To amend the Higher Education Act of 1965 to improve and enhance the Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP).

Summary: GEAR UP Enhancement Act of 2007 - Amends the Higher Education Act of 1965 to revise the Gaining Early Awareness and Readiness for Undergraduate Program (GEAR UP) created to facilitate the transition of low-income high school students into postsecondary education.

Establishes a seven year GEAR UP grant period.

Requires grantees to provide services to students through their first year of postsecondary education.

Revises GEAR UP matching requirements to allow: (1) matching funds to accrue over the duration of a grant; (2) grantees to request that the match be reduced; and (3) each non-federal dollar obligated for student financial aid to be treated as two dollars toward the match.

Expands permissible uses of grant funds to include promoting student financial and economic literacy and facilitating family and community involvement in the program. Permits state grantees to use program funds for technical assistance to middle or secondary schools or partnership grantees located in the state.

Provides that GEAR UP scholarships are to supplement aid to which students are already eligible. Alters the formula used in determining the minimum GEAR UP scholarship to factor in the minimum, rather than maximum, Pell Grant.

Reauthorizes GEAR UP appropriations through FY2014.

SECTION 1. SHORT TITLE; REFERENCE.

    (a) Short Title.--This Act may be cited as the ``GEAR UP 
Enhancement Act of 2007''.
    (b) 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.).

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) In 1998, Congress created the Gaining Early Awareness 
        and Readiness for Undergraduate Programs (GEAR UP) following 
        the leadership and innovation of successful programs such as 
        Say Yes to Education, 21st Century Scholars Program, Tell Them 
        We Are Rising, ``I Have a Dream'' Foundation, Project GRAD, and 
        others. GEAR UP, originally conceived of as High Hopes, is now 
        one of the most innovative and successful national college 
        access programs.
            (2) Though college has become a reality for more families 
        now than ever before, an opportunity gap continues to exist in 
        which low-income students are far less likely to earn a high 
        school diploma, and enroll in and complete college. Whereas 
        73.9 percent of all students nationally graduate from high 
        school, only 52.1 percent of children from low-income families 
        achieve this educational milestone. While 76 percent of high-
        income high school graduates enroll in college or trade school, 
        only 49 percent of low-income graduates do so.
            (3) Since its enactment, GEAR UP has served approximately 2 
        million students in 48 states, the District of Columbia, 
        American Samoa, Guam, Palau and Puerto Rico. The Department of 
        Education reports that 84.4 percent of the first class of GEAR 
        UP students graduated from high school, while only 52.1 percent 
        of low-income students and 73.9 percent all students nationally 
        achieved this same educational milestone. An ACT study found 
        that students from GEAR UP schools had greater changes in 
        academic performance, were more likely to be on track to be 
        college-ready in English and Reading, more likely to take the 
        core high school curriculum, and more likely to have plans for 
        college at grade 10.

SEC. 3. AWARD PERIOD; PRIORITY.

    Section 404A(b) (20 U.S.C. 1070a-21(b)) is amended by striking 
paragraph (2) and inserting the following:
            ``(2) Award period.--The Secretary may award a grant under 
        this chapter to an eligible entity described in paragraphs (1) 
        and (2) of subsection (c) for 7 years.
            ``(3) Priority.--In making awards to eligible entities 
        described in subsection (c)(1), the Secretary shall--
                    ``(A) give priority to eligible entities that--
                            ``(i) on the day before the date of 
                        enactment of the GEAR UP Enhancement Act of 
                        2007, carried out successful educational 
                        opportunity programs under this chapter (as 
                        this chapter was in effect on such day); and
                            ``(ii) have a prior, demonstrated 
                        commitment to early intervention leading to 
                        college access through collaboration and 
                        replication of successful strategies; and
                    ``(B) ensure that students served under this 
                chapter on the day before the date of enactment of the 
                GEAR UP Enhancement Act of 2007 continue to receive 
                assistance through the completion of secondary 
                school.''.

SEC. 4. REQUIREMENTS: CONTINUITY OF SERVICES.

    (a) Cohort Approach.--Section 404B(g)(1) (20 U.S.C. 1070a-22(g)(1)) 
is amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) in subparagraph (B)--
                    (A) by inserting ``and provide the option of 
                continued services through the student's first year of 
                attendance at an institution of higher education'' 
                after ``grade level''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) provide services under this chapter to 
                students who have received services under a previous 
                GEAR UP grant award but have not yet completed the 12th 
                grade.''.
    (b) Early Intervention.--Section 404D (20 U.S.C. 1070a-24) is 
amended--
            (1) in subsection (a)(1)(B)--
                    (A) by striking ``and'' at the end of clause (ii);
                    (B) by striking the period at the end of clause 
                (iii) and inserting ``; and''; and
                    (C) by adding at the end the following new clause:
                            ``(iv) the transition to college or post-
                        secondary education through continuity of 
                        services to support students in and through the 
                        first year of attendance at an institution of 
                        higher education.'';
            (2) in subsection (b)(2)(A), by inserting ``and students in 
        the first year of attendance at an institution of higher 
        education'' after ``grade 12''; and
            (3) in subsection (c), by inserting ``, and may consider 
        students in their first year of attendance at an institution,'' 
        after ``grade 12''.

SEC. 5. FLEXIBILITY IN MEETING MATCHING REQUIREMENTS.

    Section 404C (20 U.S.C. 1070a-23) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)(A), by inserting ``and accrued 
                over the full duration of the grant award period'' 
                after ``in cash or in kind'';
                    (B) in paragraph (2), by adding at the end the 
                following new sentence: ``Eligible entities may request 
                reduced match percentage at the time of application or 
                by petition at any time during the grant award 
                period.''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) Additional special rule.--To encourage eligible 
        entities described in 404A(c) to provide students under this 
        chapter with financial assistance for post-secondary education, 
        each dollar of non-Federal funds obligated under subsection 
        (c)(1) and (c)(2) shall, for purposes of paragraph (1)(A) of 
        this subsection, be treated as 2 dollars.''; and
            (2) in subsection (c)--
                    (A) in paragraph (1), by striking ``paid to 
                students from State, local, institutional, or private 
                funds under this chapter'' and inserting ``obligated to 
                students from state, local, institutional, or private 
                funds under this chapter, including pre-existing , non-
                federal financial assistance programs'';
                    (B) by striking ``and'' at the end of paragraph 
                (2);
                    (C) by striking the period at the end of paragraph 
                (3); and
                    (D) by adding at the end the following new 
                paragraph:
            ``(4) other resources recognized by the Secretary, 
        including equipment and supplies, cash contribution from non-
        Federal sources, transportation expenses, in-kind or discounted 
        program services, indirect costs, and facility usage.''.

SEC. 6. EARLY INTERVENTION.

    Section 404D (20 U.S.C. 1070a-24) is amended--
            (1) in subsection (b)(2)(A)(ii), by striking ``and academic 
        counseling'' and inserting ``, academic counseling, and 
        financial literacy and economic literacy education or 
        counseling'';
            (2) in subsection (b)(2), by adding at the end the 
        following new subparagraphs:
                    ``(F) Fostering and improving parent and family 
                involvement in elementary and secondary education by 
                promoting the advantages of a college education, and 
                emphasizing academic admission requirements and the 
                need to take college preparation courses, through 
                parent engagement and leadership activities.
                    ``(G) Engaging entities described in section 
                404A(c)(2)(C) in a collaborative manner to provide 
                matching resources and participate in other activities 
                authorized under this section.
                    ``(H) Disseminating information that promotes the 
                importance of higher education, explains college 
                preparation and admission requirements, and raises 
                awareness of the resources and services provided by the 
                eligible entities described in section 404A(c) to 
                eligible students, their families, and communities.''; 
                and
            (3) by adding at the end of subsection (b) the following 
        new paragraph:
            ``(3) Additional permissible activities for states.--In 
        meeting the requirements of subsection (a), an eligible entity 
        described in section 404A(c) (1) receiving funds under this 
        chapter may, in addition to the activities authorized by 
        paragraph (2), use funds to providing technical assistance to--
                    ``(A) middle schools or secondary schools that are 
                located within the State; or
                    ``(B) partnerships described in section 404A(c)(2) 
                that are located within the State.''.

SEC. 7. SCHOLARSHIP COMPONENT.

    Section 404E (20 U.S.C. 1070a-25) is amended--
            (1) in subsection (a)(1), by inserting ``scholarships to 
        students to supplement aid for which they are regularly 
        eligible'' after ``shall establish or maintain a financial 
        assistance program that awards'';
            (2) in subsection (a)(2), by inserting ``scholarships to 
        students to supplement aid for which they are regularly 
        eligible'' after ``An eligible entity described in section 
        404A(c)(2) may award'';
            (3) in subsection (b)(2), by striking ``the maximum Federal 
        Pell Grant'' and inserting ``the minimum Federal Pell Grant''.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    Section 404H (20 U.S.C. 1070a-31) 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 
``$500,000,000 for fiscal year 2008 and such sums as may be necessary 
for each of the 6 succeeding fiscal years''.