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# Legislative Bulletin................................................. March 29, 2006

**Contents:**

> **H.R. 609 ---** College Access and Opportunity Act of 2005 (Higher
> Education Reauthorization)

**H.R. 609 ---** **College Access and Opportunity Act of 2005 (Higher
Education Reauthorization) --- *as amended* (Boehner, R-OH)**

**[Order of Business]{.underline}**: The bill, as amended, is scheduled
for consideration on Wednesday, March 29^th^, reportedly under a
structured rule. Reportedly there will be a manager's amendment, the
text of which is not currently available.

**Note**: H.R. 609, as reported out of the Education and Workforce
Committee, included mandatory provisions relating to federal student
loans. These provisions were included as part of the Deficit Reduction
Act, and are no longer included in H.R. 609. The House Rules Committee
website has the amended text of H.R. 609. To view this text, please
visit:
<http://www.rules.house.gov/109_2nd/text/amnd_sub_hr609/1092nd_amnd_sub_hr609.pdf>.

**[Summary by Title]{.underline}**: H.R. 609 reauthorizes and amends the
1965 Higher Education Act (last reauthorized in 1998), which provides
funding and education programs for institutes of higher education (IHE)
and higher education students. The legislation outlines funding
authorizations and allocations, incorporates strengthened accountability
procedures for many higher education programs, repeals eight programs,
and creates six new programs.

H.R. 609 repeals the following programs:

-   Academic Achievement Grants

-   Learning Anytime Anywhere Partnerships

-   Incarcerated Youth Program

-   Community Scholarship Mobilization Program

-   Science, Engineering & Tech in East Asia Program

-   Web Based Education Commission

-   Urban Community Service Program

-   Secretarial Default Management Program

***Title I: General Provisions***

-   Amends the definition of "institution of higher education" (IHE) to
    include all IHEs for purposes of eligibility for Higher Education
    Act (HEA) programs. For-profit institutions would continue to be
    ineligible for Title III (institutional aid) and Title V (developing
    institutions) programs. This definition provides continued Title IV
    eligibility for HEAs with dual enrollment for secondary education
    students or admit home-schooled students.

-   Provides that foreign institutions are to be considered an IHE if
    that institution is comparable to an IHE as defined by this Act, 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 of Education. In addition, the bill directs the
    Secretary to establish criteria (by regulation) for determining
    comparability and approving an institution. The bill outlines that
    an institution is not to be approved as an IHE if it is a for-profit
    institution, except that for-profit graduate medical schools and
    veterinary schools located outside the U.S. may be considered an IHE
    if the student attending is ineligible for federal financial
    assistance unless the institution meets certain stipulations defined
    in the bill.

-   Directs the Secretary to publish qualifying criteria and continues a
    current advisory panel of medical experts, which is to evaluate the
    standards of accreditation applied to applicant foreign medical
    schools and determine the comparability of those standards to
    standards for accreditation applied to U.S. medical schools.

-   Amends the definition of a "new borrower" when used with respect to
    any date for any loan under the Federal Family Education Loan
    Program (FFEL) and the Federal Direct Loan Program (FDLP) to be "an
    individual who on that date has no outstanding balance of principal
    or interest owing on any loan made, insured, or guaranteed" under
    these two programs. Also amends the definition of a "new borrower"
    when used with respect to any date for any loan under the Federal
    Perkins Loan program to be "an individual who on that date has no
    outstanding balance of principal or interest owing on any loan"
    under the Perkins Loan program.

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-   Adds to the current sense of Congress regarding the rights of
    students to free speech and association, the following additional
    sense of Congress:

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

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

    -   "within the context of its institutional mission, a college
        should promote intellectual pluralism and facilitate the free
        and open exchange of ideas;

    -   **"students should not be intimidated, harassed, discouraged
        from speaking out, discriminated against, or subject to official
        sanction because of their personal political, ideological, or
        religious beliefs; and**

    -   "students should be treated equally and fairly, including
        evaluation and grading, without regard to or consideration of
        their personal political views or ideological beliefs" (emphasis
        added).

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-   Authorizes until September 30, 2012, the National Advisory Committee
    on Institutional Quality and Integrity, which expired on September
    30, 2004. The Committee provides recommendations to the Secretary of
    Education regarding the accreditation process for IHEs.

-   Reauthorizes Alcohol and Drug Abuse Prevention Grants at \$5 million
    (current level) for FY06 and the five succeeding fiscal years.

-   Prohibits funds made available by the Higher Education Act (HEA)
    from being used for publicity or propaganda purposes not authorized
    by the Congress before the date of enactment of this bill, or being
    used unless authorized by law on the date of enactment, to produce
    any prepackaged news story intended for broadcast or distribution
    unless the story includes a clear a notification contained within
    the text or audio of the story stating that the prepackaged news
    story was prepared or funded by the Department of Education.

-   Directs the Secretary to redesign the College Opportunity On-Line
    (COOL) website, ensuring that the site includes clear, uniform,
    comparable, and searchable information determined to be relevant
    (such as cost of colleges, etc) to prospective students, enrolled
    students, and families. Under current law, the Department of
    Education is already collecting this information, however the
    purpose of this provision is to update the COOL website in order to
    more effectively provide the information to students.

-   Directs the Secretary to publish, for each academic year, the
    following information, among other information:

    -   the tuition, fees, and room and board charges for a first-time,
        full-time undergraduate student;

    -   the average amount of financial assistance received by a
        first-time full-time undergraduate student, including federal
        grants and loan;

    -   the number of first-time, full-time students receiving financial
        assistance

    -   the average net price for first-time, full-time students
        receiving federal, state, or institutional grant or loan
        assistance;

    -   the institutional instructional expenditure per full-time
        equivalent student;

    -   student enrollment information, including information on the
        number and percentage of full-time and part-time students, the
        number and percentage of resident and non-resident students,
        faculty/student ratios, etc.; and

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

> The bill also directs the Secretary to work with public and private
> entities to promote among middle and high school students and their
> families, this publication and the information contained in it. The
> Secretary is directed to calculate a college affordability index for
> each IHE that submits data to the Department, and the index is to be
> made available online. In addition, any IHE with an affordability
> index of two times the rate of inflation over a three year period,
> would be required to report to the Secretary an explanation of the
> factors contributing to the increase in the institution's cost, a
> management plan stating what steps the IHE will take to reduce costs,
> and a description of any local, state, or federal regulations which
> the IHE believes has contributed to its increased cost.

-   Directs all IHEs with a college affordability index in the top 25%
    of all indexes, to establish a "quality-efficiency task force" to
    review the operations of the institution and to report their
    findings to the Secretary.

-   Directs the Government Accountability Office (GAO) to conduct a
    study of the policies and procedures implemented by institutions in
    increasing the affordability of postsecondary education.

-   Directs the Secretary to conduct a survey of student aid recipients
    on a regular rotation and on a state-by-state basis, but not less
    than once every four years, to among other things, identify the
    population of students receiving federal student aid, to describe
    the income distribution and other socioeconomic characteristics of
    these students, to describe the debt burden of education loan
    recipients and their capacity to repay their education debts, and
    the impact of the debt burden on their career choices. The bill
    authorizes the Secretary to "issue such regulations as may be
    necessary" to carry out this survey.

-   Explicitly states that "nothing in this Act shall be construed to
    authorize the design, development, creation, implementation, or
    maintenance of a nationwide database of personally identifiable
    information on individuals receiving assistance, attending
    institutions receiving assistance, or otherwise involved in any
    studies or other collections of data under this Act, **including a
    student unit record system, an education bar code system, or any
    other system that tracks individual students over time"** (emphasis
    added). In short, this provision prohibits a student unit record
    system of any nature, except for the purposes of loan obligation
    enforcement activities.

***Title II: Teacher Preparation***

-   Defines "high-need local educational agencies" as a local
    educational agency:

    -   where at least 10,000 of the children served (or 25%) are from
        families with incomes below the poverty line;

    -   that is among those in the state serving the highest number or
        percentage of children below the poverty line; and

    -   for which there is a high percentage of teachers not teaching in
        the academic subjects or grade levels in which they were
        trained.

-   Reauthorizes at current authorization levels (\$300 million in FY06
    and such sums as necessary for the five succeeding fiscal years) the
    Teacher Quality Enhancement Grants for States and Partnerships,
    which awards competitive grants to states meeting specified
    qualifications and eligible partnerships, for the purpose of
    reforming teacher preparation requirements, coordinating with state
    teacher preparation programs, and ensuring that current and future
    teachers are highly qualified (as defined in current law).
    Specifically, 45% of authorized funds (\$135 million) is authorized
    for the state grants and 45% (\$135 million) is authorized for
    partnership grants. Adds public and private education organizations
    to the list of eligible partnerships, which currently includes a
    partner institution, a school of arts and sciences, and a high-need
    local educational agency, all as defined in current law.

> **H.R. 609 revises the current purposes for this teacher preparation
> grant program, adding that it is designed to prepare and retain highly
> qualified teachers and to recruit minorities to the teaching
> profession.** The legislation outlines numerous activities associated
> with teacher training and requires states and partnerships receiving a
> grant to carry out one or more of the listed activities. Some of these
> activities include:

-   ensuring that all teacher preparation programs train teachers to be
    "able to understand scientifically based research and its
    applicability, and are able to use advanced technology effectively
    in the classroom;"

-   reforming the certification requirements to ensure that "teachers
    have the subject matter knowledge and teachings skills in the
    academic subjects that the teachers teach that are necessary to help
    students meet challenging state student academic achievement
    standards;" and

-   developing or assisting local education agencies in developing
    "merit-based performance systems that reward teachers who increase
    student academic achievement;"

> In addition, the partnership grant includes activities such as
> creating opportunities for clinical experience, leadership training,
> and providing training in how to teach and address the needs of
> students with different learning styles, particularly those with
> disabilities, limited English skills, and gifted and talented
> students. H.R. 609 requires states receiving this grant funding to
> develop and utilize a system to evaluate annually the effectiveness of
> teacher preparation programs and professional development activities
> within that state, and to submit to the Secretary a report detail the
> state's gains in certain areas, such as teacher and student
> performance. In addition, states are required to match, from
> non-federal sources, 50% of the amount of the grant, and at least 50%
> of the funds made available to an eligible partnership are to be used
> directly to benefit the high-need local education agency included in
> the partnership. Any partnership receiving this grant, is required to
> match, from non-federal sources, 25% of the grant in the first year,
> 35% in the second year, and 50% for each succeeding year of the grant.
> Eligible partnerships must also submit to the Secretary a report
> detailing the program's effectiveness in meeting its outlined goals.

-   Teacher Recruitment Grants are also authorized at 10% of authorized
    funding level (\$30 million) under the Teacher Quality Enhancement
    Grants for States and Partnerships, for the Secretary to award
    grants to eligible states or partnerships, as defined for the
    previous grants, for the purpose of awarding scholarships to first
    or second year undergraduate students to pay the costs of tuition,
    room and board, and other expenses of completing a teacher
    preparation program. Scholarships may also be awarded to individuals
    to assist with completion of a postsecondary education program, to
    assist an individual to transition from a career outside of the
    field of education into a teaching career, for "follow up services"
    provided to former scholarship recipients during the recipient's
    first three years of teaching, or to development effective
    mechanisms to ensure that high-need local educational agencies and
    schools are able to recruit highly qualified teachers. In addition,
    funds may be used to recruit individuals to switch to teaching from
    technology industries, the fields of science, mathematics, and
    engineering, and to coordinate with inner-city and rural secondary
    schools to encourage students to pursue teaching as a career. **H.R.
    609 also revises the current program by requiring the Secretary to
    give priority to eligible applicants who provide an assurance that
    they will recruit a high percentage of minority students to become
    highly qualified teachers.**

-   Requires any state receiving funds under HEA to annually provide the
    Secretary with a state report card on the quality of teacher
    preparation. The bill outlines specifically what information the
    report card is to include. The Secretary is required to publish and
    provide this information to Congress.

-   Requires each IHE that conducts a teacher preparation program and
    receiving funds under HEA to report annually to the state and the
    general public, an institution report card, detailing certain
    information specifically listed in this bill, such as state
    certification assessments. In situations where there are no state
    certification or licensure assessments, the Secretary is directed to
    collect data comparable to that which is required of other states.
    The bill clarifies the following in regards to the federal
    government's role in this provision:

> "Nothing in this part shall be construed to permit, allow, encourage,
> or authorize any Federal control over any aspect of any private,
> religious, or home school, whether or not a home school is treated as
> a private school or home school under State law. This section shall
> not be construed to prohibit private, religious, or home schools from
> participation in programs or services under this part. ...Nothing in
> this part shall be construed to encourage or require any change in a
> State's treatment of any private, religious, or home school, whether
> or not a home school is treated as a private school or home school
> under State law. Nothing in this part shall be construed to permit,
> allow, encourage, or authorize the Secretary to establish or support
> any national system of teacher certification."

-   Adds nonprofit telecommunications entities to the current list of
    entities (such as IHEs, foundations, museums, etc.) eligible to
    receive a grant under a current grant program, which provides grants
    to entities for programs that train prospective teachers in how to
    utilized advanced technology in the classroom. Current authorization
    for this program provides for such sums as necessary for 2003
    and 2003. This provision would extend authorization at such sums as
    necessary, through 2011.

-   Authorizes \$10 million for FY06 (and such sums as necessary for
    five succeeding fiscal years) for a **new program**, which is
    designed to "recruit and prepare teachers, including minority
    teachers" and to "increase opportunities for Americans of all
    educational, ethnic, class, and geographic backgrounds to become
    highly qualified teachers." Through this program, the Secretary
    would make grants (\$500,000 minimum) available to the following
    types of institutions, for the purpose of establishing Centers of
    Excellence:

    -   historically black colleges and universities,

    -   Hispanic-serving institutions,

    -   Tribal colleges or universities,

    -   Alaska Native-serving institutions, and

    -   **Native Hawaiian-serving institutions**.

> The Centers of Excellence would be designed to prepare potential
> teachers at these specific universities by carrying out one of several
> activities listed in the bill, such as "to prepare teachers to close
> student achievement gaps," to provide high-quality clinical
> experience, and to award scholarships based on financial need to
> assist students in completing teacher training.

-   Authorizes \$100 million (President's FY07 Request: \$99 million),
    for a **new program**, the Teacher Incentive Fund, which would be
    designed to assist states, local educational agencies, and
    non-profit or for-profit organizations "to develop and implement
    innovative compensation systems to provide financial rewards for
    teachers and principals who raise student academic achievement and
    close the achievement gap." The grants, which are awarded to
    recipients for up to five years, are to be used to develop a
    comprehensive performance-based compensation system for teachers and
    principals. The bill outlines that a comprehensive performance-based
    compensation system would differentiate levels of compensation
    primarily on the basis on increases in student academic achievement
    and also on the basis of high-quality teachers' and principals'
    employment and success in hard-to-staff schools or high-need subject
    areas. The bill also directs the Secretary to conduct an independent
    evaluation of the program and authorizes for that purpose, use of up
    to on percent of the funds appropriated for the program, or \$1
    million, whichever is less for any fiscal year.

***Title III: Institutional Aid***

-   Reauthorizes HEA Title III programs, which consists of federal
    assistance to IHEs. Specifically, the bill reauthorizes Title III at
    the following amounts for *FY06*, and such sums as necessary through
    FY11:

    -   Part A (Institutional Support): \$135 million (current level)

    -   Sec. 1059c (Indian Tribal Colleges and Universities): \$23.8
        million (up from \$10 million)

    -   Sec. 1059d (Alaska Native-serving institutions and **Native
        Hawaiian-serving institutions**): \$11.9 million (up from \$5
        million)

    -   Part B (Historically Black Colleges and Universities): \$241
        million (up from \$135 million)

    -   Sec. 1063b (HBCU professional or graduate institutions): \$59
        million (up from \$35 million)

    -   Part C (Endowment Challenge Grants): \$14 million (current
        level)

    -   Part D (HBCU Capital Financing): \$212,000 (up from \$110,000)

-   Significantly amends the current competitive grant program for
    American Indian tribally controlled colleges and universities, by
    eliminating the competitive process and implementing a formula-based
    process in which each eligible institution would receive an amount
    (minimum grant would be \$400,000) based upon a ratio compared to
    the number of Pell Grant recipients at that institution in relation
    to the number of all Pell Grant recipients at all eligible
    institutions. In addition the Secretary is directed to allot grants
    based upon a ratio of the number of degrees or certificates awarded
    by each institution compared to the number awarded at all eligible
    institutions. H.R. 609 adds to the current list of authorized
    activates under the use of these grants acquiring property adjacent
    to the campus on which to construct institutions and assisting the
    faculty in attaining advanced degrees in tribal governance or in the
    development of tribal public policy.

-   Amends the current requirements for grants awarded to Alaska Native
    and **Native Hawaiian**-**serving institutions**, by allowing funds
    to be used to construct buildings, to acquire property and to assist
    the faculty in attaining advanced degrees in tribal governance or in
    the development of tribal public policy. The bill also allows these
    institutions to use up to 20% of the grant funds to "establish or
    increase an endowment fund at the institution." The institution
    would be required to match each federal dollar spent on the
    endowment fund, with non-federal funds.

-   Increases to \$750,000, the minimum grant amount (currently
    \$500,000) awarded to historically black colleges and universities,
    if the amount appropriated for these grants in any fiscal year,
    exceeds the amount required to provide each institution an amount
    equal to the total amount received under the other allotted funds,
    which are awarded on a formula basis.

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-   Adds to the list of current independent professional or graduate
    institutions and programs eligible for grants given to institutions
    that the Secretary has determined are "making a substantial
    contribution to the legal, medical, dental, veterinary, or other
    graduate education opportunities in mathematics, engineering, or the
    physical or natural sciences for Black Americans," the following
    institutions: Alabama State University, Prairie View A &M, Coppin
    State University, and Delaware State University. The bill also
    increases authorized funding levels for these programs to total of
    \$171.5 million (up from \$83.8 million). These funds are divided
    among the listed universities at certain amounts set in law for
    different universities.

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-   Adds "education or counseling services designed to improve the
    financial literacy and economic literacy of students, and as
    appropriate, their parents," to the authorized used of funds for
    several Title III (institutional assistance) programs.

-   Requires all HEAs eligible for funds under Title III, to offer at
    least a two-year program that is acceptable for full credit toward a
    bachelor's degree.

***Title IV: Student Assistance***

-   Reauthorizes the Pell Grant program through 2012, and increases the
    maximum Pell Grant award to \$6,000 (up from \$5,800), for academic
    years 2006-07 through 2012-13. Currently the appropriated maximum
    Pell Grant is \$4,050, and individuals may receive up to two Pell
    Grants during a single award year, if the student is enrolled
    full-time and completes course work toward completion of a degree
    that exceeds the requirements for a full academic year (typically 12
    credit hours per semester is considered fulltime). H.R. 609 provides
    that full-time students that are in school year-round (12 months,
    not nine), would be eligible to receive two Pell Grants during one
    award year. In addition, currently, there is no limit to the number
    of semesters in which an individual may receive Pell Grants. This
    bill limits Pell Grant recipients to 18 semesters (nine years) in
    which they may receive Pell Grant funds. The bill also prohibits
    Pell Grants from being awarded to individuals subject to a mandated
    civil commitment upon completion of time in jail for a sexual
    offense.

-   Creates a **new program**, the Pell Grants Plus achievement grants
    (authorized under the Pell Grant funding), which awards \$1,000
    grants to individuals who qualify for Pell Grants, are enrolled full
    time as a first-year undergraduate student, and 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." The amount of
    this grant, combined with federal Pell Grant assistance, can not
    exceed the student's cost of attendance. As with the Pell Grant
    program, students receiving Pell Grants Plus assistance must
    maintain a 3.0 GPA and be a full-time student in order to retain the
    assistance for academic years after their first year in college.

-   Reauthorizes at \$836.5 million for FY06 (up from \$700 million),
    and such sums as necessary through FY11, the TRIO programs (Upward
    Bound, Talent Search, among others), which provide grants to
    colleges and universities to assist students with "disadvantaged
    backgrounds" during their higher education experience. The bill
    extends the grant award period to five years (up from four), and
    allows IHEs with more than one campus to apply for separate grants
    to "serve different populations" on different campuses. H.R. 609
    increases the minimum grant award to \$200,000 (up from graduated
    minimums ranging from \$170,000 to \$190,000), except for Staff
    Development Activities grants, which are capped at \$170,000. In
    addition, the bill directs the Secretary to reserve 10% of the
    available funds for funding applications from "novice applicants,"
    and adds "education or counseling services designed to improve the
    financial literacy and economic literacy of students, and as
    appropriate, their parents," to the authorized used of funds for all
    TRIO programs.

-   Directs the Secretary to establish expected program outcomes and
    procedures for measuring the effectiveness of the TRIO programs. The
    Secretary is directed to consider the effectiveness of each program
    when determining TRIO grant award recipients.

-   Reauthorizes at \$306.5 million for FY06 (up from \$200 million),
    and such sums as necessary through FY11, the Gaining Early Awareness
    and Readiness for Undergraduate Programs (GEAR UP) program, which
    the President's FY07 Budget terminates.

-   Reauthorizes at \$779 million for FY06 (up from \$675 million), and
    such sums as necessary through FY11, the Federal Supplemental
    Educational Opportunities Grants.

-   Reauthorizes at \$105 million for FY06 (current level), and such
    sums as necessary through FY11, the Leveraging Educational
    Assistance Partnerships (LEAP) program. Adds to the authorized uses
    of funding, outreach and recruitment activities to spouses of
    migrant or seasonal farm workers. The President has called for the
    termination of this program on the grounds that it has accomplished
    its objective of stimulating all states to establish need-based
    postsecondary student grants.

-   Reauthorizes at \$24 million for FY06 (up from \$15 million), and
    such sums as necessary through FY11, the High School Equivalency
    program, and reauthorizes at \$16 million (up from \$5 million), and
    such sums as necessary through FY11, the College Assistance Migrant
    Program.

-   Reauthorizes at \$41 million for FY6 (down from \$45 million), and
    such sums as necessary through FY11, the Robert C. Byrd Honors
    Scholarship Program, which under current law awards scholarships "to
    individuals who have demonstrated outstanding academic achievement
    and who show promise of continued academic achievement." However,
    this reauthorization completely revises the program and renames it
    the Robert C. Byrd Mathematics and Science Honors Scholarship
    Program. The new purpose of the program is to "award scholarships to
    students who are enrolled in studies leading to undergraduate and
    advanced degrees in physical, life, or computer sciences,
    mathematics, and engineering. Through the program, grants would be
    awarded to "managing institutions" (such as a private, non-profit
    organization or an IHE), which would be responsible for developing
    the criteria upon which scholarships would be based, establishing a
    Mathematics and Science Honors Scholarship Fund (which would
    disclose federal and non-federal deposits), and soliciting
    applicants for scholarships, among other duties. The bill provides
    that no federal funds are to be used to provide more than 50% of the
    cost of any scholarship to an eligible student, and student
    recipients of these scholarships are to commit to complete five
    consecutive years of service in a position related to sciences,
    mathematics, or engineering.

> From the funds authorized for the Byrd Scholarship program noted
> above, the Secretary is also authorized to **create a new program and
> a new grant.** The Mathematics and Science Incentive Program would
> assume the obligation to pay the interest on a loan made, insured, or
> guaranteed by the Federal Family Education Loan Program (FFEL) or the
> Federal Direct Loan Program (FDLP). The Mathematics and Science
> Education Coordinating Council Grants would provide grants of not more
> than \$5 million to eligible states to establish a mathematics and
> science education coordinating council and to implement state-based
> reform agendas that support the continuing improvement of math and
> science education and teacher training.

-   Reauthorizes at \$45 million for FY06 (current level), and such sums
    as necessary through FY11, the Child Care Access Means Parents in
    School program.

-   Eliminates the "single holder" rule under FFEL, which currently
    requires individuals to consolidate loans held by a single lender,
    with that lender, in order to qualify for a FFEL consolidation loan.

-   The bill would extend current loan forgiveness provisions under
    FFEL, which presently are applied to early childhood educators, also
    to nurses, foreign language specialists, librarians, teachers of
    bilingual educators, first responders in low-income communities,
    child welfare workers, speech-language pathologists and other
    professionals, who have been employed full-time for at least five
    consecutive years, in an area of national need, as defined by this
    Act. The bill increases the loan forgiveness award to \$5,000
    (currently repays a 20% -30% of total loan held by the individual).

[]{.mark}

-   Revises and reauthorizes at \$1 billion (current level) for FY06,
    and such sums as necessary through FY11, the Work-Study program.

-   Reauthorizes at \$250 million (current level) for FY06, and such
    sums as necessary through FY11, the Federal Perkins Loan Program and
    increases loan limits by the following amounts:

    -   \$5,500 (up from \$4,000) per year for undergraduate students
        who have not graduated;

    -   \$8,000 (up from \$6,000) per year for graduate students;

    -   \$60,000 (up from \$40,000) aggregate limit for undergraduate
        students;

    -   \$27,500 (up from \$20,000) aggregate limit undergraduate
        students who have completed two years towards a degree, but have
        not received the degree; and

    -   \$11,000 (up from \$8,000) for any other student.

> The reauthorization also lowers to nine (down from 12), the number of
> on-time, consecutive payments necessary in order for a defaulted loan
> to be considered rehabilitated.

-   Directs the Secretary to develop and use a simplified application
    form for federal aid, to be called the EZ FAFSA, which will be a
    shorter and simpler version of the original FAFSA, and will also be
    available online for easy access and submission for certain
    students. The bill directs the Secretary to "utilize savings accrued
    by moving more applicants to the electronic forms...to improve
    access to the electronic forms."

-   Directs the Secretary to make special efforts to notify students and
    their parents who qualify for a free lunch under the Richard B.
    Russell National School Lunch Act or the Food Stamps program.

-   Directs any IHE receiving Title IV (student aid programs) HEA
    funding, to annually prepare, publish, and distribute to all current
    students and employees, an annual fire safety report.

-   Eliminates the 50% limit currently placed upon distance education,
    which requires universities to offer no more than 50% of their
    classes as telecommunications courses or allow not more than 50% of
    their students to participate in these courses.

-   Authorizes a **new demonstration program** designed to allow up to
    100 universities flexibility in delivering higher education programs
    in order to try new methods of lowering student cost, without being
    subject to many of the regulations typically associated with
    receiving federal funding. The bill provides that this program would
    be sunset on October 1, 2011.

-   Extends the 90/10 rule, which currently applies only to for-profit
    IHEs, to public and nonprofit IHEs. The 90/10 rules was put in place
    by the 1998 HEA reauthorization, and requires for-profit HEAs to
    obtain at least 10% of their revenue from non-Title IV funds in
    order to participate in Title IV programs.

-   Title IV of the Higher Education Act (HEA; P.L. 89-329, as amended
    by [P.L.
    105-244](http://www.congress.gov/cgi-lis/bdquery/R?d105:FLD002:@1(105+244)))
    authorizes programs that provide federal student financial aid to
    support student attendance at institutions of higher education
    (IHEs) meeting Title IV eligibility requirements. To participate in
    these programs, proprietary (for-profit) institutions must meet
    requirements included in Section 102 of the HEA, including
    requirements that proprietary institutions have been in existence
    for at least two years and derive at least 10% of school revenue
    from non-Title IV funds.

-   Amends current requirements for accrediting agencies and
    associations, and permits states to apply to become an accrediting
    agency.

-   Directs the Secretary to commission a nonpartisan, comprehensive
    study on the prevention of fraud and abuse in Title IV financial aid
    programs, and report the study to the Secretary.

***Title V: Developing Institutions***

-   Amends current HEA provisions relating to assistance for
    Hispanic-serving institutions (HSI), including requiring that at
    least 25% of an HSI's enrollment of undergraduate, full-time
    students be Hispanic and that these institutions offer at least a
    two-year program eligible for full credit toward an undergraduate
    bachelor's degree.

-   Authorizes \$59 million for a **new grant program**, which provides
    grants on a competitive basis to HSIs offering graduate certificates
    or degrees.

-   Reauthorizes at \$96 million for FY06 (up from \$62.5 million), and
    such sums as necessary through FY11, the programs for HSIs offering
    undergraduate degrees and HSI junior and community colleges.

***Title VI: Title VI Amendments***

-   Reauthorizes at \$80 million for FY06 (current level) and such sums
    as necessary through FY11, the International Education Programs
    under Title VI of HEA. The bill makes some changes to these programs
    including additional authorized activities and added requirements
    for institutes that qualify for assistance under this Title. This
    provision also authorizes the Secretary to waive or reduce the
    required matching share for certain recipients, including HBCUs and
    American Indian, Alaska Native, and **Native Hawaiian-serving
    institutions**.

-   Reauthorizes at \$11 million for FY06 (current level), and such sums
    as necessary through FY11, the Centers for International Business
    Education program, and reauthorizes at \$7 million for FY06 (current
    level), and such sums as necessary through FY11, Education and
    Training programs under this title.

-   Reauthorizes at \$10 million for FY06 (current level), and such sums
    as necessary through FY11, the Institute for International Public
    Policy. Currently the Institute operates a program "to increase
    numbers of African Americans and other underrepresented minorities
    in the international service, including private international
    voluntary organizations and the foreign service of the United
    States." This reauthorization would change this program, directing
    the Institute "to conduct a program to enhance the international
    competitiveness of the United States by increasing the participation
    of underrepresented populations in the international service,
    including private international voluntary organizations and the
    foreign service of the United States." The bill adds to the list of
    institutions eligible (currently HBCUs and other IHEs serving
    "underrepresented populations) for this assistance and for many
    specific programs, Tribally Controlled Colleges and Universities,
    Alaska Native or **Native Hawaiian-serving institutions,** and HSIs.

-   Establishes in the Department of Education, an independent
    International Higher Education Advisory Board, which would advise,
    counsel and make recommendations to the Congress and the Secretary
    on matters relating to education in the international arena. The
    Board is sunset on September 30, 2012.

-   Provides that IHEs receiving Title VI grants are to assure that
    "**recruiters of the United States Government and agencies thereof
    are given the same access to students** as is provided generally to
    other institutions of higher education and prospective employers of
    those students for the purpose of recruiting for graduate
    opportunities or prospective employment; and no undue restrictions
    are placed upon students that seek employment with the United States
    Government or any agency thereof" (emphasis added).

***Title VII: Title VII Amendments***

-   Reauthorizes at \$30 million for FY06 (current level), and such sums
    as necessary through FY11, the Javits fellowship program, and
    reauthorizes at \$5 million (current level) for FY06 (current
    level), and such sums as necessary through FY11, the Thurgood
    Marshal legal educational opportunity program.

-   Reauthorizes at \$35 million for FY06 (current level), and such sums
    as necessary through FY11, the Graduate Assistance in Areas of Need
    program, and directs the Secretary to give preference to IHEs that
    train teachers of secondary math and science, special education, and
    limited English proficient individuals.

-   Reauthorizes at \$40 million for FY06 (up from \$30 million), and
    such sums as necessary through FY11, the Fund for the Improvement of
    Postsecondary Education.

-   Reauthorizes at \$10 million for FY06 (current level), and such sums
    as necessary through FY11, the Demonstration Projects to Ensure
    Students with Disabilities Receive a Quality Education.

***Title VIII: Clerical Amendments***

-   Makes numerous clerical amendments to the Higher Education Act of
    1965.

***Title IX: Amendments to Other Education Laws***

-   Amends the Education of the Deaf Act (EDA) of 1986, providing that
    the Laurent Clerc National Deaf Education Center, located in
    Washington, D.C., be the location of Gallaudet University's EDA
    elementary and secondary program. The bill names the Rochester
    Institute of Technology, located in Rochester, NY, as the institute
    through with the Department of Education operates and maintains the
    National Technical Institute for the Deaf (NTID).

-   Reauthorizes the following programs at such sums as necessary
    (current level), through FY11: Monitoring and Evaluation Activities,
    Federal Endowment Programs for Gallaudet and NTID, and EDA.

-   Directs the Secretary to cancel federal student loan debts, under
    certain circumstances, **of spouses or parents of individuals who
    died or was permanently disabled from the terrorist attacks of
    September 11, 2001.** Specifically, the Secretary is directed to
    cancel the entire student loan debt of the spouse of such an
    individual who was a public servant; and the portion of student
    loans incurred by a spouse or parent on behalf of any other such
    individual who was a victim.

-   Reauthorizes at \$10 million for FY06 (current level), and such sums
    as necessary through FY11, the Violence Against Women on Campuses
    program, and reauthorizes at \$3 million for FY06 (current level),
    and such sums as necessary through FY11, the Underground Railroad
    educational and cultural program.

-   Reauthorizes the Tribally Controlled College or University
    Assistance Act of 1978, for FY06 at the following levels, and such
    sums as necessary through FY11:

    -   Title I: \$53.2 million (current level)

    -   Title III: \$10 million (current level)

    -   Title IV: \$2 million (current level)

> The bill also requires entities receiving funding under the Tribally
> Controlled College or University Assistance Act, to be accredited by a
> nationally recognized accrediting agency.

-   Reauthorizes at \$2 million for FY06 (current level), and such sums
    as necessary through FY11, the Navajo Community College Act.

-   Reauthorizes at \$5 million for FY06 (current level), and such sums
    as necessary through FY11, the B.J. Stupak Olympic Scholarships
    program, which provides scholarships to Olympic athletes attending
    college. Not only did the program receive a 2006 OMB PART rating of
    "results not demonstrated," but the program is duplicative of all
    other federal education assistance programs. Like other students,
    athletes may apply for federal grants, loan assistance and the
    federal work-study program. Also, Olympic athletes often receive
    corporate sponsorships that could help them pay their education.
    This program was terminated in the President's FY07 Budget.

-   Directs the Secretary to provide for a national association or
    organization to study the best practices of states in assessing
    undergraduate postsecondary student learning, particularly relating
    to public accountability systems, in consultation with a new
    national advisory committee and certain congressional committees.

-   Directs the Secretary to commission a national study on the
    "decreasing numbers of underrepresented minority males, particular
    African American males, entering and graduating from colleges and
    universities" and make recommendations to Congress on new approaches
    to increase minority male graduation rates.

-   Directs the Secretary to conduct a study to evaluate the higher
    education-related indebtedness of medical school graduates in the
    U.S. at the time of graduation.

-   Directs the Secretary to conduct a study of the developing trends in
    older adult learners attending college and how institutions of
    higher education are addressing the needs of this population in
    terms of outreach, accessibility, financing and student support
    services.

> Lists a number of findings regarding the rising costs of higher
> education and the rising cost of college textbooks, and resolves that
> it is sense of the Committee on Education and the Workforce of the
> House of Representatives that in order to make a higher education more
> accessible for all students, the following should occur to make
> college textbooks more affordable for students:

-   "the Congress encourages textbook publishers to provide students
    with the option of buying materials such as textbooks, CD--ROMs,
    access to websites, and workbooks, 'a la carte' or "unbundled;"

-   "textbook publishers should work with faculty to understand the cost
    to students of purchasing the recommended textbooks;

-   "college bookstores should work with faculty to review timelines and
    processes for ordering and stocking selected textbooks, and disclose
    textbook costs to faculty and students; and

-   "colleges and universities should be encouraged to implement
    numerous options to address textbook affordability."

[]{.mark}

**[Committee Action]{.underline}**: H.R. 609 was introduced on February
8, 2005, and referred to the Committee on

Education and the Workforce, which considered it, held a mark up, and
reported it as amended, to the House by a vote of 27-20, on September
22, 2005.

**[Cost to Taxpayers]{.underline}**: According to the Committee, H.R.
609 authorizes \$4.8 billion in FY06 and such sums as necessary for
FY07-FY11. A CBO cost estimate was not available as of time of
publication.

[**Does the Bill Create New Federal Programs or Rules?**:]{.underline}
Yes, the bill reauthorizes the Higher Education Act of 1965, and creates
six new programs.

**[Constitutional Authority]{.underline}**: The Education and the
Workforce Committee, in House Report

109-231, cites Article I, Section 8, Clause 1 (general welfare).

House Rule XIII, Section 3(d)(1), requires that all committee reports
contain "a statement citing the *specific* powers granted to Congress in
the Constitution to enact the law proposed by the bill or joint
resolution." *\[emphasis added\]*

**[Staff Contact]{.underline}**: Joelle Cannon,
<joelle.cannon@mail.house.gov>, X69717