409. LEARNING ANYTIME ANYWHERE PARTNERSHIPS.
(a) Repeal.--Subpart 8 of part A of title IV (20 U.S.C. 1070f--
1070f-6) is repealed.
(b) Conforming Amendment.--Section 400(b) (20 U.S.C. 1070(b)) is
amended by striking ``through 8'' and inserting ``through 7''.
SEC. 410. TECHNICAL AMENDMENTS.
Part A of title IV is further amended as follows:
(1) Section 419C(b)(1) (20 U.S.C. 1070d-33(b)(1)) is
amended by inserting ``and'' after the semicolon at the end
thereof.
(2) Section 419D(d) (20 U.S.C. 1070d-34(d)) is amended by
striking ``Public Law 95-1134'' and inserting ``Public Law 95-
134''.
PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM
SEC. 421. REAUTHORIZATION OF FEDERAL FAMILY EDUCATION LOAN PROGRAM.
(a) Authorization of Appropriations.--Section 421(b)(5) (20 U.S.C.
1071(b)(5)) is amended by striking ``administrative cost allowance''
and inserting ``loan processing and issuance fee''.
(b) Extension of Authority.--
(1) Federal insurance limitations.--Section 424(a) (20
U.S.C. 1074(a)) is amended--
(A) by striking ``2004'' and inserting ``2011'';
and
(B) by striking ``2008'' and inserting ``2015''.
(2) Guaranteed loans.--Section 428(a)(5) (20 U.S.C.
1078(a)(5)) is amended--
(A) by striking ``2004'' and inserting ``2011'';
and
(B) by striking ``2008'' and inserting ``2015''.
(3) Consolidation loans.--Section 428C(e) (20 U.S.C. 1078-
3(e)) is amended by striking ``2004'' and inserting ``2011''.
SEC. 422. LOAN LIMITS.
(a) Federal Insurance Limits.--Section 425(a)(1)(A) (20 U.S.C.
1075(a)(1)(A)) is amended--
(1) in clause (i)(I), by striking ``$2,625'' and inserting
``$3,500''; and
(2) in clause (ii)(I), by striking ``$3,500'' and inserting
``$4,500''.
(b) Guarantee Limits.--Section 428(b)(1)(A) (20 U.S.C.
1078(b)(1)(A)) is amended--
(1) in clause (i)(I), by striking ``$2,625'' and inserting
``$3,500''; and
(2) in clause (ii)(I), by striking ``$3,500'' and inserting
``$4,500''.
(c) Counting of Consolidation Loans Against Limits.--Section
428C(a)(3)(B) (20 U.S.C. 1078-3(a)(3)(B)) is amended by adding at the
end the following new clause:
``(ii) Loans made under this section shall, to the extent
used to discharge loans made under this title, be counted
against the applicable limitations on aggregate indebtedness
contained in sections 425(a)(2), 428(b)(1)(B), 428H(d), 455,
and 464(a)(2)(B).''.
(d) Effective Date.--The amendments made by this section shall
apply with respect to any loan made, insured, or guaranteed under part
B or part D of title IV of the Higher Education Act of 1965 for which
the first disbursement of principal is made on or after July 1, 2006.
SEC. 423. INTEREST RATES AND SPECIAL ALLOWANCES.
(a) FFEL Interest Rate.--Section 427A (20 U.S.C. 1077a(k)) is
amended--
(1) in subsection (k)--
(A) by striking ``, and Before July 1, 2006'' in
the heading of such subsection; and
(B) by striking ``, and before July 1, 2006,'' each
place it appears other than paragraph (4);
(2) by striking subsection (l); and
(3) by redesignating subsections (m) and (n) as subsections
(l) and (m), respectively.
(b) Direct Loan Interest Rates.--Section 455(b) (20 U.S.C.
1087e(b)) is amended--
(1) in paragraph (6)--
(A) by striking ``, and before July 1, 2006'' in
the heading of such paragraph; and
(B) by striking ``, and before July 1, 2006,'' each
place it appears other than subparagraph (D);
(2) by striking paragraph (7); and
(3) by redesignating paragraphs (8) and (9) as paragraphs
(7) and (8), respectively.
(c) Consolidation Loans.--
(1) FFEL consolidation loans.--Section 427A(k) (20 U.S.C.
1077a(k)) is further amended--
(A) by redesignating paragraph (5) as paragraph
(6); and
(B) by inserting after paragraph (4) the following
new paragraph:
``(5) Variable rate for consolidation loans.--With respect
to any consolidation loan under section 428C for which the
application is received by an eligible lender on or after July
1, 2006, the applicable rate of interest shall, during any 12-
month period beginning on July 1 and ending on June 30, be
determined on the preceding June 1 and be equal to--
``(A) the bond equivalent rate of 91-day Treasury
bills auctioned at the final auction held prior to such
June 1; plus
``(B) 2.3 percent,
except that such rate shall not exceed 8.25 percent, and the
rate determined under paragraph (3) shall apply in lieu of the
rate determined under this paragraph in the case of any such
consolidation loan that is used to repay loans each of which
was made under section 428B or was a Federal Direct PLUS Loan
(or both).''.
(2) Direct consolidation loans.--Section 455(b)(6) (20
U.S.C. 1087e(b)(6)) is further amended--
(A) by redesignating subparagraph (E) as
subparagraph (F); and
(B) by inserting after subparagraph (D) the
following new subparagraph:
``(E) Variable rate for consolidation loans.--With
respect to any Federal Direct Consolidation loan for
which the application is received on or after July 1,
2006, the applicable rate of interest shall, during any
12-month period beginning on July 1 and ending on June
30, be determined on the preceding June 1 and be equal
to--
``(i) the bond equivalent rate of 91-day
Treasury bills auctioned at the final auction
held prior to such June 1; plus
``(ii) 2.3 percent,
except that such rate shall not exceed 8.25 percent,
and the rate determined under subparagraph (C) shall
apply in lieu of the rate determined under this
subparagraph in the case of any such consolidation loan
that is used to repay loans each of which was made
under section 428B or was a Federal Direct PLUS Loan
(or both).''.
(d) Consolidation Loan Conforming Amendment.--Section
428C(c)(1)(A)(ii) (20 U.S.C. 1078-3(c)(1)(A)(ii)) is amended by
striking ``section 427A(l)(3)'' and inserting ``section 427A(k)(5)''.
(e) Conforming Amendments for Special Allowances.--
(1) Amendment.--Subparagraph (I) of section 438(b)(2) (20
U.S.C. 1087-1(b)(2)) is amended--
(A) by striking clause (ii) and inserting the
following:
``(ii) In school and grace period.--In the
case of any loan for which the first
disbursement is made on or after January 1,
2000, and for which the applicable interest
rate is described in section 427A(k)(2), clause
(i)(III) of this subparagraph shall be applied
by substituting `1.74 percent' for `2.34
percent'.'';
(B) in clause (iii)--
(i) by striking ``or (l)(2)''; and
(ii) by striking ``, subject to clause (v)
of this subparagraph'';
(C) in clause (iv)--
(i) by striking ``or (l)(3)'' and inserting
``or (k)(5)''; and
(ii) by striking ``, subject to clause (vi)
of this subparagraph''; and
(D) by striking clauses (v), (vi), and (vii) and
inserting the following:
``(v) Recapture of excess interest.--
``(I) Excess credited.--With
respect to a loan on which the
applicable interest rate is determined
under section 427A(k) and for which the
first disbursement of principal is made
on or after July 1, 2005, if the
applicable interest rate for any 3-
month period exceeds the special
allowance rate applicable to such loan
under this subparagraph for such
period, then an adjustment shall be
made by calculating the excess interest
in the amount computed under subclause
(II) of this clause, and by crediting
the excess interest to the Government
not less often than annually.
``(II) Calculation of excess.--The
amount of any adjustment of interest on
a loan to be made under this subsection
for any quarter shall be equal to--
``(aa) the applicable
interest rate minus the special
allowance rate determined under
this subparagraph; multiplied
by
``(bb) the average daily
principal balance of the loan
(not including unearned
interest added to principal)
during such calendar quarter;
divided by
``(cc) four.''.
(2) Effective date.--The amendments made by this subsection
shall not apply with respect to any special allowance payment
made under section 438 of the Higher Education Act of 1965 (20
U.S.C 1087-1) before July 1, 2005.
(f) Special Allowance for Loans From the Proceeds of Tax Exempt
Issues.--Section 438(b)(2)(B) (20 U.S.C. 1087-1(b)(2)(B)) is amended--
(1) in clause (i), by striking ``this division'' and
inserting ``this clause'';
(2) in clause (ii), by striking ``division (i) of this
subparagraph'' and inserting ``clause (i) of this
subparagraph'';
(3) in clause (iv), by inserting ``or refunded after May 5,
2004,'' after ``October 1, 1993,''; and
(4) by adding at the end the following new clause:
``(v) Notwithstanding clauses (i) and (ii), the quarterly
rate of the special allowance shall be the rate determined
under subparagraph (A), (E), (F), (G), (H), or (I) of this
paragraph, or paragraph (4), as the case may be, for a holder
of loans that--
``(I) were made or purchased with funds--
``(aa) obtained from the issuance of
obligations the income from which is excluded
from gross income under the Internal Revenue
Code of 1986 and which obligations were
originally issued before October 1, 1993; or
``(bb) obtained from collections or default
reimbursements on, or interests or other income
pertaining to, eligible loans made or purchased
with funds described in division (aa), or from
income on the investment of such funds; and
``(II) were--
``(aa) financed by such an obligation that
has matured, or been retired or defeased;
``(bb) refinanced after May 5, 2004, with
funds obtained from a source other than funds
described in subclause (I) of this clause; or
``(cc) sold or transferred to any other
holder.''.
SEC. 424. ADDITIONAL LOAN TERMS AND CONDITIONS.
(a) Disbursement.--Section 428(b)(1)(N) (20 U.S.C.
1078(b)(1)(N)(ii)) is amended--
(1) by striking ``or'' at the end of clause (i); and
(2) by striking clause (ii) and inserting the following:
``(ii) in the case of a student who is
studying outside the United States in a program
of study abroad that is approved for credit by
the home institution at which such student is
enrolled, are, at the request of the student,
disbursed directly to the student by the means
described in clause (i), unless such student
requests that the check be endorsed, or the
funds transfer authorized, pursuant to an
authorized power-of-attorney; or
``(iii) in the case of a student who is
studying outside the United States in a program
of study at an eligible foreign institution,
are, at the request of the foreign institution,
disbursed directly to the student by the means
described in clause (i).''.
(b) Repayment Plans.--
(1) FFEL loans.--Section 428(b)(9)(A) (20 U.S.C.
1078(b)(9)(A)) is amended--
(A) by inserting before the semicolon at the end of
clause (ii) the following: ``, and the Secretary may
not restrict the proportions or ratios by which such
payments may be graduated with the informed agreement
of the borrower'';
(B) by striking ``and'' at the end of clause (iii);
(C) by redesignating clause (iv) as clause (v); and
(D) by inserting after clause (iii) the following
new clause:
``(iv) a delayed repayment plan under which
the borrower makes scheduled payments for not
more than 2 years that are annually not less
than the amount of interest due or $300,
whichever is greater, and then makes payments
in accordance with clause (i), (ii), or (iii);
and''.
(2) Direct loans.--Section 455(d)(1) (20 U.S.C.
1087e(d)(1)) is amended--
(A) by redesignating subparagraph (D) as
subparagraph (E); and
(B) by striking subparagraphs (A), (B), and (C) and
inserting the following:
``(A) a standard repayment plan, consistent with
subsection (a)(1) of this section and with section
428(b)(9)(A)(i);
``(B) a graduated repayment plan, consistent with
section 428(b)(9)(A)(ii);
``(C) an extended repayment plan, consistent with
section 428(b)(9)(A)(iv), except that the borrower
shall annually repay a minimum amount determined by the
Secretary in accordance with section 428(b)(1)(L);
``(D) a delayed repayment plan under which the
borrower makes scheduled payments for not more than 2
years that are annually not less than the amount of
interest due or $300, whichever is greater, and then
makes payments in accordance with subparagraph (A),
(B), or (C); and''.
(c) Origination Fees.--
(1) Amendments.--Paragraph (2) of section 438(c) (20 U.S.C.
1087-1(c)) is amended--
(A) by striking the designating and heading of such
paragraph and inserting the following:
``(2) Amount of origination fees.--
``(A) In general.--''; and
(B) by adding at the end the following new
subparagraphs:
``(B) Subsequent reductions.--Subparagraph (A)
shall be applied to loans made under this part other
than loans made under sections 428C and 439(o)--
``(i) by substituting `2.0 percent' for
`3.0 percent' with respect to loans for which
the first disbursement of principal is made on
or after July 1, 2006, and before July 1, 2008;
``(ii) by substituting `1.5 percent' for
`3.0 percent' with respect to loans for which
the first disbursement of principal is made on
or after July 1, 2008, and before July 1, 2010;
and
``(iii) by substituting `1.0 percent' for
`3.0 percent' with respect to loans for which
the first disbursement of principal is made on
or after July 1, 2010.''.
(2) Conforming amendment to direct loan program.--
Subsection (c) of section 455 (20 U.S.C. 1087e(c)) is amended
to read as follows:
``(c) Loan Fee.--
``(1) In general.--The Secretary shall charge the borrower
of a loan made under this part an origination fee of 4.0
percent of the principal amount of loan.
``(2) Subsequent reductions.--Paragraph (1) shall be
applied to loans made under this part other than consolidation
loans and PLUS loans--
``(A) by substituting `2.0 percent' for `4.0
percent' with respect to loans for which the first
disbursement of principal is made on or after July 1,
2006, and before July 1, 2008;
``(B) by substituting `1.5 percent' for `4.0
percent' with respect to loans for which the first
disbursement of principal is made on or after July 1,
2008, and before July 1, 2010; and
``(C) by substituting `1.0 percent' for `4.0
percent' with respect to loans for which the first
disbursement of principal is made on or after July 1,
2010.''.
SEC. 425. CONSOLIDATION LOAN CHANGES.
(a) Amendments.--Section 428C (20 U.S.C. 1078-3) is amended--
(1) in subsection (a)(3), by striking subparagraph (C); and
(2) in subsection (b)(1)--
(A) by striking everything after ``under this
section'' the first place it appears in subparagraph
(A) and inserting the following: ``and that, if all the
borrower's loans under this part are held by a single
holder, the borrower has notified such holder that the
borrower is seeking to obtain a consolidation loan
under this section;'';
(B) by striking ``(i) which'' and all that follows
through ``and (ii)'' in subparagraph (C);
(C) by striking ``and'' at the end of subparagraph
(E);
(D) by redesignating subparagraph (F) as
subparagraph (G); and
(E) by inserting after subparagraph (E) the
following new subparagraph:
``(F) that the lender of the consolidation loan
shall, upon application for such loan, provide the
borrower with a clear and conspicuous notice of at
least the following information:
``(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
loan forgiveness, cancellation, and deferment;
``(iii) 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;
``(iv) the tax benefits for which borrowers
may be eligible;
``(v) the consequences of default; and
``(vi) that by making the application the
applicant is not obligated to agree to take the
consolidation loan; and''.
(b) Effective Date for Single Holder Amendment.--The amendment made
by subsection (a)(2)(A) shall apply with respect to any loan made under
section 428C of the Higher Education Act of 1965 (20 U.S.C. 1078-3) for
which the application is received by an eligible lender on or after
July 1, 2006.
(c) Conforming Amendments to Direct Loan Program.--
(1) Parallel terms, conditions, benefits, and amounts.--
Section 455(a)(1) (20 U.S.C. 1087e(a)(1)) is amended by
inserting ``428C,'' after ``428B,''.
(2) Disclosure.--Section 455(g) (20 U.S.C. 1087e(g)) is
amended by adding at the end the following new sentences: ``The
Secretary, upon application for such a loan, shall comply with
the requirements applicable to a lender under 428C(b)(1)(F).''
SEC. 426. UNSUBSIDIZED STAFFORD LOANS.
(a) Amendment.--Section 428H(d)(2)(C) (20 U.S.C. 1078-8(d)(2)(C))
is amended by striking ``$10,000'' and inserting ``$12,000''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to loans for which the first disbursement of principal is made on
or after July 1, 2006.
SEC. 427. TEACHER RECRUITMENT AND RETENTION.
(a) Increased Qualified Loan Amounts.--
(1) FFEL loans.--Section 428J(c) (20 U.S.C. 1078-10(c)) is
amended by adding at the end the following new paragraph:
``(3) Increased amounts for teachers in mathematics,
science, or special education, and reading specialists.--
``(A) Service qualifying for increased amounts.--
Notwithstanding the amount specified in paragraph (1),
the aggregate amount that the Secretary shall repay
under this section shall not be more than $17,500 in
the case of--
``(i) a secondary school teacher--
``(I) who meets the requirements of
subsection (b), subject to subparagraph
(D) of this paragraph; and
``(II) whose qualifying employment
for purposes of such subsection has
been teaching mathematics or science on
a full-time basis;
``(ii) an elementary or secondary school
teacher--
``(I) who meets the requirements of
subsection (b), subject to subparagraph
(D) of this paragraph;
``(II) whose qualifying employment
for purposes of such subsection has
been as a special education teacher
whose primary responsibility is to
provide special education to children
with disabilities (as those terms are
defined in section 602 of the
Individuals with Disabilities Act); and
``(III) who, as certified by the
chief administrative officer of the
public or nonprofit private elementary
or secondary school in which the
borrower is employed, is teaching
children with disabilities that
correspond with the borrower's special
education training and has demonstrated
knowledge and teaching skills in the
content areas of the elementary or
secondary school curriculum that the
borrower is teaching; and
``(iii) an elementary or secondary school
teacher who primarily teaches reading and--
``(I) who meets the requirements of
subsection (b), subject to subparagraph
(D) of this paragraph;
``(II) who has obtained a separate
reading instruction credential from the
State in which the teacher is employed;
and
``(III) who is certified by the
chief administrative officer of the
public or nonprofit private elementary
or secondary school in which the
borrower is employed to teach reading--
``(aa) as being proficient
in teaching the essential
components of reading
instruction as defined in
section 1208 of the Elementary
and Secondary Education Act of
1965; and
``(bb) as having such
credential.
``(B) Accelerated payment.--Notwithstanding the
requirements of subsection (b)(1) and paragraph (1) of
this subsection that 5 consecutive complete years of
service have been completed prior to the receipt of
loan forgiveness, in the case of service described in
subparagraph (A) of this paragraph, the Secretary shall
repay a portion of a borrower's loan obligation
outstanding at the commencement of the qualifying
service under this subsection, not to exceed a total of
$17,500, in the following increments:
``(i) up to $1,750, or 10 percent of such
outstanding loan obligation, whichever is less,
at the completion of the second year of such
service;
``(ii) up to $2,625, or 15 percent of such
outstanding loan obligation, whichever is less,
at the completion of the third year of such
service;
``(iii) up to $4,375, or 25 percent of such
outstanding loan obligation, whichever is less,
at the completion of the fourth year of such
service; and
``(iv) up to $8,750, or 50 percent of such
outstanding loan obligation, whichever is less,
at the completion of the fifth year of such
service.
``(C) Promise to complete service required for
accelerated payment.--Any borrower who receives
accelerated payment under this paragraph shall enter
into an agreement to continue in the qualifying service
for not less than 5 consecutive complete school years,
or, upon a failure to complete such 5 years, to repay
the United States, in accordance with regulations
prescribed by the Secretary, the amount of the loans
repaid by the Secretary under this paragraph, together
with interest thereon and, to the extent required in
such regulations, the reasonable costs of collection.
Such regulations may provide for waiver by the
Secretary of such repayment obligations upon proof of
economic hardship as specified in such regulations.
``(D) Higher poverty enrollment required.--In order
to qualify for an increased repayment amount under this
paragraph, section 465(a)(2)(A) shall, for purposes of
subsection (b)(1)(A) of this section, be applied by
substituting `40 percent of the total enrollment' for
`30 percent of the total enrollment'.''.
(2) Direct loans.--Section 460(c) (20 U.S.C. 1087j(c)) is
amended by adding at the end the following new paragraph:
``(3) Increased amounts for teachers in mathematics,
science, or special education, and reading specialists.--
``(A) Service qualifying for increased amounts.--
Notwithstanding the amount specified in paragraph (1),
the aggregate amount that the Secretary shall repay
under this section shall not be more than $17,500 in
the case of--
``(i) a secondary school teacher--
``(I) who meets the requirements of
subsection (b)(1), subject to
subparagraph (D) of this paragraph; and
``(II) whose qualifying employment
for purposes of such subsection has
been teaching mathematics or science on
a full-time basis;
``(ii) an elementary or secondary school
teacher--
``(I) who meets the requirements of
subsection (b)(1), subject to
subparagraph (D) of this paragraph;
``(II) whose qualifying employment
for purposes of such subsection has
been as a special education teacher
whose primary responsibility is to
provide special education to children
with disabilities (as those terms are
defined in section 602 of the
Individuals with Disabilities Act); and
``(III) who, as certified by the
chief administrative officer of the
public or nonprofit private elementary
or secondary school in which the
borrower is employed, is teaching
children with disabilities that
correspond with the borrower's special
education training and has demonstrated
knowledge and teaching skills in the
content areas of the elementary or
secondary school curriculum that the
borrower is teaching; and
``(iii) an elementary or secondary school
teacher who primarily teaches reading and--
``(I) who meets the requirements of
subsection (b), subject to subparagraph
(D) of this paragraph;
``(II) who has obtained a separate
reading instruction credential from the
State in which the teacher is employed;
and
``(III) who is certified by the
chief administrative officer of the
public or nonprofit private elementary
or secondary school in which the
borrower is employed to teach reading--
``(aa) as being proficient
in teaching the essential
components of reading
instruction as defined in
section 1208 of the Elementary
and Secondary Education Act of
1965; and
``(bb) as having such
credential.
``(B) Accelerated payment.--Notwithstanding the
requirements of subsection (b)(1)(A) and paragraph (1)
of this subsection that 5 consecutive complete years of
service have been completed prior to the receipt of
loan forgiveness, in the case of service described in
subparagraph (A) of this paragraph, the Secretary shall
repay a portion of a borrower's loan obligation
outstanding at the commencement of the qualifying
service under this subsection, not to exceed a total of
$17,500, in the following increments:
``(i) up to $1,750, or 10 percent of such
outstanding loan obligation, whichever is less,
at the completion of the second year of such
service;
``(ii) up to $2,625, or 15 percent of such
outstanding loan obligation, whichever is less,
at the completion of the third year of such
service;
``(iii) up to $4,375, or 25 percent of such
outstanding loan obligation, whichever is less,
at the completion of the fourth year of such
service; and
``(iv) up to $8,750, or 50 percent of such
outstanding loan obligation, whichever is less,
at the completion of the fifth year of such
service.
``(C) Promise to complete service required for
accelerated payment.--Any borrower who receives
accelerated payment under this paragraph shall enter
into an agreement to continue in the qualifying service
for not less than 5 consecutive complete school years,
or, upon a failure to complete such 5 years, to repay
the United States, in accordance with regulations
prescribed by the Secretary, the amount of the loans
repaid by the Secretary under this paragraph, together
with interest thereon and, to the extent required in
such regulations, the reasonable costs of collection.
Such regulations may provide for waiver by the
Secretary of such repayment obligations upon proof of
economic hardship as specified in such regulations.
``(D) Higher poverty enrollment required.--In order
to qualify for an increased repayment amount under this
paragraph, section 465(a)(2)(A) shall, for purposes of
subsection (b)(1)(A)(i) of this section, be applied by
substituting `40 percent of the total enrollment' for
`30 percent of the total enrollment'.''.
(b) Implementing Highly Qualified Teacher Requirements.--
(1) Amendments.--
(A) FFEL loans.--Section 428J(b)(1) (20 U.S.C.
1078-10(b)(1)) is amended--
(i) by inserting ``and'' after the
semicolon at the end of subparagraph (A); and
(ii) by striking subparagraphs (B) and (C)
and inserting the following:
``(B) if employed as an elementary or secondary
school teacher, is highly qualified as defined in
section 9101(23) of the Elementary Secondary Education
Act of 1965; and''.
(B) Direct loans.--Section 460(b)(1)(A) (20 U.S.C.
1087j(b)(1)(A)) is amended--
(i) by inserting ``and'' after the
semicolon at the end of clause (i); and
(ii) by striking clauses (ii) and (iii) and
inserting the following:
``(ii) if employed as an elementary or
secondary school teacher, is highly qualified
as defined in section 9101(23) of the
Elementary Secondary Education Act of 1965;
and''.
(2) Transition rule.--
(A) Rule.--The amendments made by paragraph (1) of
this subsection to sections 428J(b)(1) and 460(b)(1)(A)
of the Higher Education Act of 1965 shall not be
applied to disqualify any individual who, before the
date of enactment of this Act, commenced service that
met and continues to meet the requirements of such
sections as in effect before such date of enactment.
(B) Rule not applicable to increased qualified loan
amounts.--Subparagraph (A) of this paragraph shall not
apply for purposes of obtaining increased qualified
loan amounts under sections 428J(b)(3) and 460(b)(3) of
the Higher Education Act of 1965 as added by subsection
(a) of this section.
(c) Information on Benefits to Rural School Districts.--The
Secretary shall--
(1) notify local educational agencies eligible to
participate in the Small Rural Achievement Program authorized
under subpart 1 of part B of title VI of the Elementary and
Secondary Education Act of 1965 of the benefits available under
the amendments made by this section; and
(2) encourage such agencies to notify their teachers of
such benefits.
SEC. 428. ADDITIONAL ADMINISTRATIVE PROVISIONS.
(a) Treatment of Exempt Claims.--
(1) Insurance coverage.--Section 428(b)(1)(G) (20 U.S.C.
1078(b)(1)(G)) is amended by inserting before the semicolon at
the end the following: ``and 100 percent of the unpaid
principal amount of exempt claims as defined in subsection
(c)(1)(G)''.
(2) Treatment.--Section 428(c)(1) (20 U.S.C. 1078(c)(1)) is
amended--
(A) by redesignating subparagraph (G) as
subparagraph (H), and moving such subparagraph 2 em
spaces to the left; and
(B) by inserting after subparagraph (F) the
following new subparagraph:
``(G)(i) Notwithstanding any other provisions of this
section, in the case of exempt claims, the Secretary shall
apply the provisions of--
``(I) the fourth sentence of subparagraph (A) by
substituting `100 percent' for `95 percent';
``(II) subparagraph (B)(i) by substituting `100
percent' for `85 percent'; and
``(III) subparagraph (B)(ii) by substituting `100
percent' for `75 percent'.
``(ii) For purposes of clause (i) of this subparagraph, the
term `exempt claims' means claims with respect to loans for
which it is determined that the borrower (or the student on
whose behalf a parent has borrowed), without the lender's or
the institution's knowledge at the time the loan was made,
provided false or erroneous information or took actions that
caused the borrower or the student to be ineligible for all or
a portion of the loan or for interest benefits thereon.''.
(b) Documentation of Forbearance Agreements.--Section 428(c) (20
U.S.C. 1078(c)) is further amended--
(1) in paragraph (3)(A)(i), by striking ``in writing''; and
(2) by adding at the end the following new paragraph:
``(10) Documentation of forbearance agreements.--For the
purposes of paragraph (3), the terms of forbearance agreed to
by the parties shall be documented by confirming the agreement
of the borrower by notice to the borrower from the lender, and
by recording the terms in the borrower's file.''.
(c) Voluntary Flexible Agreements.--Section 428A (20 U.S.C. 1078-1)
is amended--
(1) in subsection (a)(1)(B), by striking ``unless the
Secretary'' and all that follows through ``designated
guarantor'';
(2) by striking paragraph (2) of subsection (a);
(3) in paragraph (4)(B) of such subsection, by striking
``and any waivers provided to other guaranty agencies under
paragraph (2)'';
(4) by redesignating paragraphs (3) and (4) of subsection
(a) as paragraphs (2) and (3), respectively; and
(5) by striking paragraph (3) of subsection (c) and
inserting the following:
``(3) Notice to interested parties.--Once the Secretary
reaches a tentative agreement in principle under this section,
the Secretary shall publish in the Federal Register a notice
that invites interested parties to comment on the proposed
agreement. The notice shall state how to obtain a copy of the
tentative agreement in principle and shall give interested
parties no less than 30 days to provide comments. The Secretary
may consider such comments prior to providing the notices
pursuant to paragraph (2).''.
(d) Default Reduction Program.--Section 428F(a)(1) (20 U.S.C. 1078-
6(a)(1)) is amended--
(1) in subparagraph (A), by striking ``consecutive payments
for 12 months'' and inserting ``9 payments made within 20 days
of the due date during 10 consecutive months''; and
(2) by redesignating subparagraph (C) as subparagraph (D);
and
(3) by inserting after subparagraph (B) the following new
subparagraph:
``(C)(i) A guaranty agency may charge and retain
collection costs in an amount not to exceed 18.5
percent of the outstanding principal and interest at
the time of sale of a loan rehabilitated under
subparagraph (A).
``(ii) Notwithstanding clause (i), on and after
July 1, 2006, a guaranty agency that rehabilitates a
defaulted loan by making a consolidation loan to a
borrower under section 428C(a)(3)(A)(ii)(III) may not
charge and retain collection costs in an amount in
excess of 10 percent of the outstanding principal and
interest of the defaulted loans being consolidated.
``(iii) For any year beginning on or after July 1,
2009, the total principal and interest of loans that a
guaranty agency rehabilitates by making consolidation
loans to borrowers under such section shall not exceed
45 percent of the total loans rehabilitated under
subparagraph (A).''.
(e) Financial and Economic Literacy.--
(1) Default reduction program.--Section 428F is further
amended by adding at the end the following:
``(c) Financial and Economic Literacy.--Where appropriate, each
program described under subsection (b) shall include making available
financial and economic education materials for the borrower.''.
(2) Program assistance for borrowers.--Section 432(k)(1)
(20 U.S.C. 1082(k)(1)) is amended by striking ``and offering''
and all that follows through the period and inserting ``,
offering loan repayment matching provisions as part of employee
benefit packages, and providing employees with financial and
economic education and counseling.''.
(f) Credit Bureau Organization Agreements.--Section 430A(a) (20
U.S.C. 1080a(a)) is amended by striking ``agreements with credit bureau
organizations'' and inserting ``an agreement with each national credit
bureau organization (as described in section 603(p) of the Fair Credit
Reporting Act)''.
(g) Uniform Administrative and Claims Procedure.--Section
432(l)(1)(H) (20 U.S.C. 1082(l)(1)(H)) is amended by inserting ``and
anticipated graduation date'' after ``status change''.
(h) Default Reduction Management.--Section 432 is further amended--
(1) by striking subsection (n); and
(2) by redesignating subsections (o) and (p) as subsections
(n) and (o), respectively.
(i) School as Lender.--Section 435(d)(2) (20 U.S.C. 1085(d)(2)) is
amended by striking subparagraphs (C) through (F) and the material
following subparagraph (F) and inserting the following:
``(C) shall not make a loan, other than a loan made
under section 428 or 428H to a graduate or professional
student, unless the borrower has previously received a
loan from the school, and shall not make a loan to a
borrower who is not enrolled at that institution;
``(D) shall not have a cohort default rate (as
defined in section 435(m)) greater than 15 percent; and
``(E) shall use the proceeds from special allowance
payments and interest payments from borrowers, and any
proceeds from the sale or other disposition of loans,
for need-based grant programs, except for reasonable
reimbursement for direct administrative expenses.''.
(j) Disability Determinations.--Section 437(a) (20 U.S.C. 1087(a))
is amended by adding at the end the following new sentence: ``In making
such determination of permanent and total disability, the Secretary
shall provide that a borrower who has been certified as permanently and
totally disabled by the Department of Veterans Affairs or the Social
Security Administration shall not be required to present further
documentation for purposes of this title.''.
(k) Treatment of Falsely Certified Borrowers.--Section 437(c)(1)
(20 U.S.C. 1087(c)(1)) is amended by inserting ``or parent's
eligibility'' after ``such student's eligibility''.
(l) Perfection of Security Interests.--Section 439(d) (20 U.S.C.
1087-2(d)) is amended--
(1) by striking paragraph (3); and
(2) by redesignating paragraphs (4) and (5) as paragraphs
(3) and (4), respectively.
(m) Additional Technical Amendments.--
(1) Section 428(a)(2)(A) (20 U.S.C. 1078(a)(2)(A)) is
amended--
(A) by striking ``and'' at the end of subclause
(II) of clause (i); and
(B) by moving the margin of clause (iii) two ems to
the left.
(2) Section 428H(e) (20 U.S.C. 1078-8(e)) is amended--
(A) by striking paragraph (6); and
(B) by redesignating paragraph (7) as paragraph
(6).
(3) Section 428I(g) (20 U.S.C. 1078-9(g)) is amended by
striking ``Code,'' and inserting ``Code''.
(4) Section 432(m)(1)(B) (20 U.S.C. 1082(m)(1)(B)) is
amended--
(A) in clause (i), by inserting ``and'' after the
semicolon at the end; and
(B) in clause (ii), by striking ``; and'' and
inserting a period.
PART C--FEDERAL WORK-STUDY PROGRAMS
SEC. 441. AUTHORIZATION OF APPROPRIATIONS.
Section 441(b) (42 U.S.C. 2751(b)) is amended--
(1) by striking ``1999'' and inserting ``2005''; and
(2) by striking ``4 succeeding'' and inserting ``5
succeeding''.
SEC. 442. COMMUNITY SERVICE.
Section 441(c)(1) (42 U.S.C. 2751(c)(1)) is amended by striking
``that are open and accessible to the community''.
SEC. 443. ALLOCATION OF FUNDS.
(a) Phaseout of Allocation Based on Previous Allocations.--
Subsection (a) of section 442(a) (42 U.S.C. 2752(a)) is amended to read
as follows:
``(a) Allocation Based on Previous Allocation.--
``(1) Base guarantee.--From the amount appropriated
pursuant to section 441(b) for each fiscal year after fiscal
year 2006, the Secretary shall, subject to paragraph (2), first
allocate to each eligible institution an amount equal to the
following percentage of the amount such institution received
under subsection (a) of this section for fiscal year 2006 (as
such subsection was in effect with respect to allocations for
such fiscal year):
``(A) 80 percent for fiscal years 2007 and 2008;
``(B) 60 percent for fiscal years 2009 and 2010;
``(C) 40 percent for fiscal years 2011 and 2012;
``(D) 20 percent for fiscal years 2013 and 2014;
and
``(E) 0 percent for fiscal year 2015 and any
succeeding fiscal year.
``(2) Ratable reductions for insufficient appropriations.--
``(A) Reduction of base guarantee.--If the amount
appropriated for any fiscal year is less than the
amount required to be allocated to all institutions
under this subsection, then the amount of the
allocation to each such institution shall be ratably
reduced.
``(B) Additional appropriations allocation.--If
additional amounts are appropriated for any such fiscal
year, such reduced amounts shall be increased on the
same basis as they were reduced (until the amount
allocated equals the amount required to be allocated
under this subsection).
``(3) Additional allocations for certain institutions.--
``(A) Allocations permitted.--Notwithstanding any
other provision of this section, the Secretary may
allocate an amount equal to not more than 10 percent of
the amount by which the amount appropriated in any
fiscal year to carry out this part exceeds $700,000,000
among eligible institutions described in subparagraph
(B).
``(B) Eligible institutions.--For purposes of
subparagraph (A)--
``(i) an eligible institution that is a 4-
year institution may receive an allocation
under subparagraph (A) if more than 50 percent
of the students who are degree-seeking Pell
Grant recipients attending such institution
graduate within 4 calendar years of the first
day of enrollment; and
``(ii) an eligible institution that is a 2-
year institution may receive an allocation
under subparagraph (A) if more than 50 percent
of the students who are degree-seeking Pell
Grant recipients attending such institution
graduate within 2 calendar years of the first
day of enrollment.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to any amounts appropriated under section 441(b) of
the Higher Education Act of 1965 (42 U.S.C. 2751(b)) for fiscal year
2007 or any succeeding fiscal year.
SEC. 444. BOOKS AND SUPPLIES.
Section 442(c)(4)(D) (42 U.S.C. 2752(c)(4)(D)) is amended by
striking ``$450'' and inserting ``$600''.
SEC. 445. JOB LOCATION AND DEVELOPMENT.
Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amended--
(1) by striking ``10 percent or $50,000'' and inserting
``15 percent or $75,000''; and
(2) by inserting before the period at the end the
following: ``, except that not less than one-third of such
amount shall be specifically allocated to locate and develop
community service jobs''.
SEC. 446. WORK COLLEGES.
Section 448 (42 U.S.C. 2756b) is amended--
(1) by striking ``work-learning'' each place it appears and
inserting ``work-learning-service'';
(2) by striking ``work-service'' each place it appears and
inserting ``work-learning-service'';
(3) by amending subparagraph (C) of subsection (e)(1) to
read as follows:
``(C) requires all resident students, including at
least one-half of all students who are enrolled on a
full-time basis, to participate in a comprehensive
work-learning-service program for at least 5 hours each
week, or at least 80 hours during each period of
enrollment, unless the student is engaged in an
institutionally organized or approved study abroad or
externship program; and'';
(4) by amending paragraph (2) of subsection (e) to read as
follows:
``(2) the term `comprehensive student work-learning-service
program'--
``(A) means a student work-learning-service program
that 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) in subsection (f), by striking ``1999 and such sums as
may be necessary for each of the 4 succeeding fiscal years''
and inserting ``2005 and such sums as may be necessary for the
5 succeeding fiscal years''.
PART D--FEDERAL DIRECT LOAN PROGRAM
SEC. 451. REAUTHORIZATION OF THE DIRECT LOAN PROGRAM.
(a) Administrative Expenses.--Section 458(a)(1) (20 U.S.C.
1087h(a)(1)) is amended by striking ``$617,000,000'' and all that
follows through ``fiscal year 2003'' and inserting ``$807,000,000 in
fiscal year 2005, $820,000,000 in fiscal year 2006, $833,000,000 in
fiscal year 2007, $847,000,000 in fiscal year 2008, $862,000,000 in
fiscal year 2009, and $878,000,000 in fiscal year 2010''.
(b) Calculation Basis.--Subsection (b) of section 458 (20 U.S.C.
1087h(b)) is amended by striking ``shall be calculated--'' and all that
follows through the end of such subsection and inserting ``shall be
calculated on the basis of 0.10 percent of the original principal
amount of outstanding loans on which insurance was issued under part
B.''.
(c) Special Rules: Fee Cap.--Section 458(c)(1) (20 U.S.C.
1087h(c)(1)) is amended by striking subparagraphs (A) through (E) and
inserting the following:
``(A) for fiscal year 2005, shall not exceed
$207,000,000;
``(B) for fiscal year 2006, shall not exceed
$220,000,000;
``(C) for fiscal year 2007, shall not exceed
$233,000,000;
``(D) for fiscal year 2008, shall not exceed
$247,000,000;
``(E) for fiscal year 2009, shall not exceed
$262,000,000; and
``(F) for fiscal year 2010, shall not exceed
$278,000,000.''.
(d) Consolidation Loan Eligibility.--Section 455(g) (20 U.S.C.
1087e(g)) is amended by adding at the end (after the sentence added by
section 425(b)(2) of this Act) the following new sentence: ``To be
eligible for a consolidation loan under this part, a borrower must meet
all the eligibility criteria set forth in section 428C(a)(3).''.
PART E--FEDERAL PERKINS LOAN PROGRAM
SEC. 461. REAUTHORIZATION OF PROGRAM.
(a) Program Authorization.--
(1) Authorization of appropriations.--Section 461(b) (20
U.S.C. 1087aa(b)) is amended--
(A) in paragraph (1)--
(i) by striking ``1999'' and inserting
``2005''; and
(ii) by striking ``4 succeeding'' and
inserting ``5 succeeding''; and
(B) in paragraph (2), by striking ``2003'' each
place it appears and inserting ``2011''.
(2) Federal capital contribution recovery.--Section 466 (20
U.S.C. 1087ff) is amended--
(A) by striking ``2004'' each place it appears in
subsections (a), (b), and (c) and inserting ``2011'';
(B) in subsection (a), by striking ``2003'' each
place it appears and inserting ``2010''; and
(C) in subsection (b), by striking ``2012'' and
inserting ``2019''.
(b) Phaseout of Allocation Based on Previous Allocations.--
(1) Amendment.--Subsection (a) of section 462 (20 U.S.C.
1087bb(a)) is amended to read as follows:
``(a) Allocation Based on Previous Allocation.--
``(1) Base guarantee.--From the amount appropriated
pursuant to section 461(b) for each fiscal year after fiscal
year 2006, the Secretary shall, subject to paragraphs (2) and
(3), first allocate to each eligible institution an amount
equal to--
``(A) 100 percent of the amount such institution
received under subsection (a) of this section for
fiscal year 2006 (as such subsection was in effect with
respect to allocations for such fiscal year),
multiplied by
``(B) the institution's default penalty, as
determined under subsection (e), except that if the
institution has a cohort default rate in excess of the
applicable maximum cohort default rate under subsection
(f), the institution may not receive an allocation
under this paragraph.
``(2) Phase out.--For each of the fiscal years after fiscal
year 2006, paragraph (1) shall be applied by substituting for
`100 percent':
``(A) `80 percent' for fiscal years 2007 and 2008;
``(B) `60 percent' for fiscal years 2009 and 2010;
``(C) `40 percent' for fiscal years 2011 and 2012;
``(D) `20 percent' for fiscal years 2013 and 2014;
and
``(E) `0 percent' for fiscal year 2015 and any
succeeding fiscal year.
``(3) Ratable reductions for insufficient appropriations.--
``(A) Reduction of base guarantee.--If the amount
appropriated for any fiscal year is less than the
amount required to be allocated to all institutions
under this subsection, then the amount of the
allocation to each such institution shall be ratably
reduced.
``(B) Additional appropriations allocation.--If
additional amounts are appropriated for any such fiscal
year, such reduced amounts shall be increased on the
same basis as they were reduced (until the amount
allocated equals the amount required to be allocated
under this subsection).''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to any amounts appropriated under
section 461(b) of the Higher Education Act of 1965 (20 U.S.C.
1087bb(b)) for fiscal year 2007 or any succeeding fiscal year.
(c) Books and Supplies.--Section 462(c)(4)(D) (20 U.S.C.
1087bb(c)(4)(D)) is amended by striking ``$450'' and inserting
``$600''.
SEC. 462. LOAN TERMS AND CONDITIONS.
(a) Loan Limits.--Section 464(a) (20 U.S.C. 1087dd(a))--
(1) in paragraph (2)(A)--
(A) by striking ``$4,000'' in clause (i) and
inserting ``$5,500''; and
(B) by striking ``$6,000'' in clause (ii) and
inserting ``$8,000''; and
(2) in paragraph (2)(B)--
(A) by striking ``$40,000'' in clause (i) and
inserting ``$60,000'';
(B) by striking ``$20,000'' in clause (ii) and
inserting ``$27,500''; and
(C) by striking ``$8,000'' in clause (iii) and
inserting ``$11,000''.
(b) Forbearance.--Section 464(e) (20 U.S.C. 1087dd(e)) is amended
by striking ``, upon written request,''.
(c) Special Repayment Rule.--Paragraph (2) of section 464(f) is
amended to read as follows:
``(2) No compromise repayment of a defaulted loan as authorized by
paragraph (1) may be made unless agreed to by the Secretary.''.
(d) Rehabilitation.--Section 464(h)(1)(A) (20 U.S.C.
1087dd(h)(1)(A)) is amended by striking ``12 ontime'' and inserting ``9
on-time''.
SEC. 463. LOAN CANCELLATION.
Section 465(a)(3)(A) (20 U.S.C. 1087ee(a)(3)(A)) is amended--
(1) by inserting ``(D),'' after ``subparagraph (A), (C),''
in clause (i);
(2) by inserting ``or'' after the semicolon at the end of
clause (ii);
(3) by striking clause (iii); and
(4) by redesignating clause (iv) as clause (iii).
SEC. 464. TECHNICAL AMENDMENTS.
Part E is further amended as follows:
(1) Section 462(g)(1)(E)(i)(I) (20 U.S.C.
1087bb(g)(1)(E)(i)(I)) is amended by inserting ``monthly''
after ``consecutive''.
(2) Section 464(c)(1)(D) (20 U.S.C. 1087dd(c)(1)(D)) is
amended by redesignating subclauses (I) and (II) as clauses (i)
and (ii), respectively.
(3) Section 465(a)(2) (20 U.S.C. 1087ee(a)(2)) is amended--
(A) in subparagraph (A), by striking ``section
111(c)'' and inserting ``section 1113(a)(5)''; and
(B) in subparagraph (C), by striking ``With
Disabilities'' and inserting ``with Disabilities''.
(4) Section 467(b) (20 U.S.C. 1087gg(b)) is amended by
striking ``(5)(A), (5)(B)(i), or (6)'' and inserting ``(4)(A),
(4)(B), or (5)''.
(5) Section 469(c) (20 U.S.C. 1087ii(c)) is amended--
(A) by striking ``sections 602(a)(1) and 672(1)''
and inserting ``sections 602(3) and 632(5)'';
(B) by striking ``qualified professional provider
of early intervention services'' and inserting ``early
intervention services''; and
(C) by striking ``section 672(2)'' and inserting
``section 632(4)''.
PART F--NEED ANALYSIS
SEC. 471. SIMPLIFIED NEEDS TEST IMPROVEMENTS.
Section 479 (20 U.S.C. 1087ss) is amended--
(1) by striking clause (i) of subsection (b)(1)(A) and
inserting the following:
``(i) the student's parents file a form
described in paragraph (3) or certify that they
are not required to file an income tax return,
and the student files such a form or certifies
that the student is not required to file an
income tax return, or the student's parents
receive benefits under a means-tested Federal
benefit program;''.
(2) by striking clause (i) of subsection (b)(1)(B) and
inserting the following:
``(i) the student (and the student's
spouse, if any) files a form described in
paragraph (3) or certifies that the student
(and the student's spouse, if any) is not
required to file an income tax return, or the
student (and the student's spouse, if any)
receives benefits under a means-tested Federal
benefit program;'';
(3) by striking subparagraph (A) of subsection (c)(1) and
inserting the following:
``(A) the student's parents file a form described
in subsection (b)(3) or certify that they are not
required to file an income tax return, and the student
files such a form or certifies that the student is not
required to file an income tax return, or the student's
parents receive benefits under a means-tested Federal
benefit program;'';
(4) by striking subparagraph (A) of subsection (c)(2) and
inserting the following:
``(A) the student (and the student's spouse, if
any) files a form described in subsection (b)(3) or
certifies that the student (and the student's spouse,
if any) is not required to file an income tax return,
or the student (and the student's spouse, if any)
receives benefits under a means-tested Federal benefit
program;''; and
(5) by adding at the end the following new subsection:
``(d) Definition of Means-Tested Federal Benefit Program.--For
purposes of this section, the term `means-tested Federal benefit
program' means a mandatory spending program of the Federal Government,
other than a program under this title, in which eligibility for the
programs' benefits, or the amount of such benefits, or both, are
determined on the basis of income or resources of the individual or
family seeking the benefit, and may include such programs as the
supplemental security income program under title XVI of the Social
Security Act, the food stamp program under the Food Stamp Act of 1977,
and the free and reduced price school lunch program under the Richard
B. Russell National School Lunch Act, and other programs identified by
the Secretary.''.
SEC. 472. ADDITIONAL NEED ANALYSIS AMENDMENTS.
(a) Income Protection Allowance for Dependent Students.----
(1) Amendment.--Section 475(g)(2)(D) (20 U.S.C.
1087oo(g)(2)(D)) is amended by striking ``$2,200'' and
inserting ``$3,000''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to determinations of need for periods
of enrollment beginning on or after July 1, 2005.
(b) Employment Expense Allowance.--Section 478(h) (20 U.S.C.
1087rr(h)) is amended--
(1) by striking ``476(b)(4)(B),''; and
(2) by striking ``meals away from home, apparel and upkeep,
transportation, and housekeeping services'' and inserting
``food away from home, apparel, transportation, and household
furnishings and operations''.
(c) Discretion of Student Financial Aid Administrators.--Section
479A(a) (20 U.S.C. 1087tt(a)) is amended--
(1) by striking ``(a) In General.--'' and inserting the
following:
``(a) Authority to Make Adjustments.--
``(1) Adjustments for special circumstances.--'';
(2) by inserting before ``Special circumstances may'' the
following:
``(2) Special circumstances defined.--'';
(3) by inserting ``a student's status as a ward of the
court at any time prior to attaining 18 years of age,'' after
``487,'';
(4) by inserting before ``Adequate documentation'' the
following:
``(3) Documentation and use of supplementary information.--
''; and
(5) by inserting before ``No student'' the following:
``(4) Fees for supplementary information prohibited.--''.
(d) Treating Active Duty Members of the Armed Forces as Independent
Students.--Section 480(d)(3) (20 U.S.C. 1087vv(d)(3)) is amended by
inserting before the semicolon at the end the following: ``or is
currently serving on active duty in the Armed Forces for other than
training purposes''.
(e) Excludable Income.--Section 480(e) (20 U.S.C. 1087vv(e)) is
amended--
(1) by striking ``and'' at the end of paragraph (3);
(2) by striking the period at the end of paragraph (4); and
(3) by adding at the end the following new paragraph:
``(5) any part of any distribution from a qualified tuition
program established under section 529 of the Internal Revenue
Code of 1986 that is not includable in gross income under such
section 529.''.
(f) Treatment of Savings Plans.--
(1) Amendment.--Section 480(f) (20 U.S.C. 1087vv(f)) is
amended--
(A) in paragraph (1), by inserting ``qualified
tuition programs established under section 529 of the
Internal Revenue Code of 1986 (26 U.S.C. 529), except
as provided in subparagraph (2),'' after ``tax
shelters,'';
(B) by redesignating paragraph (2) as paragraph
(3); and
(C) by inserting after paragraph (1) the following
new paragraph:
``(2) A qualified tuition program shall not be considered an asset
of a dependent student under section 475 of this part. The value of a
qualified tuition program for purposes of determining the assets of
parents or independent students shall be--
``(A) the refund value of any tuition credits or
certificates purchased under section 529 of the Internal
Revenue Code of 1986 (26 U.S.C. 529) on behalf of a
beneficiary; or
``(B) the current balance of any account which is
established under such section for the purpose of meeting the
qualified higher education expenses of the designated
beneficiary of the account.''.
(2) Conforming amendment.--Section 480(j) (20 U.S.C.
1087vv(j)) is amended--
(A) by striking ``; Tuition Prepayment Plans'' in
the heading of such subsection;
(B) by striking paragraph (2);
(C) in paragraph (3), by inserting ``, or a
distribution that is not includible in gross income
under section 529 of such Code,'' after ``1986''; and
(D) by redesignating paragraph (3) as paragraph
(2).
PART G--GENERAL PROVISIONS RELATING TO STUDENT FINANCIAL ASSISTANCE
SEC. 481. DEFINITION OF ACADEMIC YEAR.
Paragraph (2) of section 481(a) (20 U.S.C. 1088(a)) is amended to
read as follows:
``(2) For the purpose of any program under this title, the term
`academic year' shall--
``(A) require a minimum of 30 weeks of instructional time
for a course of study that measures its program length in
credit hours; or
``(B) require a minimum of 26 weeks of instructional time
for a course of study that measures its program length in clock
hours; and
``(C) require an undergraduate course of study to contain
an amount of instructional time whereby a full-time student is
expected to complete at least (i) 24 semester or trimester
hours or 36 quarter credit hours in a course of study that
measures its program length in credit hours, or (ii) 900 clock
hours in a course of study that measures its program length in
clock hours.''.
SEC. 482. DISTANCE EDUCATION.
(a) Distance Education: Eligible Program.--Section 481(b) (20
U.S.C. 1088(b)) is amended by adding at the end the following new
paragraph:
``(3) Distance education.--An otherwise eligible program
that is offered in whole or in part through telecommunications
is eligible for the purposes of this title if the program is
offered by an institution, other than a foreign institution,
that has been evaluated and determined (before or after the
date of enactment of this paragraph) to have the capability to
effectively deliver distance education programs by an
accrediting agency or association that--
``(A) is recognized by the Secretary under subpart
2 of Part H; and
``(B) has evaluation of distance education programs
within the scope of its recognition, as described in
section 496(n)(3).''.
(b) Correspondence Courses.--Section 484(l)(1) (20 U.S.C.
1091(l)(1)) is amended--
(1) in subparagraph (A)--
(A) by striking ``for a program of study of 1 year
or longer''; and
(B) by striking ``unless the total'' and all that
follows through ``courses at the institution''; and
(2) by amending subparagraph (B) to read as follows:
``(B) Exception.--Subparagraph (A) does not apply
to an institution or school described in section
3(3)(C) of the Carl D. Perkins Vocational and Technical
Education Act of 1998.''.
SEC. 483. EXPANDING INFORMATION DISSEMINATION REGARDING ELIGIBILITY FOR
PELL GRANTS.
Section 483(a) (20 U.S.C. 1090(a)) is amended by adding at the end
the following new paragraph:
``(8) Expanding information dissemination regarding
eligibility for pell grants.--The Secretary shall make special
efforts, in conjunction with State efforts, to notify students
and their parents who qualify for a free lunch under the
Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et
seq.), the Food Stamps program, or such other programs as the
Secretary shall determine, of their potential eligibility for a
maximum Pell Grant, and shall disseminate such informational
materials as the Secretary deems appropriate.''.
SEC. 484. STUDENT ELIGIBILITY.
(a) Suspension of Eligibility for Drug Offenses.--Section 484(r)(1)
(20 U.S.C. 1091(r)(1)) is amended by striking everything preceding the
table and inserting the following:
``(1) In general.--A student who is convicted of any
offense under any Federal or State law involving the possession
or sale of a controlled substance for conduct that occurred
during a period of enrollment for which the student was
receiving any grant, loan, or work assistance under this title
shall not be eligible to receive any grant, loan, or work
assistance under this title from the date of that conviction
for the period of time specified in the following table:''.
(b) Freely Associated States.--Section 484(j) (20 U.S.C. 1091(j))
is amended by inserting ``and shall be eligible only for assistance
under subpart 1 of part A thereafter,'' after ``part C,''.
(c) Verification of Income Date.--Paragraph (1) of section 484(q)
(20 U.S.C. 1091(q)) is amended to read as follows:
``(1) Confirmation with irs.--The Secretary of Education,
in cooperation with the Secretary of the Treasury, is
authorized to confirm with the Internal Revenue Service the
information specified in section 6103(l)(13) of the Internal
Revenue Code of 1986 reported by applicants (including parents)
under this title on their Federal income tax returns for the
purpose of verifying the information reported by applicants on
student financial aid applications.''.
(d) Pell Grant Eligibility Provision.--Section 484 is amended by
adding at the end the following new subsection:
``(s) Pell Grant Eligibility Provision.--A student who does not
have a certificate of graduation from a school providing secondary
education may be eligible for assistance under subpart 1 of Part A of
this title for no more than two academic years, if such student--
``(1) meets all eligibility requirements for such
assistance (other than not being enrolled in an elementary or
secondary school) and is an academically gifted and talented
student, as defined in section 9101 of the Elementary and
Secondary Education Act;
``(2) is in the junior or senior year of secondary school,
and has not received any assistance under this title;
``(3) is selected for participation and is enrolled full-
time and resides on campus in a residential college gifted
student program for early enrollment, leading to fully
transferable college academic credit;
``(4) does not and will not participate in any secondary
school course work during or after such program; and
``(5) has entered into an agreement that, if the student
fails to complete the entirety of the academic program for
which assistance under subpart 1 of Part A of this title was
received, or participates in secondary school course work after
participating in such program, the student will repay all funds
received under such subpart pursuant to this subsection to the
Federal Government in accordance with regulations promulgated
by the Secretary.''.
(e) Technical Amendment.--Section 484(b)(5) is amended by inserting
``or parent (on behalf of a student)'' after ``student''.
SEC. 485. INSTITUTIONAL REFUNDS.
Section 484B (20 U.S.C. 1091b) is amended--
(1) in subsection (a)(1), by inserting ``subpart 4 of part
A or'' after ``received under'';
(2) in subsection (a)(2), by striking ``takes a leave'' and
by inserting ``takes one or more leaves'';
(3) in subsection (a)(3)(B)(ii), by inserting ``(as
determined in accordance with subsection (d))'' after ``student
has completed'';
(4) in subsection (a)(4), by amending subparagraph (A) to
read as follows:
``(A) In general.--After determining the
eligibility of the student for a late disbursement or
post-withdrawal disbursement (as required in
regulations prescribed by the Secretary), the
institution of higher education shall contact the
borrower and obtain confirmation that the loan funds
are still required by the borrower. In making such
contact, the institution shall explain to the borrower
the borrower's obligation to repay the funds following
any such disbursement. The institution shall document
in the borrower's file the result of such contact and
the final determination made concerning such
disbursement. ''.
(5) in subsection (b)(1), by inserting ``no later than 45
days from the determination of withdrawal'' after ``return'';
(6) in subsection (b)(2), by amending subparagraph (C) to
read as follows:
``(C) Grant overpayment requirements.--
``(i) In general.--Notwithstanding
subparagraphs (A) and (B), a student shall only
be required to return grant assistance in the
amount (if any) by which--
``(I) the amount to be returned by
the student (as determined under
subparagraphs (A) and (B)), exceeds
``(II) 50 percent of the total
grant assistance received by the
student under this title for the
payment period or period of enrollment.
``(ii) Minimum.--A student shall not be
required to return amounts of $50 or less.'';
and
(7) in subsection (d), by striking ``(a)(3)(B)(i)'' and
inserting ``(a)(3)(B)''.
SEC. 486. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR
STUDENTS.
(a) Information Dissemination Activities.--Section 485(a)(1) (20
U.S.C. 1092(a)(1)) is amended--
(1) by amending the second sentence to read as follows:
``The information required by this section shall be produced
and be made publicly available to an enrolled student and to
any prospective student in a uniform and comprehensible manner,
through appropriate publications, mailings, electronic media,
and the reports required by the institution's accrediting
agency under section 496(c)(9).'';
(2) by amending subparagraph (G) to read as follows:
``(G) the academic programs of the institution, including--
``(i) the current degree programs and other
educational and training programs;
``(ii) the institution's learning objectives for
those programs;
``(iii) the instructional, laboratory, and other
physical plant facilities which relate to the academic
programs; and
``(iv) the faculty and other instructional
personnel;'';
(3) by striking subparagraph (L) and inserting the
following:
``(L) a summary of student outcomes for full-time
undergraduate students, including--
``(i) the completion or graduation rates of
certificate- or degree-seeking undergraduate students
entering such institutions;
``(ii) when readily available, information showing
the number of undergraduate students that transfer out
of the institution; and
``(iii) any other student outcome data, qualitative
or quantitative, including data regarding distance
education deemed by the institution to be appropriate
to its stated educational mission and goals, and, when
applicable, licensing and placement rates for
professional and vocational programs;'';
(4) by inserting before the semicolon at the end of
subparagraph (J) the following: ``, and the process for
students to register complaints with the accrediting agencies
or associations'';
(5) in subparagraph (M), by striking ``guaranteed student
loans under part B of this title or direct student loans under
part E of this title, or both,'' and inserting ``student loans
under part B, D, or E of this title'';
(6) by striking ``and'' at the end of subparagraph (N);
(7) by striking the period at the end of subparagraph (O)
and inserting a semicolon; and
(8) by adding at the end the following new subparagraphs:
``(P) the penalties contained in subsection 484(r)
regarding suspension of eligibility for drug related offenses;
and
``(Q) the policies of the institution for accepting
transfer of credit, explained in a manner that clearly states
the basis for determining the acceptability and applicability
of transfer of credits.''.
(b) Additional Amendments.--Section 485(a) is further amended by
striking paragraph (6) and inserting the following:
``(6) Each institution may provide supplemental information
to enrolled and prospective students showing the completion or
graduation rate for students described in paragraph (4). For
the purpose of this paragraph, the definitions provided in the
Integrated Postsecondary Education Data System shall apply.
``(7) Each eligible institution participating in any
program under this title may publicly report to currently
enrolled and prospective students the voluntary information
collected by the National Survey of Student Engagement (NSSE),
the Community College Survey of Student Engagement (CCSSE), or
other instruments that provide evidence of student
participation in educationally purposeful activities. The
information shall be produced and made available in a uniform
and comprehensible manner, through appropriate publications,
mailings, and electronic media, and may be included in reports
required by the institution's accrediting agency.''.
(c) Exit Counseling.--Section 485(b) (20 U.S.C. 1092(b)) is amended
by adding at the end the following new paragraph:
``(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 effect 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.''.
(d) Campus Crime Information.--Section 485(f)(1) (20 U.S.C.
1092(f)(1)) is amended by inserting ``, other than a foreign
institution of higher education,'' after ``under this title''.
(e) Transfer of Credit Policies.--Section 485 is further amended by
adding at the end the following new subsection:
``(h) Transfer of Credit Policies.--
``(1) Disclosure.--Each eligible institution participating
in any program under this title shall publicly disclose in a
readable and comprehensible manner its transfer of credit
policies which shall include:
``(A) A statement of the institution's current
transfer of credit policies that includes at least--
``(i) a statement that transfer of credit
shall not be denied solely on the basis of the
agency or association that accredited such
other eligible institution, 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
``(ii) a statement that transfer of credit
shall be decided on the basis of whether the
courses or program are determined by the
institution to be acceptable for credit in
accordance with objective criteria that the
institution publicly discloses and the student
completed such courses or programs at the
institution's required level of proficiency.
``(B) Statistics concerning the annual, as well as
a 3-year rolling average, rate of the percentage of
credits accepted in transfer and fully counted toward
the degree or certificate completion requirements of
undergraduate students. Such data shall be
disaggregated to report on the following categories of
institutions from which credits were accepted in
transfer:
``(i) nationally accredited;
``(ii) regionally accredited in the same
State;
``(iii) regionally accredited in the same
region; and
``(iv) regionally accredited in a different
region.
``(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.''.
SEC. 487. COLLEGE ACCESS INITIATIVE.
Part G is further amended by inserting after section 485C (20
U.S.C. 1092c) the following new section:
``SEC. 485D. COLLEGE ACCESS INITIATIVE.
``(a) State-by-State Information.--The Secretary shall direct each
guaranty agency with which the Secretary has an agreement under section
428(c) to provide to the Secretary the information necessary for the
development of web links and access for students and families to a
comprehensive listing of the postsecondary education opportunities
programs, publications, Internet Web sites, and other services
available in the States for which such agency serves as the designated
guarantor.
``(b) Guaranty Agency Activities.--
``(1) Plan and activity required.--Each guaranty agency
with which the Secretary has an agreement under section 428(c)
shall develop a plan and undertake the activity necessary to
gather the information required under subsection (a) and to
make such information available to the public and to the
Secretary in a form and manner as prescribed by the Secretary.
``(2) Activities.--Each guaranty agency shall undertake
such activities as are necessary to promote access to
postsecondary education for students through providing
information on college planning, career preparation, and paying
for college. The guaranty agency shall publicize such
information and coordinate such activities with other entities
that either provide or distribute such information in the
States for which such guaranty agency serves as the designated
guarantor.
``(3) Funding.--The activities required by this section may
be funded from the guaranty agency's operating account
established pursuant to section 422B and to the extent funds
remain, from earnings on the restricted account established
pursuant to section 422(h)(4).
``(c) Access to Information.--
``(1) Secretary's responsibility.--The Secretary shall
ensure the availability of the information provided by the
guaranty agencies in accordance with this section to students,
parents and other interested individuals, through web links or
other methods prescribed by the Secretary.
``(2) Guaranty agency responsibility.--The guaranty
agencies shall ensure that the information required by this
section is available without charge in printed format for
students and parents requesting such information.
``(3) Publicity.--Within 270 days after the date of
enactment of the College Access and Opportunity Act of 2004,
the Secretary and guaranty agencies shall publicize the
availability of the information required by this section, with
special emphasis on ensuring that populations that are
traditionally underrepresented in postsecondary education are
made aware of the availability of such information.''.
SEC. 488. DISTANCE EDUCATION DEMONSTRATION PROGRAM.
(a) Eligible Applicants.--Section 486(b)(3) (20 U.S.C. 1093(b)(3))
is amended--
(1) in subparagraph (B), by striking ``section
102(a)(1)(C)'' and inserting ``section 102''; and
(2) in subparagraph (C), by striking ``subsection (a) of
section 102, other than the requirement of paragraph (3)(A) or
(3)(B) of such subsection,'' and inserting ``section 101, other
than the requirements of subparagraph (A) or (B) of subsection
(b)(4) of such section''.
(b) Selection.--Section 486(d)(1) (20 U.S.C. 1093(d)(1)) is
amended--
(1) by striking ``the third year'' and inserting
``subsequent years'';
(2) by striking ``35 institutions'' and inserting ``100
institutions''; and
(3) by adding at the end the following new sentence: ``Not
more than 5 of such institutions, systems, or consortia may be
accredited, degree-granting correspondence schools.''.
SEC. 489. COLLEGE AFFORDABILITY DEMONSTRATION PROGRAM.
Part G of title IV is amended by inserting after section 486 (20
U.S.C. 1093) the following new section:
``SEC. 486A. COLLEGE AFFORDABILITY DEMONSTRATION PROGRAM.
``(a) Purpose.--It is the purpose of this section--
``(1) to provide, through a college affordability
demonstration program, for increased innovation in the delivery
of higher education and student financial aid in a manner
resulting in reduced costs for students as well as the
institution by accelerating degree or program completion,
increasing availability of, and access to, distance components
of education delivery, and other alternative methodologies; and
``(2) to help determine--
``(A) the most effective means of delivering
student financial aid as well as quality education;
``(B) the specific statutory and regulatory
requirements that should be altered to provide for more
efficient and effective delivery of student financial
aid, as well as access to high quality distance
education programs, resulting in a student more
efficiently completing postsecondary education; and
``(C) the most effective methods of obtaining and
managing institutional resources.
``(b) Demonstration Program Authorized.--
``(1) In general.--In accordance with the purposes
described in subsection (a) and the provisions of subsection
(d), the Secretary is authorized to select not more than 100
institutions of higher education or systems of such
institutions for voluntary participation in the College
Affordability Demonstration Program in order to enable
participating institutions to carry out such purposes by
providing programs of postsecondary education, and making
available student financial assistance under this title to
students enrolled in those programs, in a manner that would not
otherwise meet the requirements of this title.
``(2) Waivers.--The Secretary is authorized to waive for
any institutions of higher education, or any system or
consortia of institutions of higher education, selected for
participation in the College Affordability Demonstration
Program, any requirements of this Act or the regulations
thereunder as deemed necessary by the Secretary to meet the
purpose described in subsection (a)(1).
``(3) Eligible applicants.--
``(A) Eligible institutions.--Except as provided in
subparagraph (B), only an institution of higher
education that is eligible to participate in programs
under this title shall be eligible to participate in
the demonstration program authorized under this
section.
``(B) Prohibition.--An institution of higher
education described in section 102 shall not be
eligible to participate in the demonstration program
authorized under this section.
``(c) Application.--
``(1) In general.--Each institution or system of
institutions desiring to participate in the demonstration
program under this section shall submit an application to the
Secretary at such time and in such manner as the Secretary may
require.
``(2) Contents of applications.--Each application for the
college affordability demonstration program shall include at
least the following:
``(A) a description of the institution or system of
institutions and what quality assurance mechanisms are
in place to insure the integrity of the Federal
financial aid programs;
``(B) a description of each regulatory or statutory
requirement for which waivers are sought, with a reason
for each waiver;
``(C) a description of the programs being offered
and the affected students;
``(D) a description of the expected outcomes of the
program changes proposed, including the estimated
reductions in costs both for the institution and for
students;
``(E) a description of any collaborative
arrangements with other institutions or organizations
to reduce costs;
``(F) a description of any expected economic impact
of participation in the program within the community in
which the institution is located;
``(G) a description of how the institution will
reduce the costs of instructional materials, including
textbooks;
``(H) an assurance that the participating
institution or system of institutions will offer full
cooperation with the ongoing evaluations of the
demonstration program provided for in this section; and
``(I) any other information or assurances the
Secretary may require.
``(d) Selection.--In selecting institutions to participate in the
demonstration program under this section, the Secretary shall take into
account--
``(1) the number and quality of applications received,
determined on the basis of the contents required by subsection
(c)(2);
``(2) the Department's capacity to oversee and monitor each
institution's participation;
``(3) an institution's--
``(A) financial responsibility;
``(B) administrative capability;
``(C) program or programs being offered via
distance education;
``(D) student completion rates; and
``(E) student loan default rates; and
``(4) the participation of a diverse group of institutions
with respect to size, mission, and geographic distribution.
``(e) Notification.--The Secretary shall make available to the
public and to the authorizing committees a list of institutions and
systems of institutions selected to participate in the demonstration
program authorized by this section. Such notice shall include a listing
of the specific statutory and regulatory requirements being waived for
each institution or system of institutions and a description of the
distance education courses to be offered.
``(f) Evaluations and Reports.--
``(1) Evaluation.--The Secretary shall evaluate the
demonstration program authorized under this section on a
biennial basis. Such evaluations specifically shall review--
``(A) the number and types of students
participating in the programs offered, including the
progress of participating students toward recognized
certificates or degrees and the extent to which
participation in such programs increased;
``(B) issues related to student financial
assistance for distance education;
``(C) effective technologies and alternative
methodologies for delivering student financial
assistance;
``(D) the extent of the cost savings to the
institution, the student, and the Federal Government by
virtue of the waivers provided, and an estimate as to
future cost savings should the demonstration program
continue;
``(E) the extent to which students saved money by
virtue of completing their postsecondary education
sooner;
``(F) the extent to which the institution reduced
its tuition and fees and its costs by virtue of
participation in the demonstration program;
``(G) the extent to which any collaborative
arrangements with other institutions or organizations
have reduced the participating institution's costs; and
``(H) the extent to which statutory or regulatory
requirements not waived under the demonstration program
present difficulties for students or institutions.
``(2) Policy analysis.--The Secretary shall review current
policies and identify those policies that present impediments
to the development and use of distance education and other
nontraditional methods of expanding access to education.
``(3) Reports.--The Secretary shall provide a report to the
authorizing committees on a biennial basis regarding--
``(A) the demonstration program authorized under
this section;
``(B) the results of the evaluations conducted
under paragraph (1);
``(C) the cost savings to the Federal Government by
the demonstration program authorized by this section;
and
``(D) recommendations for changes to increase the
efficiency and effective delivery of financial aid.
``(g) Oversight.--In conducting the demonstration program
authorized under this section, the Secretary shall, on a continuing
basis--
``(1) ensure compliance of institutions or systems of
institutions with the requirements of this title (other than
the sections and regulations that are waived under subsection
(b)(2));
``(2) provide technical assistance to institutions in their
application to and participation in the demonstration program;
``(3) monitor fluctuations in the student population
enrolled in the participating institutions or systems of
institutions;
``(4) monitor changes in financial assistance provided at
the institution; and
``(5) consult with appropriate accrediting agencies or
associations and appropriate State regulatory authorities.
``(h) Termination of Authority.--The authority of the Secretary
under this section shall cease to be effective on October 1, 2010.''.
SEC. 490. PROGRAM PARTICIPATION AGREEMENTS.
(a) Refund Policies.--Section 487(a) (20 U.S.C. 1094(a)) is
amended--
(1) in paragraph (22), by striking ``refund policy'' and
inserting ``policy on the return of title IV funds''; and
(2) in paragraph (23)--
(A) by moving subparagraph (C) 2 em spaces to the
left; and
(B) by adding after such subparagraph the following
new subparagraph:
``(D) An institution shall be considered in compliance with
the requirements of subparagraph (A) for any student to whom
the institution electronically transmits a message containing a
voter registration form acceptable for use in the State in
which the institution is located, or an Internet address where
such a form can be downloaded, provided such information is in
an electronic message devoted to voter registration.''.
(b) Audit Requirements.--Section 487(c)(1)(A)(i) (20 U.S.C.
1094(c)(1)(A)(i)) is amended by inserting before the semicolon at the
end the following: ``, except that the Secretary may modify the
requirements of this clause with respect to institutions of higher
education that are foreign institutions, and may waive such
requirements with respect to a foreign institution whose students
receive less than $500,000 in loans under this title during the award
year preceding the audit period;''.
(c) Reports on Disciplinary Proceedings.--
(1) Amendment.--Section 487(a) (20 U.S.C. 1094(a)) is
amended by adding at the end the following new paragraph:
``(24) The institution will disclose to the alleged victim
of any crime of violence (as that term is defined in section 16
of title 18), or a nonforcible sex offense, the final results
of any disciplinary proceeding conducted by such institution
against a student who is the alleged perpetrator of such crime
or offense with respect to such crime or offense. If the
alleged victim of such crime or offense is deceased, the next
of kin of such victim shall be treated as the alleged victim
for purposes of this paragraph.''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to any disciplinary proceeding
conducted by such institution on or after one year after the
date of enactment of this Act.
SEC. 491. ADDITIONAL TECHNICAL AND CONFORMING AMENDMENTS.
Part G is further amended as follows:
(1) Section 483(d) (20 U.S.C. 1090(d)) is amended by
striking ``that is authorized under section 685(d)(2)(C)'' and
inserting ``, or another appropriate provider of technical
assistance and information on postsecondary educational
services, that is supported under section 685''.
(2) Section 484 (20 U.S.C. 1091) is amended--
(A) in subsection (a)(4), by striking
``certification,,'' and inserting ``certification,'';
(B) in subsection (b)(2)--
(i) in the matter preceding subparagraph
(A), by striking ``section 428A'' and inserting
``section 428H'';
(ii) in subparagraph (A), by inserting
``and'' after the semicolon at the end thereof;
(iii) in subparagraph (B), by striking ``;
and'' and inserting a period; and
(iv) by striking subparagraph (C); and
(C) in subsection (l)(1)(B)(i), by striking
``section 521(4)(C) of the Carl D. Perkins Vocational
and Applied Technology Education Act'' and inserting
``section 3(3)(C) of the Carl D. Perkins Vocational and
Technical Education Act of 1998''.
(3) Section 485B(a) (20 U.S.C. 1092b(a)) is amended--
(A) by redesignating paragraphs (6) through (10) as
paragraphs (7) through (11), respectively;
(B) by redesignating the paragraph (5) (as added by
section 2008 of Public Law 101-239) as paragraph (6);
and
(C) in paragraph (5) (as added by section 204(3) of
the National Community Service Act of 1990 (Public Law
101-610))--
(i) by striking ``(22 U.S.C. 2501 et
seq.)),'' and inserting ``(22 U.S.C. 2501 et
seq.),''; and
(ii) by striking the period at the end
thereof and inserting a semicolon.
(4) Section 491(c) (20 U.S.C. 1098(c)) is amended by adding
at the end the following new paragraph:
``(3) The appointment of members under subparagraphs (A) and (B) of
paragraph (1) shall be effective upon publication of the appointment in
the Congressional Record.''.
(5) Section 491(k) (20 U.S.C. 1098(k)) is amended by
striking ``2004'' and inserting ``2011''.
(6) Section 493A (20 U.S.C. 1098c) is repealed.
(7) Section 498 (20 U.S.C. 1099c) is amended--
(A) in subsection (c)(2), by striking ``for
profit,'' and inserting ``for-profit,''; and
(B) in subsection (d)(1)(B), by inserting ``and''
after the semicolon at the end thereof.
PART H--PROGRAM INTEGRITY
SEC. 495. ACCREDITATION.
(a) Standards for Accreditation.--Section 496(a) (20 U.S.C.
1099b(a)) is amended--
(1) in paragraph (3)--
(A) by inserting ``or'' after the semicolon at the
end of subparagraph (A);
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as
subparagraph (B);
(2) in paragraph (4)--
(A) by inserting ``(A)'' after ``(4)'';
(B) by inserting ``and'' after the semicolon at the
end thereof; and
(C) by adding at the end the following new
subparagraph:
``(B) if such agency or association already has or seeks to
include within its scope of recognition the evaluation of the
quality of institutions or programs offering distance
education, such agency or association shall, in addition to
meeting the other requirements of this subpart--
``(i) demonstrate to the Secretary that, through
application of its standards, procedures, and policies,
particularly those required under paragraph (5) of this
subsection, the agency or association determines that
the quality of instruction and student support services
for distance education is comparable to that provided
by the institution in its classrooms and on its
campuses (or if distance education is the only mode of
delivery used by the institution, comparable to the
quality of instruction and student support services
provided in campus settings); and
``(ii) evaluate how an institution offering
distance education ensures the integrity of student
participation in its distance education programs;''.
(D) by inserting after ``standards'' the following:
``(including standards to assess the quality of
distance education that are comparable to the standards
used for face-to-face classroom instruction)'';
(3) in paragraph (5)--
(A) by amending subparagraph (A) to read as
follows:
``(A) success with respect to student achievement
in relation to the institution's mission, including, as
appropriate, consideration of student academic
achievement as determined by the institution (in
accordance with standards of the accrediting agency or
association) related to each institution's articulation
of desired learning outcomes, retention, course and
program completion, State licensing examinations, and
job placement rates; and other student performance data
selected by the institution, particularly data used by
the institution to evaluate or strengthen its
educational programs, and including thresholds for
course completion and job placement rates if the
institution offers certificate-granting vocation or
technical programs;'';
(B) in subparagraph (E), by striking ``fiscal and
administrative capacity'' and inserting ``fiscal,
administrative, and governance capacity''; and
(C) by amending subparagraph (I) to read as
follows:
``(I) record of student complaints received by the
agency or association, including those resulting from
the process described in section 485(a)(1)(J); and'';
(4) by striking ``and'' at the end of paragraph (7); and
(5) by striking paragraph (8) and inserting the following:
``(8) such agency or association shall make available to
the public, and submit to the Secretary, for use in consumer
information programs, a summary of agency or association
actions, including--
``(A) the award of accreditation or reaccreditation
of an institution and any findings made in connection
with the accreditation or reaccreditation;
``(B) final denial, withdrawal, suspension, or
termination of accreditation, or placement on probation
of an institution;
``(C) any other adverse action taken with respect
to an institution;
``(D) a list of the individuals who comprise the
inspection and review teams for each agency or
association, including each individual's name, agency
affiliation, and relevant professional experience;
``(E) a description of the agency's or
association's process for selecting, training, and
evaluating such individuals; and
``(F) the agency's or association's code of conduct
for its commissioners and such individuals; and
``(9) such agency or association shall--
``(A) review, during its onsite comprehensive
review, the transfer of credit policies of programs and
institutions under its accreditation; and
``(B) not adopt or apply standards, policies, or
practices that restrict or deny the transfer of credits
earned by a student completing courses or programs at
other eligible institutions of higher education solely
on the basis of the agency or association that
accredited such other eligible institution if that
agency or association--
``(i) is recognized by the Secretary
pursuant to this section to be a reliable
authority as to the quality of the education or
training offered; and
``(ii) is currently listed by the Secretary
pursuant to section 101(c).''.
(b) Operating Procedures.--Section 496(c) (20 U.S.C. 1099b(c)) is
amended--
(1) by inserting ``(including those regarding distance
education), and have several years of related experience''
before the semicolon at the end of paragraph (1);
(2) by striking ``and'' at the end of paragraph (5);
(3) by striking the period at the end of paragraph (6) and
inserting a semicolon; and
(4) by inserting after paragraph (6) the following new
paragraphs:
``(7) ensures that its onsite comprehensive reviews for
accreditation or reaccreditation include evaluation of the
substance of the information required in subparagraphs (G) and
(H) of section 485(a)(1);
``(8) confirms as a part of its review for accreditation or
reaccreditation that the institution has transfer policies that
are publicly disclosed and consistently applied;
``(9) develops as required in subsection (a)(8), a summary
available to the public of the agency's action and the
significant findings related to that action;
``(10) includes, in its evaluation for accreditation or
reaccreditation, review of the transfer of credit policies of
the program or institution to assure that transfer policies do
not deny transfer of credit based solely on the accreditation
of the sending program or institution, except that nothing in
this review shall restrict the right of the receiving program
or institution to determine, on any other basis or on a
combination of that basis together with other bases, the
credits the receiving program or institution will accept for
transfer; and
``(11) monitors the growth of distance education programs,
evaluating, as appropriate, the development and management of
such programs at institutions that are experiencing significant
growth in distance education.''.
(c) Limitation, Suspension, and Termination of Recognition.--
Section 496(l) is amended by adding at the end the following new
paragraph:
``(3) The Secretary shall provide an annual report to Congress on
the status of any agency or association for which the Secretary has
limited, suspended or terminated recognition under this subsection.''.
(d) College Consumer Profile.--Section 496 is further amended--
(1) by redesignating subsection (o) as subsection (p); and
(2) by inserting after subsection (n):
``(o) College Consumer Profile.--
``(1) Information dissemination.--No accrediting agency or
association shall be recognized by the Secretary as a reliable
authority as to the quality of the education or training
offered by an institution seeking to participate in the
programs authorized under this title, unless the agency ensures
each institution subject to its jurisdiction makes publicly
available in a uniform and comprehensible manner, a college
consumer profile including, at minimum, information on the
institution's--
``(A) mission;
``(B) student demographics;
``(C) accreditation;
``(D) faculty/student ratios;
``(E) faculty qualifications, including the number
of faculty with terminal degrees;
``(F) tuition, fees, and other costs of attending
the institution;
``(G) student services, including services for
students with disabilities;
``(H) policies and procedures for evaluating and
accepting credits earned by students transferring from
other institutions and the percentage of such credits
accepted;
``(I) completion and graduation rates; and
``(J) placement rates and other measures of success
in preparing students for entry into or advancement in
the workforce.
``(2) Publication of college consumer profile.--The
contents of the college consumer profile required by paragraph
(1) shall be made public through dissemination via the
Secretary's data collection and dissemination system. The
information required to be disclosed by section 485 may be used
by the institution to provide (where applicable) the contents
of the college consumer profile, but nothing in this subsection
shall be construed to relieve the institution of any
information disclosure requirement of such section.''.
TITLE V--DEVELOPING INSTITUTIONS
SEC. 501. DEFINITIONAL CHANGES.
Section 502(a) (20 U.S.C. 1101a(a)) is amended--
(1) in paragraph (5)--
(A) by inserting ``and'' after the semicolon at the
end of subparagraph (A);
(B) by inserting ``at the end of the award year
immediately preceding the date of application'' after
``Hispanic students'' in subparagraph (B);
(C) by striking ``; and'' at the end of
subparagraph (B) and inserting a period; and
(D) by striking subparagraph (C); and
(2) by striking paragraph (7).
SEC. 502. ASSURANCE OF ENROLLMENT OF NEEDY STUDENTS.
Section 511(c) (20 U.S.C. 1103(c)) is amended--
(1) by redesignating paragraphs (8) and (9) as paragraphs
(9) and (10), respectively; and
(2) by inserting after paragraph (7) the following new
paragraph:
``(8) contain such assurances as the Secretary may require
that the institution has an enrollment of needy students as
required by section 502(b);''.
SEC. 503. ADDITIONAL AMENDMENTS.
Title V is further amended--
(1) in section 502(a)(2)(A) (20 U.S.C. 1101a(a)(2)(A)), by
redesignating clauses (v) and (vi) as clauses (vi) and (vii),
respectively, and inserting after clause (iv) the following new
clause:
``(v) which provides a program of not less
than 2 years that is acceptable for full credit
toward a bachelor's degree; and'';
(2) in section 503(b) (20 U.S.C. 1101b(b))--
(A) by amending paragraph (2) to read as follows:
``(2) Construction, maintenance, renovation, and
improvement in classrooms, libraries, laboratories, and other
instructional facilities, including purchase or rental of
telecommunications technology equipment or services, and the
acquisition of real property adjacent to the campus of the
institution on which to construct such facilities.'';
(B) by amending paragraph (12) to read as follows:
``(12) Establishing community outreach programs and
collaborative partnerships between Hispanic-serving
institutions and local elementary or secondary schools. Such
partnerships may include mentoring, tutoring, or other
instructional opportunities that will boost student academic
achievement and assist elementary and secondary school students
in developing the academic skills and the interest to pursue
postsecondary education.'';
(C) by redesignating paragraphs (5) through (14) as
paragraphs (6) through (15), respectively; and
(D) by inserting after paragraph (4) the following:
``(5) Education or counseling services designed to improve
the financial literacy and economic literacy of students and,
as appropriate, their parents.''; and
(3) in section 504(a) (20 U.S.C. 1101c(a))--
(A) by striking the following:
``(a) Award Period.--
``(1) In general.--The Secretary'' and inserting the
following:
``(a) Award Period.--The Secretary''; and
(B) by striking paragraph (2).
SEC. 504. TITLE V AUTHORIZATION.
Subsection (a) of section 518 of such Act (20 U.S.C. 1103g(a)) is
amended to read as follows:
``(a) Authorizations of Appropriations.--There are authorized to be
appropriated to carry out this title $96,000,000 for fiscal year 2005
and such sums as may be necessary for each of the 5 succeeding fiscal
years.''.
TITLE VI--TITLE VI AMENDMENTS
SEC. 601. SENSE OF THE HOUSE.
It is the sense of the House of Representatives that title VI of
the Higher Education Act of 1965 should be amended as provided in H.R.
3077 as passed by the House of Representatives on October 21, 2003.
TITLE VII--TITLE VII AMENDMENTS
SEC. 701. SENSE OF THE HOUSE.
It is the sense of the House of Representatives that title VII of
the Higher Education Act of 1965 should be amended as provided in H.R.
3076 as passed by the House of Representatives on October 21, 2003.
TITLE VIII--CLERICAL AMENDMENTS
SEC. 801. CLERICAL AMENDMENTS.
(a) Definition.--Section 103 (20 U.S.C. 1003) is amended--
(1) by redesignating paragraphs (1) through (16) as
paragraphs (2) through (17), respectively; and
(2) by inserting before paragraph (2) (as so redesignated)
the following new paragraph:
``(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
the Workforce of the House of Representatives.''.
(b) Committees.--
(1) The following provisions are each amended by striking
``Committee on Labor and Human Resources of the Senate and the
Committee on Education and the Workforce of the House of
Representatives'' and inserting ``authorizing committees'':
(A) Section 131(a)(3)(B) (20 U.S.C. 1015(a)(3)(B)).
(B) Section 131(c)(4) (20 U.S.C. 1015(c)(4)).
(C) Section 206(d) (20 U.S.C. 1026(d)).
(D) Section 207(c)(1) (20 U.S.C. 1027(c)(1)).
(E) Section 428(g) (20 U.S.C. 1078(g)).
(F) Section 428A(a)(4) (20 U.S.C. 1078-1(a)(4)).
(G) Section 428A(c)(2) (20 U.S.C. 1078-1(c)(2)).
(H) Section 428A(c)(3) (20 U.S.C. 1078-1(c)(3)).
(I) Section 428A(c)(5) (20 U.S.C. 1078-1(c)(5)).
(J) Section 455(b)(8)(B) (20 U.S.C.
1087e(b)(8)(B)).
(K) Section 483(c) (20 U.S.C. 1090(c)).
(L) Section 486(e) (20 U.S.C. 1093(e)).
(M) Section 486(f)(3)(A) (20 U.S.C. 1093(f)(3)(A)).
(N) Section 486(f)(3)(B) (20 U.S.C. 1093(f)(3)(B)).
(O) Section 487A(a)(5) (20 U.S.C. 1094a(a)(5)).
(P) Section 487A(b)(2) (20 U.S.C. 1094a(b)(2)).
(Q) Section 487A(b)(3)(B) (20 U.S.C.
1094a(b)(3)(B)).
(R) Section 498B(d)(1) (20 U.S.C. 1099c-2(d)(1)).
(S) Section 498B(d)(2) (20 U.S.C. 1099c-2(d)(2)).
(2) The following provisions are each amended by striking
``Committee on Education and the Workforce of the House of
Representatives and the Committee on Labor and Human Resources
of the Senate'' and inserting ``authorizing committees'':
(A) Section 141(d)(4)(B) (20 U.S.C. 1018(d)(4)(B)).
(B) Section 428(n)(4) (20 U.S.C. 1078(n)(4)).
(C) Section 485(f)(5)(A) (20 U.S.C. 1092(f)(5)(A)).
(D) Section 485(g)(4)(B) (20 U.S.C. 1092(g)(4)(B)).
(3) Section 206(a) (20 U.S.C. 1026(a)) is amended by
striking ``, the Committee on Labor and Human Resources of the
Senate, and the Committee on Education and the Workforce of the
House of Representatives'' and inserting ``and the authorizing
committees''.
(4) Section 401(f)(3) (20 U.S.C. 1070a(f)(3)) is amended by
striking ``Committee on Appropriations and the Committee on
Labor and Human Resources of the Senate and the Committee on
Appropriations and the Committee on Education and the Workforce
of the House of Representatives'' and inserting ``Committees on
Appropriations of the Senate and House of Representatives and
the authorizing committees''.
(5) Section 428(c)(9)(K) (20 U.S.C. 1078(c)(9)(K)) is
amended by striking ``House Committee on Education and the
Workforce and the Senate Committee on Labor and Human
Resources'' and inserting ``authorizing committees''.
(6) Section 428I(h) (20 U.S.C. 1078-9(h)) is amended by
striking ``Chairman of the Senate Labor and Human Resources
Committee and the House Committee on Education and Labor'' and
inserting ``chairpersons of the authorizing committees''.
(7) Section 432(f)(1)(C) (20 U.S.C. 1082(f)(1)(C)) is
amended by striking ``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''.
(8) Section 439(d)(1)(E)(iii) (20 U.S.C. 1087-
2(d)(1)(E)(iii)) is amended by striking ``Chairman and the
Ranking Member on the Committee on Labor and Human Resources of
the Senate and the Chairman and the Ranking Member of the
Committee on Education and Labor of the House of
Representatives'' and inserting ``chairpersons and ranking
minority members of the authorizing committees''.
(9) Paragraphs (3) and (8)(C) of section 439(r) (20 U.S.C.
1087-2(r)) are each amended by striking ``Chairman and ranking
minority member of the Committee on Labor and Human Resources
of the Senate, the Chairman and ranking minority member of the
Committee on Education and Labor of the House of
Representatives,'' and inserting ``chairpersons and ranking
minority members of the authorizing committees''.
(10) Paragraphs (5)(B) and (10) of section 439(r) (20
U.S.C. 1087-2(r)) are each amended by striking ``Chairman and
ranking minority member of the Senate Committee on Labor and
Human Resources and to the Chairman and ranking minority member
of the House Committee on Education and Labor'' and inserting
``chairpersons and ranking minority members of the authorizing
committees''.
(11) Section 439(r)(6)(B) (20 U.S.C. 1087-2(r)(6)(B)) is
amended by striking ``Chairman and ranking minority member of
the Committee on Labor and Human Resources of the Senate and to
the Chairman and ranking minority member of the Committee on
Education and Labor of the House of Representatives'' and
inserting ``chairpersons and ranking minority members of the
authorizing committees''.
(12) Section 439(s)(2)(A) (20 U.S.C. 1087-2(s)(2)(A)) is
amended by striking ``Chairman and Ranking Member of the
Committee on Labor and Human Resources of the Senate and the
Chairman and Ranking Member of the Committee on Economic and
Educational Opportunities of the House of Representatives'' and
inserting ``chairpersons and ranking minority members of the
authorizing committees''.
(13) Section 439(s)(2)(B) (20 U.S.C. 1087-2(s)(2)(B)) is
amended by striking ``Chairman and Ranking Minority Member of
the Committee on Labor and Human Resources of the Senate and
Chairman and Ranking Minority Member of the Committee on
Economic and Educational Opportunities of the House of
Representatives'' and inserting ``chairpersons and ranking
minority members of the authorizing committees''.
(14) Section 482(d) (20 U.S.C. 1089(d)) is amended 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''.
(c) Additional Clerical Amendments.--
(1) Clauses (i) and (ii) of section 425(a)(2)(A) (20 U.S.C.
1075(a)(2)(A)) are each amended by striking ``428A or 428B''
and inserting ``428B or 428H''.
(2) Section 428(a)(2)(E) (20 U.S.C. 1078(a)(2)(E)) is
amended by striking ``428A or''.
(3) Clauses (i) and (ii) of section 428(b)(1)(B) (20 U.S.C.
1078(b)(1)(B)) are each amended by striking ``428A or 428B''
and inserting ``428B or 428H''.
(4) Section 428(b)(1)(Q) (20 U.S.C. 1078(b)(1)(Q)) is
amended by striking ``sections 428A and 428B'' and inserting
``section 428B or 428H''.
(5) Section 428(b)(7)(C) (20 U.S.C. 1078(b)(7)(C)) is
amended by striking ``428A, 428B,'' and inserting ``428B''.
(6) Section 428G(c)(2) (20 U.S.C. 1078-7(c)(2)) is amended
by striking ``428A'' and inserting ``428H''.
(7) The heading for section 433(e) (20 U.S.C. 1083(e)) is
amended by striking ``SLS Loans And''.
(8) Section 433(e) (20 U.S.C. 1083(e)) is amended by
striking ``428A, 428B,'' and inserting ``428B''.
(9) Section 435(a)(3) (20 U.S.C. 1085(a)(3)) is amended--
(A) by inserting ``or'' at the end of subparagraph
(A);
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as
subparagraph (B).
(10) Section 435(d)(1)(G) (20 U.S.C. 1085(d)(1)(G)) is
amended by striking ``428A(d), 428B(d), 428C,'' and inserting
``428B(d), 428C, 428H,''.
(11) Section 435(m) (20 U.S.C. 1085(m)) is amended--
(A) in paragraph (1)(A), by striking ``, 428A,'';
and
(B) in paragraph (2)(D), by striking ``428A'' each
place it appears and inserting ``428H''.
(12) Section 438(b)(2)(D) (20 U.S.C. 1087-1(b)(2)(D)) is
amended by striking ``division (i) of this subparagraph'' and
inserting ``clause (i) of this subparagraph''.
(13) Section 438(c)(6) (20 U.S.C. 1087-1(c)(6)) is
amended--
(A) by striking ``SLS and plus'' in the heading and
inserting ``Plus''; and
(B) by striking ``428A or''.
(14) Section 438(c)(7) (20 U.S.C. 1087-1(c)(7)) is amended
by striking ``428A or''.
(15) Nothing in the amendments made by this subsection
shall be construed to alter the terms, conditions, and benefits
applicable to Federal supplemental loans for students (``SLS
loans'') under section 428A as in effect prior to July 1, 1994
(20 U.S.C. 1078-1).
TITLE IX--STUDENT LOAN FORGIVENESS FOR FAMILIES OF 9/11 VICTIMS
SEC. 901. CANCELLATION OF STUDENT LOAN INDEBTEDNESS FOR SPOUSES,
SURVIVING JOINT DEBTORS, AND PARENTS.
(a) Definitions.--For purposes of this section:
(1) Eligible public servant.--The term ``eligible public
servant'' means an individual who--
(A) served as a police officer, firefighter, other
safety or rescue personnel, or as a member of the Armed
Forces; and
(B) died (or dies) or became (or becomes)
permanently and totally disabled due to injuries
suffered in the terrorist attack on September 11, 2001;
as determined in accordance with regulations of the Secretary.
(2) Eligible victim.--The term ``eligible victim'' means an
individual who died (or dies) or became (or becomes)
permanently and totally disabled due to injuries suffered in
the terrorist attack on September 11, 2001, as determined in
accordance with regulations of the Secretary.
(3) Eligible parent.--The term ``eligible parent'' means
the parent of an eligible victim if--
(A) the parent owes a Federal student loan that is
a consolidation loan that was used to repay a PLUS loan
incurred on behalf of such eligible victim; or
(B) the parent owes a Federal student loan that is
a PLUS loan incurred on behalf of an eligible victim
who became (or becomes) permanently and totally
disabled due to injuries suffered in the terrorist
attack on September 11, 2001.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Education.
(5) Federal student loan.--The term ``Federal student
loan'' means any loan made, insured, or guaranteed under part
B, D, or E of title IV of the Higher Education Act of 1965.
(b) Relief From Indebtedness.--
(1) In general.--The Secretary shall provide for the
discharge or cancellation of--
(A) the Federal student loan indebtedness of the
spouse of an eligible public servant, as determined in
accordance with regulations of the Secretary, including
any consolidation loan that was used jointly by the
eligible public servant and his or her spouse to repay
the Federal student loans of the spouse and the
eligible public servant;
(B) the portion incurred on behalf of the eligible
victim (other than an eligible public servant), of a
Federal student loan that is a consolidation loan that
was used jointly by the eligible victim and his or her
spouse, as determined in accordance with regulations of
the Secretary, to repay the Federal student loans of
the eligible victim and his or her spouse;
(C) the portion of the consolidation loan
indebtedness of an eligible parent that was incurred on
behalf of an eligible victim; and
(D) the PLUS loan indebtedness of an eligible
parent that was incurred on behalf of an eligible
victim.
(2) Method of discharge or cancellation.--A loan required
to be discharged or canceled under paragraph (1) shall be
discharged or canceled by the method used under section 437(a),
455(a)(1), or 464(c)(1)(F) of the Higher Education Act of 1965
(20 U.S.C. 1087(a), 1087e(a)(1), 1087dd(c)(1)(F)), whichever is
applicable to such loan.
(c) Facilitation of Claims.--The Secretary shall--
(1) establish procedures for the filing of applications for
discharge or cancellation under this section by regulations
that shall be prescribed and published within 90 days after the
date of enactment of this Act and without regard to the
requirements of section 553 of title 5, United States Code; and
(2) take such actions as may be necessary to publicize the
availability of discharge or cancellation of Federal student
loan indebtedness under this section.
(d) Availability of Funds for Payments.--Funds available for the
purposes of making payments to lenders in accordance with section
437(a) for the discharge of indebtedness of deceased or disabled
individuals shall be available for making payments under section 437(a)
to lenders of loans as required by this section.
(e) Applicable to Outstanding Debt.--The provisions of this section
shall be applied to discharge or cancel only Federal student loans
(including consolidation loans) on which amounts were owed on September
11, 2001. Nothing in this section shall be construed to authorize any
refunding of any repayment of a loan.
TITLE X--AMENDMENTS TO OTHER EDUCATION LAWS
PART A--EDUCATION OF THE DEAF ACT OF 1986
SEC. 1001. LAURENT CLERC NATIONAL DEAF EDUCATION CENTER.
(a) General Authority.--Section 104(a)(1)(A) of the Education of
the Deaf Act of 1986 (20 U.S.C. 4304(a)(1)(A)) is amended by inserting
after ``maintain and operate'' the following: ``, at the Laurent Clerc
National Deaf Education Center,''.
(b) Administrative Requirements.--
(1) In general.--Section 104(b) of the Education of the
Deaf Act of 1986 (20 U.S.C. 4304(b)) is amended--
(A) in the matter preceding subparagraph (A) of
paragraph (1), by striking ``elementary and secondary
education programs'' and inserting ``Laurent Clerc
National Deaf Education Center''; and
(B) in paragraph (2), by striking ``elementary and
secondary education programs'' and inserting ``Laurent
Clerc National Deaf Education Center''.
(2) Academic content standards, achievement standards, and
assessments.--Section 104(b) of the Education of the Deaf Act
of 1986 (20 U.S.C. 4304(b)) is amended by adding at the end the
following new paragraph:
``(5) The University, in consultation with the Secretary, shall--
``(A) not later than the beginning of the 2006-2007
academic year, adopt and implement academic content standards,
academic achievement standards, and academic assessments as
described in section 1111(b) of the Elementary and Secondary
Education Act of 1965 for the Laurent Clerc National Deaf
Education Center;
``(B) develop adequate yearly progress standards for the
Center as described in section 1111(2)(C) of such Act; and
``(C) make available to the public the results of such
assessments, except in such case in which such reporting would
not yield statistically reliable information or would reveal
personally identifiable information about an individual
student.''.
SEC. 1002. AUTHORITY.
Section 111 of the Education of the Deaf Act of 1986 (20 U.S.C.
4331) is amended by striking ``the institution of higher education with
which the Secretary has an agreement under this part'' and inserting
``the Rochester Institute of Technology''.
SEC. 1003. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.
(a) General Authority.--Section 112(a) of the Education of the Deaf
Act of 1986 (20 U.S.C. 4332(a)) is amended--
(1) in paragraph (1)--
(A) in the first sentence--
(i) by striking ``an institution of higher
education'' and inserting ``the Rochester
Institute of Technology, Rochester, New
York,''; and
(ii) by striking ``of a'' and inserting
``of the''; and
(B) by striking the second sentence; and
(2) in paragraph (2)--
(A) in the matter preceding subparagraph (A), by
striking ``the institution of higher education with
which the Secretary has an agreement under this
section'' and inserting ``the Rochester Institute of
Technology''; and
(B) in subparagraph (B), by striking ``the
institution'' and inserting ``the Rochester Institute
of Technology''.
(b) Provisions of Agreement.--Section 112(b) of the Education of
the Deaf Act of 1986 (20 U.S.C. 4332(b)) is amended--
(1) in paragraph (2), by striking ``or other governing body
of the institution'' and inserting ``of the Rochester Institute
of Technology''; and
(2) in paragraph (3)--
(A) by striking ``or other governing body of the
institution'' and inserting ``of the Rochester
Institute of Technology'';
(B) by striking ``the institution of higher
education under the agreement with the Secretary'' and
inserting ``the Rochester Institute of Technology by
the National Technical Institute for the Deaf''; and
(C) by striking ``Committee on Education and Labor
of the House of Representatives and to the Committee on
Labor and Human Resources of the Senate'' and inserting
``Committee on Education and the Workforce of the House
of Representatives and to the Committee on Health,
Education, Labor, and Pensions of the Senate''.
(c) Limitation.--Section 112(c) of the Education of the Deaf Act of
1986 (20 U.S.C. 4332(c)) is amended in paragraphs (1) and (2) by
striking ``institution'' each place it appears and inserting
``Rochester Institute of Technology''.
SEC. 1004. DEFINITIONS.
Section 201 of the Education of the Deaf Act of 1986 (20 U.S.C.
4351) is amended--
(1) by striking paragraph (3);
(2) by redesignating paragraphs (4) through (7) as
paragraphs (3) through (6), respectively; and
(3) by adding at the end the following new paragraph:
``(7) The term `RIT' means the Rochester Institute of
Technology.''.
SEC. 1005. AUDIT.
(a) Independent Financial and Compliance Audit.--Section 203(b)(1)
of the Education of the Deaf Act of 1986 (20 U.S.C. 4353(b)(1)) is
amended by striking the second sentence and inserting the following:
``NTID shall have an annual independent financial and compliance audit
made of RIT programs and activities, including NTID programs and
activities.''.
(b) Compliance.--Section 203(b)(2) of the Education of the Deaf Act
of 1986 (20 U.S.C. 4353(b)(2)) is amended by striking ``sections'' and
all that follows through ``section 207'' and inserting ``sections
102(b), 105(b)(4), 112(b)(5), 203(c), 207(b)(2), subsections (c)
through (f) of section 207''.
(c) Submission of Audits.--Section 203(b)(3) of the Education of
the Deaf Act of 1986 (20 U.S.C. 4353(b)(3)) is amended--
(1) by inserting after ``Secretary'' the following: ``and
the Committee on Education and the Workforce of the House of
Representatives and the Committee on Health, Education, Labor,
and Pensions of the Senate''; and
(2) by striking ``or the institution authorized to
establish and operate the NTID under section 112(a)'' and
inserting ``or RIT''.
(d) Limitations Regarding Expenditure of Funds.--Section
203(c)(2)(A) of the Education of the Deaf Act of 1986 (20 U.S.C.
4353(c)(2)(A)) is amended in the fifth sentence by striking ``the
Committee on Education and Labor of the House of Representatives and
the Committee on Labor and Human Resources of the Senate'' and
inserting ``the Committee on Education and the Workforce of the House
of Representatives and the Committee on Health, Education, Labor, and
Pensions of the Senate''.
SEC. 1006. REPORTS.
(a) Technical Amendments.--Section 204 of the Education of the Deaf
Act of 1986 (20 U.S.C. 4354) is amended in the matter preceding
paragraph (1)--
(1) by striking ``or other governing body of the
institution of higher education with which the Secretary has an
agreement under section 112'' and inserting ``of RIT''; and
(2) by striking ``Committee on Education and Labor of the
House of Representatives and the Committee on Labor and Human
Resources of the Senate'' and inserting ``Committee on
Education and the Workforce of the House of Representatives and
the Committee on Health, Education, Labor, and Pensions of the
Senate''.
(b) Contents of Report.--Section 204 of the Education of the Deaf
Act of 1986 (20 U.S.C. 4354) is amended--
(1) in paragraph (2)(C), by striking ``upon graduation/
completion'' and inserting ``within one year of graduation/
completion''; and
(2) in paragraph (3)(B), by striking ``of the institution
of higher education with which the Secretary has an agreement
under section 112, including specific schedules and analyses
for all NTID funds, as required under section 203'' and
inserting ``of RIT programs and activities''.
SEC. 1007. LIAISON FOR EDUCATIONAL PROGRAMS.
Section 206(a) of the Education of the Deaf Act of 1986 (20 U.S.C.
4356(a)) is amended by striking ``Not later than 30 days after the date
of enactment of this Act, the'' and inserting ``The''.
SEC. 1008. FEDERAL ENDOWMENT PROGRAMS FOR GALLAUDET UNIVERSITY AND THE
NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.
Section 207(a)(2) of the Education of the Deaf Act of 1986 (20
U.S.C. 4357(a)(2)) is amended by striking ``or other governing body of
the institution of higher education with which the Secretary has an
agreement under section 112'' and inserting ``of RIT''.
SEC. 1009. OVERSIGHT AND EFFECT OF AGREEMENTS.
Section 208(a) of the Education of the Deaf Act of 1986 (20 U.S.C.
4359(a)) is amended--
(1) by striking ``the institution of higher education with
which the Secretary has an agreement under part B of title I''
and inserting ``RIT''; and
(2) 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 ``Committee on
Education and the Workforce of the House of Representatives and
the Committee on Health, Education, Labor, and Pensions of the
Senate''.
SEC. 1010. AUTHORIZATION OF APPROPRIATIONS.
(a) Monitoring and Evaluation Activities.--Section 205(c) of the
Education of the Deaf Act of 1986 (20 U.S.C. 4355(c)) is amended by
striking ``fiscal years 1998 through 2003'' and inserting ``fiscal
years 2004 through 2009''.
(b) Federal Endowment Programs for Gallaudet University and the
National Technical Institute for the Deaf.--Section 207(h) of the
Education of the Deaf Act of 1986 (20 U.S.C. 4357(h)) is amended in
paragraphs (1) and (2) by striking ``fiscal years 1998 through 2003''
each place it appears and inserting ``fiscal years 2004 through 2009''.
(c) General Authorization of Appropriations.--Section 212 of the
Education of the Deaf Act of 1986 (20 U.S.C. 4360a) is amended--
(1) in the matter preceding paragraph (1) in subsection
(a), by striking ``fiscal years 1998 through 2003'' and
inserting ``fiscal years 2004 through 2009''; and
(2) in subsection (b), by striking ``fiscal years 1998
through 2003'' and inserting ``fiscal years 2004 through
2009''.
PART B--ADDITIONAL EDUCATION LAWS
SEC. 1021. AMENDMENT TO HIGHER EDUCATION AMENDMENTS OF 1998.
(a) Repeals of Expired and Executed Provisions.--The following
provisions of the Higher Education Amendments of 1998 are repealed:
(1) Study of market mechanisms in federal student loan
programs.--Section 801 (20 U.S.C. 1018 note).
(2) Study of feasibility of alternate financial instruments
for determining lender yields.--Section 802.
(3) Student related debt study.--Section 803 (20 U.S.C.
1015 note)
(4) Study of opportunities for participation in athletic
programs.--Section 805 (20 U.S.C. 1001 note).
(5) Community scholarship mobilization.--Part C (20 U.S.C.
1070 note).
(6) Incarcerated youth.--Part D (20 U.S.C. 1151).
(7) Improving united states understanding of science,
engineering, and technology in east asia.--Part F (20 U.S.C.
1862 note).
(8) Web-based education commission.--Part J.
(b) Extensions of Authorizations and Studies.--
(1) Transfer of credit.--Section 804(b) (20 U.S.C. 1099b
note) is amended--
(A) by striking ``one year after the date of
enactment of this Act'' and inserting ``September 30,
2006''; and
(B) by inserting ``and policies of institutions of
higher education'' after ``agencies or associations''.
(2) Cohort default rate study.--Section 806 is amended--
(A) in subsection (a), by striking ``higher
education at which less'' and inserting ``higher
education. The study shall also review the effect of
cohort default rates specifically on institutions of
higher education at which less''; and
(B) in subsection (c), by striking ``September 30,
1999,'' and inserting ``September 30, 2006,''.
(3) Violence against women.--Section 826 (20 U.S.C. 1152)
is amended--
(A) in subsection (g)--
(i) by striking ``1999'' and inserting
``2005''; and
(ii) by striking ``4 succeeding'' and
inserting ``5 succeeding''; and
(B) by redesignating subsections (f) and (g) as
subsections (e) and (f), respectively.
(4) Underground railroad.--Subsection (c) of section 841
(20 U.S.C. 1153(c)) is amended to read as follows:
``(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $3,000,000 for fiscal year 2005
and such sums as may be necessary for each of the 5 succeeding fiscal
years.''.
(c) Disbursement of Student Loans.--Section 422(d) of the Higher
Education Amendments of 1998 (Public Law 105-244; 112 Stat. 1696) is
amended by adding at the end the following new sentence: ``Such
amendments shall also be effective on and after July 1, 2005.''.
SEC. 1022. TRIBALLY CONTROLLED COLLEGE OR UNIVERSITY ASSISTANCE ACT OF
1978.
(a) Title I Authorization.--Section 110(a) of the Tribally
Controlled Community College or University Assistance Act of 1978 (25
U.S.C. 1810(a)) is amended--
(1) by striking ``1999'' each place it appears and
inserting ``2005''; and
(2) by striking ``4 succeeding'' each place it appears and
inserting ``5 succeeding''.
(b) Title III Reauthorization.--Section 306(a) of the Tribally
Controlled Community College or University Assistance Act of 1978 (25
U.S.C. 1836(a)) is amended--
(1) by striking ``1999'' and inserting ``2005''; and
(2) by striking ``4 succeeding'' and inserting ``5
succeeding''.
(c) Title IV Reauthorization.--Section 403 of the Tribal Economic
Development and Technology Related Education Assistance Act of 1990 (25
U.S.C. 1852) is amended--
(1) by striking ``1999'' and inserting ``2005''; and
(2) by striking ``4 succeeding'' and inserting ``5
succeeding''.
(d) Additional Amendments.--The Tribally Controlled Community
College or University Assistance Act of 1978 is further amended--
(1) in section 2(a)(6) (25 U.S.C. 1801(a)(6)), by striking
``in the field of Indian education'' and inserting ``in the
field of Tribal Colleges and Universities and Indian higher
education'';
(2) in section 2(b), by striking paragraph (5) and
inserting the following:
``(5) Eligible credits earned in a continuing education
program shall be determined as one credit for every 10 contact
hours for institutions on a quarter system, and 15 contact
hours for institutions on a semester system, of participation
in an organized continuing education experience under
responsible sponsorship, capable direction, and qualified
instruction, as described in the criteria established by the
International Association for Continuing Education and
Training, and may not exceed 20 percent of an institution's
total Indian student count.''; and
(3) in section 103 (25 U.S.C. 1804), by striking ``and'' at
the end of paragraph (2), by striking the period at the end of
paragraph (3) and inserting ``; and'', and by inserting after
paragraph (3) the following new paragraph:
``(4) has been accredited by a nationally recognized
accrediting agency or association determined by the Secretary
of Education to be a reliable authority as to the quality of
training offered, or is, according to such an agency or
association, making reasonable progress toward
accreditation.''.
SEC. 1023. NAVAJO COMMUNITY COLLEGE ACT.
Section 5(a)(1) of the Navajo Community College Act (25 U.S.C.
640c-1(a)(1)) is amended--
(1) by striking ``1999'' and inserting ``2005''; and
(2) by striking ``4 succeeding'' and inserting ``5
succeeding''.
SEC. 1024. EDUCATION AMENDMENTS OF 1992.
Section 1543(d) of the Education Amendments of 1992 (20 U.S.C. 1070
note) is amended--
(1) by striking ``1999'' and inserting ``2005''; and
(2) by striking ``4 succeeding'' and inserting ``5
succeeding''.
SEC. 1025. STUDY OF STUDENT LEARNING OUTCOMES AND PUBLIC
ACCOUNTABILITY.
(a) Study Required.--The Secretary shall provide for the conduct a
study of the best practices of States in assessing undergraduate
postsecondary student learning, particularly as such practices relate
to public accountability systems.
(b) Characteristics of the Association.--Such study shall be
conducted by an association or organization with specific expertise and
knowledge in state practices and access to necessary state officials
(in this section referred to as the ``association''). The association
responsible for the study under this section shall be a national, non-
partisan or bi-partisan entity representing States or State officials
with expertise in evaluative and qualitative policy research for best
practice models, the capacity to convene experts, and to formulate
policy recommendations.
(c) Required Subjects of Study.--In performing the study, the
association shall, at a minimum, examine the following:
(1) The current status of institutional and state efforts
to embed student learning assessments into the state-level
public accountability frameworks.
(2) The extent to which there is commonality among
educators and accrediting agencies on learning standards for
the associates and bachelors degrees.
(3) The reliability, rigor, and generalizability of
available instruments to assess general education at the
undergraduate level.
(4) Roles and responsibilities for public accountability
for student learning.
(d) Consultation.--
(1) National committee.--The association shall establish
and consult with a national committee. The committee shall meet
not less than twice a year to review the research, identify
best practice models, and review recommendations.
(2) Membership.--The national advisory committee shall
consist of a representative of the Secretary of Education and
individuals with expertise in--
(A) State accountability systems;
(B) student learning assessments;
(C) student flow data;
(D) transitions between K-12 and higher education;
and
(E) federal higher education policy.
(3) Additional expertise.--The association may augment this
committee with other expertise, as appropriate.
(e) Congressional Consultation.--The association shall consult on a
regular basis with the Committee on Education and the Workforce of the
House of Representatives and the Committee on Health Education Labor
and Pensions of the Senate in carrying out the study required by this
section.
(f) Report.--The association shall, not later than two years after
the date of enactment of this Act, prepare and submit a report on the
study required by this section to the Committee on Education and the
Workforce of the House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E755-756)
Referred to the House Committee on Education and the Workforce.
Committee Hearings Held.
Referred to the Subcommittee on 21st Century Competitiveness.
Subcommittee Hearings Held.
Committee Hearings Held.
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