I 

109TH CONGRESS 

1ST SESSION H. R. 2960

To amend the Higher Education Act of 1965. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 17, 2005

Mr. GEORGE MILLER of California (for himself, Mr. KILDEE, Ms. PELOSI, 

Mr. OWENS, Mr. PAYNE, Ms. WOOLSEY, Mr. HINOJOSA, Mrs. MCCARTHY, Mr. TIERNEY, Mr. WU, Mr. KUCINICH, Mr. HOLT, Ms. MCCOLLUM

of Minnesota, Mrs. DAVIS of California, Mr. DAVIS of Illinois, Mr. 

GRIJALVA, Mr. VAN HOLLEN, Mr. RYAN of Ohio, Mr. BISHOP of New 

York, Mr. BARROW, Mr. HIGGINS, Mr. DOGGETT, Ms. MATSUI, Ms. 

BALDWIN, Mr. MICHAUD, Mrs. JONES of Ohio, Mr. STARK, Mr. CONYERS, Ms. SOLIS, Ms. BERKLEY, and Mr. STRICKLAND) introduced the 

following bill; which was referred to the Committee on Education and the 

Workforce 

A BILL

To amend the Higher Education Act of 1965.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘College Opportunity for All Act’’. 

6 (b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents. 

Sec. 2. References. 

Sec. 3. Findings. 
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TITLE I—BOOSTING COLLEGE OPPORTUNITIES 

Sec. 101. Pell grants. 

Sec. 102. College affordability and accountability. 

‘‘Sec. 132. State commitment to affordable college education. 

‘‘Sec. 133. Cost containment strategies. 

‘‘Sec. 401A. Incentives and rewards: Pell Plus. 

‘‘Sec. 486A. Articulation agreement demonstration program. 

Sec. 103. Elimination of loan fees to borrowers. 

Sec. 104. Authority to refinance consolidation loans. 

Sec. 105. Providing low cost loans. 

Sec. 106. Recapture of excess interest. 

Sec. 107. Termination of excessive allowances. 

Sec. 108. Public service scholarships. 

‘‘Sec. 428K. Loan forgiveness for public service employees. 

Sec. 109. Significantly simplifying the student aid application process. 

Sec. 110. Authorizations of appropriations for campus-based aid. 

‘‘Sec. 404H. Authorization of appropriations. 

Sec. 111. Special programs for students whose families are engaged in migrant 

and seasonal farm work. 

Sec. 112. Initiative to enhance college graduation rates and to accelerate time 

to degree. 

‘‘SUBPART 8—INITIATIVE TO ENHANCE COLLEGE GRADUATION RATES AND TO

ACCELERATE TIME TO DEGREE

‘‘Sec. 419P. Program authorized. 

Sec. 113. Consolidation loan lender of choice. 

Sec. 114. Establishing additional safeguards on schools acting as lenders under 

the Federal Family Education Loan Program. 

Sec. 115. Boosting opportunities for low-income parents to pursue college degrees. 

Sec. 116. Support for community service in college work-study program. 

Sec. 117. B.J. Stupak Olympic Scholarships. 

Sec. 118. Reduction of guaranty agency payments. 

TITLE II—TEACHER QUALITY 

Sec. 201. Teacher Recruiting and Preparation. 

‘‘PART C—TEACH GRANTS

‘‘Sec. 231. Purposes. 

‘‘Sec. 232. Program established. 

‘‘Sec. 233. Eligibility and applications for Grants. 

‘‘PART D—RECRUITING TEACHERS WITH MATH, SCIENCE, OR LANGUAGE

MAJORS

‘‘Sec. 241. Program authorized. 

‘‘Sec. 242. Authorization of appropriations. 

Sec. 202. Teacher Quality Enhancement Grants. 

‘‘Sec. 206. Accountability and evaluation. 

‘‘Sec. 207. Accountability for programs that prepare teachers. 

‘‘Sec. 208. State functions. 

‘‘Sec. 209. General provisions. 

TITLE III—ENHANCING COLLEGE OUTREACH 
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Sec. 301. Federal TRIO Program. 

Sec. 302. GEARUP. 

Sec. 303. Leveraging Educational Assistance Partnership. 

TITLE IV—OPPORTUNITIES AT HISPANIC-SERVING COLLEGES 

AND UNIVERSITIES 

Sec. 401. Postbaccalaureate opportunities for Hispanic Americans. 

‘‘PART B—PROMOTING POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC

AMERICANS

‘‘Sec. 511. Findings and purposes. 

‘‘Sec. 512. Program authority and eligibility. 

‘‘Sec. 513. Authorized activities. 

‘‘Sec. 514. Application and duration. 

Sec. 402. Authorization of appropriations for Hispanic Serving Institutions. 

TITLE V—HISTORICALLY BLACK COLLEGES AND UNIVERSITIES 

Sec. 501. Centers of excellence. 

‘‘PART E—CENTERS OF EXCELLENCE

‘‘Sec. 251. Purposes; definitions. 

‘‘Sec. 252. Centers of excellence. 

‘‘Sec. 253. Authorization of appropriations. 

Sec. 502. Authorization of appropriations.

1 SEC. 2. REFERENCES. 

2 Except as otherwise expressly provided, whenever in 

3 this Act an amendment or repeal is expressed in terms 

4 of an amendment to, or repeal of, a section or other provi5 sion, the reference shall be considered to be made to a 

6 section or other provision of the Higher Education Act of 

7 1965 (20 U.S.C. 1001 et seq.). 

8 SEC. 3. FINDINGS. 

9 The Congress finds the following: 

10 (1) A college education is more important than 

11 ever, and the Federal Government should signifi12 cantly increase its investment to make college more 

13 affordable and accessible to all students because—
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1 (A) recent shifts in the economy have in2 creased the demand for college-educated work3 ers and increased the wage gap between college4 educated workers and those without a degree; 

5 (B) jobs requiring some postsecondary 

6 education are expected to account for about 42 

7 percent of total job growth from 2000 through 

8 2010; and 

9 (C) closing the college participation gap 

10 between White and minority students would re11 sult in $85 billion in increased tax revenue. 

12 (2) Increased access to college and better reten13 tion rates are necessary because—

14 (A) seven times as many students from 

15 high-income families graduate from college by 

16 age 24 as students from low-income families; 

17 (B) forty percent of all white students ages 

18 18 through 24 are enrolled in institutions of 

19 higher education, whereas only 30 percent of all 

20 African-Americans and only 16 percent of all 

21 Hispanics are enrolled in institutions of higher 

22 education; 

23 (C) nearly 4 out of every 10 Hispanics en24 rolled full time in 4-year colleges drop out with25 in 3 years of their initial enrollment; 
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1 (D) African-Americans are half as likely as 

2 white students to complete a Bachelor’s degree 

3 in 4 years; and 

4 (E) low-income students are half as likely 

5 as upper-income students to complete a Bach6 elor’s degree in 4 years. 

7 (3) High loan debt and long work hours threat8 en college access: 

9 (A) Seventy percent of such Federal stu10 dent aid was in the form of loans and less than 

11 20 percent was in the form of grants—while in 

12 1975 grants accounted for 75 percent of Fed13 eral student aid funding. 

14 (B) The maximum Pell grant scholarship 

15 is worth nearly $800 less, in real terms, than 

16 the maximum award in 1975–1976. 

17 (C) The typical student now graduates 

18 with $19,000 in debt. 

19 (D) Forty-six percent of all students who 

20 work in addition to being full-time students re21 port 25 hours or more a week of employment. 

22 (E) Half of those employed more than 25 

23 hours a week report that working hurts their 

24 grades and retention in college, and students 

25 who work more than 35 hours a week are con-
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1 siderably less likely to complete a year of col2 lege than those who work less than 15 hours a 

3 week. 

4 (F) Low-income, college-qualified high 

5 school graduates have an annual ‘‘unmet need’’ 

6 of $3,800 in college expenses, expenses not cov7 ered by grants, loans, work, or family savings. 

8 (4) There is a severe shortage of qualified 

9 teachers, especially in high-need fields and low-in10 come areas because—

11 (A) approximately one-third of America’s 

12 teachers leave teaching sometime during their 

13 first 3 years of teaching and almost half leave 

14 during the first 5 years; 

15 (B) overall turnover rate for teachers in 

16 high-poverty areas is almost 33 percent higher 

17 than it is for teachers in all schools; and 

18 (C) in low-poverty secondary schools, ap19 proximately one-third of students are taught by 

20 a teacher who lacks either a college degree in 

21 the subject area in which the teacher teaches or 

22 certification in such subject area, while in high23 poverty secondary schools, approximately one24 half of students are taught by such a teacher. 
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1 TITLE I—BOOSTING COLLEGE 

2 OPPORTUNITIES 

3 SEC. 101. PELL GRANTS. 

4 (a) MAXIMUM GRANTS.—Section 401(b)(2)(A) (20 

5 U.S.C. 1070a(b)(2)(A)) is amended by striking clauses (i) 

6 through (v) and inserting the following: 

7 ‘‘(i) $7,600 for academic year 2006–2007; 

8 ‘‘(ii) $8,600 for academic year 2007–2008; 

9 ‘‘(iii) $9,600 for academic year 2008–2009; 

10 ‘‘(iv) $10,600 for academic year 2009–2010; 

11 and 

12 ‘‘(v) $11,600 for academic year 2010–2011,’’. 

13 (b) YEAR-ROUND PELL GRANTS.—Section 401 is 

14 further amended by adding at the end the following new 

15 subsection: 

16 ‘‘(k) YEAR-ROUND PELL GRANTS.—

17 ‘‘(1) PILOT PROGRAM ESTABLISHED.—The Sec18 retary shall establish in accordance with this sub19 section a year-round Pell grant pilot program. Any 

20 institution of higher education that desires to par21 ticipate in the program under this subsection shall 

22 submit an application to the Secretary at such time 

23 and containing or accompanied by such information 

24 and assurances as the Secretary may require. The 
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1 Secretary may select not more than 500 institutions 

2 of higher education for participation in the program. 

3 ‘‘(2) PROGRAM ELEMENTS.—With respect to 

4 students who are eligible for a Pell grant under this 

5 section and who are enrolled in institutions partici6 pating in the program under this subsection, the 

7 Secretary is authorized—

8 ‘‘(A) to award such students two Pell 

9 grants in one calendar year to permit such stu10 dents to accelerate progress towards their de11 gree or certificate objectives by enrolling in aca12 demic programs for 12 rather than 9 months of 

13 the year at participating institutions; and 

14 ‘‘(B) to award such two Pell grants to 

15 such students in a total amount up to 133 per16 cent of the maximum Pell under subsection 

17 (b)(2)(A) that is applicable for the academic 

18 year. 

19 ‘‘(3) LIMITATION.—The Secretary shall limit 

20 the awarding of additional Pell grants under this 

21 subsection in a single calendar year to students who 

22 attend bachelor’s or associate’s degree-granting in23 stitutions with the following characteristics: 

24 ‘‘(A) in the case of a bachelor’s degree25 granting institution, the graduation rate for the 
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1 institution of higher education reported by the 

2 Integrated Postsecondary Education Data Sys3 tem for the preceding five academic years is at 

4 least 50 percent; 

5 ‘‘(B) in the case of an associate’s degree6 granting institution, the completion rate for the 

7 institution of higher education reported by the 

8 Integrated Postsecondary Education Data Sys9 tem for the preceding three academic years has 

10 improved by a total of at least five percent; and 

11 ‘‘(C) the average time of enrollment re12 quired to complete a degree at the institution—

13 ‘‘(i) among students who enter as 

14 freshman and earn bachelor’s degrees is 14 

15 or fewer quarters, or 9 or fewer semesters 

16 or the equivalent; or 

17 ‘‘(ii) among students who enter as 

18 full-time freshmen and earn associate’s de19 grees is 8 or fewer quarters, or 7 or fewer 

20 semesters equivalent. 

21 ‘‘(4) TERMINATION; EVALUATION.—The author22 ity of the Secretary under this subsection shall cease 

23 to be effective on October 1, 2011. Not later than 

24 October 1, 2010, the Secretary shall conduct an 

25 evaluation of the program under this subsection and 
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1 submit to the Congress a report on the results of 

2 such evaluation.’’. 

3 (c) ELIMINATION OF TUITION SENSITIVITY PROVI4 SION.—Section 401(b) is further amended—

5 (1) by striking paragraph (3); and 

6 (2) by redesignating paragraphs (4) though (8) 

7 as paragraphs (3) through (7), respectively. 

8 SEC. 102. COLLEGE AFFORDABILITY AND ACCOUNT9 ABILITY. 

10 (a) STATE COMMITMENT TO AFFORDABLE COLLEGE

11 EDUCATION.—Title I is amended by inserting after sec12 tion 131 (20 U.S.C. 1015) the following new section: 

13 ‘‘SEC. 132. STATE COMMITMENT TO AFFORDABLE COLLEGE 

14 EDUCATION. 

15 ‘‘(a) MAINTENANCE OF EFFORT REQUIRED.—No 

16 State shall reduce the total amount provided by the State 

17 for public institutions of higher education in such State 

18 for any academic year beginning on or after July 1, 2005, 

19 to an amount which is less than the average amount pro20 vided by such State to such institutions of higher edu21 cation during the academic years between July 1, 1998, 

22 and July 1, 2003. 

23 ‘‘(b) WITHHOLDING OF ALL EDUCATION ADMINIS24 TRATIVE FUNDS FOR VIOLATIONS.—Notwithstanding any 

25 other provision of law, the Secretary of Education shall 
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1 withhold from any State that violates subsection (a) any 

2 amount that would otherwise be available to the State for 

3 administrative expenses and costs under any Federal edu4 cation program until such State has corrected such viola5 tion.’’. 

6 (b) COST CONTAINMENT STRATEGIES.—Title I is 

7 further amended by inserting after section 132 (as added 

8 by section 4) the following new section: 

9 ‘‘SEC. 133. COST CONTAINMENT STRATEGIES. 

10 ‘‘(a) REQUIREMENTS.—Each institution of higher 

11 education shall in accordance with the requirements of this 

12 section engage in, and report upon, cost containment 

13 strategies. Such strategies may include (but are not lim14 ited to) the following activities: 

15 ‘‘(1) bulk purchasing; 

16 ‘‘(2) joint faculty appointments; 

17 ‘‘(3) streamlining administration; 

18 ‘‘(4) energy conservation and savings; 

19 ‘‘(5) technological innovations; and 

20 ‘‘(6) joint degree offerings. 

21 ‘‘(b) FIVE-YEAR PLANS.—Within 2 years after the 

22 enactment of the Act, each institution of higher education 

23 shall submit a 5-year plan on their cost containment strat24 egies and any progress made to date to the Secretary of 

25 Education. 
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1 ‘‘(c) RESEARCH INTO COST CONTAINMENT METH2 ODS.—

3 ‘‘(1) RESEARCH AUTHORIZED.—From the 

4 funds appropriated under paragraph (2), the Sec5 retary is authorized—

6 ‘‘(A) to conduct or provide for the conduct 

7 of research to identify methods of cost contain8 ment currently utilized by institutions of higher 

9 education and systems of such institutions, and 

10 research into other possible methods of cost 

11 containment; 

12 ‘‘(B) to disseminate—

13 ‘‘(i) the information obtained by such 

14 research to such institutions and systems; 

15 and 

16 ‘‘(ii) other research that has identified 

17 successful methods of cost containment; 

18 ‘‘(C) to publicly recognize institutions of 

19 higher education that are doing an effective job 

20 at cost containment; and 

21 ‘‘(D) to work together with such institu22 tions and systems to implement these methods. 

23 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—

24 There are authorized to be appropriated to carry out 

25 this subsection $1,000,000 for fiscal year 2006 and 
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1 such sums as may be necessary for each of the 5 

2 succeeding fiscal years. 

3 ‘‘(d) CONSUMER INFORMATION.—

4 ‘‘(1) ANNUAL REPORT REQUIRED.—

5 ‘‘(A) CONTENTS OF REPORT.—The Sec6 retary shall annually prepare and publish a re7 port on college affordability in America. The 

8 college affordability report shall provide, at a 

9 minimum, comprehensive information on—

10 ‘‘(i) the sticker price, total price of at11 tendance, net tuition price, and net access 

12 price for every institution of higher edu13 cation that participates in the Federal stu14 dent aid programs under title IV of this 

15 Act; 

16 ‘‘(ii) the percentage change in the list17 ed sticker price, total price of attendance, 

18 net tuition price, and net access price over 

19 a 3-, 5-, and 10-year time period for each 

20 such institution; and 

21 ‘‘(iii) the level of Federal and State 

22 support for higher education per capita 

23 and per pupil. 

24 ‘‘(B) ADVISORY GROUP.—To ensure that 

25 the annual college affordability in America re-
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1 port provides consumer-friendly information, 

2 the Secretary shall convene an advisory group 

3 of students, parents, and college officials to 

4 help determine the information that shall be in5 cluded in the report. 

6 ‘‘(2) DATA DISSEMINATION.—The Secretary 

7 shall make publicly available the data collected pur8 suant to this section, including an institution’s net 

9 price tuition index as calculated in accordance with 

10 subsection (e). Such data shall be made available in 

11 a manner that permits the review and comparison of 

12 data submissions of individual institutions of higher 

13 education. Such data shall be presented in a form 

14 that is easily accessible and understandable and al15 lows parents and students to make informed deci16 sions based on the average prices for full-time un17 dergraduate students and the institution’s rate of in18 crease in the sticker price, total price of attendance, 

19 net tuition price, and net access price. 

20 ‘‘(3) WEBSITE ENHANCEMENT.—

21 ‘‘(A) WEBSITE INFORMATION.—In order to 

22 further enhance public knowledge and under23 standing of college affordability, the Secretary 

24 shall modify the college opportunities on line 

25 (COOL) web site. The goal of such changes 
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1 shall be to make the website the single best 

2 source of information about applying to and 

3 paying for a postsecondary education. Such 

4 changes shall make the website more user 

5 friendly and facilitate the comparison of mul6 tiple institutions at the same time. Such website 

7 shall provide detailed tuition and student aid 

8 data for each institution (including data from 

9 the annual college affordability in America re10 port). As part of improving the website, the 

11 Secretary shall establish an advisory board of 

12 students and parents to guide the redesign. The 

13 college price calculator required by paragraph 

14 (4) shall be included on the COOL website. 

15 ‘‘(B) AVAILABILITY IN OTHER FORM.—In 

16 addition, the Secretary shall publish all of the 

17 institutional information found on the COOL 

18 website, minus the college price calculator, and 

19 instruct all local educational agencies to notify 

20 all their secondary schools of the publication of 

21 the COOL web site, both on-line and in-print, 

22 and of the steps necessary to procure such in23 formation both on-line and in-print. 

24 ‘‘(4) COLLEGE PRICE CALCULATOR.—
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1 ‘‘(A) ESTABLISHMENT.—The Secretary 

2 shall establish a system for reporting to pro3 spective students and families on the net tuition 

4 price of institutions of higher education. Using 

5 the most recent data available, the Secretary 

6 shall make available the amount of aid typically 

7 granted for students based on family income 

8 and college attended. Such information shall be 

9 made available in the form of a web site price 

10 calculator that permits students to be able to 

11 enter an institution of higher education and 

12 their family income and be presented the sticker 

13 price, net tuition price, and net access price for 

14 students in their income bracket in order to de15 termine the approximate cost of attending such 

16 a school. The calculator shall include a clear 

17 disclaimer that financial aid decisions are made 

18 on a case-by-case basis and that the included 

19 calculations are based on previous years’ data 

20 and can therefore serve only as general guide21 lines for the financial aid that a student may 

22 expect to receive. 

23 ‘‘(B) INFORMATION DISTRIBUTION BY IN24 STITUTIONS.—Each institution of higher edu25 cation shall make available its sticker price, 
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1 total price of attendance, net tuition price, and 

2 net access price and list examples of what fami3 lies in each of the quartile income brackets 

4 might be expected to pay in the net tuition 

5 price for the most recent academic year. This 

6 information shall be provided in written form 

7 and distributed to all students and applicants 

8 and made widely available to the public. 

9 ‘‘(e) NET TUITION PRICE INDEX.—

10 ‘‘(1) IN GENERAL.—The Secretary shall, on the 

11 basis of the data submitted under subsection (a), 

12 calculate a net tuition price index for each institu13 tion of higher education submitting such data and 

14 shall make the index available in accordance with 

15 subsection (b) as soon as operationally possible on 

16 the Department’s college opportunity on line 

17 (COOL) website. 

18 ‘‘(2) CALCULATION OF INDEX.—The net tuition 

19 price index shall be equal to the percentage increase 

20 in the net tuition price charged for a first-time, full21 time, full-year undergraduate student between a pre22 ceding academic year and the most recent academic 

23 year for which satisfactory data are available. 

24 ‘‘(f) DEFINITIONS.—For the purposes of this section: 
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1 ‘‘(1) NET ACCESS PRICE.—The term ‘net access 

2 price’ means the average total price of attendance 

3 for full-time undergraduate students, minus the av4 erage grants, loans, and work-study provided to such 

5 students, for any academic year. 

6 ‘‘(2) NET TUITION PRICE.—The term ‘net tui7 tion price’ means the average tuition and fees 

8 charged to full-time undergraduate students, minus 

9 the average grants provided to such students, for 

10 any academic year. 

11 ‘‘(3) STICKER PRICE.—The term ‘sticker price’ 

12 means the average tuition and fees charged to full13 time undergraduate students by an institution of 

14 higher education for any academic year. 

15 ‘‘(4) TOTAL PRICE OF ATTENDANCE.—The 

16 term ‘total price of attendance’ means the average 

17 tuition and fees charged to full-time undergraduate 

18 students, as well as the average of the other ex19 penses of such students related to obtaining a higher 

20 education, including housing (room and board if the 

21 student lives on campus, or rent or related housing 

22 costs if the student does not live on campus), books, 

23 transportation, for any academic year. 

24 ‘‘(5) TUITION.—The term ‘tuition’ means the 

25 average price of or payment for actual instruction of 
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1 full-time undergraduate students at an institution of 

2 higher education, for any academic year.’’. 

3 (c) PELL PLUS.—Subpart 1 of part A of title IV is 

4 amended by inserting after section 401 (20 U.S.C. 1070a) 

5 the following new section: 

6 ‘‘SEC. 401A. INCENTIVES AND REWARDS: PELL PLUS. 

7 ‘‘(a) REWARDS FOR LOW TUITION.—For any institu8 tion of higher education that, for academic year 2005–

9 2006 or any succeeding academic year, such institution’s 

10 annual net tuition price increase (expressed as a percent11 age) for the most recent academic year for which satisfac12 tory data is available is equal to or less than the percent13 age change in the higher education price index for such 

14 academic year, the Secretary shall, notwithstanding any 

15 other provision of the law, provide such institution an 

16 amount sufficient to provide a 25 percent increase under 

17 subpart 1 of part A of title IV to each Pell Grant recipient 

18 attending such institution for the next award year begin19 ning after the date of such determination. Each such insti20 tution shall distribute any amounts received under this 

21 subsection among such Pell Grant recipients by increasing 

22 the amount of their Pell Grant awards by 25 percent. 

23 ‘‘(b) REWARDS FOR GUARANTEED TUITION.—

24 ‘‘(1) BONUS.—For each institution of higher 

25 education that the Secretary of Education deter-
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1 mines complies with the requirements of paragraph 

2 (2) or paragraph (3) of this subsection, the Sec3 retary shall, notwithstanding any other provision of 

4 the law, provide such institution an amount suffi5 cient to provide a 10 percent increase under subpart 

6 1 of part A of title IV to each Pell Grant recipient 

7 attending such institution for the next award year 

8 beginning after the date of such determination. Each 

9 such institution shall distribute any amounts re10 ceived under this subsection among such Pell Grant 

11 recipients by increasing the amount of their Pell 

12 Grant awards by 10 percent. 

13 ‘‘(2) 4-YEAR INSTITUTIONS.—An institution of 

14 higher education that provides a program of instruc15 tion for which it awards a bachelor’s degree complies 

16 with the requirements of this paragraph if such in17 stitution guarantees that for any academic year be18 ginning on or after July 1, 2005, and for each of the 

19 5 succeeding continuous academic years, the net tui20 tion price charged to an undergraduate student will 

21 not exceed—

22 ‘‘(A) the amount that the student was 

23 charged for an academic year at the time he or 

24 she first enrolled in the institution of higher 

25 education, plus 
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1 ‘‘(B) the product of the percentage in2 crease in the higher education price index for 

3 the prior academic year, or the most recent 

4 prior academic year for which data is available, 

5 multiplied by the amount determined under 

6 subparagraph (A). 

7 ‘‘(3) LESS THAN 4-YEAR INSTITUTIONS.—An 

8 institution of higher education that does not provide 

9 a program of instruction for which it awards a bach10 elor’s degree complies with the requirements of this 

11 paragraph if such institution guarantees that for 

12 any academic year (or the equivalent) beginning on 

13 or after July 1, 2005, and for each of the 1.5 suc14 ceeding continuous academic years, the net tuition 

15 price charged to an undergraduate student will not 

16 exceed—

17 ‘‘(A) the amount that the student was 

18 charged for an academic year at the time he or 

19 she first enrolled in the institution of higher 

20 education, plus 

21 ‘‘(B) the product of the percentage in22 crease in the higher education price index for 

23 the prior academic year, or the most recent 

24 prior academic year for which data is available, 
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1 multiplied by the amount determined under 

2 subparagraph (A). 

3 ‘‘(c) MAINTAINING AFFORDABLE TUITION.—For any 

4 institution of higher education whose increase in the an5 nual net tuition price (expressed as a percentage), for the 

6 most recent academic year for which satisfactory data is 

7 available, is greater than the percentage increase in the 

8 higher education price index for such academic year, the 

9 Secretary shall require such institution to submit to the 

10 Secretary the following information, within 6 months of 

11 such determination: 

12 ‘‘(1) a detailed report on the exact causes for 

13 the net tuition price increase that outlines revenues 

14 and expenditures; and 

15 ‘‘(2) cost containment strategies to lower net 

16 tuition prices. 

17 ‘‘(d) DEFINITIONS.—

18 ‘‘(1) NET TUITION PRICE.—The term ‘net tui19 tion price’ has the same meaning as provided in sec20 tion 133(f). 

21 ‘‘(2) HIGHER EDUCATION PRICE INDEX.—The 

22 term ‘higher education price index’ means a statis23 tical measure of change over time in the prices of a 

24 fixed market basket of goods and services purchased 

25 by colleges and universities through current fund 
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1 educational and general expenditures (excluding ex2 penditures for research), as developed by the Bureau 

3 of Labor Statistics pursuant to section 131(c)(4).’’. 

4 (d) ARTICULATION AGREEMENT DEMONSTRATION

5 PROGRAM.—Part G of title IV is amended by inserting 

6 after section 486 (20 U.S.C. 1093) the following new sec7 tion: 

8 ‘‘SEC. 486A. ARTICULATION AGREEMENT DEMONSTRATION 

9 PROGRAM. 

10 ‘‘(a) PURPOSE; DEFINITION.—

11 ‘‘(1) PURPOSE.—It is the purpose of this sec12 tion to allow demonstration programs that are mon13 itored by the Department of Education to encourage 

14 institutions of higher education to enter into articu15 lation agreements or consortia groups, as a means to 

16 lower tuition prices to students. 

17 ‘‘(2) DEFINITION.—For the purposes of this 

18 section, the term ‘articulation agreement’ means an 

19 agreement between institutions of higher education 

20 that specifies the acceptability of courses in transfer 

21 toward meeting specific degree requirements. 

22 ‘‘(b) DEMONSTRATION PROGRAMS AUTHORIZED.—

23 ‘‘(1) IN GENERAL.—The Secretary is authorized 

24 to select institutions of higher education, systems of 

25 such institutions, or consortia of such institutions 
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1 for voluntary participation in an articulation agree2 ment demonstration program. 

3 ‘‘(2) ELIGIBLE APPLICANTS.—

4 ‘‘(A) ELIGIBLE INSTITUTIONS.—Except as 

5 provided in subparagraphs (B), (C), and (D), 

6 only an institution of higher education that is 

7 eligible to participate in programs under this 

8 title shall be eligible to participate in the articu9 lation program authorized under this section. 

10 ‘‘(B) PROHIBITION.—An institution of 

11 higher education described in section 

12 102(a)(1)(C) shall not be eligible to participate 

13 in the articulation program authorized under 

14 this section. 

15 ‘‘(C) SPECIAL RULE.—Subject to subpara16 graph (B), an institution of higher education 

17 that meets the requirements of subsection (a) of 

18 section 102, other than the requirement of 

19 paragraph (3)(A) or (3)(B) of such subsection, 

20 and that provides a 2-year or 4-year program of 

21 instruction for which the institution awards an 

22 associate or baccalaureate degree, shall be eligi23 ble to participate in the demonstration program 

24 authorized under this section. 

25 ‘‘(c) APPLICATION.—
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1 ‘‘(1) IN GENERAL.—Each institution, system, 

2 or consortium of institutions desiring to participate 

3 in a demonstration program under this section shall 

4 submit an application to the Secretary at such time 

5 and in such manner as the Secretary may require. 

6 ‘‘(2) CONTENTS.—Each application shall in7 clude—

8 ‘‘(A) a description of the institution, sys9 tem, or consortium’s consultation with a recog10 nized accrediting agency or association with re11 spect to quality assurances for the articulation 

12 programs to be offered; 

13 ‘‘(B) a description of the articulation pro14 gram to be offered; 

15 ‘‘(C) a description of the students to whom 

16 the articulation programs will be offered; 

17 ‘‘(D) an assurance that the institution, 

18 system, or consortium will offer full cooperation 

19 with the ongoing evaluations of the demonstra20 tion program provided for in this section; and 

21 ‘‘(E) such other information as the Sec22 retary may require. 

23 ‘‘(d) SELECTION.—

24 ‘‘(1) IN GENERAL.—For the first year of the 

25 demonstration program authorized under this sec-
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•HR 2960 IH 

1 tion, the Secretary is authorized to select for partici2 pation in the program not more than 100 institu3 tions, systems of institutions, or consortia of institu4 tions. For the third year of the demonstration pro5 gram authorized under this section, the Secretary 

6 may select not more than 250 institutions, systems, 

7 or consortia, in addition to the institutions, systems, 

8 or consortia selected pursuant to the preceding sen9 tence, to participate in the demonstration program if 

10 the Secretary determines that such expansion is war11 ranted based on the evaluations conducted in accord12 ance with subsections (f) and (g). 

13 ‘‘(2) CONSIDERATIONS.—In selecting institu14 tions to participate in the articulation program in 

15 the first or succeeding years of the program, the 

16 Secretary shall take into account—

17 ‘‘(A) the number and quality of applica18 tions received; 

19 ‘‘(B) the Department’s capacity to oversee 

20 and monitor each institution’s participation; 

21 ‘‘(C) an applicant’s—

22 ‘‘(i) financial responsibility; 

23 ‘‘(ii) administrative capability; and 
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•HR 2960 IH 

1 ‘‘(D) the need to ensure the participation 

2 of a diverse group of institutions with respect to 

3 size, mission, and geographic distribution. 

4 ‘‘(3) PRIORITY.—In selecting institutions to 

5 participate in the articulation program in the first or 

6 succeeding years of the program, the Secretary shall 

7 give priority to applicants that involve a large num8 ber of schools; public and private agreements; inno9 vative technology to help reduce costs; and, multi10 state projects. 

11 ‘‘(4) NOTIFICATION.—The Secretary shall make 

12 available to the public and to the Committee on 

13 Health, Education, Labor, and Pensions of the Sen14 ate and the Committee on Education and the Work15 force of the House of Representatives a list of insti16 tutions, systems or consortia selected to participate 

17 in the articulation program authorized by this sec18 tion. 

19 ‘‘(e) EVALUATIONS AND REPORTS.—

20 ‘‘(1) EVALUATION.—The Secretary shall evalu21 ate the demonstration programs authorized under 

22 this section on an annual basis. Such evaluations 

23 specifically shall review—
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•HR 2960 IH 

1 ‘‘(A) the extent to which the institution, 

2 system or consortium has met the goals set 

3 forth in its application to the Secretary; 

4 ‘‘(B) the number and types of institutions 

5 participating in the programs offered; 

6 ‘‘(C) the cost containment strategies pur7 sued and the success of such strategies; and 

8 ‘‘(D) the effective use of technologies to 

9 keep college prices low, while maintaining qual10 ity. 

11 ‘‘(2) REPORTS.—

12 ‘‘(A) IN GENERAL.—Within 18 months of 

13 the initiation of the demonstration program, the 

14 Secretary shall report to the Committee on 

15 Health, Education, Labor, and Pensions of the 

16 Senate and the Committee on Education and 

17 the Workforce of the House of Representatives 

18 with respect to the evaluations of the dem19 onstration programs authorized under this sec20 tion. 

21 ‘‘(B) ADDITIONAL REPORTS.—The Sec22 retary shall provide additional reports to the 

23 Committee on Health, Education, Labor, and 

24 Pensions of the Senate and the Committee on 
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•HR 2960 IH 

1 Education and the Workforce of the House of 

2 Representatives on an annual basis regarding—

3 ‘‘(i) the demonstration programs au4 thorized under this section; and 

5 ‘‘(ii) best practices to contain college 

6 costs.’’. 

7 (e) ADVISORY COMMITTEE ON STUDENT FINANCIAL

8 ASSISTANCE.—Section 491(j) (20 U.S.C. 1098(j)) is 

9 amended 

10 (1) by striking ‘‘and’’ at the end of paragraph 

11 (4); 

12 (2) by striking the period at the end of para13 graph (5) and inserting ‘‘; and’’; and 

14 (3) by adding at the end the following new 

15 paragraph: 

16 ‘‘(6) convene a task force of experts, to be rep17 resentative of the key constituents in higher edu18 cation—

19 ‘‘(A) to determine the best methods to fi20 nance higher education in the long-term; 

21 ‘‘(B) to help public institutions utilize 

22 long-term budgeting to plan for the future; 

23 ‘‘(C) to review the trends of financing of 

24 higher education; 
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•HR 2960 IH 

1 ‘‘(D) to define the role played by the 

2 States, the Federal Government, families, and 

3 outside entities in financing higher education, 

4 and determine the best methods to strengthen 

5 this partnership.’’. 

6 SEC. 103. ELIMINATION OF LOAN FEES TO BORROWERS. 

7 (a) FEDERAL FAMILY EDUCATION LOAN PRO8 GRAM.—Section 438(c) of the Higher Education Act of 

9 1965 (20 U.S.C. 1087–1(c)) is amended by adding at the 

10 end the following new paragraph: 

11 ‘‘(9) ORIGINATION FEES TERMINATED.—Not12 withstanding any other provision of this subsection, 

13 with respect to any loan made, insured, or guaran14 teed under this part on or after the first July 1 after 

15 the date of enactment of the College Opportunity for 

16 All Act—

17 ‘‘(A) no eligible lender may collect directly 

18 or indirectly from any borrower any origination 

19 fee with respect to such loan, or any other fee 

20 relating to the origination of a loan however de21 scribed; and 

22 ‘‘(B) the Secretary shall not collect any 

23 origination fee from the lender under this sub24 section.’’. 

25 (b) FEDERAL DIRECT LOAN PROGRAM.—
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•HR 2960 IH 

1 (1) AMENDMENT.—Section 455(c) of such Act 

2 (20 U.S.C. 1087e(c)) is amended to read as follows: 

3 ‘‘(c) LOAN FEE.—The Secretary shall not collect di4 rectly or indirectly from any borrower any origination fee 

5 with respect to such loan, or any other fee relating to the 

6 origination of a loan however described.’’. 

7 (2) EFFECTIVE DATE.—The amendment made 

8 by paragraph (1) shall apply with respect to any 

9 loan made under part D of title IV on an after the 

10 first July 1 after the date of enactment of this Act. 

11 SEC. 104. AUTHORITY TO REFINANCE CONSOLIDATION 

12 LOANS. 

13 (a) CONSOLIDATION LOAN REFINANCING.—

14 (1) FFEL CONSOLIDATION LOANS.—Section 

15 428C(a)(3)(B) of the Higher Education Act of 1965 

16 (20 U.S.C. 1078–3(a)(3)(B)) is amended by adding 

17 at the end the following new clause: 

18 ‘‘(ii) Notwithstanding clause (i) of this subpara19 graph, a borrower of a consolidation loan on which 

20 the interest is established at a fixed rate under sec21 tion 427A, 428C(c), or 455 may obtain a subsequent 

22 consolidation loan for the purposes of refinancing 

23 such earlier consolidation loan at a fixed or variable 

24 rate under section 427A(l)(3) or 455(b)(7)(C) if the 

25 interest rate on such earlier consolidation loan ex-
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•HR 2960 IH 

1 ceeds the sum of 3.3 percent and the average of the 

2 bond equivalent rates of the 91-day Treasury bills 

3 auctioned for the previous calendar quarter.’’. 

4 (2) PARALLEL TERMS FOR FEDERAL DIRECT

5 CONSOLIDATION LOANS.—Section 455(a) of the 

6 Higher Education Act of 1965 (20 U.S.C. 1087e(a)) 

7 is amended—

8 (A) in paragraph (1), by inserting ‘‘428C,’’ 

9 after ‘‘428B,’’; and 

10 (B) in paragraph (2)—

11 (i) by striking ‘‘and’’ at the end of 

12 subparagraph (B); 

13 (ii) by redesignating subparagraph 

14 (C) as subparagraph (D); and 

15 (iii) by inserting after subparagraph 

16 (B) the following: 

17 ‘‘(C) section 428C shall be know as ‘Fed18 eral Direct Consolidation Loans’.’’. 

19 (b) CONSOLIDATION LOAN INTEREST RATES.—

20 (1) FFEL LOANS.—Paragraph (3) of section 

21 427A(l) (20 U.S.C. 1077a(l)) is amended to read as 

22 follows: 

23 ‘‘(3) CONSOLIDATION LOANS.—

24 ‘‘(A) BORROWER ELECTION.—With respect 

25 to any consolidation loan under section 428C 
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•HR 2960 IH 

1 for which the application is received by an eligi2 ble lender on or after July 1, 2006 (including 

3 an application for a subsequent consolidation 

4 loan under section 428C(a)(3)(B)(ii)), the ap5 plicable rate of interest shall, at the election of 

6 the borrower at the time of application for the 

7 loan, be either at the rate determined under 

8 subparagraph (B) or the rate determined under 

9 subparagraph (C). 

10 ‘‘(B) VARIABLE RATE.—Except as pro11 vided in subparagraph (D), the rate determined 

12 under this subparagraph shall, during any 12-

13 month period beginning on July 1 and ending 

14 on June 30, be determined on the preceding 

15 June 1 and be equal, for such 12-month period, 

16 to—

17 ‘‘(i) the bond equivalent rate of 91-

18 day Treasury bills auctioned at the final 

19 auction held prior to such June 1; plus 

20 ‘‘(ii) 2.3 percent, 

21 except that such rate shall not exceed 6.8 per22 cent. 

23 ‘‘(C) FIXED RATE.—Except as provided in 

24 subparagraph (D), the rate determined under 

25 this subparagraph shall be determined on the 
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•HR 2960 IH 

1 date on which the obligation to repay the loan 

2 is signed, and be equal, for the duration of the 

3 term of the loan, to the lesser of—

4 ‘‘(i) the weighted average of the inter5 est rates on the loans consolidated, round6 ed to the nearest higher one-eighth of 1 

7 percent; or 

8 ‘‘(ii) 6.8 percent. 

9 ‘‘(D) CONSOLIDATION OF PLUS LOANS.—

10 In the case of any such consolidation loan that 

11 is used to repay loans each of which was made 

12 under section 428B or was a Federal Direct 

13 PLUS Loan (or both), the rates determined 

14 under subparagraphs (B) and (C) shall be de15 termined—

16 ‘‘(i) by substituting ‘3.1 percent’ for 

17 ‘2.3 percent’; and 

18 ‘‘(ii) by substituting ‘7.9 percent’ for 

19 ‘6.8 percent’.’’. 

20 (2) DIRECT LOANS.—Subparagraph (C) of sec21 tion 455(b)(7) (20 U.S.C. 1087e(b)(7)) is amended 

22 to read as follows: 

23 ‘‘(C) CONSOLIDATION LOANS.—

24 ‘‘(i) BORROWER ELECTION.—With re25 spect to any consolidation loan under sec-
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•HR 2960 IH 

1 tion 428C for which the application is re2 ceived by an eligible lender on or after July 

3 1, 2006 (including an application for a 

4 subsequent consolidation loan under sec5 tion 428C(a)(3)(B)(ii)), the applicable rate 

6 of interest shall, at the election of the bor7 rower at the time of application for the 

8 loan, be either at the rate determined 

9 under clause (ii) or the rate determined 

10 under clause (iii). 

11 ‘‘(ii) VARIABLE RATE.—Except as 

12 provided in clause (iv), the rate determined 

13 under this subparagraph shall, during any 

14 12-month period beginning on July 1 and 

15 ending on June 30, be determined on the 

16 preceding June 1 and be equal, for such 

17 12-month period, to—

18 ‘‘(I) the bond equivalent rate of 

19 91-day Treasury bills auctioned at the 

20 final auction held prior to such June 

21 1; plus 

22 ‘‘(II) 2.3 percent, 

23 except that such rate shall not exceed 6.8 

24 percent. 
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•HR 2960 IH 

1 ‘‘(iii) FIXED RATE.—Except as pro2 vided in clause (iv), the rate determined 

3 under this subparagraph shall be deter4 mined on the date on which the obligation 

5 to repay the loan is signed, and be equal, 

6 for the duration of the term of the loan, to 

7 the lesser of—

8 ‘‘(I) the weighted average of the 

9 interest rates on the loans consoli10 dated, rounded to the nearest higher 

11 one-eighth of 1 percent; or 

12 ‘‘(II) 6.8 percent. 

13 ‘‘(iv) CONSOLIDATION OF PLUS

14 LOANS.—In the case of any such Federal 

15 Direct Consolidation Loan that is used to 

16 repay loans each of which was made under 

17 section 428B or was a Federal Direct 

18 PLUS Loan, the rates determined under 

19 clauses (ii) and (iii) shall be determined—

20 ‘‘(I) by substituting ‘3.1 percent’ 

21 for ‘2.3 percent’ in clause (ii)(II); and 

22 ‘‘(II) by substituting ‘7.9 per23 cent’ for ‘6.8 percent’ each place it 

24 appears.’’. 
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•HR 2960 IH 

1 SEC. 105. PROVIDING LOW COST LOANS. 

2 (a) FFEL INTEREST RATES.—Section 427A(l) (20 

3 U.S.C. 1077a(l)) is further amended—

4 (1) by redesignating paragraph (3) (as amend5 ed by section 104(b)(1)) as paragraph (4); and 

6 (2) by striking paragraphs (1) and (2) and in7 serting the following: 

8 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

9 (h), but subject to paragraph (2) of this subsection, 

10 with respect to any loan made, insured, or guaran11 teed under this part (other than a loan made pursu12 ant to section 428B or 428C) for which the first dis13 bursement is made on or after July 1, 2006, the ap14 plicable rate of interest shall, during any 12-month 

15 period beginning on July 1 and ending on June 30, 

16 be determined on the preceding June 1 and be equal 

17 to—

18 ‘‘(A) the bond equivalent rate of 91-day 

19 Treasury bills auctioned at the final auction 

20 held prior to such June 1; plus 

21 ‘‘(B) 2.3 percent, 

22 except that such rate shall not exceed 6.8 percent. 

23 ‘‘(2) IN SCHOOL AND GRACE PERIOD RULES.—

24 Notwithstanding subsection (h), with respect to any 

25 loan under this part (other than a loan made pursu26 ant to section 428B or 428C) for which the first dis-
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•HR 2960 IH 

1 bursement is made on or after July 1, 2006, the ap2 plicable rate of interest for interest which accrues—

3 ‘‘(A) prior to the beginning of the repay4 ment period of the loan; or 

5 ‘‘(B) during the period in which principal 

6 need not be paid (whether or not such principal 

7 is in fact paid) by reason of a provision de8 scribed in section 427(a)(2)(C) or 

9 428(b)(1)(M), 

10 shall be determined under paragraph (1) by sub11 stituting ‘1.7 percent’ for ‘2.3 percent’. 

12 ‘‘(3) PLUS LOANS.—Notwithstanding subsection 

13 (h), with respect to any loan under section 428B for 

14 which the first disbursement is made on or after 

15 July 1, 2006, the applicable rate of interest shall be 

16 determined under paragraph (1)—

17 ‘‘(A) by substituting ‘3.1 percent’ for ‘2.3 

18 percent’; and 

19 ‘‘(B) by substituting ‘7.9 percent’ for ‘6.8 

20 percent’.’’. 

21 (b) DIRECT LOANS.—Section 455(b)(7) (20 U.S.C. 

22 1087e(b)(7)) is further amended—

23 (1) by redesignating subparagraph (C) (as 

24 amended by section 104(b)(2)) as subparagraph (D); 

25 and 
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1 (2) by striking subparagraph (A) and (B) and 

2 inserting the following: 

3 ‘‘(A) RATES FOR FDSL AND FDUSL.—Not4 withstanding the preceding paragraphs of this 

5 subsection, for Federal Direct Stafford Loans 

6 and Federal Direct Unsubsidized Stafford 

7 Loans for which the first disbursement is made 

8 on or after July 1, 2006, the applicable rate of 

9 interest shall, during any 12-month period be10 ginning on July 1 and ending on June 30, be 

11 determined on the preceding June 1 and be 

12 equal to—

13 ‘‘(i) the bond equivalent rate of 91-

14 day Treasury bills auctioned at the final 

15 auction held prior to such June 1; plus 

16 ‘‘(ii) 2.3 percent, 

17 except that such rate shall not exceed 6.8 per18 cent. 

19 ‘‘(B) IN SCHOOL AND GRACE PERIOD

20 RULES.—Notwithstanding the preceding para21 graphs of this subsection, with respect to any 

22 Federal Direct Stafford Loan or Federal Direct 

23 Unsubsidized Stafford Loan for which the first 

24 disbursement is made on or after July 1, 2006, 
40

•HR 2960 IH 

1 the applicable rate of interest for interest which 

2 accrues—

3 ‘‘(i) prior to the beginning of the re4 payment period of the loan; or 

5 ‘‘(ii) during the period in which prin6 cipal need not be paid (whether or not 

7 such principal is in fact paid) by reason of 

8 a provision described in section 

9 428(b)(1)(M) or 427(a)(2)(C), 

10 shall be determined under subparagraph (A) by 

11 substituting ‘1.7 percent’ for ‘2.3 percent’. 

12 ‘‘(C) PLUS LOANS.—Notwithstanding the 

13 preceding paragraphs of this subsection, with 

14 respect to Federal Direct PLUS Loan for which 

15 the first disbursement is made on or after Octo16 ber 1, 1998, and before July 1, 2006, the appli17 cable rate of interest shall be determined under 

18 subparagraph (A)—

19 ‘‘(i) by substituting ‘3.1 percent’ for 

20 ‘2.3 percent’; and 

21 ‘‘(ii) by substituting ‘7.9 percent’ for 

22 ‘6.8 percent’.’’. 
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•HR 2960 IH 

1 SEC. 106. RECAPTURE OF EXCESS INTEREST. 

2 (a) AMENDMENT.—Subparagraph (I) of section 

3 438(b)(2) (20 U.S.C. 1087–1(b)(2)) is amended by insert4 ing after clause (vii) the following new clause: 

5 ‘‘(viii) RECAPTURE OF EXCESS INTER6 EST.—

7 ‘‘(I) EXCESS CREDITED.—With 

8 respect to a loan on which the applica9 ble interest rate is determined under 

10 subsection (l) of section 427A and for 

11 which the first disbursement of prin12 cipal is made on or after July 1, 

13 2006, if the applicable interest rate 

14 for any 3-month period exceeds the 

15 special allowance rate applicable to 

16 such loan under this subparagraph for 

17 such period, then an adjustment shall 

18 be made by calculating the excess in19 terest in the amount computed under 

20 subclause (II) of this clause, and by 

21 crediting the excess interest to the 

22 Government not less often than annu23 ally. 

24 ‘‘(II) CALCULATION OF EX25 CESS.—The amount of any adjust26 ment of interest on a loan to be made 
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•HR 2960 IH 

1 under this subsection for any quarter 

2 shall be equal to—

3 ‘‘(aa) the applicable interest 

4 rate minus the special allowance 

5 rate determined under this sub6 paragraph; multiplied by 

7 ‘‘(bb) the average daily prin8 cipal balance of the loan (not in9 cluding unearned interest added 

10 to principal) during such cal11 endar quarter; divided by 

12 ‘‘(cc) four.’’. 

13 (b) EFFECTIVE DATE.—The amendments made by 

14 this section shall not apply with respect to any special al15 lowance payment made under section 438 of the Higher 

16 Education Act of 1965 (20 U.S.C 1087–1) before July 

17 1, 2006. 

18 SEC. 107. TERMINATION OF EXCESSIVE ALLOWANCES. 

19 (a) AMENDMENT.—Section 438(b)(2)(B) of the 

20 Higher Education Act of 1965 (20 U.S.C. 1087–

21 1(b)(2)(B)) is amended by striking clause (v) and insert22 ing the following: 

23 ‘‘(v) This subparagraph shall not 

24 apply to—
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•HR 2960 IH 

1 ‘‘(I) any loan made or purchased 

2 after the date of enactment of the 

3 College Opportunity for All Act; 

4 ‘‘(II) any loan that had not quali5 fied before such date of enactment for 

6 receipt of a special allowance payment 

7 determined under this subparagraph; 

8 or 

9 ‘‘(III) any loan made or pur10 chased before such date of enactment 

11 with funds described in the first or 

12 second sentence of clause (i) if—

13 ‘‘(aa) the obligation de14 scribed in the first such sentence 

15 has, after such date of enact16 ment, matured, or been retired or 

17 defeased; or 

18 ‘‘(bb) the maturity date or 

19 the date of retirement of the obli20 gation described in the first such 

21 sentence has, after such date of 

22 enactment, been extended.’’. 

23 (b) CONTINUING AUDITS OF PRIOR CLAIMS.—The 

24 Inspector General of the Department of Education shall 

25 conduct an audit of each holder of student loans who, at 
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•HR 2960 IH 

1 any time after September 30, 1993, submitted claims for 

2 special allowance payments under subparagraph (B) of 

3 section 438(b)(2) of the Higher Education Act of 1965 

4 (20 U.S.C. 1087–1(b)(2)(B)), with respect to the claims 

5 made pursuant to such subparagraph. In conducting such 

6 audit, the Inspector General shall use the methodology 

7 used in preparing the audit report on special allowance 

8 payments issued in May 2005 (ED–OIG/A05E0017). 

9 SEC. 108. PUBLIC SERVICE SCHOLARSHIPS. 

10 Section 428K (20 U.S.C. 1078–11) is amended to 

11 read as follows: 

12 ‘‘SEC. 428K. LOAN FORGIVENESS FOR PUBLIC SERVICE EM13 PLOYEES. 

14 ‘‘(a) PURPOSES.—The purposes of this section are—

15 ‘‘(1) to reduce the burden of student debt, par16 ticularly for Americans who dedicate their careers to 

17 meeting certain urgent national needs; and 

18 ‘‘(2) to attract more excellent individuals into 

19 important public service careers. 

20 ‘‘(b) LOAN FORGIVENESS.—

21 ‘‘(1) IN GENERAL.—The Secretary shall assume 

22 the obligation to repay, pursuant to subsection (c), 

23 a loan made under section 428 or 428H, a Federal 

24 Direct Stafford Loan or Federal Direct Unsub25 sidized Stafford Loan, a Federal Direct Consolida-
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•HR 2960 IH 

1 tion Loan, or a Federal Perkins Loan for any new 

2 borrower after the date of enactment of the Higher 

3 Education Amendments of 1998, who—

4 ‘‘(A) is employed full time in a qualified 

5 public service position described in paragraph 

6 (2); and 

7 ‘‘(B) is not in default on a loan for which 

8 the borrower seeks forgiveness. 

9 ‘‘(2) QUALIFIED PUBLIC SERVICE POSITIONS.—

10 For purposes of this section, an individual shall be 

11 treated as employed in a qualified public service po12 sition if the individual is any of the following: 

13 ‘‘(A) HIGHLY QUALIFIED TEACHERS IN

14 LOW-INCOME COMMUNITIES AND OF MATHE15 MATICS, SCIENCE, AND BILINGUAL AND SPE16 CIAL EDUCATION.—An individual who—

17 ‘‘(i)(I) is a public school teacher who 

18 is highly qualified as such term is defined 

19 in section 9101 of the Elementary and 

20 Secondary Education Act of 1965; or 

21 ‘‘(II) is a teacher who has obtained 

22 employment in a nonprofit private elemen23 tary or secondary school who holds at least 

24 a bachelors degree and—
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•HR 2960 IH 

1 ‘‘(aa) has demonstrated subject 

2 knowledge and teaching skills in read3 ing, writing, mathematics, and other 

4 areas of the basic elementary school 

5 curriculum if such teacher is an ele6 mentary teacher; and 

7 ‘‘(bb) has demonstrated a high 

8 level of competency in each of the aca9 demic subjects in which the teacher 

10 teaches if such teacher is a secondary 

11 school teacher; and 

12 ‘‘(ii)(I) has obtained employment as a 

13 teacher for service in a public or nonprofit 

14 private elementary or secondary school 

15 which is in the school district of a local 

16 educational agency which is eligible in such 

17 year for assistance pursuant to title I of 

18 the Elementary and Secondary Education 

19 Act of 1965, and which for the purpose of 

20 this paragraph and for that year has been 

21 determined by the Secretary (pursuant to 

22 regulations and after consultation with the 

23 State educational agency of the State in 

24 which the school is located) to be a school 

25 in which the enrollment of children counted 
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1 under section 1113(a)(5) of the Elemen2 tary and Secondary Education Act of 1965 

3 exceeds 40 percent of the total enrollment 

4 of that school; or 

5 ‘‘(II) has obtained employment as a 

6 full-time teacher of mathematics, science, 

7 or bilingual or special education. 

8 ‘‘(B) EARLY CHILDHOOD EDUCATORS.—An 

9 individual who—

10 ‘‘(i) has received a degree in early 

11 childhood education; and 

12 ‘‘(ii) has obtained employment in a 

13 child care facility, such as employment as 

14 a preschool teacher, in a low-income com15 munity. 

16 ‘‘(C) NURSES.—An individual who has ob17 tained employment—

18 ‘‘(i) in a clinical setting; or 

19 ‘‘(ii) as a member of the nursing fac20 ulty at an accredited school of nursing (as 

21 those terms are defined in section 801 of 

22 the Public Health Service Act (42 U.S.C. 

23 296)). 

24 ‘‘(D) CHILD WELFARE WORKERS.—An in25 dividual who—
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•HR 2960 IH 

1 ‘‘(i) has completed a degree in social 

2 work or related field with a focus on serv3 ing children and families (as determined in 

4 accordance with regulations prescribed by 

5 the Secretary); and 

6 ‘‘(ii) has obtained employment in pub7 lic or private child welfare services. 

8 ‘‘(E) NUTRITION PROFESSIONALS.—An in9 dividual who—

10 ‘‘(i) is a certified registered dietician 

11 who has completed a degree in a relevant 

12 field; and 

13 ‘‘(ii) has obtained employment in a 

14 local agency of the special supplemental 

15 nutrition program for women, infants, and 

16 children under section 17 of the Child Nu17 trition Act of 1966 (42 U.S.C. 1786). 

18 ‘‘(F) INFANT AND TODDLER SPECIAL19 ISTS.—An individual who—

20 ‘‘(i) has obtained an associate’s or 

21 bachelor’s degree in a discipline that would 

22 qualify the individual to work in the pro23 gram under part C of the Individuals with 

24 Disabilities Education Act in the State in 

25 which such individual resides; and 
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•HR 2960 IH 

1 ‘‘(ii) has obtained employment in an 

2 occupation that is directly related to such 

3 degree and that (I) provides services to in4 fants, toddlers, and their families under an 

5 individualized family service plan under 

6 section 636 of the Individuals with Disabil7 ities Education Act (20 U.S.C. 1436) or 

8 an individualized education plan under sec9 tion 614(d) of such Act (20 U.S.C. 

10 1414(d)); or (II) provides training or tech11 nical assistance to providers of such serv12 ices. 

13 ‘‘(G) READING SPECIALISTS.—An indi14 vidual who is employed as an elementary or sec15 ondary school teacher who primarily teaches 

16 reading and who—

17 ‘‘(i) has obtained a separate reading 

18 instruction credential from the State in 

19 which the teacher is employed; and 

20 ‘‘(ii) who is certified by the chief ad21 ministrative officer of the public or non22 profit private elementary or secondary 

23 school in which the borrower is employed 

24 to teach reading—
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•HR 2960 IH 

1 ‘‘(I) as being proficient in teach2 ing the essential components of read3 ing instruction as defined in section 

4 1208 of the Elementary and Sec5 ondary Education Act of 1965; and 

6 ‘‘(II) as having such credential. 

7 ‘‘(H) ADDITIONAL PUBLIC SERVANTS.—An 

8 individual who, as determined by the Secretary 

9 of Education by regulation—

10 ‘‘(i) works in a public service profes11 sion that suffers from a critical lack of 

12 qualified personnel; 

13 ‘‘(ii) serves a low-income or needy 

14 community; and 

15 ‘‘(iii) is highly qualified. 

16 ‘‘(c) LOAN REPAYMENT.—

17 ‘‘(1) IN GENERAL.—The Secretary shall assume 

18 the obligation to repay—

19 ‘‘(A) after each of the first or second years 

20 of service by an individual in a qualified public 

21 service position, 15 percent of the total amount 

22 of principal and interest of the loans described 

23 in subsection (b)(1) to such individual that are 

24 outstanding immediately preceding such first 

25 year of such service; 
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1 ‘‘(B) after each of the third or fourth years 

2 of such service, 20 percent of such total 

3 amount; and 

4 ‘‘(C) after the fifth year of such service, 30 

5 percent of such total amount. 

6 ‘‘(2) TOTAL OBLIGATION.—The Secretary shall 

7 repay for an individual under this section not more 

8 than $20,000 in the aggregate of the loan obligation 

9 on loans described in subsection (b)(1). 

10 ‘‘(3) TREATMENT OF CONSOLIDATION LOANS.—

11 A loan amount for a loan made under section 428C 

12 or for a Federal Direct Consolidation Loan may be 

13 a qualified loan amount for the purposes of this sub14 section only to the extent that such loan amount was 

15 used to repay a loan described in subsection (b)(1) 

16 for a borrower who meets the requirements of sub17 section (b), as determined in accordance with regula18 tions prescribed by the Secretary. 

19 ‘‘(4) CONSTRUCTION.—Nothing in this section 

20 shall be construed to authorize the refunding of any 

21 repayment of a loan made under section 428 or 

22 428H, a Federal Direct Stafford Loan or Federal 

23 Direct Unsubsidized Stafford Loan, a Federal Direct 

24 Loan, or a Federal Perkins Loan. 
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1 ‘‘(5) INTEREST.—If a portion of a loan is re2 paid by the Secretary under this section for any 

3 year, the proportionate amount of interest on such 

4 loan that accrues for such year shall be repaid by 

5 the Secretary. 

6 ‘‘(6) INELIGIBILITY OF NATIONAL SERVICE

7 AWARD RECIPIENTS.—No student borrower may, for 

8 the same service, receive a benefit under both this 

9 section and subtitle D of title I of the National and 

10 Community Service Act of 1990 (42 U.S.C. 12601 

11 et seq.). 

12 ‘‘(7) INELIGIBILITY FOR DOUBLE BENEFITS.—

13 No borrower may receive a reduction of loan obliga14 tions under both this section and section 428J or 

15 460. 

16 ‘‘(8) CONTINUED ELIGIBILITY.—

17 ‘‘(A) TEACHERS.—Any teacher who per18 forms service in a school that—

19 ‘‘(i) meets the requirements of sub20 section (b)(2)(A)(ii)(I) in any year during 

21 such service; and 

22 ‘‘(ii) in a subsequent year fails to 

23 meet the requirements of such subsection, 
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1 may continue to teach in such school and shall 

2 be eligible for loan forgiveness pursuant to sub3 section (b). 

4 ‘‘(B) TEACHERS IN LOW-INCOME COMMU5 NITIES.—Any early childhood educator who per6 forms service in a community that—

7 ‘‘(i) meets the definition of low-income 

8 community in any year during such serv9 ice; and 

10 ‘‘(ii) in a subsequent year fails to 

11 meet such definition, 

12 may continue to perform service in such com13 munity and shall be eligible for loan forgiveness 

14 pursuant to subsection (b). 

15 ‘‘(d) REPAYMENT TO ELIGIBLE LENDERS AND

16 HOLDERS.—The Secretary shall pay to each eligible lend17 er or holder for each fiscal year an amount equal to the 

18 aggregate amount of the lender’s or holder’s loans that 

19 are subject to repayment pursuant to this section for such 

20 year. 

21 ‘‘(e) APPLICATION FOR REPAYMENT.—

22 ‘‘(1) IN GENERAL.—Each eligible individual de23 siring loan repayment under this section shall sub24 mit a complete and accurate application to the Sec-
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•HR 2960 IH 

1 retary at such time, in such manner, and containing 

2 such information as the Secretary may require. 

3 ‘‘(2) CONDITIONS.—An eligible individual may 

4 apply for loan repayment under this section after 

5 completing each of the consecutive years of quali6 fying service described in subsection (c)(1). The bor7 rower may elect to receive forbearance while engaged 

8 in qualifying service described in subsection (c)(1) 

9 unless the borrower is in deferment while so en10 gaged. 

11 ‘‘(3) NOTICE CONCERNING ELIGIBILITY FOR AP12 PLICATION.—The Secretary shall notify education 

13 agencies and other public agencies of the benefits 

14 available under this section, and encourage such 

15 agencies to notify individuals in eligible public serv16 ice positions of such benefits. 

17 ‘‘(f) REGULATIONS.—The Secretary is authorized to 

18 prescribe such regulations as may be necessary to carry 

19 out the provisions of this section. Such regulations shall 

20 require the Secretary to actively inform individuals eligible 

21 for the provisions of this section of the loan forgiveness 

22 described under this section. 

23 ‘‘(g) DEFINITIONS.—In this section: 
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•HR 2960 IH 

1 ‘‘(1) CHILD CARE FACILITY.—The term ‘child 

2 care facility’ means a facility, including a home, 

3 that—

4 ‘‘(A) provides child care services; and 

5 ‘‘(B) meets applicable State or local gov6 ernment licensing, certification, approval, or 

7 registration requirements, if any. 

8 ‘‘(2) CHILD CARE SERVICES.—The term ‘child 

9 care services’ means activities and services provided 

10 for the education and care of children from birth 

11 through age 5 by an individual who has a degree in 

12 early childhood education, including a preschool 

13 teacher. 

14 ‘‘(3) CHILD WELFARE SERVICES.—The term 

15 ‘child welfare services’ has the meaning given the 

16 term in section 425 of the Social Security Act. 

17 ‘‘(4) DEGREE.—The term ‘degree’ means an as18 sociate’s or bachelor’s degree awarded by an institu19 tion of higher education. 

20 ‘‘(5) EARLY CHILDHOOD EDUCATION.—The 

21 term ‘early childhood education’ means education in 

22 the area of early child development and education, 

23 child care, or any other educational area related to 

24 early child education or child care that the Secretary 

25 determines to be appropriate. 
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1 ‘‘(6) ELIGIBLE NURSE.—The term ‘eligible 

2 nurse’ means a nurse who meets all of the following: 

3 ‘‘(A) The nurse graduated from—

4 ‘‘(i) an accredited school of nursing 

5 (as those terms are defined in section 801 

6 of the Public Health Service Act (42 

7 U.S.C. 296)); 

8 ‘‘(ii) a nursing center; or 

9 ‘‘(iii) an academic health center that 

10 provides nurse training. 

11 ‘‘(B) The nurse holds a valid and unre12 stricted license to practice nursing in the State 

13 in which the nurse practices in a clinical set14 ting. 

15 ‘‘(C) The nurse holds 1 or more of the fol16 lowing: 

17 ‘‘(i) A graduate degree in nursing, or 

18 an equivalent degree. 

19 ‘‘(ii) A nursing degree from a colle20 giate school of nursing (as defined in sec21 tion 801 of the Public Health Service Act 

22 (42 U.S.C. 296)). 

23 ‘‘(iii) A nursing degree from an asso24 ciate degree school of nursing (as defined 
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•HR 2960 IH 

1 in section 801 of the Public Health Service 

2 Act (42 U.S.C. 296)). 

3 ‘‘(iv) A nursing degree from a diploma 

4 school of nursing (as defined in section 

5 801 of the Public Health Service Act (42 

6 U.S.C. 296)). 

7 ‘‘(7) ELIGIBLE PRESCHOOL PROGRAM PRO8 VIDER.—The term ‘eligible preschool program pro9 vider’ means a preschool program provider serving 

10 children younger than the age of compulsory school 

11 attendance that is—

12 ‘‘(A) a public or private school; 

13 ‘‘(B) a provider that is supported, spon14 sored, supervised, or administered by a local 

15 educational agency; 

16 ‘‘(C) a Head Start agency designated 

17 under the Head Start Act (42 U.S.C. 9831 et 

18 seq.); 

19 ‘‘(D) a nonprofit or community-based orga20 nization; or 

21 ‘‘(E) a licensed child care center or family 

22 child care provider. 

23 ‘‘(8) LOW-INCOME COMMUNITY.—In this sub24 section, the term ‘low-income community’ means a 

25 community in which 70 percent of households earn 
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1 less than 85 percent of the State median household 

2 income. 

3 ‘‘(9) PRESCHOOL TEACHER.—The term ‘pre4 school teacher’ means an individual—

5 ‘‘(A) who has received at least an associ6 ate’s degree in early childhood education and 

7 who is working toward or who has already re8 ceived a bachelor’s degree in early childhood 

9 education; and 

10 ‘‘(B) who works for an eligible preschool 

11 program provider supporting the children’s cog12 nitive, social, emotional, and physical develop13 ment to prepare the children for the transition 

14 to kindergarten. 

15 ‘‘(10) YEAR.—The term ‘year’, where applied to 

16 service as a teacher (or service as a member of an 

17 accredited school of nursing (as those terms are de18 fined in section 801 of the Public Health Service Act 

19 (42 U.S.C. 296))), means an academic year as de20 fined by the Secretary.’’. 

21 SEC. 109. SIGNIFICANTLY SIMPLIFYING THE STUDENT AID 

22 APPLICATION PROCESS. 

23 (a) EXPANDING THE AUTO-ZERO AND FURTHER

24 SIMPLIFYING THE SIMPLIFIED NEEDS TEST.—
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1 (1) SIMPLIFIED NEEDS TEST.—Section 479 (20 

2 U.S.C. 1087ss) is amended—

3 (A) in subsection (b)—

4 (i) in paragraph (1)—

5 (I) by striking clause (i) of sub6 paragraph (A) and inserting the fol7 lowing: 

8 ‘‘(i) the student’s parents—

9 ‘‘(I) file, or are eligible to file, a 

10 form described in paragraph (3); or 

11 ‘‘(II) certify that they are not re12 quired to file an income tax return; or 

13 ‘‘(III) or the student received 

14 benefits at some time during the pre15 vious 12-month period under a means16 tested Federal benefit program as de17 fined under subsection (d); and’’; and 

18 (II) by striking clause (i) of sub19 paragraph (B) and inserting the fol20 lowing: 

21 ‘‘(i) the student (and the student’s 

22 spouse, if any)—

23 ‘‘(I) files, or is eligible to file, a 

24 form described in paragraph (3); or 
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•HR 2960 IH 

1 ‘‘(II) certifies that the student 

2 (and the student’s spouse, if any) is 

3 not required to file an income tax re4 turn; or 

5 ‘‘(III) received benefits at some 

6 time during the previous 12-month 

7 period under a means-tested Federal 

8 benefit program as defined under sub9 section (d); and’’; and 

10 (ii) in paragraph (3), by striking ‘‘A 

11 student or family files a form described in 

12 this subsection, or subsection (c), as the 

13 case may be, if the student or family, re14 spectively, files’’ and inserting ‘‘In the case 

15 of an independent student, the student, or 

16 in the case of a dependent student, the 

17 parent, files a form described in this sub18 section, or subsection (c), as the case may 

19 be, if the student or parent, as appro20 priate, files’’; 

21 (B) in subsection (c)—

22 (i) in paragraph (1), by striking sub23 paragraphs (A) and (B) and inserting the 

24 following: 

25 ‘‘(A) the student’s parents—
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1 ‘‘(i) file, or are eligible to file, a form 

2 described in subsection (b)(3); or 

3 ‘‘(ii) certify that they are not required 

4 to file an income tax return; or 

5 ‘‘(iii) or the student received benefits 

6 at some time during the previous 12-month 

7 period under a means-tested Federal ben8 efit program as defined under subsection 

9 (d); and 

10 ‘‘(B) the sum of the adjusted gross income 

11 of the parents is less than or equal to $25,000; 

12 or’’; and 

13 (ii) in paragraph (2), by striking sub14 paragraphs (A) and (B) and inserting the 

15 following: 

16 ‘‘(A) the student (and the student’s 

17 spouse, if any)—

18 ‘‘(i) files, or is eligible to file, a form 

19 described in subsection (b)(3); or 

20 ‘‘(ii) certifies that the student (and 

21 the student’s spouse, if any) is not re22 quired to file an income tax return; or 

23 ‘‘(iii) received benefits at some time 

24 during the previous 12-month period under 
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1 a means-tested Federal benefit program as 

2 defined under subsection (d); and 

3 ‘‘(B) the sum of the adjusted gross income 

4 of the student and spouse (if appropriate) is 

5 less than or equal to $25,000.’’; and 

6 (iii) by inserting after the last sen7 tence of such subsection the following: 

8 ‘‘The Secretary shall annually adjust the 

9 income level necessary to qualify an appli10 cant for the zero expected family contribu11 tion under this subsection. The income 

12 level shall be adjusted according to in13 creases in the Consumer Price Index, as 

14 specified in section 478(f).’’; and 

15 (C) by adding at the end the following new 

16 subsections: 

17 ‘‘(d) MEANS-TESTED FEDERAL BENEFIT PRO18 GRAM.—For the purposes of this section, the term ‘means19 tested Federal benefit program’ means a mandatory 

20 spending program of the Federal Government in which eli21 gibility for the program’s benefits, or the amount of such 

22 benefits, or both, are determined on the basis of income 

23 or resources of the individual or family seeking the benefit, 

24 and includes the supplemental security income program 

25 under title XVI of the Social Security Act, the food stamp 
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1 program under the Food Stamp Act of 1977, the free and 

2 reduced price school lunch program established under the 

3 Richard B. Russell National School Lunch Act, the tem4 porary assistance to needy families program established 

5 under part A of title IV of the Social Security Act, and 

6 the women, infants and children program established 

7 under Section 17 of the Child Nutrition Act of 1966. 

8 ‘‘(e) REPORTING REQUIREMENTS.—The Secretary 

9 shall regularly evaluate the impact of the eligibility guide10 lines in subsections (b)(1)(A)(i), (b)(1)(B)(i), (c)(1)(A) 

11 and (c)(2)(A) of this section. In particular, the Secretary 

12 shall evaluate whether the means-tested Federal benefit 

13 programs (as defined by subsection (d)) ensure that the 

14 Simplified Needs Test continues to be targeted to the 

15 maximum number of low- and moderate-income stu16 dents.’’. 

17 (b) IMPROVEMENTS TO PAPER AND ELECTRONIC

18 FORMS.—

19 (1) COMMON FINANCIAL AID FORM DEVELOP20 MENT AND PROCESSING.—Section 483 (20 U.S.C. 

21 1090) is amended—

22 (A) in subsection (a)—

23 (i) by striking paragraphs (1), (2), 

24 and (5); 
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•HR 2960 IH 

1 (ii) by redesignating paragraphs (3), 

2 (4), (6), and (7), as paragraphs (9), (10), 

3 (11), and (12), respectively; 

4 (iii) by inserting before paragraph (9), 

5 as redesignated by subparagraph (B), the 

6 following: 

7 ‘‘(1) IN GENERAL.—The Secretary, in coopera8 tion with representatives of agencies and organiza9 tions involved in student financial assistance, shall 

10 produce, distribute, and process free of charge com11 mon financial reporting forms as described in this 

12 subsection to be used for application and reapplica13 tion to determine the need and eligibility of a stu14 dent for financial assistance under parts A through 

15 E (other than subpart 4 of part A). These forms 

16 shall be made available to applicants in both paper 

17 and electronic formats and shall be referred to as 

18 the ‘Free Application for Federal Student Aid’ or 

19 the ‘FAFSA’ . 

20 ‘‘(2) EARLY ESTIMATES.—The Secretary shall 

21 permit applicants to complete such forms as de22 scribed in this subsection in the years prior to en23 rollment in order to obtain an estimate of the family 

24 contribution, as defined by section 473. Such appli25 cants shall be permitted to update information sub-
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•HR 2960 IH 

1 mitted on forms described in this subsection using 

2 the process required under paragraph (5)(A). 

3 ‘‘(3) PAPER FORMAT.—

4 ‘‘(A) IN GENERAL.—The Secretary shall 

5 produce, distribute, and process common forms 

6 in paper format to meet the requirements of 

7 paragraph (1). The Secretary shall develop a 

8 common paper form for applicants who do not 

9 meet the requirements of subparagraph (B). 

10 ‘‘(B) EZ FAFSA.—

11 ‘‘(i) IN GENERAL.—The Secretary 

12 shall develop and use a simplified paper 

13 application form, to be known as the ‘EZ 

14 FAFSA’, to be used for applicants meeting 

15 the requirements of section 479(c). 

16 ‘‘(ii) REDUCED DATA REQUIRE17 MENTS.—The EZ FAFSA shall permit an 

18 applicant to submit for financial assistance 

19 purposes, only the data elements required 

20 to make a determination of whether the 

21 applicant meets the requirements under 

22 section 479(c). 

23 ‘‘(iii) STATE DATA.—The Secretary 

24 shall include on the EZ FAFSA such data 

25 items as may be necessary to award State 
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•HR 2960 IH 

1 financial assistance, as provided under 

2 paragraph (6), except that the Secretary 

3 shall not include a State’s data if that 

4 State does not permit its applicants for 

5 State assistance to use the EZ FAFSA. 

6 ‘‘(iv) FREE AVAILABILITY AND PROC7 ESSING.—The provisions of paragraph (7) 

8 shall apply to the EZ FAFSA, and the 

9 data collected by means of the EZ FAFSA 

10 shall be available to institutions of higher 

11 education, guaranty agencies, and States 

12 in accordance with paragraph (9). 

13 ‘‘(v) TESTING.—The Secretary shall 

14 conduct appropriate field testing on the 

15 EZ FAFSA. 

16 ‘‘(C) PROMOTING THE USE OF ELEC17 TRONIC FAFSA.—

18 ‘‘(i) IN GENERAL.—The Secretary 

19 shall make all efforts to encourage all ap20 plicants to utilize the electronic forms de21 scribed in paragraph (4). 

22 ‘‘(ii) MAINTENANCE OF THE FAFSA IN

23 A PRINTABLE ELECTRONIC FILE.—The 

24 Secretary shall maintain a version of the 

25 paper forms described in subparagraphs 
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•HR 2960 IH 

1 (A) and (B) in a printable electronic file 

2 that is easily portable. The printable elec3 tronic file will be made easily accessible 

4 and downloadable to students on the same 

5 website used to provide students with the 

6 electronic application forms described in 

7 paragraph (4) of this subsection. The Sec8 retary shall enable students to submit a 

9 form created under this subparagraph that 

10 is downloaded and printed from an elec11 tronic file format in order to meet the fil12 ing requirements of this section and in 

13 order to receive aid from programs under 

14 this title. 

15 ‘‘(iii) REPORTING REQUIREMENT.—

16 The Secretary shall report annually to 

17 Congress on the impact of the digital di18 vide on students completing applications 

19 for title IV aid described under this para20 graph and paragraph (4). The Secretary 

21 will also report on the steps taken to elimi22 nate the digital divide and phase out the 

23 paper form described in subparagraph (A) 

24 of this paragraph. The Secretary’s report 

25 will specifically address the impact of the 
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•HR 2960 IH 

1 digital divide on the following student pop2 ulations: independent students, adults, and 

3 dependent students. 

4 ‘‘(4) ELECTRONIC FORMAT.—

5 ‘‘(A) IN GENERAL.—The Secretary shall 

6 produce, distribute, and process common forms 

7 in electronic format to meet the requirements of 

8 paragraph (1). The Secretary shall develop 

9 common electronic forms for applicants who do 

10 not meet the requirements of subparagraph (C) 

11 of this paragraph. 

12 ‘‘(B) STATE DATA.—The Secretary shall 

13 include on the common electronic forms space 

14 for information that needs to be submitted from 

15 the applicant to be eligible for State financial 

16 assistance, as provided under paragraph (6), ex17 cept the Secretary shall not require applicants 

18 to complete data required by any State other 

19 than the applicant’s State of residence. 

20 ‘‘(C) SIMPLIFIED APPLICATIONS: FAFSA ON

21 THE WEB.—

22 ‘‘(i) IN GENERAL.—The Secretary 

23 shall develop and use a simplified elec24 tronic application form to be used by appli25 cants meeting the requirements under sub-
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•HR 2960 IH 

1 section (c) of section 479 and an addi2 tional, separate simplified electronic appli3 cation form to be used by applicants meet4 ing the requirements under subsection (b) 

5 of section 479. 

6 ‘‘(ii) REDUCED DATA REQUIRE7 MENTS.—The simplified electronic applica8 tion forms shall permit an applicant to 

9 submit for financial assistance purposes, 

10 only the data elements required to make a 

11 determination of whether the applicant 

12 meets the requirements under subsection 

13 (b) or (c) of section 479. 

14 ‘‘(iii) STATE DATA.—The Secretary 

15 shall include on the simplified electronic 

16 application forms such data items as may 

17 be necessary to award state financial as18 sistance, as provided under paragraph (6), 

19 except that the Secretary shall not require 

20 applicants to complete data required by 

21 any State other than the applicant’s state 

22 of residence. 

23 ‘‘(iv) AVAILABILITY AND PROC24 ESSING.—The data collected by means of 

25 the simplified electronic application forms 
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•HR 2960 IH 

1 shall be available to institutions of higher 

2 education, guaranty agencies, and States 

3 in accordance with paragraph (9). 

4 ‘‘(v) TESTING.—The Secretary shall 

5 conduct appropriate field testing on the 

6 forms developed under this subparagraph. 

7 ‘‘(D) USE OF FORMS.—Nothing in this 

8 subsection shall be construed to prohibit the use 

9 of the forms developed by the Secretary pursu10 ant to this paragraph by an eligible institution, 

11 eligible lender, guaranty agency, State grant 

12 agency, private computer software provider, a 

13 consortium thereof, or such other entities as the 

14 Secretary may designate. 

15 ‘‘(E) PRIVACY.—The Secretary shall en16 sure that data collection under this paragraph 

17 complies with section 552a of title 5, United 

18 States Code, and that any entity using the elec19 tronic version of the forms developed by the 

20 Secretary pursuant to this paragraph shall 

21 maintain reasonable and appropriate adminis22 trative, technical, and physical safeguards to 

23 ensure the integrity and confidentiality of the 

24 information, and to protect against security 

25 threats, or unauthorized uses or disclosures of 
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•HR 2960 IH 

1 the information provided on the electronic 

2 version of the forms. Data collected by such 

3 electronic version of the forms shall be used 

4 only for the application, award, and administra5 tion of aid awarded under this title, State aid 

6 awarded under section 415C, or aid awarded by 

7 eligible institutions or such entities as the Sec8 retary may designate. No data collected by such 

9 electronic version of the forms shall be used for 

10 making final aid awards under this title until 

11 such data have been processed by the Secretary 

12 or a contractor or designee of the Secretary, ex13 cept as may be permitted under this title. 

14 ‘‘(F) SIGNATURE.—Notwithstanding any 

15 other provision of this Act, the Secretary may 

16 permit an electronic form under this paragraph 

17 to be submitted without a signature, if a signa18 ture is subsequently submitted by the applicant 

19 or if the applicant uses a personal identification 

20 number provided by the Secretary under sub21 paragraph (G) of this paragraph. 

22 ‘‘(G) PERSONAL IDENTIFICATION NUM23 BERS AUTHORIZED.—The Secretary may assign 

24 to applicants personal identification numbers—
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•HR 2960 IH 

1 ‘‘(i) to enable the applicants to use 

2 such numbers in lieu of a signature for 

3 purposes of completing a form under this 

4 paragraph; 

5 ‘‘(ii) to enable the applicants to use 

6 such numbers in lieu of a signature for 

7 purposes of completing forms required by 

8 States under section 415C; and 

9 ‘‘(iii) for any purpose determined by 

10 the Secretary to enable the Secretary to 

11 carry out this title. 

12 ‘‘(5) STREAMLINING.—

13 ‘‘(A) STREAMLINED REAPPLICATION PROC14 ESS.—

15 ‘‘(i) IN GENERAL.—The Secretary 

16 shall develop streamlined reapplication 

17 forms and processes, including both paper 

18 and electronic reapplication processes, con19 sistent with the requirements of this sub20 section, for an applicant who applies for fi21 nancial assistance under this title in the 

22 next succeeding academic year subsequent 

23 to the year in which such applicant first 

24 applied for financial assistance under this 

25 title. 
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1 ‘‘(ii) MECHANISMS FOR REAPPLICA2 TION.—The Secretary shall develop appro3 priate mechanisms to support reapplica4 tion. 

5 ‘‘(iii) IDENTIFICATION OF UPDATED

6 DATA.—The Secretary shall determine, in 

7 cooperation with States, institutions of 

8 higher education, agencies, and organiza9 tions involved in student financial assist10 ance, the data elements that can be up11 dated from the previous academic year’s 

12 application. 

13 ‘‘(iv) REDUCED DATA AUTHORIZED.—

14 Nothing in this title shall be construed as 

15 limiting the authority of the Secretary to 

16 reduce the number of data elements re17 quired of reapplicants. 

18 ‘‘(v) ZERO FAMILY CONTRIBUTION.—

19 Applicants determined to have a zero fam20 ily contribution pursuant to section 479(c) 

21 shall not be required to provide any finan22 cial data in a reapplication form, except 

23 that which is necessary to determine eligi24 bility under such section. 

25 ‘‘(B) REDUCTION OF DATA ELEMENTS.—
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1 ‘‘(i) REDUCTION REQUIRED.—Of the 

2 number of data elements on the FAFSA 

3 on the date of enactment of the College 

4 Opportunity for All Act (including ques5 tions on the FAFSA for the purposes de6 scribed in paragraph (6)), the Secretary, in 

7 cooperation with representatives of agen8 cies and organizations involved in student 

9 financial assistance, shall reduce the num10 ber of such data elements by 50 percent 

11 within 5 years after such date of enact12 ment. Reductions of data elements under 

13 paragraph (3)(B), (4)(C), or (5)(A)(iv) 

14 shall not be counted towards such 50 per15 cent reduction unless those data elements 

16 are reduced for all applicants. 

17 ‘‘(ii) REPORT.—The Secretary shall 

18 submit a report on the process of this re19 duction to each House of Congress within 

20 2 years after such date of enactment. 

21 ‘‘(6) STATE REQUIREMENTS.—

22 ‘‘(A) IN GENERAL.—The Secretary shall 

23 include on the forms developed under this sub24 section, such State-specific nonfinancial data 

25 items as the Secretary determines are necessary 
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•HR 2960 IH 

1 to meet State requirements for need-based 

2 State aid under section 415C, except as pro3 vided in paragraphs (3)(B)(iii) and (4)(C)(iii) 

4 of this subsection. Such items shall be selected 

5 in consultation with State agencies that submit 

6 applications under section 415C in order to as7 sist in the awarding of State financial assist8 ance in accordance with the terms of this sub9 section, except as provided in paragraphs 

10 (3)(B)(iii) and (4)(C)(iii) of this subsection. 

11 The number of such data items shall not be less 

12 than the number included on the form on Octo13 ber 7, 1998, unless a State notifies the Sec14 retary that the State no longer requires those 

15 data items for the distribution of State need16 based aid. 

17 ‘‘(B) ANNUAL REVIEW.—The Secretary 

18 shall conduct an annual review process to deter19 mine which forms and nonfinancial data items 

20 the States require to award need-based State 

21 aid and other application requirements that the 

22 States may impose. 

23 ‘‘(C) STATE USE OF SIMPLIFIED FORMS.—

24 The Secretary shall encourage states to take 

25 such steps as necessary to encourage the use of 
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•HR 2960 IH 

1 simplified application forms, including those de2 scribed in paragraphs (3)(B) and (4)(C), to 

3 meet the requirements under subsection (b) or 

4 (c) of section 479. 

5 ‘‘(D) FEDERAL REGISTER NOTICE.—The 

6 Secretary shall publish on an annual basis a no7 tice in the Federal Register requiring State 

8 agencies to inform the Secretary—

9 ‘‘(i) if the State agency is unable to 

10 permit applicants to utilize the simplified 

11 application forms described in paragraphs 

12 (3)(B) and (4)(C); and 

13 ‘‘(ii) of the State-specific nonfinancial 

14 data that the State agency requires for de15 livery of State need-based financial aid. 

16 ‘‘(E) STATE NOTIFICATION TO THE SEC17 RETARY.—

18 ‘‘(i) IN GENERAL.—Each State agency 

19 that submits an application under section 

20 415C shall notify the Secretary—

21 ‘‘(I) whether the State permits 

22 an applicant to file a form described 

23 in paragraph (3)(B) or (4)(A) of this 

24 subsection for purposes of deter-
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1 mining eligibility for State need-based 

2 grant aid; and 

3 ‘‘(II) the State-specific non4 financial data that the State agency 

5 requires for delivery of State need6 based financial aid. 

7 ‘‘(ii) ACCEPTANCE OF FORMS.—In the 

8 event that a State does not permit an ap9 plicant to file a form described in para10 graph (3)(B) or (4)(A) of this subsection 

11 for purposes of determining eligibility for 

12 State need-based grant aid—

13 ‘‘(I) the State shall notify the 

14 Secretary if the State is not permitted 

15 to do so because of either State law or 

16 because of agency policy; and 

17 ‘‘(II) the notification under sub18 clause (I) shall include an estimate of 

19 the program cost to permit applicants 

20 to complete simplified application 

21 forms under paragraphs (3)(B) and 

22 (4)(A) of this subsection. 

23 ‘‘(iii) LACK OF NOTIFICATION BY THE

24 STATE.—If a State does not notify the 
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1 Secretary pursuant to clause (i), the Sec2 retary shall—

3 ‘‘(I) permit residents of that 

4 State to complete simplified applica5 tion forms under paragraphs (3)(B) 

6 and (4)(A) of this subsection; and 

7 ‘‘(II) not require any resident of 

8 that State to complete any non9 financial data previously required by 

10 that State under this section. 

11 ‘‘(7) CHARGES TO STUDENTS AND PARENTS

12 FOR USE OF FORMS PROHIBITED.—

13 ‘‘(A) FEES PROHIBITED.—The FAFSA, in 

14 whatever form (including the EZ–FAFSA, 

15 paper, electronic, simplified, or reapplication), 

16 shall be produced, distributed, and processed by 

17 the Secretary and no parent or student shall be 

18 charged a fee for the collection, processing, or 

19 delivery of financial aid through the use of the 

20 FAFSA. The need and eligibility of a student 

21 for financial assistance under parts A through 

22 E of this title (other than under subpart 4 of 

23 part A) may only be determined by using the 

24 FAFSA developed by the Secretary pursuant to 

25 this subsection. No student may receive assist-
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•HR 2960 IH 

1 ance under parts A through E of this title 

2 (other than under subpart 4 of part A), except 

3 by use of the FAFSA developed by the Sec4 retary pursuant to this subsection. No data col5 lected on a form for which a fee is charged shall 

6 be used to complete the FAFSA. 

7 ‘‘(B) NOTICE.—Any entity that provides to 

8 students and parents, or charges students or 

9 parents for, any value-added services with re10 spect to or in connection with the FAFSA, such 

11 as completion of the FAFSA, submission of the 

12 FAFSA, or tracking of the FAFSA for a stu13 dent, shall provide to students and parents 

14 clear and conspicuous notice that—

15 ‘‘(i) the FAFSA is a free Federal stu16 dent aid application; 

17 ‘‘(ii) the FAFSA can be completed 

18 without professional assistance; and 

19 ‘‘(iii) includes the current Internet ad20 dress for the FAFSA on the Department’s 

21 web site. 

22 ‘‘(8) APPLICATION PROCESSING CYCLE.—The 

23 Secretary shall enable students to submit a form 

24 created under this subsection in order to meet the 

25 filing requirements of this section and in order to re-
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1 ceive aid from programs under this title and shall 

2 initiate the processing of applications under this 

3 subsection as early as practicable prior to January 

4 1 of the student’s planned year of enrollment.’’; 

5 (B) by adding at the end of subsection (a) 

6 the following paragraph: 

7 ‘‘(13) EARLY APPLICATION AND AWARD DEM8 ONSTRATION PROGRAM.—

9 ‘‘(A) PROGRAM REQUIRED.—The Secretary 

10 shall, no later than two years after the date of 

11 enactment of the College Opportunity for All 

12 Act, implement an early application demonstra13 tion program enabling dependent students to 

14 complete applications under this subsection in 

15 their junior year of high school, or in the aca16 demic year that is two years prior to their in17 tended year of enrollment, and to be eligible to 

18 receive aid under this title and such aid as may 

19 be available from participants, including State 

20 financial assistance as provided under section 

21 415C and other aid provided by participating 

22 institutions. 

23 ‘‘(B) PURPOSE AND OBJECTIVES.—The 

24 purpose of the demonstration program under 

25 this paragraph shall be to measure the benefits, 
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1 in terms of student aspirations and plans to at2 tend college, and the adverse effects, in terms 

3 of program costs, integrity, distribution, and 

4 delivery of aid under this title, of implementing 

5 an early application system for all dependent 

6 students that allows dependent students to 

7 apply for financial aid using information from 

8 the year prior to the year prior to enrollment. 

9 Additional objectives associated with implemen10 tation of the demonstration program are the 

11 following: 

12 ‘‘(i) Measure the feasibility of ena13 bling dependent students to apply for Fed14 eral, State, and institutional financial aid 

15 in their junior year of high school, using 

16 information from the year prior to the year 

17 prior to enrollment, by completing any of 

18 the application forms under this sub19 section. 

20 ‘‘(ii) Determine the feasibility, bene21 fits, and adverse effects of implementing a 

22 data match with the Internal Revenue 

23 Service (IRS). 

24 ‘‘(iii) Identify whether receiving final 

25 financial aid awards no later than the fall 
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•HR 2960 IH 

1 of the senior year provides students with 

2 additional time to compete for the limited 

3 resources available for State and institu4 tional financial aid and positively impacts 

5 the college aspirations and plans of these 

6 students. 

7 ‘‘(iv) Measure the impact of using in8 come information from the year prior to 

9 the year prior to enrollment on—

10 ‘‘(I) eligibility for financial aid 

11 under this title and for other institu12 tional aid; and 

13 ‘‘(II) the cost of financial aid 

14 programs under this title. 

15 ‘‘(iv) Effectively evaluate the benefits 

16 and adverse effects of the demonstration 

17 program on program costs, integrity, dis18 tribution, and delivery of aid. 

19 ‘‘(C) PARTICIPANTS.—The Secretary shall 

20 select States and institutions within those 

21 States to participate in the demonstration pro22 gram under this paragraph that are partici23 pating in the programs under this title and that 

24 are willing to make final financial aid awards to 

25 students based on their application information 
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•HR 2960 IH 

1 from the year prior to the year prior to enroll2 ment. The Secretary shall also select as partici3 pants in the demonstration program secondary 

4 schools and dependent students that are located 

5 in the participating States. 

6 ‘‘(D) APPLICATION PROCESS.—The Sec7 retary shall insure that the following provisions 

8 are included in the demonstration program: 

9 ‘‘(i) Participating States and institu10 tions shall allow participating students to 

11 apply for financial aid during their junior 

12 year of high school using information from 

13 the year prior to the year prior to enroll14 ment and all provisions available under 

15 this title and shall award final financial aid 

16 awards to participating students based on 

17 the applications provided under this dem18 onstration program. 

19 ‘‘(ii) Participating States and institu20 tions shall not require students partici21 pating in this demonstration program to 

22 complete an additional application in the 

23 year prior to enrollment in order to receive 

24 State aid under section 415C and any 

25 other institutional aid. 
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•HR 2960 IH 

1 ‘‘(iii) Financial aid administrators at 

2 participating institutions shall be allowed 

3 to use their discretion in awarding finan4 cial aid to participating students, as out5 lined under section 479A and section 

6 480(d)(7). 

7 ‘‘(E) DATA MATCH WITH THE INTERNAL

8 REVENUE SERVICE.—The Secretary shall in9 clude in this demonstration project a data 

10 match with the Internal Revenue Service in 

11 order to verify data provided by participating 

12 students and gauge the feasibility of imple13 menting such a data match for all students ap14 plying for aid under this title. 

15 ‘‘(F) EVALUATION.—The Secretary shall 

16 conduct a rigorous evaluation of this dem17 onstration program in order to measure its ben18 efits and adverse effects as indicated under sub19 paragraph (A). 

20 ‘‘(G) OUTREACH.—The Secretary shall 

21 make appropriate efforts in order to notify 

22 States of the demonstration program under this 

23 paragraph. Upon determination of participating 

24 States, the Secretary shall continue to make ef25 forts to notify institutions and dependent stu-
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•HR 2960 IH 

1 dents within participating States of the oppor2 tunity to participate in the demonstration pro3 gram and of the participation requirements.’’

4 (C) by striking subsection (b); 

5 (D) by redesignating subsections (c), (d), 

6 and (e) as subsections (b), (c), and (d), respec7 tively. 

8 (2) MASTER CALENDAR.—Section 482(a)(1)(B) 

9 (20 U.S.C. 1089) is amended to read as follows: 

10 ‘‘(B) by March 1: proposed modifications, 

11 updates, and notices pursuant to sections 

12 479(c)(2)(C), 478, and 483(a)(6) published in 

13 the Federal Register;’’. 

14 (c) INCREASING ACCESS TO TECHNOLOGY.—Section 

15 483 (20 U.S.C. 1087ss) is further amended by adding at 

16 the end the following: 

17 ‘‘(e) ADDRESSING THE DIGITAL DIVIDE.—The Sec18 retary shall utilize savings accrued by moving more appli19 cants to the electronic forms described in subsection (a)(4) 

20 to improve access to the electronic forms described in sub21 section (a)(4) for applicants meeting the requirements of 

22 section 479(c).’’

23 (d) SIMPLIFY THE TREATMENT OF INCOME: REDUC24 ING UNTAXED INCOME AND BENEFITS.—Subsection (b) 
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•HR 2960 IH 

1 of section 480 (20 U.S.C. 1087vv(b)) is amended to read 

2 as follows: 

3 ‘‘(b) UNTAXED INCOME AND BENEFITS.—

4 ‘‘(1) The term ‘untaxed income and benefits’ 

5 means—

6 ‘‘(A) child support received; 

7 ‘‘(B) workman’s compensation; 

8 ‘‘(C) veteran’s benefits such as death pen9 sion, dependency, and indemnity compensation, 

10 but excluding veterans’ education benefits as 

11 defined in subsection (c); 

12 ‘‘(D) interest on tax-free bonds; 

13 ‘‘(E) housing, food, and other allowances 

14 (excluding rent subsidies for low-income hous15 ing) for military, clergy, and others (including 

16 cash payments and cash value of benefits); 

17 ‘‘(F) cash support or any money paid on 

18 the student‘s behalf, except, for dependent stu19 dents, funds provided by the student’s parents; 

20 ‘‘(G) untaxed portion of pensions; 

21 ‘‘(H) payments to individual retirement ac22 counts and Keogh accounts excluded from in23 come for Federal income tax purposes; and 

24 ‘‘(I) any other untaxed income and bene25 fits, such as Black Lung Benefits, Refugee As-
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•HR 2960 IH 

1 sistance, railroad retirement benefits, or Job 

2 Training Partnership Act noneducational bene3 fits or benefits received through participation in 

4 employment and training activities under title I 

5 of the Workforce Investment Act of 1998. 

6 ‘‘(2) The term ‘untaxed income and benefits’ 

7 shall not include the amount of additional child tax 

8 credit claimed for Federal income tax purposes.’’. 

9 (e) REDUCING THE NUMBER OF QUESTIONS.—Sec10 tion 484 (20 U.S.C. 1091) is amended by striking sub11 section (r). 

12 (f) ALLOWANCE FOR STATE AND OTHER TAXES.—

13 (1) ALLOWANCE FOR STATE AND LOCAL

14 TAXES.—Section 478 (20 U.S.C. 1087rr) is amend15 ed—

16 (A) by striking subsection (g); and 

17 (B) by redesignating subsection (h) as sub18 section (g). 

19 (2) HOLDING STUDENTS HARMLESS.—Section 

20 475(c) (20 U.S.C. 1087oo(c)) is amended—

21 (A) in paragraph (1): 

22 (i) by striking subparagraph (B); and 

23 (ii) by redesignating subparagraphs 

24 (C), (D), (E), and (F) as subparagraphs 

25 (B), (C), (D), and (E), respectively; 
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•HR 2960 IH 

1 (B) by striking paragraph (2); 

2 (C) by striking paragraph (4) and insert3 ing the following: 

4 ‘‘(4) INCOME PROTECTION ALLOWANCE.—The 

5 income protection allowance is determined by the fol6 lowing table (or a successor table prescribed by the 

7 Secretary under section 478):

‘‘Income Protection Allowance 

Family Size Number in College 

(including 

student) 12345

For each 

additional 

subtract: 

2 $15,207 $12,599 ................ ................ ................ $3,641

3 18,937 16,350 $13,742 ................ ................ ..................

4 23,388 20,779 18,193 $15,596................ ..................

5 27,595 24,98622,400 19,802 $17,216..................

6 32,268 29,670 27,084 24,487 21,900 ..................

For each additional add: 2,5862,5862,5862,5862,586 ’’; 

8 and 

9 (D) by redesignating paragraphs (3), (4) 

10 and (5) as paragraphs (2), (3) and (4), respec11 tively. 

12 (3) DEPENDENT STUDENT INCREASE IN IN13 COME PROTECTION ALLOWANCE.—Section 475(g) 

14 (20 U.S.C. 1087oo(g)) is amended—

15 (A) in paragraph (2)—

16 (i) by striking subparagraph (B); 

17 (ii) by striking subparagraph (D) and 

18 inserting the following: 
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•HR 2960 IH 

1 ‘‘(D) an income protection allowance of 

2 $2,589 (or a successor amount prescribed by 

3 the Secretary under section 478);’’; and 

4 (iii) by redesignating subparagraphs 

5 (C), (D), (E), and (F) as subparagraphs 

6 (B), (C), (D), and (E), respectively; 

7 (B) by striking paragraph (3); and 

8 (C) by redesignating paragraphs (4), (5), 

9 and (6) as paragraphs (3), (4), and (5), respec10 tively. 

11 (4) INDEPENDENT STUDENT (WITHOUT DE12 PENDENTS) INCREASE IN INCOME PROTECTION AL13 LOWANCE.—Section 476(b) (20 U.S.C. 1087pp(b)) 

14 is amended—

15 (A) in subparagraph (A) of paragraph 

16 (1)—

17 (i) by striking clause (ii); 

18 (ii) by striking subclauses (I), (II) and 

19 (III) of clause (iv) and inserting the fol20 lowing: 

21 ‘‘(I) $5,874 for single students; 

22 ‘‘(II) $5,874 for married stu23 dents who are both enrolled pursuant 

24 to subsection (a)(2); and 
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•HR 2960 IH 

1 ‘‘(III) $9,395 for married stu2 dents where one is enrolled pursuant 

3 to subsection (a)(2);’’; and 

4 (iii) by redesignating clauses (iii), (iv), 

5 (v), (vi), as clauses (ii), (iii), (iv), and (v), 

6 respectively; 

7 (B) by striking paragraph (2); and 

8 (C) by redesignating paragraphs (3), (4), 

9 and (5) as paragraphs (2), (3), and (4), respec10 tively. 

11 (5) INDEPENDENT STUDENT (WITH DEPEND12 ENTS) INCREASE IN INCOME PROTECTION ALLOW13 ANCE.—Section 477(b) (20 U.S.C. 1087qq(b)) is 

14 amended—

15 (A) in paragraph (1)—

16 (i) by striking subparagraph (B); and 

17 (ii) by redesignating (C), (D), (E), 

18 and (F) as subparagraphs (B), (C), (D), 

19 and (E), respectively; 

20 (B) by striking paragraph (2); 

21 (C) by striking paragraph (4) and insert22 ing the following: 

23 ‘‘(4) INCOME PROTECTION ALLOWANCE.—The 

24 income protection allowance is determined by the fol-
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•HR 2960 IH 

1 lowing table (or a successor table prescribed by the 

2 Secretary under section 478):

‘‘Income Protection Allowance 

Family Size Number in College 

(including 

student) 12345

For each 

additional 

subtract: 

2 $16,935 $12,599 ................ ................ ................ $3,641

3 18,937 16,350 $13,742 ................ ................ ..................

4 23,384 20,779 18,193 $15,596................ ..................

5 27,59624,98622,400 19,802 $17,216..................

6 32,268 29,670 27,084 24,487 21,900 ..................

For each additional add: 2,5862,5862,5862,5862,586 ’’; 

3 and 

4 (D) by redesignating paragraphs (3), (4), 

5 and (5) as paragraphs (2), (3), and (4), respec6 tively. 

7 (6) CONFORMING AMENDMENT: UPDATES.—

8 Section 478(b) (20 U.S.C. 1087rr(b)) is amended—

9 (A) in paragraph (1)—

10 (i) by striking ‘‘1993–1994’’ and in11 serting ‘‘2005–2006’’; 

12 (ii) by striking ‘‘475(c)(4) and 

13 477(b)(4)’’ and inserting ‘‘475(c)(3) and 

14 477(b)(3)’’; and 

15 (iii) by striking ‘‘December 1992’’ and 

16 inserting ‘‘December 2004’’; and 

17 (B) in paragraph (2)—

18 (i) by striking ‘‘2000–2001’’ and in19 serting ‘‘2005–2006’’; 
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1 (ii) by striking ‘‘475(g)(2)(D) and 

2 476(b)(1)(A)(iv)’’ and inserting 

3 ‘‘475(g)(2)(C) and 476(b)(1)(A)(iii)’’; and 

4 (iii) by striking ‘‘December 1999’’ and 

5 inserting ‘‘December 2004’’. 

6 (g) RELIEF FOR WORKING STUDENTS.—

7 (1) DEPENDENT STUDENTS.—Paragraph (4) of 

8 section 475(g) (20 U.S.C. 1087oo(g)(4)), as redesig9 nated by subsection (f)(3)(C), is amended to read as 

10 follows: 

11 ‘‘(4) the student’s available income (determined 

12 in accordance with paragraph (1) of this subsection) 

13 is assessed at 40 percent.’’

14 (2) INDEPENDENT STUDENTS WITHOUT DE15 PENDENTS OTHER THAN A SPOUSE.—Paragraph (4) 

16 of section 476(b) (20 U.S.C. 1087pp(b)), as redesig17 nated by subsection (f)(3)(C), is amended to read as 

18 follows: 

19 ‘‘(4) ASSESSMENT OF AVAILABLE INCOME.—

20 The family’s available income (determined in accord21 ance with paragraph (1)(A) of this subsection) is as22 sessed at 40 percent.’’. 

23 (h) SIMPLIFYING FOR STUDENTS WITH SPECIAL

24 CIRCUMSTANCES.—Section 480 (20 U.S.C. 1087vv) is 
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•HR 2960 IH 

1 amended by striking subsection (d) and inserting the fol2 lowing: 

3 ‘‘(d) INDEPENDENT STUDENT.—

4 ‘‘(1) DEFINITION.—The term ‘independent’ 

5 when used with respect to a student, means any in6 dividual who—

7 ‘‘(A) is 24 years of age or older by Decem8 ber 31 of the award year; 

9 ‘‘(B) is an orphan, in foster care, or a 

10 ward of the court, or was in foster care or a 

11 ward of the court until the individual reached 

12 the age of 18; 

13 ‘‘(C) is an emancipated youth as defined 

14 by his or her state of legal residence or is in 

15 legal guardianship as defined by section 475(7) 

16 of the Social Security Act; 

17 ‘‘(D) is a veteran of the Armed Forces of 

18 the United States (as defined in subsection 

19 (c)(1)); 

20 ‘‘(E) is a graduate or professional student; 

21 ‘‘(F) is a married individual; 

22 ‘‘(G) has legal dependents other than a 

23 spouse; or 

24 ‘‘(H) is a student for whom a financial aid 

25 administrator makes a documented determina-
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•HR 2960 IH 

1 tion of independence by reason of unusual cir2 cumstances. 

3 ‘‘(2) SIMPLIFYING THE DEPENDENCY OVER4 RIDE PROCESS.—Nothing in this subsection shall 

5 prohibit a financial aid administrator to make a de6 termination of independence, as defined in para7 graph (1)(H), based upon a documented determina8 tion of independence, as defined in paragraph 

9 (1)(H), previously made by another financial aid ad10 ministrator in the same application year.’’. 

11 (i) TAILORING ELECTRONIC APPLICATIONS FOR STU12 DENTS WITH SPECIAL CIRCUMSTANCES.—Section 483(a) 

13 of the Higher Education Act is further amended by insert14 ing after paragraph (13), as added by subsection 

15 (b)(1)(B) of this section, the following new paragraph: 

16 ‘‘(14) APPLICATIONS FOR STUDENTS SEEKING

17 A DOCUMENTED DETERMINATION OF INDEPEND18 ENCE.—In the case of dependent students seeking a 

19 documented determination of independence by a fi20 nancial aid administrator (as defined by section 

21 480(d)), nothing in this section shall prohibit the 

22 Secretary from—

23 ‘‘(A) allowing such students to indicate 

24 their special circumstance on an electronic form 

25 developed pursuant for this section; 
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•HR 2960 IH 

1 ‘‘(B) collecting and processing on a pre2 liminary basis data provided by such students 

3 using the electronic forms developed pursuant 

4 for this section; and 

5 ‘‘(C) distributing such data to institutions 

6 of higher education, guaranty agencies, and 

7 States for the purposes of processing loan appli8 cations and determining need and eligibility for 

9 institutional and State financial aid awards on 

10 a preliminary basis, pending a documented de11 termination of independence by a financial aid 

12 administrator.’’. 

13 SEC. 110. AUTHORIZATIONS OF APPROPRIATIONS FOR 

14 CAMPUS-BASED AID. 

15 (a) FEDERAL TRIO PROGRAM AUTHORIZATIONS.—

16 Section 402A(f) (20 U.S.C. 1070a–11(f)) is amended—

17 (1) by striking ‘‘$700,000,000 for fiscal year 

18 1999’’ and inserting ‘‘$1,250,000,000 for fiscal year 

19 2004’’; and 

20 (2) by striking ‘‘4 succeeding fiscal years’’ and 

21 inserting ‘‘5 succeeding fiscal years’’. 

22 (b) GEARUP.—Section 404H (20 U.S.C. 1070a–28) 

23 is amended to read as follows: 
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•HR 2960 IH 

1 ‘‘SEC. 404H. AUTHORIZATION OF APPROPRIATIONS. 

2 ‘‘There are authorized to be appropriated to carry out 

3 this chapter—

4 ‘‘(1) $500,000,000 for fiscal year 2006; and 

5 ‘‘(2) such sums as may be necessary for each 

6 of the 5 succeeding fiscal years.’’. 

7 (c) FEDERAL SUPPLEMENTAL EDUCATIONAL OP8 PORTUNITY GRANTS.—

9 (1) AUTHORIZATION.—Section 413A(b)(1) (20 

10 U.S.C. 1070b(b)(1)) is amended—

11 (A) by striking ‘‘$675,000,000 for fiscal 

12 year 1999’’ and inserting ‘‘$1,000,000,000 for 

13 fiscal year 2006’’; and 

14 (B) by striking ‘‘4 succeeding fiscal years’’ 

15 and inserting ‘‘5 succeeding fiscal years’’. 

16 (2) MAXIMUM GRANT.—Section 413B(a)(2) (20 

17 U.S.C. 1070b–1(a)(2)) is amended by striking 

18 ‘‘$4,000’’ and inserting ‘‘$8,000’’. 

19 (d) COLLEGE WORK-STUDY.—Section 441(b) (20 

20 U.S.C. 2751(b)) is amended to read as follows: 

21 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 

22 are authorized to be appropriated to carry out this part—

23 ‘‘(1) $1,500,000,000 for fiscal year 2006; and 

24 ‘‘(2) such sums as may be necessary for each 

25 of the 5 succeeding fiscal years.’’. 
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1 SEC. 111. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAM2 ILIES ARE ENGAGED IN MIGRANT AND SEA3 SONAL FARM WORK. 

4 Section 418A (20 U.S.C. 1070d–2) is amended—

5 (1) in subsection (b)(1)(B)(i), by inserting ‘‘or 

6 whose spouse’’ after ‘‘themselves’’; 

7 (2) in subsection (b)(3)(B), by inserting ‘‘, in8 cluding preparation for college entrance exams,’’ 

9 after ‘‘program’’; 

10 (3) in subsection (b)(8), by inserting ‘‘, includ11 ing child care and transportation’’ after ‘‘students’’; 

12 (4) by striking ‘‘and’’ at the end of subsection 

13 (b)(7), by striking the period at the end of sub14 section (b)(8) and inserting ‘‘; and’’, and by adding 

15 at the end of subsection (b) the following new para16 graph: 

17 ‘‘(9) follow up activity and reporting require18 ments, except that not more than 2 percent of the 

19 funds provided under this section may be used for 

20 such purposes.’’; 

21 (5) in subsection (c)(1)(A), by inserting ‘‘or 

22 whose spouse’’ after ‘‘themselves’’; 

23 (6) in subsection (c)(2)(B), by inserting ‘‘(in24 cluding mentoring and guidance of such students)’’ 

25 after ‘‘services’’; 
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•HR 2960 IH 

1 (7) in subsection (c)(2), by striking ‘‘and’’ at 

2 the end of subparagraph (A), by striking the period 

3 at the end of subparagraph (B) and inserting ‘‘; 

4 and’’, and by adding at the end of subsection (c)(2) 

5 the following new subparagraph: 

6 ‘‘(C) for students in any program that 

7 does not award a bachelor’s degree, encour8 aging the transfer to, and persistence in, such 

9 a program, and monitoring the rate of such 

10 transfer, persistence, and completion.’’; and 

11 (8) in subsection (h)—

12 (A) in paragraph (1), by striking 

13 ‘‘$15,000,000 for fiscal year 1999 and such 

14 sums as may be necessary for each of the 4 

15 succeeding fiscal years’’ and inserting 

16 ‘‘$24,000,000 for fiscal year 2006 and such 

17 sums as may be necessary for each of the 5 

18 succeeding fiscal years’’; and 

19 (B) in paragraph (2), by striking 

20 ‘‘$5,000,000 for fiscal year 1999 and such 

21 sums as may be necessary for each of the 4 

22 succeeding fiscal years’’ and inserting 

23 ‘‘$16,000,000 for fiscal year 2006 and such 

24 sums as may be necessary for each of the 5 

25 succeeding fiscal years’’. 
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1 SEC. 112. INITIATIVE TO ENHANCE COLLEGE GRADUATION 

2 RATES AND TO ACCELERATE TIME TO DE3 GREE. 

4 Part A of title IV is amended by inserting after sub5 part 7 the following new subpart: 

6 ‘‘Subpart 8—Initiative to Enhance College 

7 Graduation Rates and to Accelerate Time to Degree 

8 ‘‘SEC. 419P. PROGRAM AUTHORIZED. 

9 ‘‘(a) PURPOSE.—It is the purpose of this subpart to 

10 establish a six-year demonstration initiative to test wheth11 er Federal financial aid can be leveraged more effectively 

12 to reduce postsecondary remediation rates and improve 

13 degree attainment rates for low-income students and 

14 former high school dropouts by allowing income-eligible 

15 high school students to use Federal grants to get a head 

16 start on college. 

17 ‘‘(b) DEFINITION OF AN EARLY COLLEGE HIGH

18 SCHOOL.—A secondary school is eligible for purposes of 

19 this subpart if such school—

20 ‘‘(1) is a secondary school that has an enroll21 ment of high school-aged students—

22 ‘‘(A) all of which are taking at least 50 

23 percent of their courses at the college level over 

24 4 or 5 years; and 

25 ‘‘(B) all of which, upon their graduation 

26 from high school, are working towards earning 
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•HR 2960 IH 

1 an associates degree or up to 2 years of trans2 ferable college credit; or 

3 ‘‘(2) is a secondary school that—

4 ‘‘(A) has a partnership agreement estab5 lishing co-governance of the demonstration sites 

6 between local educational agencies, secondary 

7 schools, postsecondary institutions, or other 

8 partnering agencies (or any combination there9 of), including through a non-profit intermediary 

10 facilitating such partnerships; 

11 ‘‘(B) supports cohorts of students in a co12 herent course of study with strong individual13 ized services supporting students; 

14 ‘‘(C) encourages accelerated accumulation 

15 of college credits; 

16 ‘‘(D) allows students to earn both a high 

17 school diploma and college credit through a co18 herent course of study enabling the attainment 

19 of credit towards a postsecondary degree or cre20 dential; 

21 ‘‘(E) provides services to underrepresented 

22 populations such as students eligible for Pell 

23 grants, first-generation college students, stu24 dents from school districts with high concentra-
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1 tions of poverty, English language learners, or 

2 former high school dropouts; and 

3 ‘‘(F) includes the participation of postsec4 ondary institutions that are in good standing 

5 under the Title IV programs. 

6 ‘‘(c) APPLICATION.—An early college high school 

7 which is a local education agency or a local education 

8 agency on behalf of an early college high school which de9 sires to receive a grant under this section may submit an 

10 application to the Secretary at such time and containing 

11 such information as the Secretary may require. Such ap12 plication shall require applicants to establish goals for how 

13 many students will participate in the program, and goals 

14 for the academic progress of participating students toward 

15 earning their high school diploma and associate’s degree, 

16 or transferable college credit, or both. 

17 ‘‘(d) SELECTION OF GRANT RECIPIENTS.—The Sec18 retary shall select grant recipients on a competitive basis. 

19 In making grants under this section the Secretary shall 

20 award grants in an amount not less than $1,000,000. 

21 ‘‘(e) EVALUATION.—

22 ‘‘(1) ANNUAL EVALUATION.—The Secretary of 

23 Education shall evaluate the programs under this 

24 section on an annual basis. Such evaluations shall 

25 include—
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1 ‘‘(A) the extent to which the institution, or 

2 partnership has met the goals set forth in its 

3 application to the Secretary; 

4 ‘‘(B) the number of students participating 

5 in the program offered, including the progress 

6 of participating students towards earning their 

7 high school diploma and their associate’s de8 gree, or transferable college credit, or both; and 

9 ‘‘(C) as consistent with the goals set forth 

10 in the application to the Secretary, the number 

11 of former high school drop outs participating in 

12 the program. 

13 ‘‘(2) OTHER EVALUATIONS.—Within 18 months 

14 of the start of the demonstration initiative, the Sec15 retary of Education shall report to the Committee 

16 on Education and the Workforce of the House of 

17 Representatives and the Committee on Health, Edu18 cation, Labor, and Pensions of the Senate with re19 spect to—

20 ‘‘(A) the evaluation of the demonstration 

21 program under this section; and 

22 ‘‘(B) any proposed statutory changes to 

23 enhance the success of the programs under this 

24 section. 
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1 ‘‘(f) AUTHORIZATION.—There are authorized to be 

2 appropriated to carry out this subpart $100,000,000 for 

3 fiscal year 2006 and such sums as may be necessary for 

4 each of the 5 succeeding fiscal years.’’. 

5 SEC. 113. CONSOLIDATION LOAN LENDER OF CHOICE. 

6 (a) STUDENT LOAN BORROWER CHOICE OF LOAN

7 CONSOLIDATOR.—Section 428C(b)(1)(A) of the Higher 

8 Education Act of 1965 (20 U.S.C. 1078–3(b)(1)(A)) is 

9 amended by striking ‘‘and (i) the lender holds’’ and all 

10 that follows through ‘‘selected for consolidation)’’. 

11 (b) CONSOLIDATION LOAN DISCLOSURE BY LEND12 ERS.—Section 428C(b)(1) of the Higher Education Act of 

13 1965 (20 U.S.C. 1078–3(b)(1)) is amended—

14 (1) by striking ‘‘and’’ at the end of subpara15 graph (E); 

16 (2) by redesignating subparagraph (F) as sub17 paragraph (G); and 

18 (3) by inserting after subparagraph (E) the fol19 lowing new subparagraph: 

20 ‘‘(F) that each applicant for a consolida21 tion loan will be provided a clear and con22 spicuous notice, in such form as the Secretary 

23 shall prescribe, describing—
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1 ‘‘(i) the effects of a consolidation loan 

2 and its available repayment plans on the 

3 borrower’s interest rate; 

4 ‘‘(ii) the amount of his or her monthly 

5 and total payments, total interest accrued, 

6 and the length of the repayment term; 

7 ‘‘(iii) the ability of the student bor8 rower to pre-pay loans; and 

9 ‘‘(iv) the differences between variable 

10 and fixed interest rates;’’. 

11 (c) DISCLOSURES BY INSTITUTIONS DURING EXIT

12 COUNSELING.—Section 485(b) of the Higher Education 

13 Act of 1965 (20 U.S.C. 1092(b)) is amended by adding 

14 at the end the following new paragraph: 

15 ‘‘(3) Each eligible institution shall provide to the bor16 rower of a loan made under part B, D, or E, during the 

17 exit interview required by this subsection, a clear and con18 spicuous notice, in such form as the Secretary shall pre19 scribe, describing the effect of using a consolidation loan 

20 to discharge the borrower’s student loans, and including, 

21 with respect to a series of loan amounts ranges—

22 ‘‘(A) the differences between fixed and variable 

23 interest rates; 

24 ‘‘(B) the effects of consolidation loan and its 

25 available repayment plans on the borrower’s interest 
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1 rate, the amount of his or her monthly and total 

2 payments, total interest accrued, and the length of 

3 repayment term; and 

4 ‘‘(C) the ability of the student to prepay 

5 loans.’’. 

6 SEC. 114. ESTABLISHING ADDITIONAL SAFEGUARDS ON 

7 SCHOOLS ACTING AS LENDERS UNDER THE 

8 FEDERAL FAMILY EDUCATION LOAN PRO9 GRAM. 

10 Section 435(d)(2) (20 U.S.C. 1085(d)(2)) is amended 

11 to read as follows: 

12 ‘‘(2) REQUIREMENTS FOR ELIGIBLE INSTITU13 TIONS.—

14 ‘‘(A) IN GENERAL.—To be an eligible lend15 er under this part, an eligible institution 

16 ‘‘(i) shall employ at least one person 

17 whose full-time responsibilities are limited 

18 to the administration of programs of finan19 cial aid for students attending such institu20 tion; 

21 ‘‘(ii) shall not be a home study school; 

22 ‘‘(iii) shall make loans to not more 

23 than 50 percent of the undergraduate stu24 dents at the institution; 
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1 ‘‘(iv) shall not make a loan, other 

2 than a loan to a graduate or professional 

3 student, unless the borrower has previously 

4 received a loan from the school; 

5 ‘‘(v) shall award any contract for fi6 nancing, servicing, administration, or ad7 ministration of loans under this title on a 

8 competitive basis; 

9 ‘‘(vi) shall offer loans which carry a 

10 reduced origination fee, or a lower interest 

11 rate, or both, than are authorized under 

12 the provisions of this title; 

13 ‘‘(vii) shall not have a cohort default 

14 rate (as defined in section 435(m)) greater 

15 than 10 percent; 

16 ‘‘(viii) shall use any proceeds from 

17 special allowance payments and interest 

18 payments from borrowers, and any pro19 ceeds from the sale or other disposition of 

20 loans, for need-based grant programs; and 

21 ‘‘(ix) shall, for any year for which the 

22 institution engages in activities as an eligi23 ble lender, provide for a compliance audit 

24 conducted in accordance with section 

25 428(b)(1)(U)(iii)(I), and the regulations 
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1 thereunder, and submit the results of such 

2 audit to the Secretary. 

3 ‘‘(B) ADMINISTRATIVE EXPENSES.—An el4 igible lender under subparagraph (A) shall be 

5 permitted to use a portion of the proceeds de6 scribed in subparagraph (A)(viii) for reasonable 

7 and direct administrative expenses. 

8 ‘‘(C) SUPPLEMENT, NOT SUPPLANT.—An 

9 eligible lender under subparagraph (A) shall en10 sure that the proceeds described in subpara11 graph (A)(viii) are used to supplement, and not 

12 to supplant, non-Federal funds that would oth13 erwise be used for need-based grant pro14 grams.’’. 

15 SEC. 115. BOOSTING OPPORTUNITIES FOR LOW-INCOME 

16 PARENTS TO PURSUE COLLEGE DEGREES. 

17 (a) MINIMUM GRANT.—Section 419N(b)(2)(B) (20 

18 U.S.C. 1070e(b)(2)(B)) is amended by striking ‘‘$10,000’’ 

19 and inserting ‘‘$30,000’’. 

20 (b) ELIGIBLE INSTITUTIONS.—Section 419N(b)(4) is 

21 amended by striking ‘‘$350,000’’ and inserting 

22 ‘‘$250,000’’. 

23 (c) INCOME ELIGIBILITY.—Section 419N(b)(7) is 

24 amended by striking ‘‘who is eligible to receive’’ and in25 serting ‘‘whose income qualifies for eligibility for’’. 
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1 (d) PUBLICITY.—Section 419N(b) is further amend2 ed by adding at the end the following new paragraph: 

3 ‘‘(8) PUBLICITY.—The Secretary shall publicize 

4 the availability of grants under this section in appro5 priate periodicals, in addition to publication in the 

6 Federal Register, and shall inform appropriate edu7 cational organizations of such availability.’’. 

8 (e) AUTHORIZATION OF APPROPRIATIONS.—Section 

9 419N(g) is amended by striking ‘‘$45,000,000 for fiscal 

10 year 1999’’ and inserting ‘‘$75,000,000 for fiscal year 

11 2006’’. 

12 SEC. 116. SUPPORT FOR COMMUNITY SERVICE IN COLLEGE 

13 WORK-STUDY PROGRAM. 

14 (a) AUTHORIZATION OF APPROPRIATIONS.—

15 (1) AMENDMENT.—Section 441(b) (20 U.S.C. 

16 2751(b)) is amended to read as follows: 

17 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—

18 ‘‘(1) IN GENERAL.—There are authorized to be 

19 appropriated to carry out this part (other than for 

20 community service competitive grants)—

21 ‘‘(A) $1,500,000,000 for fiscal year 2006; 

22 and 

23 ‘‘(B) such sums as may be necessary for 

24 each of the 5 succeeding fiscal years. 
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1 ‘‘(2) COMMUNITY SERVICE COMPETITIVE

2 GRANTS.—There are authorized to be appropriated 

3 to make community service competitive grants under 

4 section 447(b)—

5 ‘‘(A) $350,000,000 for fiscal year 2006; 

6 and 

7 ‘‘(B) such sums as may be necessary for 

8 each of the 5 succeeding fiscal years.’’. 

9 (2) CONFORMING AMENDMENTS.—Section 442 

10 (42 U.S.C. 2752) is amended by striking ‘‘section 

11 441(b)’’ each place it appears and inserting ‘‘section 

12 441(b)(1)’’. 

13 (b) COMPETITIVE COMMUNITY SERVICE GRANTS.—

14 Section 447 (42 U.S.C. 2756a) is amended—

15 (1) by striking ‘‘Each institution’’ and inserting 

16 the following: 

17 ‘‘(a) USE OF ADMINISTRATIVE FUNDS.—’’; and 

18 (2) by adding at the end the following new sub19 section: 

20 ‘‘(b) COMPETITIVE GRANTS TO FURTHER ENHANCE

21 COMMUNITY SERVICE.—

22 ‘‘(1) GRANTS AUTHORIZED.—From the 

23 amounts appropriated under section 441(b)(2), the 

24 Secretary is authorized to award competitive grants 

25 to institutions that dedicate a significantly greater 
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1 proportion of their allocations under section 442 to 

2 providing community service opportunities under 

3 this part. 

4 ‘‘(2) MINIMUM GRANT; DURATION.—The min5 imum grant the Secretary shall award under this 

6 subsection shall be $500,000, except that the Sec7 retary may increase such amount based on the num8 ber of participants and the level of community serv9 ice. A grant awarded under this subsection shall be 

10 for a single academic year, but such grants may be 

11 continued in subsequent years to successful competi12 tors. 

13 ‘‘(3) APPLICATIONS; AGREEMENTS.—Any insti14 tution of higher education desiring to obtain a grant 

15 under this subsection shall submit an application 

16 therefor to the Secretary at such time, in such form, 

17 and containing or accompanied by such information 

18 and agreements as the Secretary may require.’’. 

19 SEC. 117. B.J. STUPAK OLYMPIC SCHOLARSHIPS. 

20 Section 1543(d) of the Higher Education Amend21 ments of 1992 (20 U.S.C. 1070 note) is amended by strik22 ing ‘‘1999’’ and inserting ‘‘2006’’. 
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1 SEC. 118. REDUCTION OF GUARANTY AGENCY PAYMENTS. 

2 (a) INSURANCE PERCENTAGES.—Subparagraph (G) 

3 of section 428(b)(1) (20 U.S.C. 1078(b)(1)(G)) is amend4 ed to read as follows: 

5 ‘‘(G) insures 98 percent of the unpaid 

6 principal of loans insured under the program, 

7 except that—

8 ‘‘(i) such program shall insure 100 

9 percent of the unpaid principal of loans 

10 made with funds advanced pursuant to sec11 tion 428(j) or 439(q); and 

12 ‘‘(ii) with respect to any loan for 

13 which the first disbursement of principal is 

14 made on or after October 1, 2006, the pre15 ceding provisions of this subparagraph 

16 shall be applied—

17 ‘‘(I) by substituting ‘95 percent’ 

18 for ‘98 percent’; and 

19 ‘‘(II) by substituting ‘97 percent’ 

20 for ‘100 percent’;’’. 

21 (b) RETENTION OF COLLECTIONS.—Subparagraph 

22 (B) of section 428(c)(6) (20 U.S.C. 1078(c)(6)(B)) is 

23 amended to read as follows: 

24 ‘‘(B) an amount equal to the following per25 centage of such payments for use in accordance 

26 with section 422B—
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1 ‘‘(i) from October 1, 2003, until Sep2 tember 30, 2006, inclusive, 23 percent; 

3 ‘‘(ii) from October 1, 2006, until Sep4 tember 30, 2008, inclusive, 20 percent; 

5 ‘‘(iii) from October 1, 2008, until Sep6 tember 30, 2010, inclusive, 18 percent; 

7 and 

8 ‘‘(iv) after September 30, 2010, 16 

9 percent.’’. 

10 TITLE II—TEACHER QUALITY 

11 SEC. 201. TEACHER RECRUITING AND PREPARATION. 

12 (a) TEACH GRANTS.—Title II of the Higher Edu13 cation Act of 1965 (20 U.S.C. 1021 et seq.) is amended 

14 by adding at the end the following new part: 

15 ‘‘PART C—TEACH GRANTS 

16 ‘‘SEC. 231. PURPOSES. 

17 ‘‘The purposes of the part are—

18 ‘‘(1) to improve student academic achievement; 

19 ‘‘(2) to help recruit and prepare teachers to 

20 meet the national demand for a highly qualified 

21 teacher in every classroom; and 

22 ‘‘(3) to increase opportunities for Americans of 

23 all educational, ethnic, class, and geographic back24 grounds to become highly qualified teachers. 
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1 ‘‘SEC. 232. PROGRAM ESTABLISHED. 

2 ‘‘(a) PROGRAM AUTHORITY.—

3 ‘‘(1) PAYMENTS REQUIRED.—For each of the 

4 fiscal years 2006 through 2013, the Secretary shall 

5 pay to each eligible institution such sums as may be 

6 necessary to pay to each eligible student (defined in 

7 accordance with section 484) who files an applica8 tion and agreement in accordance with section 233, 

9 and qualifies under subsection (a)(2) of such section, 

10 a TEACH Grant in the amount of $4,000 for each 

11 academic year during which that student is in at12 tendance at an institution of higher education. 

13 ‘‘(2) REFERENCE.—Grants made under this 

14 part shall be known as ‘Teacher Education Assist15 ance for College and Higher Education Grants’ or 

16 ‘TEACH Grants’. 

17 ‘‘(b) PAYMENT METHODOLOGY.—

18 ‘‘(1) PREPAYMENT.—Not less than 85 percent 

19 of such sums shall be advanced to eligible institu20 tions prior to the start of each payment period and 

21 shall be based upon an amount requested by the in22 stitution as needed to pay eligible students until 

23 such time as the Secretary determines and publishes 

24 in the Federal Register with an opportunity for com25 ment, an alternative payment system that provides 

26 payments to institutions in an accurate and timely 
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1 manner, except that this sentence shall not be con2 strued to limit the authority of the Secretary to 

3 place an institution on a reimbursement system of 

4 payment. 

5 ‘‘(2) DIRECT PAYMENT.—Nothing in this sec6 tion shall be interpreted to prohibit the Secretary 

7 from paying directly to students, in advance of the 

8 beginning of the academic term, an amount for 

9 which they are eligible, in cases where the eligible in10 stitution elects not to participate in the disburse11 ment system required by paragraph (1). 

12 ‘‘(3) DISTRIBUTION OF GRANTS TO STU13 DENTS.—Payments under this part shall be made, in 

14 accordance with regulations promulgated by the Sec15 retary for such purpose, in such manner as will best 

16 accomplish the purpose of this part. Any disburse17 ment allowed to be made by crediting the student’s 

18 account shall be limited to tuition and fees and, in 

19 the case of institutionally owned housing, room and 

20 board. The student may elect to have the institution 

21 provide other such goods and services by crediting 

22 the student’s account. 

23 ‘‘(c) REDUCTIONS IN AMOUNT.—

24 ‘‘(1) PART TIME STUDENTS.—In any case 

25 where a student attends an institution of higher edu-
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1 cation on less than a full-time basis (including a stu2 dent who attends an institution of higher education 

3 on less than a half-time basis) during any academic 

4 year, the amount of the TEACH Grant for which 

5 that student is eligible shall be reduced in proportion 

6 to the degree to which that student is not so attend7 ing on a full-time basis, in accordance with a sched8 ule of reductions established by the Secretary for the 

9 purposes of this part, computed in accordance with 

10 this part. Such schedule of reductions shall be estab11 lished by regulation and published in the Federal 

12 Register in accordance with section 482 of this Act. 

13 ‘‘(2) NO EXCEEDING COST.—No TEACH Grant 

14 under this part shall exceed the the cost of attend15 ance (as defined in section 472) at the institution at 

16 which that student is in attendance. If, with respect 

17 to any student, it is determined that the amount of 

18 a TEACH Grant exceeds the cost of attendance for 

19 that year, the amount of the TEACH Grant shall be 

20 reduced until the TEACH Grant does not exceed the 

21 cost of attendance at such institution. 

22 ‘‘(d) PERIOD OF ELIGIBILITY FOR GRANTS.—

23 ‘‘(1) UNDERGRADUATE STUDENTS.—The period 

24 during which an undergraduate student may receive 

25 TEACH Grants shall be the period required for the 
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1 completion of the first undergraduate baccalaureate 

2 course of study being pursued by that student at the 

3 institution at which the student is in attendance ex4 cept that—

5 ‘‘(A) any period during which the student 

6 is enrolled in a noncredit or remedial course of 

7 study as defined in paragraph (3) shall not be 

8 counted for the purpose of this paragraph; and 

9 ‘‘(B) the total amount that a student may 

10 receive under this part for undergraduate study 

11 shall not exceed $16,000. 

12 ‘‘(2) GRADUATE STUDENTS.—The period dur13 ing which a graduate student may receive TEACH 

14 Grants shall be the period required for the comple15 tion of a master’s degree course of study being pur16 sued by that student at the institution at which the 

17 student is in attendance, except that the total 

18 amount that a student may receive under this part 

19 for graduate study shall not exceed $8,000. 

20 ‘‘(3) REMEDIAL COURSE; STUDY ABROAD.—

21 Nothing in this section shall exclude from eligibility 

22 courses of study which are noncredit or remedial in 

23 nature (including courses in English language acqui24 sition) which are determined by the institution to be 

25 necessary to help the student be prepared for the 
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1 pursuit of a first undergraduate baccalaureate de2 gree or certificate or, in the case of courses in 

3 English language instruction, to be necessary to en4 able the student to utilize already existing knowl5 edge, training, or skills. Nothing in this section shall 

6 exclude from eligibility programs of study abroad 

7 that are approved for credit by the home institution 

8 at which the student is enrolled. 

9 ‘‘SEC. 233. ELIGIBILITY AND APPLICATIONS FOR GRANTS. 

10 ‘‘(a) APPLICATIONS; DEMONSTRATION OF ELIGI11 BILITY.—

12 ‘‘(1) FILING REQUIRED.—The Secretary shall 

13 from time to time set dates by which students shall 

14 file applications for TEACH Grants under this part. 

15 Each student desiring a TEACH Grant for any year 

16 shall file an application therefore containing such in17 formation and assurances as the Secretary may 

18 deem necessary to enable the Secretary to carry out 

19 the functions and responsibilities of this part. 

20 ‘‘(2) DEMONSTRATION OF ELIGIBILITY.—Each 

21 such application shall contain such information as is 

22 necessary to demonstrate that—

23 ‘‘(A) if the applicant is an enrolled stu24 dent—
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1 ‘‘(i) the student is an eligible student 

2 for purposes of section 484 (other than 

3 subsection (r) of such section); 

4 ‘‘(ii) the student—

5 ‘‘(I) has a grade point average 

6 that is determined, under standards 

7 prescribed by the Secretary, to be 

8 comparable to a 3.25 average on a 

9 zero to 4.0 scale, except that, if the 

10 student is in the first year of a pro11 gram of undergraduate education, 

12 such grade point average shall be de13 termined on the basis of the student’s 

14 cumulative high school grade point av15 erage; or 

16 ‘‘(II) displayed high academic ap17 titude by receiving a score above the 

18 75th percentile on at least one of the 

19 batteries in a undergraduate or grad20 uate school admissions test; and 

21 ‘‘(iii) the student is completing 

22 coursework and other requirements nec23 essary to begin a career in teaching, or 

24 plans to complete such coursework and re25 quirements prior to graduating; or 
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1 ‘‘(B) if the applicant is a current or pro2 spective teacher applying for a grant to obtain 

3 a graduate degree—

4 ‘‘(i) the applicant is a teacher or a re5 tiree from another occupation with exper6 tise in a field in which there is a shortage 

7 of teachers, such as math, science, special 

8 education, English language acquisition, or 

9 another high-need subject; or 

10 ‘‘(ii) the applicant is or was a teacher 

11 who is using high-quality alternative cer12 tification routes, such as Teach for Amer13 ica, to get certified. 

14 ‘‘(b) AGREEMENTS TO SERVE.—Each application 

15 under subsection (a) shall contain or be accompanied by 

16 an agreement by the applicant that—

17 ‘‘(1) the applicant will—

18 ‘‘(A) serve as a full-time teacher for a total 

19 of not less than 4 academic years within 8 

20 years after completing the course of study for 

21 which the applicant received a TEACH Grant 

22 under this part; 

23 ‘‘(B) teach—

24 ‘‘(i) in a school described in section 

25 465(a)(2)(A); and 
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1 ‘‘(ii) in any of the following fields: 

2 mathematics, science, a foreign language, 

3 bilingual education, or special education, or 

4 as a reading specialist, or another field 

5 documented as high-need by the Federal 

6 Government, State government, or local 

7 education agency and submitted to the 

8 Secretary; 

9 ‘‘(C) submit evidence of such employment 

10 in the form of a certification by the chief ad11 ministrative officer of the school upon comple12 tion of each year of such service; and 

13 ‘‘(D) comply with the requirements for 

14 being a highly qualified teacher as defined in 

15 section 9101 of the Elementary and Secondary 

16 Education Act of 1965; and 

17 ‘‘(2) in the event that the applicant is deter18 mined to have failed or refused to carry out such 

19 service obligation, the sum of the amounts of such 

20 Grants will be treated as a loan and collected from 

21 the applicant in accordance with subsection (c) and 

22 the regulations thereunder. 

23 ‘‘(c) REPAYMENT FOR FAILURE TO COMPLETE SERV24 ICE.—In the event that any recipient of an TEACH Grant 

25 fails or refuses to comply with the service obligation in 
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1 the agreement under subsection (b), the sum of the 

2 amounts of such Grants provided to such recipient shall 

3 be treated as a Direct Loan under part D of title IV, and 

4 shall be subject to repayment in accordance with terms 

5 and conditions specified by the Secretary in regulations 

6 under this part.’’. 

7 (b) RECRUITING TEACHERS WITH MATH, SCIENCE, 

8 OR LANGUAGE MAJOR.—Title II of the Higher Education 

9 Act of 1965 is further amended by adding after part C 

10 (as added by subsection (a)) the following new part: 

11 ‘‘PART D—RECRUITING TEACHERS WITH MATH, 

12 SCIENCE, OR LANGUAGE MAJORS 

13 ‘‘SEC. 241. PROGRAM AUTHORIZED. 

14 ‘‘(a) GRANTS AUTHORIZED.—From the amounts ap15 propriated under section 242, the Secretary shall make 

16 competitive grants to institutions of higher education to 

17 improve the availability and recruitment of teachers from 

18 among students majoring in math, science, foreign lan19 guages, special education, or teaching the English lan20 guage to students with limited English proficiency. In 

21 making such grants, the Secretary shall give priority to 

22 programs that focus on preparing teachers in subjects in 

23 which there is a shortage of highly qualified teachers and 

24 that prepare students to teach in high-need schools. 
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1 ‘‘(b) APPLICATION.—Any institution of higher edu2 cation desiring to obtain a grant under this part shall sub3 mit to the Secretary an application at such time, in such 

4 form, and containing such information and assurances as 

5 the Secretary may require, which shall—

6 ‘‘(1) include reporting on baseline production of 

7 teachers with expertise in math, science, a foreign 

8 language, or teaching English language learners; 

9 and 

10 ‘‘(2) establish a goal and timeline for increasing 

11 the number of such teachers who are prepared by 

12 the institution. 

13 ‘‘(c) USE OF FUNDS.—Funds made available by 

14 grant under this part—

15 ‘‘(1) shall be used to create new recruitment in16 centives to teaching from other majors, with an em17 phasis on high-need subjects such as math, science, 

18 foreign languages, and teaching the English lan19 guage to students with limited English proficiency; 

20 ‘‘(2) may be used to upgrade curriculum in 

21 order to provide all students studying to become 

22 teachers with high-quality instructional strategies for 

23 teaching reading and teaching the English language 

24 to students with limited English proficiency, and for 
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1 modifying instruction to teach students with special 

2 needs; 

3 ‘‘(3) may be used to integrate school of edu4 cation faculty with other arts and science faculty in 

5 math, science, foreign languages, and teaching the 

6 English language to students with limited English 

7 proficiency through steps such as—

8 ‘‘(A) dual appointments for faculty be9 tween schools of education and schools of arts 

10 and science; and 

11 ‘‘(B) integrating coursework with clinical 

12 experience; and 

13 ‘‘(4) may be used to develop strategic plans be14 tween schools of education and local school districts 

15 to better prepare teachers for high-need schools, in16 cluding the creation of professional development 

17 partnerships for training new teachers in state-of18 the-art practice. 

19 ‘‘SEC. 242. AUTHORIZATION OF APPROPRIATIONS. 

20 ‘‘There are authorized to be appropriated to make 

21 grants under this part $200,000,000 for fiscal year 2006 

22 and such sums as may be necessary for each of the 5 suc23 ceeding fiscal years.’’. 
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1 (c) PART A AUTHORIZATION.—Section 210 of the 

2 Higher Education Act of 1965 (20 U.S.C. 1030) is 

3 amended—

4 (1) by striking ‘‘$300,000,000 for fiscal year 

5 1999’’ and inserting ‘‘$400,000,000 for fiscal year 

6 2006’’; and 

7 (2) by striking ‘‘4 succeeding’’ and inserting ‘‘5 

8 succeeding’’. 

9 SEC. 202. TEACHER QUALITY ENHANCEMENT GRANTS. 

10 Part A of title II of the Higher Education Act of 

11 1965 is amended by striking sections 206 through 209 

12 (20 U.S.C. 1026–1029) and inserting the following: 

13 ‘‘SEC. 206. ACCOUNTABILITY AND EVALUATION. 

14 ‘‘(a) STATE GRANT ACCOUNTABILITY REPORT.—An 

15 eligible State that receives a grant under section 202 shall 

16 submit an annual accountability report to the Secretary, 

17 the Committee on Health, Education, Labor, and Pen18 sions of the Senate, and the Committee on Education and 

19 the Workforce of the House of Representatives. Such re20 port shall include a description of the degree to which the 

21 eligible State, in using funds provided under such section, 

22 has made substantial progress in meeting the following 

23 goals: 

24 ‘‘(1) PERCENTAGE OF HIGHLY QUALIFIED

25 TEACHERS.—Increasing the percentage of highly 
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1 qualified teachers in the State as required by section 

2 1119 of the Elementary and Secondary Education 

3 Act of 1965 (20 U.S.C. 6319). 

4 ‘‘(2) STUDENT ACADEMIC ACHIEVEMENT.—In5 creasing student academic achievement for all stu6 dents, which may be measured through the use of 

7 value-added assessments, as defined by the eligible 

8 State. 

9 ‘‘(3) RAISING STANDARDS.—Raising the State 

10 academic standards required to enter the teaching 

11 profession as a highly qualified teacher. 

12 ‘‘(4) INITIAL CERTIFICATION OR LICENSURE.—

13 Increasing success in the pass rate for initial State 

14 teacher certification or licensure, or increasing the 

15 numbers of qualified individuals being certified or li16 censed as teachers through alternative routes to cer17 tification and licensure. 

18 ‘‘(5) DECREASING TEACHER SHORTAGES.—De19 creasing shortages of highly qualified teachers in 

20 poor urban and rural areas. 

21 ‘‘(6) INCREASING OPPORTUNITIES FOR RE22 SEARCH-BASED PROFESSIONAL DEVELOPMENT.—In23 creasing opportunities for enhanced and ongoing 

24 professional development that—
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1 ‘‘(A) improves the academic content knowl2 edge of teachers in the subject areas in which 

3 the teachers are certified or licensed to teach or 

4 in which the teachers are working toward cer5 tification or licensure to teach; and 

6 ‘‘(B) promotes strong teaching skills. 

7 ‘‘(7) TECHNOLOGY INTEGRATION.—Increasing 

8 the number of teachers prepared effectively to inte9 grate technology into curricula and instruction and 

10 who use technology to collect, manage, and analyze 

11 data to improve teaching, learning, and parental in12 volvement decisionmaking for the purpose of increas13 ing student academic achievement. 

14 ‘‘(b) ELIGIBLE PARTNERSHIP EVALUATION.—Each 

15 eligible partnership applying for a grant under section 203 

16 shall establish, and include in the application submitted 

17 under section 203(c), an evaluation plan that includes 

18 strong performance objectives. The plan shall include ob19 jectives and measures for—

20 ‘‘(1) increased student achievement for all stu21 dents, as measured by the partnership; 

22 ‘‘(2) increased teacher retention in the first 3 

23 years of a teacher’s career; 

24 ‘‘(3) increased success in the pass rate for ini25 tial State certification or licensure of teachers; 
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1 ‘‘(4) increased percentage of highly qualified 

2 teachers; and 

3 ‘‘(5) increasing the number of teachers trained 

4 effectively to integrate technology into curricula and 

5 instruction and who use technology to collect, man6 age, and analyze data to improve teaching, learning, 

7 and decisionmaking for the purpose of improving 

8 student academic achievement. 

9 ‘‘(c) REVOCATION OF GRANT.—

10 ‘‘(1) REPORT.—Each eligible State or eligible 

11 partnership receiving a grant under section 202 or 

12 203 shall report annually on the progress of the eli13 gible State or eligible partnership toward meeting 

14 the purposes of this part and the goals, objectives, 

15 and measures described in subsections (a) and (b). 

16 ‘‘(2) REVOCATION.—

17 ‘‘(A) ELIGIBLE STATES AND ELIGIBLE AP18 PLICANTS.—If the Secretary determines that an 

19 eligible State or eligible applicant is not making 

20 substantial progress in meeting the purposes, 

21 goals, objectives, and measures, as appropriate, 

22 by the end of the second year of a grant under 

23 this part, then the grant payment shall not be 

24 made for the third year of the grant. 
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1 ‘‘(B) ELIGIBLE PARTNERSHIPS.—If the 

2 Secretary determines that an eligible partner3 ship is not making substantial progress in 

4 meeting the purposes, goals, objectives, and 

5 measures, as appropriate, by the end of the 

6 third year of a grant under this part, then the 

7 grant payments shall not be made for any suc8 ceeding year of the grant. 

9 ‘‘(d) EVALUATION AND DISSEMINATION.—The Sec10 retary shall evaluate the activities funded under this part 

11 and report annually the Secretary’s findings regarding the 

12 activities to the Committee on Health, Education, Labor, 

13 and Pensions of the Senate and the Committee on Edu14 cation and the Workforce of the House of Representatives. 

15 The Secretary shall broadly disseminate successful prac16 tices developed by eligible States and eligible partnerships 

17 under this part, and shall broadly disseminate information 

18 regarding such practices that were found to be ineffective. 

19 ‘‘SEC. 207. ACCOUNTABILITY FOR PROGRAMS THAT PRE20 PARE TEACHERS. 

21 ‘‘(a) STATE REPORT CARD ON THE QUALITY OF

22 TEACHER AND PRINCIPAL PREPARATION.—Each State 

23 that receives funds under this Act shall provide to the Sec24 retary annually, in a uniform and comprehensible manner 

25 that conforms with the definitions and methods estab-
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1 lished by the Secretary, a State report card on the quality 

2 of teacher preparation in the State, both for traditional 

3 certification or licensure programs and for alternative cer4 tification or licensure programs, which shall include at 

5 least the following: 

6 ‘‘(1) A description of the teacher and principal 

7 certification and licensure assessments, and any 

8 other certification and licensure requirements, used 

9 by the State. 

10 ‘‘(2) The standards and criteria that prospec11 tive teachers and principals must meet in order to 

12 attain initial teacher and principal certification or li13 censure and to be certified or licensed to teach par14 ticular subjects or in particular grades within the 

15 State. 

16 ‘‘(3) A demonstration of the extent to which the 

17 assessments and requirements described in para18 graph (1) are aligned with the State’s standards and 

19 assessments for students. 

20 ‘‘(4) The percentage of students who have com21 pleted at least 50 percent of the requirements for a 

22 teacher preparation program at an institution of 

23 higher education or alternative certification program 

24 and who have taken and passed each of the assess25 ments used by the State for teacher certification and 
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1 licensure, and the passing score on each assessment 

2 that determines whether a candidate has passed that 

3 assessment. 

4 ‘‘(5) For students who have completed at least 

5 50 percent of the requirements for a teacher prepa6 ration program at an institution of higher education 

7 or alternative certification program, and who have 

8 taken and passed each of the assessments used by 

9 the State for teacher certification and licensure, 

10 each such institution’s and each such program’s av11 erage raw score, ranked by teacher preparation pro12 gram, which shall be made available widely and pub13 licly. 

14 ‘‘(6) A description of each State’s alternative 

15 routes to teacher certification, if any, and the num16 ber and percentage of teachers certified through 

17 each alternative certification route who pass State 

18 teacher certification or licensure assessments. 

19 ‘‘(7) For each State, a description of proposed 

20 criteria for assessing the performance of teacher and 

21 principal preparation programs in the State, includ22 ing indicators of teacher and principal candidate 

23 skills, placement and retention rates (to the extent 

24 feasible), and academic content knowledge and evi25 dence of gains in student academic achievement. 
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1 ‘‘(8) For each teacher preparation program in 

2 the State, the number of students in the program, 

3 the number of minority students in the program, the 

4 average number of hours of supervised practice 

5 teaching required for those in the program, and the 

6 number of full-time equivalent faculty, adjunct fac7 ulty, and students in supervised practice teaching. 

8 ‘‘(9) For the State as a whole, and for each 

9 teacher preparation program in the State, the num10 ber of teachers prepared, in the aggregate and re11 ported separately by—

12 ‘‘(A) number of minority students; 

13 ‘‘(B) level (elementary or secondary); 

14 ‘‘(C) academic major; 

15 ‘‘(D) subject or subjects for which the stu16 dent has been prepared to teach; and 

17 ‘‘(E) teacher candidates who speak a lan18 guage other than English and have been trained 

19 specifically to teach English-language learners. 

20 ‘‘(10) The State shall refer to the data gen21 erated for paragraph (9) to report on the extent to 

22 which teacher preparation programs are helping to 

23 address shortages of qualified teachers, by level, sub24 ject, and specialty, in the State’s public schools, es-
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1 pecially in poor urban and rural areas as required by 

2 section 206(a)(5). 

3 ‘‘(b) REPORT OF THE SECRETARY ON THE QUALITY

4 OF TEACHER PREPARATION.—

5 ‘‘(1) REPORT CARD.—The Secretary shall pro6 vide to Congress, and publish and make widely avail7 able, a report card on teacher qualifications and 

8 preparation in the United States, including all the 

9 information reported in paragraphs (1) through (11) 

10 of subsection (a). Such report shall identify States 

11 for which eligible States and eligible partnerships re12 ceived a grant under this part. Such report shall be 

13 so provided, published and made available annually. 

14 ‘‘(2) REPORT TO CONGRESS.—The Secretary 

15 shall report to Congress—

16 ‘‘(A) a comparison of States efforts to im17 prove teaching quality; and 

18 ‘‘(B) regarding the national mean and me19 dian scores on any standardized test that is 

20 used in more than 1 State for teacher certifi21 cation or licensure. 

22 ‘‘(3) SPECIAL RULE.—In the case of programs 

23 with fewer than 10 students who have completed at 

24 least 50 percent of the requirements for a teacher 

25 preparation program taking any single initial teacher 
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1 certification or licensure assessment during an aca2 demic year, the Secretary shall collect and publish 

3 information with respect to an average pass rate on 

4 State certification or licensure assessments taken 

5 over a 3-year period. 

6 ‘‘(c) COORDINATION.—The Secretary, to the extent 

7 practicable, shall coordinate the information collected and 

8 published under this part among States for individuals 

9 who took State teacher certification or licensure assess10 ments in a State other than the State in which the indi11 vidual received the individual’s most recent degree. 

12 ‘‘(d) INSTITUTION AND PROGRAM REPORT CARDS ON

13 QUALITY OF TEACHER PREPARATION.—

14 ‘‘(1) REPORT CARD.—Each institution of higher 

15 education or alternative certification program that 

16 conducts a teacher preparation program that enrolls 

17 students receiving Federal assistance under this Act 

18 shall report annually to the State and the general 

19 public, in a uniform and comprehensible manner 

20 that conforms with the definitions and methods es21 tablished by the Secretary, both for traditional cer22 tification or licensure programs and for alternative 

23 certification or licensure programs, the following in24 formation, disaggregated by major racial and ethnic 

25 groups: 
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1 ‘‘(A) PASS RATE.—(i) For the most recent 

2 year for which the information is available, the 

3 pass rate of each student who has completed at 

4 least 50 percent of the requirements for the 

5 teacher preparation program on the teacher cer6 tification or licensure assessments of the State 

7 in which the institution is located, but only for 

8 those students who took those assessments 

9 within 3 years of receiving a degree from the 

10 institution or completing the program. 

11 ‘‘(ii) A comparison of the institution or 

12 program’s pass rate for students who have com13 pleted at least 50 percent of the requirements 

14 for the teacher preparation program with the 

15 average pass rate for institutions and programs 

16 in the State. 

17 ‘‘(iii) A comparison of the institution or 

18 program’s average raw score for students who 

19 have completed at least 50 percent of the re20 quirements for the teacher preparation program 

21 with the average raw scores for institutions and 

22 programs in the State. 

23 ‘‘(iv) In the case of programs with fewer 

24 than 10 students who have completed at least 

25 50 percent of the requirements for a teacher 
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1 preparation program taking any single initial 

2 teacher certification or licensure assessment 

3 during an academic year, the institution shall 

4 collect and publish information with respect to 

5 an average pass rate on State certification or li6 censure assessments taken over a 3-year period. 

7 ‘‘(v) A report on the number of times can8 didates have to take the test before passing. 

9 ‘‘(B) PROGRAM INFORMATION.—The num10 ber of students in the program, the average 

11 number of hours of supervised practice teaching 

12 required for those in the program, and the 

13 number of full-time equivalent faculty and stu14 dents in supervised practice teaching. 

15 ‘‘(C) STATEMENT.—In States that require 

16 approval or accreditation of teacher education 

17 programs, a statement of whether the institu18 tion’s program is so approved or accredited, 

19 and by whom. 

20 ‘‘(D) DESIGNATION AS LOW-PER21 FORMING.—Whether the program has been des22 ignated as low-performing by the State under 

23 section 208(a). 

24 ‘‘(2) REQUIREMENT.—The information de25 scribed in paragraph (1) shall be reported through 
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1 publications such as school catalogs and promotional 

2 materials sent to potential applicants, secondary 

3 school guidance counselors, and prospective employ4 ers of the institution’s program graduates, including 

5 materials sent by electronic means. 

6 ‘‘(3) FINES.—In addition to the actions author7 ized in section 487(c), the Secretary may impose a 

8 fine not to exceed $25,000 on an institution of high9 er education for failure to provide the information 

10 described in this subsection in a timely or accurate 

11 manner. 

12 ‘‘(e) DATA QUALITY.—Either—

13 ‘‘(1) the Governor of the State; or 

14 ‘‘(2) in the case of a State for which the con15 stitution or law of such State designates another in16 dividual, entity, or agency in the State to be respon17 sible for teacher certification and preparation activ18 ity, such individual, entity, or agency; 

19 shall attest annually, in writing, as to the reliability, valid20 ity, integrity, and accuracy of the data submitted pursuant 

21 to this section. 

22 ‘‘SEC. 208. STATE FUNCTIONS. 

23 ‘‘(a) STATE ASSESSMENT.—In order to receive funds 

24 under this Act, a State shall have in place a procedure 

25 to identify and assist, through the provision of technical 
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1 assistance, low-performing programs of teacher prepara2 tion within institutions of higher education. Such State 

3 shall provide the Secretary an annual list of such low-per4 forming institutions that includes an identification of 

5 those institutions at risk of being placed on such list. Such 

6 levels of performance shall be determined solely by the 

7 State and may include criteria based upon information col8 lected pursuant to this part. Such assessment shall be de9 scribed in the report under section 207(a). A State receiv10 ing Federal funds under this title shall develop plans to 

11 close or reconstitute underperforming programs of teacher 

12 preparation within institutions of higher education. 

13 ‘‘(b) TERMINATION OF ELIGIBILITY.—Any institu14 tion of higher education that offers a program of teacher 

15 preparation in which the State has withdrawn the State’s 

16 approval or terminated the State’s financial support due 

17 to the low performance of the institution’s teacher prepa18 ration program based upon the State assessment described 

19 in subsection (a)—

20 ‘‘(1) shall be ineligible for any funding for pro21 fessional development activities awarded by the De22 partment of Education; and 

23 ‘‘(2) shall not be permitted to accept or enroll 

24 any student who receives aid under title IV of this 

25 Act in the institution’s teacher preparation program. 
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1 ‘‘SEC. 209. GENERAL PROVISIONS. 

2 ‘‘In complying with sections 207 and 208, the Sec3 retary shall ensure that States and institutions of higher 

4 education use fair and equitable methods in reporting and 

5 that the reporting methods do not allow identification of 

6 individuals.’’. 

7 TITLE III—ENHANCING 

8 COLLEGE OUTREACH 

9 SEC. 301. FEDERAL TRIO PROGRAM. 

10 (a) TRIO DURATION OF GRANT.—Section 402A(b) 

11 (20 U.S.C. 1070a–11(b)) is amended by striking para12 graph (2) and inserting the following: 

13 ‘‘(2) DURATION.—Grants or contracts made 

14 under this chapter shall be awarded for a period of 

15 5 years, except that—

16 ‘‘(A) grants made under section 402G shall 

17 be awarded for a period of 2 years; and 

18 ‘‘(B) grants under section 402H shall be 

19 awarded for a period determined by the Sec20 retary.’’. 

21 (b) MINIMUM GRANTS.—Section 402A(b)(3) is 

22 amended—

23 (1) by striking ‘‘$170,000’’ and inserting 

24 ‘‘$200,000’’; 

25 (2) by striking ‘‘$180,000’’ and inserting 

26 ‘‘$210,000’’; and 
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1 (3) by striking ‘‘$190,000’’ and inserting 

2 ‘‘$220,000’’. 

3 (c) MAXIMUM UPWARD BOUND STIPENDS.—Section 

4 402C(e) (20 U.S.C. 1070a–13(e)) is amended—

5 (1) by striking ‘‘$60’’ and inserting ‘‘$100’’; 

6 and 

7 (2) by striking ‘‘$40’’ and inserting ‘‘$60’’. 

8 (d) MAXIMUM MCNAIR STIPENDS.—Section 

9 402E(e)(1) (20 U.S.C. 1070a–15(e)(1)) is amended by 

10 striking ‘‘$2,800’’ and inserting ‘‘$5,000’’. 

11 SEC. 302. GEARUP. 

12 (a) CURRENT GRANTEES.—Section 404A(b)(1) (20 

13 U.S.C. 1070a–21(b)(1)) is amended—

14 (1) by inserting ‘‘6-year’’ after ‘‘shall make’’; 

15 and 

16 (2) by adding at the end the following: ‘‘An eli17 gible entity that has received an award under this 

18 section, has performed successfully, and still has a 

19 need for an award may apply for an additional 

20 award under this section.’’. 

21 (b) ELIGIBLE ENTITY PLANS.—Section 404C(a)(2) 

22 (20 U.S.C. 1070a–23(a)(2)) is amended—

23 (1) by striking ‘‘and’’ at the end of subpara24 graph (A); 
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1 (2) by redesignating subparagraph (B) as sub2 paragraph (C); and 

3 (3) by inserting after subparagraph (A) the fol4 lowing new subparagraph: 

5 ‘‘(B) describe activities for coordinating, 

6 complementing, and enhancing services under 

7 this chapter provided by other eligible entities 

8 in the State; and’’. 

9 SEC. 303. LEVERAGING EDUCATIONAL ASSISTANCE PART10 NERSHIP. 

11 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

12 415A(b)(1) (20 U.S.C. 1070c(b)(1)) is amended—

13 (1) by striking ‘‘$105,000,000 for fiscal year 

14 1999’’ and inserting ‘‘$200,000,000 for fiscal year 

15 2004’’; and 

16 (2) by striking ‘‘4 succeeding fiscal years’’ and 

17 inserting ‘‘5 succeeding fiscal years’’. 

18 (b) MAXIMUM GRANT.—Section 415C(b)(2) (20 

19 U.S.C. 1070c–2(b)(2)) is amended by striking ‘‘$5,000’’ 

20 and inserting ‘‘$12,500’’. 
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1 TITLE IV—OPPORTUNITIES AT 

2 HISPANIC-SERVING COL3 LEGES AND UNIVERSITIES 

4 SEC. 401. POSTBACCALAUREATE OPPORTUNITIES FOR HIS5 PANIC AMERICANS. 

6 (a) ESTABLISHMENT OF PROGRAM.—Title V of the 

7 Higher Education Act is amended—

8 (1) by redesignating part B as part C; 

9 (2) by redesignating section 511 through 518 

10 as sections 521 through 528, respectively; and 

11 (3) inserting after section 505 (20 U.S.C. 

12 1101d) the following new part: 

13 ‘‘PART B—PROMOTING POSTBACCALAUREATE 

14 OPPORTUNITIES FOR HISPANIC AMERICANS 

15 ‘‘SEC. 511. FINDINGS AND PURPOSES. 

16 ‘‘(a) FINDINGS.—Congress finds the following: 

17 ‘‘(1) According to the United States Census, by 

18 the year 2050 one in four Americans will be of His19 panic origin. 

20 ‘‘(2) Despite the dramatic increase in the His21 panic population in the United States, the National 

22 Center for Education Statistics reported that in 

23 1999, Hispanics accounted for only 4 percent of the 

24 master’s degrees, 3 percent of the doctor’s degrees, 
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1 and 5 percent of first-professional degrees awarded 

2 in the United States. 

3 ‘‘(3) Although Hispanics constitute 10 percent 

4 of the college enrollment in the United States, they 

5 comprise 3 only percent of instructional faculty in 

6 college and universities. 

7 ‘‘(4) The future capacity for research and ad8 vanced study in the United States will require in9 creasing the number of Hispanics pursuing 

10 postbaccalaureate studies. 

11 ‘‘(5) Hispanic-serving institutions are leading 

12 the nation in increasing the number of Hispanics at13 taining graduate and professional degrees. 

14 ‘‘(6) Among Hispanics who received master’s 

15 degrees in 1999–2000, 25 percent earned them at 

16 Hispanic-serving institutions. 

17 ‘‘(7) Between 1991 and 2000, the number of 

18 Hispanic students earning master’s degrees at His19 panic-serving institutions grew 136 percent, the 

20 number receiving doctor’s degrees grew by 85 per21 cent, and the number earning first-professional de22 grees grew by 47 percent. 

23 ‘‘(8) It is in the National interest to expand the 

24 capacity of Hispanic-serving institutions to offer 

25 graduate and professional degree programs. 
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1 ‘‘(b) PURPOSES.—The purposes of this part are—

2 ‘‘(1) to expand postbaccalaureate educational 

3 opportunities for, and improve the academic attain4 ment of, Hispanic students; and 

5 ‘‘(2) to expand and enhance the 

6 postbaccalaureate academic offerings, program qual7 ity, that are educating the majority of Hispanic col8 lege students and helping large numbers of Hispanic 

9 students and other low-income individuals complete 

10 postsecondary degrees. 

11 ‘‘SEC. 512. PROGRAM AUTHORITY AND ELIGIBILITY. 

12 ‘‘(a) PROGRAM AUTHORIZED.—Subject to the avail13 ability of funds appropriated to carry out this part, the 

14 Secretary shall award competitive grants to Hispanic-serv15 ing institutions that offer postbaccalaureate certifications 

16 or degrees. 

17 ‘‘(b) ELIGIBILITY.—For the purposes of this part, an 

18 ‘eligible institution’ means an institution of higher edu19 cation that—

20 ‘‘(1) is an eligible institution under section 502; 

21 and 

22 ‘‘(2) offers a postbaccalaureate certificate or de23 gree granting program. 
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1 ‘‘SEC. 513. AUTHORIZED ACTIVITIES. 

2 ‘‘Grants awarded under this part shall be used for 

3 one or more of the following activities: 

4 ‘‘(1) Purchase, rental, or lease of scientific or 

5 laboratory equipment for educational purposes, in6 cluding instructional and research purposes. 

7 ‘‘(2) Construction, maintenance, renovation, 

8 and improvement in classroom, library, laboratory, 

9 and other instructional facilities, including purchase 

10 or rental of telecommunications technology equip11 ment or services. 

12 ‘‘(3) Purchase of library books, periodicals, 

13 technical and other scientific journals, microfilm, 

14 microfiche, and other educational materials, includ15 ing telecommunications program materials. 

16 ‘‘(4) Support for needy postbaccalaureate stu17 dents including outreach, academic support services, 

18 mentoring, scholarships, fellowships, and other fi19 nancial assistance to permit the enrollment of such 

20 students in postbaccalaureate certificate and degree 

21 granting programs. 

22 ‘‘(5) Support of faculty exchanges, faculty de23 velopment, faculty research, curriculum development, 

24 and academic instruction. 

25 ‘‘(6) Creating or improving facilities for Inter26 net or other distance learning academic instruction 
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1 capabilities, including purchase or rental of tele2 communications technology equipment or services. 

3 ‘‘(7) Collaboration with other institutions of 

4 higher education to expand postbaccalaureate certifi5 cate and degree offerings. 

6 ‘‘(8) Other activities proposed in the application 

7 submitted pursuant to section 514 that—

8 ‘‘(A) contribute to carrying out the pur9 poses of this part; and 

10 ‘‘(B) are approved by the Secretary as part 

11 of the review and acceptance of such applica12 tion. 

13 ‘‘SEC. 514. APPLICATION AND DURATION. 

14 ‘‘(a) APPLICATION.—Any eligible institution may 

15 apply for a grant under this part by submitting an applica16 tion to the Secretary at such time and in such manner 

17 as determined by the Secretary. Such application shall 

18 demonstrate how the grant funds will be used to improve 

19 postbaccalaureate education opportunities for Hispanic 

20 and low-income students and will lead to greater financial 

21 independence. 

22 ‘‘(b) DURATION.—Grants under this part shall be 

23 awarded for a period not to exceed 5 years. 
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1 ‘‘(c) LIMITATION.—The Secretary shall not award 

2 more than 1 grant under this part in any fiscal year to 

3 any Hispanic-serving institution.’’. 

4 (b) COOPERATIVE ARRANGEMENTS.—Section 524 of 

5 such Act (as redesignated by subsection (a)(2)) (20 U.S.C. 

6 1103c) is amended by inserting ‘‘and section 513’’ after 

7 ‘‘section 503’’. 

8 SEC. 402. AUTHORIZATION OF APPROPRIATIONS FOR HIS9 PANIC SERVING INSTITUTIONS. 

10 (a) AUTHORIZATION OF APPROPRIATIONS.—Sub11 section (a) of section 528 of such Act (as redesignated 

12 by section 401(a)(2)) (20 U.S.C. 1103g) is amended to 

13 read as follows: 

14 ‘‘(a) AUTHORIZATIONS.—

15 ‘‘(1) PART A.—There are authorized to be ap16 propriated to carry out part A of this title 

17 $175,000,000 for fiscal year 2005 and such sums as 

18 may be necessary for each of the 5 succeeding fiscal 

19 years. 

20 ‘‘(2) PART B.—There are authorized to be ap21 propriated to carry out part B of this title 

22 $125,000,000 for fiscal year 2005 and such sums as 

23 may be necessary for each of the 5 succeeding fiscal 

24 years.’’. 
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1 (b) DEFINITIONS.—Section 502(a) of the Higher 

2 Education Act of 1965 (20 U.S.C. 1101a(a)) is amend3 ed—

4 (1) in paragraph (5)—

5 (A) by inserting ‘‘and’’ after the semicolon 

6 at the end of subparagraph (A); 

7 (B) by striking ‘‘; and’’ at the end of sub8 paragraph (B) and inserting a period; and 

9 (C) by striking subparagraph (C); and 

10 (2) by striking paragraph (7). 

11 (c) REDUCING REGULATORY BARRIERS FOR HIS12 PANIC-SERVING INSTITUTIONS.—Section 503(b) of the 

13 Higher Education Act of 1965 (20 U.S.C. 1101b(a)) is 

14 amended by striking paragraph (7) and inserting the fol15 lowing: 

16 ‘‘(7) Articulation agreements and student sup17 port programs designed to facilitate the transfer 

18 from two-year to four-year institutions.’’. 

19 (d) ELIMINATION OF WAIT-OUT PERIOD.—Sub20 section (a) of section 504 of the Higher Education Act 

21 of 1965 (20 U.S.C. 1101c(a)) is amended to read as fol22 lows: 

23 ‘‘(a) AWARD PERIOD.—The Secretary may award a 

24 grant to a Hispanic-serving institution under this title for 

25 5 years.’’. 
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1 (e) APPLICATION PRIORITY.—Section 521(d) of the 

2 Higher Education Act of 1965 (as redesignated by section 

3 401(a)(2)) (20 U.S.C. 1103(d)) is amended by striking 

4 ‘‘(from funds other than funds provided under this title)’’. 

5 TITLE V—HISTORICALLY BLACK 

6 COLLEGES AND UNIVERSITIES 

7 SEC. 501. CENTERS OF EXCELLENCE. 

8 Title II is amended by inserting after part D as 

9 added by section 201 of this Act the following new part: 

10 ‘‘PART E—CENTERS OF EXCELLENCE 

11 ‘‘SEC. 251. PURPOSES; DEFINITIONS. 

12 ‘‘(a) PURPOSES.—The purposes of this part are—

13 ‘‘(1) to help recruit and prepare teachers, in14 cluding minority teachers, to meet the national de15 mand for a highly qualified teacher in every class16 room; and 

17 ‘‘(2) to increase opportunities for Americans of 

18 all educational, ethnic, class, and geographic back19 grounds to become highly qualified teachers. 

20 ‘‘(b) DEFINITIONS.—As used in this part: 

21 ‘‘(1) ELIGIBLE INSTITUTION.—The term ‘eligi22 ble institution’ means—

23 ‘‘(A) an institution of higher education 

24 that has a teacher preparation program that 
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1 meets the requirements of section 203(b)(2) 

2 and that is—

3 ‘‘(i) a part B institution (as defined in 

4 section 322); 

5 ‘‘(ii) a Hispanic-serving institution (as 

6 defined in section 502); 

7 ‘‘(iii) a Tribal College or University 

8 (as defined in section 316); 

9 ‘‘(iv) an Alaska Native-serving institu10 tion (as defined in section 317(b)); or 

11 ‘‘(v) a Native Hawaiian-serving insti12 tution (as defined in section 317(b)); 

13 ‘‘(B) a consortium of institutions described 

14 in subparagraph (A); or 

15 ‘‘(C) an institution described in subpara16 graph (A), or a consortium described in sub17 paragraph (B), in partnership with any other 

18 institution of higher education, but only if the 

19 center of excellence established under section 

20 252 is located at an institution described in 

21 subparagraph (A). 

22 ‘‘(2) HIGHLY QUALIFIED.—The term ‘highly 

23 qualified’ has the meaning given such term in sec24 tion 9101 of the Elementary and Secondary Edu25 cation Act of 1965 (20 U.S.C. 7801). 
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1 ‘‘(3) SCIENTIFICALLY BASED READING RE2 SEARCH.—The term ‘scientifically based reading re3 search’ has the meaning given such term in section 

4 1208 of the Elementary and Secondary Education 

5 Act of 1965 (20 U.S.C. 6368). 

6 ‘‘(4) SCIENTIFICALLY BASED RESEARCH.—The 

7 term ‘scientifically based research’ has the meaning 

8 given such term in section 9101 of the Elementary 

9 and Secondary Education Act of 1965 (20 U.S.C. 

10 7801). 

11 ‘‘SEC. 252. CENTERS OF EXCELLENCE. 

12 ‘‘(a) PROGRAM AUTHORIZED.—From the amounts 

13 appropriated to carry out this part, the Secretary is au14 thorized to award competitive grants to eligible institu15 tions to establish centers of excellence. 

16 ‘‘(b) USE OF FUNDS.—Grants provided by the Sec17 retary under this part shall be used to ensure that current 

18 and future teachers are highly qualified, by carrying out 

19 one or more of the following activities: 

20 ‘‘(1) Implementing reforms within teacher prep21 aration programs to ensure that such programs are 

22 preparing teachers who are highly qualified, are able 

23 to understand scientifically based research, and are 

24 able to use advanced technology effectively in the 
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1 classroom, including use for instructional techniques 

2 to improve student academic achievement, by—

3 ‘‘(A) retraining faculty; and 

4 ‘‘(B) designing (or redesigning) teacher 

5 preparation programs that—

6 ‘‘(i) prepare teachers to close student 

7 achievement gaps, are based on rigorous 

8 academic content, scientifically based re9 search (including scientifically based read10 ing research), and challenging State stu11 dent academic content standards; and 

12 ‘‘(ii) promote strong teaching skills. 

13 ‘‘(2) Providing sustained and high-quality 

14 preservice clinical experience, including the men15 toring of prospective teachers by exemplary teachers, 

16 substantially increasing interaction between faculty 

17 at institutions of higher education and new and ex18 perienced teachers, principals, and other administra19 tors at elementary schools or secondary schools, and 

20 providing support, including preparation time, for 

21 such interaction. 

22 ‘‘(3) Developing and implementing initiatives to 

23 promote retention of highly qualified teachers and 

24 principals, including minority teachers and prin25 cipals, including programs that provide—
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1 ‘‘(A) teacher or principal mentoring from 

2 exemplary teachers or principals; or 

3 ‘‘(B) induction and support for teachers 

4 and principals during their first 3 years of em5 ployment as teachers or principals, respectively. 

6 ‘‘(4) Awarding scholarships based on financial 

7 need to help students pay the costs of tuition, room, 

8 board, and other expenses of completing a teacher 

9 preparation program. 

10 ‘‘(5) Disseminating information on effective 

11 practices for teacher preparation and successful 

12 teacher certification and licensure assessment prepa13 ration strategies. 

14 ‘‘(6) Activities authorized under sections 202, 

15 203, and 204. 

16 ‘‘(c) APPLICATION.—Any eligible institution desiring 

17 a grant under this section shall submit an application to 

18 the Secretary at such a time, in such a manner, and ac19 companied by such information the Secretary may require. 

20 ‘‘(d) MINIMUM GRANT AMOUNT.—The minimum 

21 amount of each grant under this part shall be $1,500,000. 

22 ‘‘(e) LIMITATION ON ADMINISTRATIVE EXPENSES.—

23 An eligible institution that receives a grant under this part 

24 may not use more than 2 percent of the grant funds for 

25 purposes of administering the grant. 
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1 ‘‘(f) REGULATIONS.—The Secretary shall prescribe 

2 such regulations as may be necessary to carry out this 

3 part. 

4 ‘‘SEC. 253. AUTHORIZATION OF APPROPRIATIONS. 

5 ‘‘There are authorized to be appropriated to carry out 

6 this part $20,000,000 for fiscal year 2006 and such sums 

7 as may be necessary for each of the 5 succeeding fiscal 

8 years.’’. 

9 SEC. 502. AUTHORIZATION OF APPROPRIATIONS. 

10 (a) AUTHORIZATIONS OF APPROPRIATIONS.—Section 

11 399(a) (20 U.S.C. 1068h(a)(2)) is amended—

12 (1) by striking paragraphs (1), (2), and (3) and 

13 inserting the following: 

14 ‘‘(1) PART A.—(A) There are authorized to be 

15 appropriated to carry out part A (other than section 

16 316 and 317)—

17 ‘‘(i) $170,000,000 for fiscal year 2006; 

18 and 

19 ‘‘(ii) such sums as may be necessary for 

20 each of the 5 succeeding fiscal years. 

21 ‘‘(B) There are authorized to be appropriated 

22 to carry out section 316—

23 ‘‘(i) $45,000,000 for fiscal year 2006; and 

24 ‘‘(ii) such sums as may be necessary for 

25 each of the 5 succeeding fiscal years. 
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1 ‘‘(C) There are authorized to be appropriated to 

2 carry out section 317—

3 ‘‘(i) $20,000,000 for fiscal year 2006; and 

4 ‘‘(ii) such sums as may be necessary for 

5 each of the 5 succeeding fiscal years. 

6 ‘‘(2) PART B.—(A) There are authorized to be 

7 appropriated to carry out part B (other than section 

8 326)—

9 ‘‘(i) $270,000,000 for fiscal year 2006; 

10 and 

11 ‘‘(ii) such sums as may be necessary for 

12 each of the 5 succeeding fiscal years. 

13 ‘‘(B) There are authorized to be appropriated 

14 to carry out section 326—

15 ‘‘(i) $90,000,000 for fiscal year 2006; and 

16 ‘‘(ii) such sums as may be necessary for 

17 each of the 5 succeeding fiscal years. 

18 ‘‘(3) PART C.—There are authorized to be ap19 propriated to carry out part C—

20 ‘‘(A) $30,000,000 for fiscal year 2006; and 

21 ‘‘(B) such sums as may be necessary for 

22 each of the 5 succeeding fiscal years.’’; and 

23 (2) by striking paragraph (5) and inserting the 

24 following: 
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1 ‘‘(5) PART E.—There are authorized to be ap2 propriated to carry out part E—

3 ‘‘(A) $40,000,000 for fiscal year 2006; and 

4 ‘‘(B) such sums as may be necessary for 

5 each of the 5 succeeding fiscal years.’’. 

6 (b) AUTHORIZED USES OF FUNDS FOR TITLE III.—

7 Section 323(a) (20 U.S.C. 1062(a)) is amended—

8 (1) by redesignating paragraph (12) as para9 graph (13); and 

10 (2) by inserting after paragraph (11) the fol11 lowing new paragraph: 

12 ‘‘(12) Technical assistance services, including 

13 financial management, enrollment management, 

14 strategic planning, replication of best practices, and 

15 other needed services, except that the amount ex16 pended under this paragraph shall not exceed 2 per17 cent of the institution’s annual award under this 

18 part.’’.

Æ