To provide tuition assistance to undergraduate students in exchange for the performance of National service.

Summary: Service for School Act of 2005 - Authorizes the Secretary of Education to provide tuition assistance to undergraduate students attending eligible institutions of higher education in exchange for a commitment to perform national service.

SEC. 1. SHORT TITLE.

    This Act may be cited as the ``Service for School Act of 2005''.

SECTION 2. PURPOSE.

    The purpose of this Act is to provide Federal tuition assistance to 
undergraduate students attending eligible institutions in exchange for 
a commitment to perform National service.

SEC. 3. TUITION ASSISTANCE AUTHORIZED.

    (a) Service for School Tuition Assistance Authorized.--The 
Secretary is authorized to pay, in accordance with subsection (b), to 
each Service for School participant for each academic year during which 
such participant is in attendance at an eligible institution as an 
undergraduate, tuition assistance in an amount not more than the amount 
such participant elects to receive in the Service for School agreement. 
The authority to pay tuition assistance under this Act shall be 
effective for any fiscal year only to such extent or in such amounts as 
are provided in appropriations Acts.
    (b) Distribution of Tuition Assistance to Students.--Tuition 
assistance payments under this Act shall be made in accordance with 
regulations promulgated by the Secretary for such purpose and in such 
manner as will best accomplish the purpose of this Act.

SEC. 4. APPLICATION; ELIGIBILITY.

    (a) Application.--The Secretary shall from time to time set dates 
by which eligible individuals shall file applications for tuition 
assistance under this Act. Each eligible individual desiring to be a 
Service for School participant for any year shall file an application 
with the Secretary containing such information and assurances as the 
Secretary may deem necessary to carry out the purpose of this Act.
    (b) Eligibility.--An individual shall be eligible to apply for 
tuition assistance under this Act if the individual--
            (1) is enrolled or accepted for enrollment in an 
        educational program at an eligible institution, as defined in 
        section 10, for which such institution awards an associate's or 
        a bachelors' degree; and
            (2) enters into a Service for School agreement with the 
        Secretary under section 6.

SEC. 5. PARTICIPANT SELECTION.

    (a) Selection.--Each academic year, the Secretary shall select 
Service for School participants from the applications received from 
eligible individuals under section 4.
    (b) Priority.--The Secretary shall give priority to those eligible 
individuals who demonstrate the greatest financial need.

SEC. 6. SERVICE FOR SCHOOL AGREEMENT.

    (a) Agreement Terms.--The Service for School agreement shall--
            (1) require that any participant that receives tuition 
        assistance under this Act shall complete--
                    (A) one calendar year of full-time National service 
                for each academic year during which the participant 
                received the maximum amount of tuition assistance under 
                section 7;
                    (B) two calendar years of part-time National 
                service for each academic year during which the 
                participant received the maximum amount of tuition 
                assistance under section 7; or
                    (C) in the case of an academic year during which 
                the participant received less than the maximum amount 
                of tuition assistance under section 7, National service 
                for a period equivalent to the amount of tuition 
                assistance received for such academic year, as 
                determined by the Secretary;
            (2) include the amount of tuition assistance requested by 
        the eligible individual for that academic year, not to exceed 
        the maximum amount of tuition assistance under section 7;
            (3) require that a participant begin to perform such 
        National service no later than 12 months after the date of 
        graduation (or permanent departure) from an eligible 
        institution;
            (4) require that a participant complete such National 
        service not later than 10 years after the date of graduation 
        (or permanent departure) from an eligible institution;
            (5) provide that a participant shall not be considered to 
        have permanently departed from an institution if the 
        participant, in a manner and under the terms established by and 
        with the approval of the Secretary, transfers to another 
        eligible institution, or postpones or interrupts enrollment at 
        an eligible institution for not more than 12 months;
            (6) provide that a participant may appeal to the Secretary 
        for an extension of the time requirements under paragraphs (3) 
        and (4), and that the Secretary may waive such requirements for 
        exceptional circumstances or hardship;
            (7) provide that, in the event that a participant fails to 
        abide by the terms of the agreement, the participant shall 
        repay any Federal tuition assistance received by the 
        participant for which the participant did not perform the 
        required National service, as determined by the Secretary; and
            (8) provide that such Service for School agreement shall be 
        null and void if the eligible individual is not selected by the 
        Secretary to be a Service for School participant for academic 
        year for which the application is submitted.
    (b) Duration of Agreement; Renewal.--A Service for School agreement 
shall be made for only one academic year of tuition assistance at a 
time. Such agreement shall be renewable on an annual basis if the 
participant remains eligible. A participant may revise annually the 
amount of tuition assistance requested (in accordance with subsection 
(a)(2)).

SEC. 7. TUITION ASSISTANCE.

    (a) Maximum Amount of Tuition Assistance.--For each academic year, 
a Service for School participant shall be eligible to receive tuition 
assistance in an amount not to exceed the lesser of--
            (1) the average total tuition and fees for full-time 
        students for a complete academic year at four-year public 
        colleges and universities, as determined annually by the 
        College Board, for the most recent academic year for which data 
        is available; or
            (2) such participant's cost of attendance, as defined under 
        section 472 of the Higher Education Act of 1965 (20 U.S.C. 
        1087ll).
    (b) Election of Reduced Tuition Assistance.--A Service for School 
participant may elect to receive less than the maximum amount of 
tuition assistance in exchange for a reduced requirement to perform 
National service (in accordance with section 6(a)(1)(C)).
    (c) Form of Tuition Assistance.--The tuition assistance provided to 
a Service for School participant under this Act shall be in the form of 
grants, remissions of expenses, or such other form as the Secretary 
considers appropriate.

SEC. 8. COLLECTION AND WAIVER AUTHORITY.

    (a) Collection by the Secretary.--The Secretary shall have the 
authority to collect amounts owed by a Service for School participant 
under section 6(a)(7). The Secretary may, for the purpose of collection 
of such amounts, exercise the authorities conferred on the Secretary by 
sections 467 and 468 of the Higher Education Act of 1965 (20 U.S.C. 
1087gg and 1087hh) with respect to the collection of defaulted loans 
under part E of title IV of such Act. Amounts collected under this 
subsection shall remain available to the Secretary for making tuition 
assistance payments under this Act during the succeeding fiscal year.
    (b) Waiver for Exceptional Circumstances.--The Secretary may waive 
the National service performance requirement under section 6(a)(1), and 
the repayment requirement under section 6(a)(7), if exceptional 
circumstances such as illness or death prevent a Service for School 
participant from meeting such requirements.

SEC. 9. REGULATIONS.

    The Secretary is authorized to issue such regulations as may be 
necessary to carry out the provisions of this Act, including any 
regulations necessary to verify completion by the participants of the 
terms of the Service for School agreement under section 6.

SEC. 10. DEFINITIONS.

    In this Act:
            (1) National service.--The term ``National service'' means 
        service in--
                    (A) the Armed Forces (as defined under 10 U.S.C. 
                101), including service on active duty and service in 
                the National Guard or a reserve component of the Armed 
                Forces;
                    (B) the Peace Corps;
                    (C) any AmeriCorps-sponsored program, including 
                City Year and Teach for America;
                    (D) any Citizen Corps program;
                    (E) any USA Freedom Corps program; or
                    (F) any program specifically authorized as such by 
                the Secretary for the purpose of this Act.
            (2) Eligible institution.--The term ``eligible 
        institution'' means an institution of higher education as 
        defined in section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001).
            (3) Full-time national service.--The term ``full-time 
        National service'' means the performance of National service 
        for not less than 40 hours per week, including active duty in 
        the Armed Forces.
            (4) Part-time national service.--The term ``part-time 
        National service'' means the performance of National service 
        for less than 40 hours per week, but not less than 40 hours per 
        month, including service in the National Guard and in a reserve 
        component of the Armed Forces.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (6) State.--The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Commonwealth of the Northern Mariana Islands, 
        American Samoa, Guam, the United States Virgin Islands, and any 
        other territory or possession of the United States.