Access to College Education (ACE) Act of 1997

Summary: Access to College Education (ACE) Act of 1997 - Amends the Higher Education Act of 1965 to establish a new part F, Administrative Support for State Prepaid Tuition Programs, under title X of such Act. 
Directs the Secretary of Education to:  (1) make grants to States to support temporarily the establishment and operation of State prepaid tuition programs; and (2) disseminate to States applying for such grants certain studies and information on successful administrative practices for such programs. 
Authorizes appropriations.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Access to College Education (ACE) 
Act of 1997''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) During the past 15 years, tuition at 4-year public 
        colleges and universities rose 234 percent.
            (2) In contrast, during this same time, median household 
        income rose only 82 percent.
            (3) The cost of consumer goods, as measured by the Consumer 
        Price Index, rose only 74 percent during this time.
            (4) During the past 15 years, the share of schools' 
        revenues provided by tuition rose from 16 percent to 23 
        percent.
            (5) The future of America depends on a well educated work 
        force.
            (6) High-tech, high-wage jobs require postsecondary 
        education.
            (7) Parents need information and assistance to save for 
        their children's higher education.
            (8) Prepaid college tuition programs are one way parents 
        can make sure they will be able to afford the cost of their 
        children's college.

SEC. 3. ESTABLISHMENT OF PROGRAM.

    Title X of the Higher Education Act of 1965 is amended by inserting 
after part E (20 U.S.C. 1135g) the following new part:

  ``PART F--ADMINISTRATIVE SUPPORT FOR STATE PREPAID TUITION PROGRAMS.

``SEC. 1096. GRANT PROGRAM AUTHORIZED.

    ``(a) General Authority.--The Secretary shall establish a program 
in accordance with the requirements of this section to provide grants 
to States to support temporarily the establishment and operation of 
State prepaid tuition programs. No State shall be eligible to receive 
more than a single grant under this section.
    ``(b) Application Requirements.--
            ``(1) In general.--Any State desiring to obtain a grant 
        under this section shall submit to the Secretary an application 
        at such time, in such form, and containing such information or 
        assurances as the Secretary may require by regulation.
            ``(2) State plan.--An application under this section shall 
        include a State plan for the establishment and operation of a 
        program to offer parents the opportunity to prepay tuition at 
        State postsecondary institutions. The State plan shall include 
        a description of--
                    ``(A) the type of prepaid tuition plan the State 
                offers or plans to offer, such as by contract, tuition 
                credit, or certificate, and the institutions at which 
                prepaid tuition funds will be available for use;
                    ``(B) the tuition and other expenses to which the 
                prepayment will be applied;
                    ``(C) the method by which the future cost of such 
                tuition and expenses is or will be calculated;
                    ``(D) the options the parents have or will have to 
                make the prepayment;
                    ``(E) the methods by which prepaid tuition funds 
                will be invested;
                    ``(F) the methods by which the funds will be 
                disbursed;
                    ``(G) the methods by which prepaid tuition funds 
                will be taken into account in the calculation of State 
                student aid eligibility;
                    ``(H) the methods by which the State will inform 
                the public on a regular basis of the actuarial 
                projections for the cost of tuition; and
                    ``(I) the methods by which the State will inform 
                the public on a regular basis of the investment of 
                these funds.
            ``(3) Disclosure obligation.--An application under this 
        section shall include an agreement by the State to provide 
        regular periodic disclosures of the actuarial projections for 
        the cost of tuition at State postsecondary institutions and the 
        investment of prepaid tuition funds.
    ``(c) Use of Funds.--A State that obtains a grant from funds 
provided under this section may use such funds--
            ``(1) to hire a chief administrative officer;
            ``(2) to obtain office space for the program's 
        administration;
            ``(3) to acquire or improve office equipment necessary for 
        a prepaid college tuition program;
            ``(4) to pay expenses necessary for the public disclosure 
        required by this section;
            ``(5) to advertise the existence of this program throughout 
        the State; and
            ``(6) to conduct activities which educate the public about 
        the necessity of early savings for higher education.
    ``(d) Information.--In order to assist other States in establishing 
and improving prepaid tuition programs, any State that receives a grant 
under this section shall provide to the Secretary such information as 
the Secretary may request concerning the development of its program. 
The Secretary shall--
            ``(1) collect information from existing prepaid tuition 
        programs;
            ``(2) correlate such information with significant variables 
        such as--
                    ``(A) population of State;
                    ``(B) number of State postsecondary institutions;
                    ``(C) average cost of State postsecondary 
                institutions; and
                    ``(D) number of participants currently in program;
            ``(3) collect studies of prepaid college tuition programs; 
        and
            ``(4) disseminate to States applying for grants under this 
        section the information and studies collected for the purposes 
        of providing such States with information on successful 
        practices to administer prepaid college tuition programs.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to make grants under this section $20,000,000 for fiscal 
year 1998 and such sums as may be necessary for each of the 3 
succeeding fiscal years.''.