SECTION 1. SHORT TITLE; REFERENCES.

    (a) Short Title.--This Act may be cited as the ``Part-time Student 
Assistance Act''.
    (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. SUPPORT FOR WORKING STUDENTS: INCREASES IN INCOME PROTECTION 
              ALLOWANCES.

    (a) Dependent Students.--Subparagraph (D) of section 475(g)(2) (20 
U.S.C. 1087oo(g)(2)) is amended to read as follows:
                    ``(D) an income protection allowance of $9,000 (or 
                a successor amount prescribed by the Secretary under 
                section 478);''.
    (b) Independent Students Without Dependents Other Than a Spouse.--
Clause (iv) of section 476(b)(1)(A) (20 U.S.C. 1087pp(b)(1)(A)) is 
amended to read as follows:
                            ``(iv) an income protection allowance of 
                        $12,000 (or a successor amount prescribed by 
                        the Secretary under section 478);''.
    (c) Independent Students With Dependents Other Than a Spouse.--
Paragraph (4) of section 477(b) (20 U.S.C. 1087qq(b)) is amended to 
read as follows:
            ``(4) Income protection allowance.--The income protection 
        allowance is determined by the following table (or a successor 
        table prescribed by the Secretary under section 478):

                                          ``Income Protection Allowance
----------------------------------------------------------------------------------------------------------------
                Family Size                                           Number in College
----------------------------------------------------------------------------------------------------------------
                                                                                                       For each
            (including student)                  1          2          3           4           5      additional
                                                                                                       subtract:
----------------------------------------------------------------------------------------------------------------
                     2                         $17,580    $15,230             ..........              ..........
                     3                          20,940     17,610    $16,260  ..........  ..........  ..........
                     4                          24,950     22,600     20,270     $17,930  ..........
                     5                          28,740     26,390     24,060      21,720     $19,390
                     6                          32,950     30,610     28,280      25,940      23,610      $2,330
For each
additional
  add:                                           3,280      3,280      3,280       3,280       3,280         ''.
----------------------------------------------------------------------------------------------------------------

    (d) Conforming Amendments.--Paragraph (1) of section 478(b) (20 
U.S.C. 1087rr) is amended to read as follows:
            ``(1) Revised tables.--
                    ``(A) Parent's income protection allowance.--For 
                each academic year after academic year 1993-1994, the 
                Secretary shall publish in the Federal Register a 
                revised table of income protection allowances for the 
                purpose of section 475(c)(4). Such revised table shall 
                be developed by increasing each of the dollar amounts 
                contained in the table in such section by a percentage 
                equal to the estimated percentage increase in the 
                Consumer Price Index (as determined by the Secretary) 
                between December 1992 and the December next preceding 
                the beginning of such academic year, and rounding the 
                result to the nearest $10.
                    ``(B) Independent students with dependents other 
                than a spouse.--For each academic year after academic 
                year 2007-2008, the Secretary shall publish in the 
                Federal Register a revised table of income protection 
                allowances for the purpose of section 477(b)(4). Such 
                revised table shall be developed by increasing each of 
                the dollar amounts contained in the table in such 
                section by a percentage equal to the estimated 
                percentage increase in the Consumer Price Index (as 
                determined by the Secretary) between December 2006 and 
                the December next preceding the beginning of such 
                academic year, and rounding the result to the nearest 
                $10.''.

SEC. 3. EXEMPTING EARNED INCOME CREDITS FROM THE CALCULATION OF INCOME.

    Section 480(a)(2) (20 U.S.C. 1087vv(a)(2)) is amended by inserting 
``or section 32'' after ``section 25A''.

SEC. 4. CHILD CARE MEANS PARENTS IN SCHOOL.

    (a) Minimum Grant.--Section 419N(b)(2)(B) (20 U.S.C. 
1070e(b)(2)(B)) is amended by striking ``$10,000'' and inserting 
``$30,000''.
    (b) Eligible Institutions.--Section 419N(b)(4) is amended by 
striking ``$350,000'' and inserting ``$250,000''.
    (c) Income Eligibility.--Section 419N(b)(7) is amended by striking 
``who is eligible to receive'' and inserting ``whose income qualifies 
for eligibility for''.
    (d) Publicity.--Section 419N(b) is further amended by adding at the 
end the following new paragraph:
            ``(8) Publicity.--The Secretary shall publicize the 
        availability of grants under this section in appropriate 
        periodicals in addition to publication in the Federal Register, 
        and shall inform appropriate educational organizations of such 
        availability.''.
    (e) Authorization of Appropriations.--Section 419N(g) is amended by 
striking ``$45,000,000 for fiscal year 1999'' and inserting 
``$75,000,000 for fiscal year 2008''.

SEC. 5. YEAR-ROUND PELL GRANTS.

    Section 401 (20 U.S.C. 1070a) is amended by adding at the end the 
following new subsection:
    ``(k) Year-Round Pell Grants.--
            ``(1) Pilot program established.--The Secretary shall 
        establish in accordance with this subsection a year-round Pell 
        grant pilot program. Any institution of higher education that 
        desires to participate in the program under this subsection 
        shall submit an application to the Secretary at such time and 
        containing or accompanied by such information and assurances as 
        the Secretary may require. The Secretary may select not more 
        than 200 institutions of higher education for participation in 
        the program.
            ``(2) Program elements.--With respect to students enrolled 
        in institutions participating in the program under this 
        subsection, the Secretary is authorized--
                    ``(A) to award such students two Federal Pell 
                Grants in one calendar year to permit such students to 
                accelerate progress towards their degree or certificate 
                objectives by enrolling in academic programs for 12 
                months rather than 9 months of the year at 
                participating institutions; and
                    ``(B) to award such two Federal Pell Grants to such 
                students in a total amount up to 133 percent of the 
                maximum Federal Pell Grant under subsection (b)(2)(A) 
                that is applicable for the academic year.
            ``(3) Conditions.--An institution submitting an application 
        to participate in the program under this subsection shall--
                    ``(A) in the case of an associate's degree-granting 
                institution, commit to improving the completion rate 
                for the institution by at least 10 percent over the 
                period of the pilot grant; and
                    ``(B) in the case of a bachelor's degree-granting 
                institution, commit to improving the graduation rate 
                for the institution by at least 50 percent over such 
                period.
            ``(4) Termination; evaluation.--The authority of the 
        Secretary under this subsection shall cease to be effective on 
        October 1, 2013. Not later than October 1, 2011, the Secretary 
        shall conduct an evaluation of the program under this 
        subsection and submit to the Congress a report on the results 
        of such evaluation.''.

SEC. 6. ADDITIONAL FIPSE PROGRAM.

    (a) Purpose.--It is the purpose of this section--
            (1) to allow a demonstration program that is strictly 
        monitored by the Department of Education to test creative 
        measures for improving the availability of higher education for 
        part-time students;
            (2) to provide for increased access for part-time students; 
        and
            (3) to help determine the most effective assistance for 
        part-time students.
    (b) New Program Authorized.--Section 741(a) (20 U.S.C. 1138(a)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (7);
            (2) by striking the period at the end of paragraph (8) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(9) creating a program to create a holistic approach to 
        addressing the needs of part-time students at not more than 150 
        associate's and bachelor's degree-granting institutions that 
        would include grants, leveraging funds from non-Federal 
        sources, comprehensive child care, and better-tailored remedial 
        course programs.''.
    (c) Notification and Reports.--Section 743 (20 U.S.C. 1138b) is 
amended by adding at the end the following new subsections:
    ``(c) Procedures and Authorization for Part-Time Student Program.--
            ``(1) Application.--An eligible entity that desires to 
        receive a grant under subsection (b)(9) shall submit an 
        application to the Secretary in such manner and form, and 
        containing such information and assurances, as the Secretary 
        may reasonably require.
            ``(2) Selection procedures.--The Secretary shall by 
        regulation develop a formal procedure for the submission of 
        applications for grants under subsection (b)(9) and shall 
        publish in the Federal Register an announcement of that 
        procedure and the availability of funds under such subsection.
            ``(3) Evaluation.--The Secretary shall evaluate the program 
        authorized under subsection (b)(9) on an annual basis. Such 
        evaluations specifically shall review --
                    ``(A) the extent to which the institution has met 
                the goals set forth in its application to the 
                Secretary;
                    ``(B) the number of students participating in the 
                programs offered, including the progress of such 
                students toward recognized certificates or degrees; and
                    ``(C) what changes, if any, in law would facilitate 
                both the participation of part-time students in higher 
                education and increased graduation rates amongst these 
                students.
            ``(4) Separate authorizations of appropriations.--There are 
        authorized to be appropriated to carry out the program 
        authorized by subsection (b)(9), $100,000,000 for fiscal year 
        2008 and such sums as may be necessary for each of the five 
        succeeding fiscal years.''.
Part-time Student Assistance Act - Amends the Higher Education Act of 1965 to provide access and assistance to increase college attendance and completion by part-time students.

Increases the earnings exempt from student aid need determinations for academic year 2007-2008 by exempting earnings of up to: (1) $9,000 for dependent students; and (2) $12,000 for independent students with no dependents (other than spouse). Establishes a revised table that increases the amount of earnings for independent students with dependents (other than spouse) that are exempt. Provides for inflationary adjustments to such earnings exemptions in subsequent academic years. Exempts earned income credits from the calculation of income.

Revises and expands a program (child care access means parents in school) which provides grants to institutions of higher education for child care assistance for low-income students.

Directs the Secretary of Education to establish a year-round Pell grant pilot program.

Authorizes a demonstration program to create a holistic approach to addressing the needs of part-time students. Allows such program to: (1) be at up to 150 associate's and bachelor's degree-granting institutions; and (2) include grants, leveraging funds from nonfederal sources, comprehensive child care, and better tailored remedial course programs.
To provide access and assistance to increase college attendance and completion by part-time students.