A bill to establish an establish an Early Federal Pell Grant Commitment Demonstration Program.

SECTION 1. EARLY FEDERAL PELL GRANT COMMITMENT DEMONSTRATION PROGRAM.

    Subpart 1 of part A of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1070a et seq.) is amended by adding at the end the 
following:

``SEC. 401B. EARLY FEDERAL PELL GRANT COMMITMENT DEMONSTRATION PROGRAM.

    ``(a) Demonstration Program Authority.--
            ``(1) In general.--The Secretary is authorized to carry out 
        an Early Federal Pell Grant Commitment Demonstration Program 
        under which--
                    ``(A) the Secretary awards grants to 4 State 
                educational agencies, in accordance with paragraph (2), 
                to pay the administrative expenses incurred in 
                participating in the demonstration program under this 
                section; and
                    ``(B) the Secretary awards Federal Pell Grants to 
                participating students in accordance with this section.
            ``(2) Grants.--
                    ``(A) In general.--From amounts appropriated under 
                subsection (g) for a fiscal year, the Secretary is 
                authorized to award grants to 4 State educational 
                agencies to enable the State educational agencies to 
                pay the administrative expenses incurred in 
                participating in a demonstration program under which 
                students in 8th grade who are eligible for a free or 
                reduced price meal receive a commitment to receive a 
                Federal Pell Grant early in their academic careers.
                    ``(B) Equal amounts.--The Secretary shall award 
                grants under this section in equal amounts to each of 
                the 4 participating State educational agencies.
    ``(b) Demonstration Project Requirements.--Each of the 4 
demonstration projects assisted under this section shall meet the 
following requirements:
            ``(1) Participants.--
                    ``(A) In general.--The State educational agency 
                shall make participation in the demonstration project 
                available to 2 cohorts of students, which shall consist 
                of--
                            ``(i) 1 cohort of 8th grade students who 
                        begin the participation in academic year 2007-
                        2008; and
                            ``(ii) 1 cohort of 8th grade students who 
                        begin the participation in academic year 2008-
                        2009.
                    ``(B) Students in each cohort.--Each cohort of 
                students shall consist of not more than 10,000 8th 
                grade students who qualify for a free or reduced price 
                meal under the Richard B. Russell National School Lunch 
                Act or the Child Nutrition Act of 1966.
            ``(2) Student data.--The State educational agency shall 
        ensure that student data from local educational agencies 
        serving students who participate in the demonstration project, 
        as well as student data from local educational agencies serving 
        a comparable group of students who do not participate in the 
        demonstration project, are available for evaluation of the 
        demonstration project.
            ``(3) Federal pell grant commitment.--Each student who 
        participates in the demonstration project receives a commitment 
        from the Secretary to receive a Federal Pell Grant during the 
        first academic year that student is in attendance at an 
        institution of higher education as an undergraduate, if the 
        student applies for Federal financial aid (via the FAFSA) 
        during the student's senior year of secondary school and during 
        succeeding years.
            ``(4) Applicability of federal pell grant requirements.--
        The requirements of section 401 shall apply to Federal Pell 
        Grants awarded pursuant to this section, except that the amount 
        of each participating student's Federal Pell Grant only shall 
        be calculated by deeming such student to have an expected 
        family contribution equal to zero.
            ``(5) Application process.--The Secretary shall establish 
        an application process to select State educational agencies to 
        participate in the demonstration program and State educational 
        agencies shall establish an application process to select local 
        educational agencies within the State to participate in the 
        demonstration project.
            ``(6) Local educational agency participation.--Subject to 
        the 10,000 statewide student limitation described in paragraph 
        (1), a local educational agency serving students, not less than 
        50 percent of whom are eligible for a free or reduced price 
        meal under the Richard B. Russell National School Lunch Act or 
        the Child Nutritional Act of 1966, shall be eligible to 
        participate in the demonstration project.
    ``(c) State Educational Agency Applications.--
            ``(1) In general.--Each State educational agency desiring 
        to participate in the demonstration program under this section 
        shall submit an application to the Secretary at such time and 
        in such manner as the Secretary may require.
            ``(2) Contents.--Each application shall include--
                    ``(A) a description of the proposed targeted 
                information campaign for the demonstration project and 
                a copy of the plan described in subsection (f)(2);
                    ``(B) a description of the student population that 
                will receive an early commitment to receive a Federal 
                Pell Grant under this section;
                    ``(C) an assurance that the State educational 
                agency will fully cooperate with the ongoing evaluation 
                of the demonstration project; and
                    ``(D) such other information as the Secretary may 
                require.
    ``(d) Selection Considerations.--
            ``(1) Selection of state educational agencies.--In 
        selecting State educational agencies to participate in the 
        demonstration program, the Secretary shall consider--
                    ``(A) the number and quality of State educational 
                agency applications received;
                    ``(B) the Department's capacity to oversee and 
                monitor each State educational agency's participation 
                in the demonstration program;
                    ``(C) a State educational agency's--
                            ``(i) financial responsibility;
                            ``(ii) administrative capability;
                            ``(iii) commitment to focusing State 
                        resources, in addition to any resources 
                        provided under part A of title I of the 
                        Elementary and Secondary Education Act of 1965, 
                        on students who receive assistance under such 
                        part A;
                            ``(iv) the ability and plans of a State 
                        educational agency to run an effective and 
                        thorough targeted information campaign for 
                        students served by local educational agencies 
                        eligible to participate in the demonstration 
                        project; and
                            ``(v) ensuring the participation in the 
                        demonstration program of a diverse group of 
                        students with respect to ethnicity and gender.
            ``(2) Local educational agency.--In selecting local 
        educational agencies to participate in a demonstration project 
        under this section, the State educational agency shall 
        consider--
                    ``(A) the number and quality of local educational 
                agency applications received;
                    ``(B) the State educational agency's capacity to 
                oversee and monitor each local educational agency's 
                participation in the demonstration project;
                    ``(C) a local educational agency's--
                            ``(i) financial responsibility;
                            ``(ii) administrative capability;
                            ``(iii) commitment to focusing local 
                        resources, in addition to any resources 
                        provided under part A of title I of the 
                        Elementary and Secondary Education Act of 1965, 
                        on students who receive assistance under such 
                        part A;
                            ``(iv) the ability and plans of a local 
                        educational agency to run an effective and 
                        thorough targeted information campaign for 
                        students served by the local educational 
                        agency; and
                            ``(v) ensuring the participation in the 
                        demonstration project of a diverse group of 
                        students with respect to ethnicity and gender.
    ``(e) Evaluation.--
            ``(1) In general.--From amounts appropriated under section 
        (g) for a fiscal year, the Secretary shall reserve not more 
        than $1,000,000 to award a grant or contract to an organization 
        outside the Department for an independent evaluation of the 
        impact of the demonstration program assisted under this 
        section.
            ``(2) Competitive basis.--The grant or contract shall be 
        awarded on a competitive basis.
            ``(3) Matters evaluated.--The evaluation described in this 
        subsection shall--
                    ``(A) determine the number of individuals who were 
                encouraged by the demonstration program to pursue 
                higher education;
                    ``(B) identify the barriers to the effectiveness of 
                the demonstration program;
                    ``(C) assess the cost-effectiveness of the 
                demonstration program in improving access to higher 
                education;
                    ``(D) identify the reasons why participants in the 
                demonstration program either received or did not 
                receive a Federal Pell Grant;
                    ``(E) identify intermediate outcomes (relative to 
                postsecondary education attendance), such as whether 
                participants--
                            ``(i) were more likely to take a college-
                        prep curriculum while in secondary school;
                            ``(ii) submitted any college applications; 
                        and
                            ``(iii) took the PSAT, SAT, or ACT;
                    ``(F) identify the number of individuals 
                participating in the demonstration program who pursued 
                an associate's degree or a bachelor's degree, as well 
                as other forms of postsecondary education;
                    ``(G) compare the findings of the demonstration 
                program with respect to participants to comparison 
                groups (of similar size and demographics) that did not 
                participate in the demonstration program; and
                    ``(H) identify the impact on the parents of 
                students eligible to participate in the demonstration 
                program.
            ``(4) Dissemination.--The findings of the evaluation shall 
        be widely disseminated to the public by the organization 
        conducting the evaluation as well as by the Secretary.
    ``(f) Targeted Information Campaign.--
            ``(1) In general.--Each State educational agency receiving 
        a grant under this section shall, in cooperation with the 
        participating local educational agencies within the State and 
        the Secretary, develop a targeted information campaign for the 
        demonstration program assisted under this section.
            ``(2) Plan.--Each State educational agency receiving a 
        grant under this section shall include in the application 
        submitted under subsection (c) a written plan for their 
        proposed targeted information campaign. The plan shall include 
        the following:
                    ``(A) Outreach.--Outreach to students and their 
                families, at a minimum, at the beginning and end of 
                each academic year of the demonstration project.
                    ``(B) Distribution.--How the State educational 
                agency plans to provide the outreach described in 
                subparagraph (A) and to provide the information 
                described in subparagraph (C).
                    ``(C) Information.--The annual provision by the 
                State educational agency to all students and families 
                participating in the demonstration program of 
                information regarding--
                            ``(i) the estimated statewide average 
                        higher education institution cost data for each 
                        academic year, which cost data shall be 
                        disaggregated by--
                                    ``(I) type of institution, 
                                including--
                                            ``(aa) 2-year public 
                                        colleges;
                                            ``(bb) 4-year public 
                                        colleges; and
                                            ``(cc) 4-year private 
                                        colleges;
                                    ``(II) by component, including--
                                            ``(aa) tuition and fees; 
                                        and
                                            ``(bb) room and board;
                            ``(ii) Federal Pell Grants, including--
                                    ``(I) the maximum Federal Pell 
                                Grant for each academic year;
                                    ``(II) when and how to apply for a 
                                Federal Pell Grant; and
                                    ``(III) what the application 
                                process for a Federal Pell Grant 
                                requires;
                            ``(iii) State-specific college savings 
                        programs;
                            ``(iv) State-based merit aid;
                            ``(v) State-based financial aid; and
                            ``(vi) Federal financial aid available to 
                        students, including eligibility criteria for 
                        the Federal financial aid and an explanation of 
                        the Federal financial aid programs.
            ``(3) Cohorts.--The information described in paragraph 
        (2)(C) shall be provided to 2 cohorts of students annually for 
        the duration of the students' participation in the 
        demonstration program. The 2 cohorts shall consist of--
                    ``(A) 1 cohort of 8th grade students who begin the 
                participation in academic year 2007-2008; and
                    ``(B) 1 cohort of 8th grade students who begin the 
                participation in academic year 2008-2009.
            ``(4) Reservation.--Each State educational agency receiving 
        a grant under this section shall reserve $200,000 of the grant 
        funds received each fiscal year for each of the 2 cohorts of 
        students (for a total reservation of $400,000 each fiscal year) 
        served by the State to carry out their targeted information 
        campaign described in this subsection.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            ``(1) $1,300,000 for fiscal year 2008, of which--
                    ``(A) $500,000 shall be available to carry out 
                subsection (e); and
                    ``(B) $800,000 shall be available to carry out 
                subsection (f)(2)(C);
            ``(2) $1,600,000 for fiscal year 2009, of which $1,600,000 
        shall be available to carry out subsection (f)(2)(C);
            ``(3) $1,600,000 for fiscal year 2010, of which $1,600,000 
        shall be available to carry out subsection (f)(2)(C);
            ``(4) $2,100,000 for fiscal year 2011, of which--
                    ``(A) $500,000 shall be available to carry out 
                subsection (e); and
                    ``(B) $1,600,000 shall be available to carry out 
                subsection (f)(2)(C);
            ``(5) $1,600,000 for fiscal year 2012, of which $1,600,000 
        shall be available to carry out subsection (f)(2)(C);
            ``(6) $14,600,000 for fiscal year 2013, of which--
                    ``(A) $800,000 shall be available to carry out 
                subsection (f)(2)(C); and
                    ``(B) $13,800,000 shall be available for Federal 
                Pell Grants provided in accordance with this section; 
                and
            ``(7) $13,800,000 for fiscal year 2014, of which 
        $13,800,000 shall be available for Federal Pell Grants provided 
        in accordance with this section.''.

Summary: Amends the Higher Education Act of 1965 to authorize an Early Federal Pell Grant Demonstration Program. Directs the Secretary of Education to award grants to four states to cover administrative expenses incurred in the program. Limits a state to a cohort of up to 10,000 of its eighth grade students who are eligible for a free or reduced price meal under the Richard B. Russell National School Lunch Act or the Child Nutrition Act of 1966. Provides for a cohort for each of the academic years 2007-2008 and 2008-2009. Declares that each student who participates in the demonstration project receives a commitment to receive a Pell Grant during their first year of undergraduate study at an institution of higher education, subject to a specified condition. Requires state grantees to choose local educational agencies to participate in the program from among those serving students at least half of whom are eligible for free or reduced price meals. Calculates participating students' Pell Grants by deeming them to have no expected family contribution. Directs the Secretary to arrange for an independent evaluation of the demonstration program's effectiveness in providing needy students with access to, and an incentive to pursue, higher education. Requires state grantees annually to provide program participants with information concerning college costs, Pell Grants, state college savings programs, and other state and federal aid programs.